(A) General. All improvements, installations and lot improvements required by this chapter shall either be complete or assurance for their completion and maintenance shall be provided as set forth below, for all subdivisions which involve the dedication and extension of any easement or public improvement, or the acceptance of any easement or public improvement by the town. Minor residential subdivisions which do not involve the dedication and extension of any easement or public improvement shall be exempt from the provisions of this section.
(B) Completion of improvements, installations and lot improvements. Before the secondary plat is signed by the President and Secretary of the Plan Commission, the subdivider shall complete, in accordance with the Plan Commission’s decision and to the satisfaction of the town, all public improvements (including, but not limited to, street, street signs, sanitary sewer, storm drainage, sidewalk and water) and lot improvements (including, but not limited to, erosion control, final grading and soil preservation, lot drainage, removal of debris and waste, fencing and lawn seeding or sodding), as required by this chapter and specified in the secondary plat approved pursuant to this chapter, and dedicate the public improvements to the town, free and clear of all liens and encumbrances on the dedicated property and public improvements.
(C) Surety for improvements, installations and lot improvements.
(1) Before the secondary plat is signed by the President and Secretary of the Plan Commission, the subdivider shall post a performance bond or irrevocable letter of credit in a form acceptable to the Plan Commission in which the subdivider covenants to complete all required sanitary sewer, water system, street base, binder and curbs and storm drainage improvements no later than two years following the date on which the President and Secretary of the Plan Commission sign and certify the secondary plat, and to complete all other required improvements, installations and lot improvements, including, but not limited to, sidewalks, erosion control, fencing, debris and waste removal, soil preservation, lot drainage, final grading and lawn preparation, street signs, monumentation and street topcoat improvements. The subdivider shall covenant to maintain each required improvement and also shall warrant that all required improvements will be free from defects for a period of three years following the acceptance by the town of the dedication of the last completed improvement. The performance bond shall provide that the covenants contained in the performance bond shall run with the land and bind all heirs, executors, administrators, successors and assigns of the subdivider. The performance bond shall contain such other terms and conditions as agreed to by the subdivider and the Plan Commission.
(2) The subdivider shall provide a performance bond or irrevocable letter of credit before the seal of the Plan Commission is affixed and attached to the secondary plat.
(3) A performance bond shall:
(a) Run jointly and severally to the Town Council and the Plan Commission;
(b) Be in an amount equal to 100% of the cost, as established pursuant to an estimate submitted to and approved by the town’s Engineer and the Building Commissioner, for the completion of all improvements and installations required by this chapter;
(c) Provide surety satisfactory to the Plan Commission;
(d) Be in effect until compliance with the terms and provisions of the performance bond and the execution of a written release of performance bond by the Building Commissioner;
(e) Specify that all improvements and installations shall be completed in accordance with the requirements and specifications of this chapter:
1. For single-family or two-family subdivisions, prior to the time that single-family or two-family dwellings are upon 90% of the lots shown upon the secondary plat or within three years after the date on which the President of the Plan Commission and the Secretary sign said secondary plat, whichever occurs first; or
2. For multi-family, business or industrial subdivisions, within three years after the date on which the President of the Plan Commission and the Secretary sign said secondary plat.
(f) Provide that, upon completion of said improvements and installations, but prior to acceptance thereof for public maintenance by the town, the subdivider shall provide a maintenance bond as required by this chapter;
(g) Said performance bond shall be filed on bond or letter of credit forms approved for use by the Plan Commission; and
(h) The beneficiary of all performance bonds shall be the Town Council.
(4) An irrevocable letter of credit shall:
(a) Run jointly and severally to the Town Council and the Plan Commission;
(b) Be in an amount equal to 100% of the cost, as established pursuant to an estimate submitted to and approved by the Town Engineer and the Building Commissioner, for the completion of all improvements and installations required by this chapter;
(c) Provide surety satisfactory to the Plan Commission;
(d) Be in effect until:
1. The execution of a written release of irrevocable letter of credit by the Building Commissioner;
2. Compliance with the terms and provisions of this chapter;
3. All improvements and installations have been completed in accordance with the requirements and specifications of this chapter:
a. For single-family or two-family subdivisions, prior to the time that single- family or two-family dwellings are upon 90% of the lots shown upon the secondary plat or within three years after the date on which the President of the Plan Commission and the Secretary sign said secondary plat, whichever occurs first; or
b. For multi-family, business or industrial subdivisions, within three years after the date on which the President of the Plan Commission and the Secretary sign said secondary plat.
