[Adopted 3-12-1987 by L.L. No. 2-1987]
As used in this article, the following terms shall have the meanings
indicated:
DEFAULT
A declaration by the Town Board at any time subsequent to the expiration
of the term of a performance or maintenance bond that the development of the
subdivision has advanced to a stage where the public improvements shall be
completed forthwith.
FULL COST OF COMPLETING PUBLIC IMPROVEMENTS
Includes, without limitation, the cost of preparation and review
of plans, reports, specifications and documents, the cost of enforcement of
performance or maintenance bonds and/or the obligation of owners to complete
the public improvements and the cost of municipal compliance with prevailing
wage and bidding requirements.
MAINTENANCE BOND
A bond, collateral to the principal obligation of the owner, to secure
or guaranty the proper maintenance of public improvements in a subdivision,
which bond remains in full force and effect for a period of time after completion
of said improvements or until the bond is released by resolution of the Town
Board with the concurrence of the Planning Board.
OWNER
The person or entity which undertakes to subdivide land and whose
responsibility it is to properly complete public improvements in subdivisions.
The term "owner" shall include the terms "principal" and "subdivider" and
"developer" and the term "coprincipal" as used in a performance or maintenance
bond.
PERFORMANCE BOND
A bond, collateral to the principal obligation of the owner, to secure
or guaranty the proper completion of public improvements in a subdivision,
which bond remains in full force and effect until all public improvements
are complete, the subdivision is abandoned without the sale of lots or the
bond is released by resolution of the Town Board with the concurrence of the
Planning Board.
PUBLIC IMPROVEMENTS
Those improvements which are to be used in common by residents of
the subdivision or by the public, whether or not such improvements are offered
for dedication. Public improvements shall include, without limitation, improvements
referenced in the Town Law, improvements depicted or referenced on the plat,
improvements required by law, code, ordinance, rule or regulation and improvements
agreed to by the owner.
TERM OF A PERFORMANCE OR MAINTENANCE BOND
The period during which a municipality may not declare a default.
Notwithstanding this definition, the Town Board may in proper cases declare
a default with respect to erosion control and drainage in order to protect
the public health, safety and welfare. Notice and due process protection may
be modified in accordance with the severity of the deficiency being remedied.
[Amended 5-8-1997 by L.L. No. 4-1997]
Prior to the final approval of any subdivision plat, the owner shall
either complete all public improvements or post a performance bond in an amount
sufficient to cover the full cost of completing the public improvements which
are not completed. No building permits shall be issued in a subdivision prior
to final approval of the subdivision plat.
[Amended 5-8-1997 by L.L. No. 4-1997]
Prior to the acceptance of any public improvement, the owner shall post
a maintenance bond in an amount sufficient to cover the cost of maintaining,
repairing or replacing public improvements which are improperly installed,
defective in design or otherwise unsuitable for the purposes intended. The
amount of the maintenance bond shall be determined by the Highway Superintendent
or, if requested, by the Town Engineer, and shall be equal to not less than
10% of the original amount of the performance bond or original approved cost
estimate for the public improvements.
All performance and maintenance bonds posted subsequent to the effective
date of this article shall be in a standard form approved by the Town Board.
The Town Board, with the advice of the Attorney, shall from time to time adopt
by resolution standard form bonds of the following types:
A. Irrevocable letter of credit.
C. Surety bond. No surety bond shall be accepted by the
Town of Crawford unless said bond includes a provision guaranteeing payment
of the Town's legal fees for enforcement of the bond in an amount not less
than 10% of the bond amount or $10,000, whichever is greater. Any bond submitted
to the Town pursuant to Town Law § 278 or this chapter shall be
deemed to include said provision in accordance herewith. Nothing herein shall
preclude the court from awarding additional costs, fees or sanctions for frivolous
litigation practice on the part of the principal or surety of the bond.
[Amended 5-8-1997 by L.L. No. 4-1997]
No performance or maintenance bond nor any increase or reduction thereof
shall be deemed approved until the following are entered into the minutes
of the Town Board:
A. Approval by the Planning Board of the bond amount or
the increase or reduction of such amount.
B. Approval by the Attorney of the form, sufficiency and
execution of the bond or the increase or reduction thereof.
C. Approval by the Town Board of the security or surety.
The Town Board may, in particular cases, require a particular form of bond.
D. Certification by the Town's Engineer that the amount
of the bond would be sufficient to fully compensate the municipality for the
cost of constructing all required improvements, including the costs of competitive
bidding and compliance with public works laws.
E. Certificate by the surety of its experience in guaranteeing
projects of this type. Information required to validate this certification
shall include:
(1) Number of claims and amounts paid prior to settlement.
(2) Number of claims paid upon demand of the municipality
prior to litigation.
(3) Number of claims paid after litigation.
(4) Number of subdivisions completed by surety after default
of contractor.
(5) References from other municipalities.
Estimates of performance and maintenance bond amounts shall be based
upon the full cost of properly completing the public improvements. Allowance
shall be made for the cost of compliance with bidding and public works laws
and for the expense of enforcement of the bond. Underestimation of the bond
amount shall not estop the Town of Crawford in an action against the owner
on the obligation to complete the improvements.
This article shall be applicable to all subdivisions hereafter approved
and to all subdivisions which have been heretofore approved but in which public
improvements have not been completed pursuant to the terms of this article,
except that provisions of this article which are determined to be inconsistent
with Town Law § 276 shall be applicable to subdivisions heretofore
approved three years after the effective date of this article.
The duties of the Town of Crawford, its officers, agents and employees
pursuant to this article are general duties of the Town of Crawford to protect
the public health, safety and welfare. No person is authorized to create or
imply a special relationship pursuant to this article.