The town may, at its discretion, require the submittal of a performance bond, letter of credit from, or cash escrow account with a local bank prior to issuance of a permit. If improvements are not installed prior to approval of a record plat, the town shall require the submittal of a performance bond, letter of credit from, or cash escrow account with a local bank prior to issuance of a permit. This performance security is required in order to ensure that the structural BMPs are installed by the permit holder as required by the approved stormwater management plan, and/or maintained by the owner as required by the operation and maintenance agreement.
(A) Form and amount of installation performance security. The amount of an installation performance security must equal at least 125% of the estimated cost of the required improvements, including project management costs that have not been installed by the time of record plat submittal.
(B) Form and amount of maintenance performance security. The amount of a maintenance performance security must be at least 125% of the total estimated construction cost of the structural BMPs approved under the permit.
(C) Uses of performance security for installation.
(1) Forfeiture provisions. The performance security shall contain forfeiture provisions for failure, after proper notice, to complete work within the time specified, or to initiate or maintain any actions which may be required of the applicant or owner in accordance with this chapter, approvals issued pursuant to this chapter, or an operation and maintenance agreement established pursuant to this chapter.
(2) Default. Upon default of the owner to construct, maintain, repair and, if necessary, reconstruct any structural BMP in accordance with the applicable permit or operation and maintenance agreement, the Stormwater Administrator shall obtain and use all or any portion of the security to make necessary improvements based on an engineering estimate. Such expenditure of funds shall only be made after requesting the owner to comply with the permit or maintenance agreement. In the event of a default triggering the use of installation performance security, the town shall not return any of the unused deposited cash funds or other security, which shall be retained for maintenance.
(3) Costs in excess of performance security. If the town takes action upon such failure by the applicant or owner or property owners’ association, the town may collect from the applicant or owner or property owners’ association the difference between the amount of the reasonable cost of such action and the amount of the security held, in addition to any other penalties or damages due.
(4) Refund. Within 60 days of the final approval, the installation performance security shall be refunded to the applicant or terminated, except any amount attributable to the cost (plus 25%) of landscaping installation and ongoing maintenance associated with the BMPs covered by the security. Any such landscaping shall be inspected one year after installation with replacement for compliance with the approved plans and specifications and, if in compliance, the portion of the financial security attributable to landscaping shall be released.
(D) Uses of performance security for maintenance.
(1) Forfeiture provisions. The performance security shall contain forfeiture provisions for failure, after proper notice, to complete work within the time specified, or to initiate or maintain any actions which may be required of the applicant or owner in accordance with this chapter, approvals issued pursuant to this chapter, or an operation and maintenance agreement established pursuant to this chapter.
(2) Default. Upon default of the owner to construct, maintain, repair and, if necessary, reconstruct any structural BMP in accordance with the applicable permit or operation and maintenance agreement, the Stormwater Administrator shall obtain and use all or any portion of the security to make necessary improvements based on an engineering estimate. Such expenditure of funds shall only be made after requesting the owner to comply with the permit or maintenance agreement. In the event of a default triggering the use of installation performance security, the town shall not return any of the unused deposited cash funds or other security, which shall be retained for maintenance.
(3) Costs in excess of performance security. If the town takes action upon such failure by the applicant or owner or property owners’ association, the town may collect from the applicant or owner or property owners’ association the difference between the amount of the reasonable cost of such action and the amount of the security held, in addition to any other penalties or damages due.
(Ord. 2010-27, passed 1-6-2010)