4. The provision by the subdivider of a maintenance bond as required by this chapter prior to acceptance of improvements and installations for public maintenance by the town.
(e) Said irrevocable letter of credit shall be filed on letter of credit forms approved for use by the Plan Commission; and
(f) The beneficiary of all irrevocable letters of credit shall be the Town Council.
(D) Proof of compliance.
(1) Upon completion of all improvements and installations as required by this chapter, the subdivider shall furnish the Plan Commission with appropriate documentation indicating that said improvements, installations and lot improvements have been constructed, installed and completed in compliance with the provisions of this chapter, the requirements of the Plan Commission and the provisions of other applicable ordinances of the town.
(2) The Plan Commission shall, by rule, prescribe the procedures for determining whether all improvements, installations and lot improvements have been constructed and completed as required by this chapter.
(E) Completion letter. Upon acceptance of a required improvement or installation, the accepting agency or department of the town shall provide a completion letter to the subdivider stating that the required improvements and installations for which that agency or department is responsible have been accepted for maintenance by the town, subject to the terms of a maintenance bond, as required below, and shall file a copy of such completion letter with the Building Commissioner of the town.
(F) Maintenance bond. Upon completion of all required improvements and installations, but prior to the acceptance of such improvements and installations for public maintenance, the subdivider shall provide a three-year maintenance bond, with the subdivider or some other person satisfactory to the Plan Commission as principal, which shall:
(1) Run jointly and severally to the Town Council and the Plan Commission;
(2) Be in an amount equal to 10% of the amount of the performance bond for the improvements and installations subject to the maintenance bond;
(3) Provide surety satisfactory to the Plan Commission;
(4) Warrant the workmanship and materials used in the construction, installation and completion of said improvements and installations to be of good quality and have been constructed and completed in a workmanlike manner in accordance with the standards, specifications and requirements of this chapter and the satisfactory construction plans and specifications therefor submitted to the Building Commissioner of the town;
(5) Provide that, for a period of three years after formal acceptance, the subdivider shall, at the subdivider’s expense, make all repairs to said improvements and installations, or the foundations thereof, which may become necessary by reason of improper workmanship or materials, but not including any damage to said improvements and installations resulting from forces or circumstances beyond the control of said subdivider or occasioned by the inadequacy of the standards, specifications or requirements of this chapter;
(6) Maintenance bonds shall be filed on forms approved for use by the Plan Commission; and
(7) The beneficiary of all maintenance bonds shall be the Town Council.
(G) Use of bond funds. Any funds received from the performance bonds for subdivision improvements and installations or from the maintenance bonds for the maintenance of improvements and installations required by this chapter shall be used only for the purpose of making improvements, installations or repair for which said bonds were provided in accordance with the standards, specifications and requirements of this chapter.
(H) Deferral or waiver of required improvements.
(1) (a) The Plan Commission shall have the authority to defer or waive, in its discretion, at the time of primary plat approval and subject to any appropriate conditions, the provision of any or all of the public improvements required by this chapter which, in the judgement of the Plan Commission, are:
1. Not required to protect the public health, safety and general welfare;
2. Inappropriate because of incompatible grades, future planning, the inadequacy or non-existence of connecting facilities; or
3. Inappropriate for other reasons presented to and agreed to by the Plan Commission.
(b) Any determination to defer or waive the provisions of any public improvements or installations required by this chapter shall be accomplished by way of a motion, approved by a majority vote of the Plan Commission at a public hearing, which motion shall include the reasons for the deferral or waiver.
(2) When the Plan Commission, in its discretion, determines that a deferral of an improvement or installation is appropriate, the subdivider shall post a separate performance bond or irrevocable letter of credit, in an amount determined by the Plan Commission, guaranteeing completion of the deferred improvements or installations upon demand by the town.
(I) Approval of construction plans. No construction of any improvement, installation or lot improvement within a subdivision required by this chapter, the Plan Commission or any other applicable ordinance of the town shall commence prior to the approval of construction plans by the Town Engineer.
(Ord. 2000-21, passed 11-6-2000)