There are two types of financial guarantees for improvements: performance guarantees and maintenance guarantees.
(1)
Performance Guarantee: A performance guarantee is a security instrument accepted by the Town to ensure that all improvements, facilities, or work required by these Regulations or as a condition of approval will be completed in compliance with the approved plans and specifications.
(2)
Maintenance Guarantee: A maintenance guarantee is a security instrument accepted by the Town to ensure that necessary improvements will function as required for a specific period of time.
(a) 
The Applicant's Preliminary Plan submission shall include a letter:
(1) 
Requesting that a performance guarantee sufficient to cover the cost of required improvements be established by the Planning Board, and which shall indicate the type of guarantee proposed; or
(2) 
Indicating his/her intent to complete the required improvements without a performance guarantee prior to the recording of the plan; or
(3) 
Requesting a combination thereof.
(b) 
Proposed arrangements for completion of required improvements shall be reviewed and approved by the Planning Board at Preliminary Plan approval.
(a) 
Performance Guarantee. A performance guarantee shall be in an amount, and with all necessary conditions, to secure for the Town the actual construction and complete installation of all of the required improvements within the time period specified by the Planning Board. The amount shall be based upon actual cost estimates for all required improvements. These estimates shall be prepared by the Town Engineer or his/her authorized representative (hereafter "Town Engineer"), who shall review the estimates, if requested, with the Applicant.
The Planning Board may set the performance guarantee in a reasonable amount in excess of the estimated costs in order to anticipate increases in economic or construction conditions. However, the amount of such increase shall not exceed 120% of the estimated cost of improvements.
The Planning Board shall establish the amount of the performance guarantee prior to Final Plan approval. If Final Plan approval is handled administratively, the Planning Board may establish the amount of the performance guarantee at a separate meeting prior to Final Plan approval.
The Planning Board may review and revise the performance guarantee amount if the project is delayed beyond the original time period.
(b) 
Maintenance Guarantee. A maintenance guarantee shall be in an amount equal to 20% of the performance guarantee amount set by the Planning Board during the Preliminary Plan approval process in a manner similar to that of performance guarantees. If improvements were completed without a performance guarantee, the Board shall follow the process described above for establishing performance guarantee cost estimates and the maintenance guarantee will be an amount equal to 20% of that figure. The Board may revise the amount of the Maintenance Guarantee based on the Town Engineer's recommendation at the time the developer requests the release of the Performance Guarantee.
The security shall be in the form of a cash bond or insurance bond in the name of the developer or subdivider (not in the name of a third party contractor or other person or entity) that is acceptable to the Town of Cumberland Finance Director. The guarantor shall be licensed to do business in the State of Rhode Island through the Department of Business Regulation. The security and reliability of the person or company furnishing the financial instrument must be satisfactory to the Town of Cumberland Finance Director. The instrument shall enable the Town to gain timely access to the secured funds, for cause.
Acceptance of the financial instrument in accordance with the Planning Board's vote to set the amount of the guarantee by the Administrative Officer shall constitute a binding agreement between the Developer, the guarantor, and the Town of Cumberland. The guarantee shall be retained for safekeeping by the Finance Director of the Town of Cumberland.
1. 
Construction of Improvements.
For improvements that will be constructed after the posting of a performance guarantee, construction and installation of all required improvements shall be completed within one year from the date of acceptance of the guarantee by the Administrative Officer. If construction and installation of required improvements cannot be completed in the prescribed time due to circumstances beyond the control of the Developer, the Planning Board may grant an extension for a period not to exceed one year. If required improvements are still not complete, the Town may access the secured funds and complete the construction, in accordance with the approved plans. Alternatively, the Board may authorize the extension of the performance guarantee period to allow the Developer to construct required improvements or authorize the issuance of a new performance guarantee, based on an existing conditions map and revised bond estimate. All guarantees shall remain in full force during such time extensions.
2. 
Releases and Reductions of Performance Guarantee.
Completion of All Improvements. Upon completion of all required improvements, the Developer shall submit one set of "as built drawings" and a written request to the Town Engineer to conduct a final construction inspection, as required in these Regulations. Thereafter, the Developer shall submit a written request to the Planning Board for release of 80% of the performance guarantee, which shall be accompanied by a certification from the Town Engineer that all improvements are complete and in satisfactory condition. The remaining 20% will be held as the maintenance guarantee.
Partial Completion of Improvements. The Planning Board may authorize reductions of the performance guarantee amount at any time during the construction process, in an amount up to 80% of the guarantee. The Developer shall submit a written request to the Town Engineer to conduct an inspection of the improvements for which he or she seeks a reduction, as required in these Regulations. Thereafter, the Developer shall submit a written request to the Planning Board for the reduction of the guarantee in an equivalent amount, which shall be accompanied by a certification from the Town Engineer that such improvements are complete and in satisfactory condition.
Partial bond reductions shall take place a maximum of two times per construction phase.
3. 
Maintenance Guarantee.
The remaining 20% of the performance guarantee shall serve as a maintenance guarantee.
Duration. After the Town Engineer certifies the improvements to be complete and the performance guarantee has been released, the one year maintenance period shall begin. In cases where the Planning Board finds there are extenuating circumstances, the maintenance period may be established for a period longer than one year. The reasons for establishing a longer maintenance period and the nature of the extenuating circumstances shall be made a part of the record.
Release. Upon expiration of the maintenance period, the Developer shall submit a written request to the Town Engineer to conduct a final maintenance inspection, as required in these Regulations. Thereafter, the Developer shall submit a written request to the Planning Board for release of the remaining 20% of the guarantee, which shall be accompanied by a certification from the Town Engineer that all improvements are in satisfactory condition for release of the maintenance guarantee.
1. 
Construction of Improvements.
If improvements will be constructed without a performance guarantee, construction and installation of all required improvements shall be completed prior to recording of the Final Plan. The Developer shall submit one set of "as built drawings" and a written request to the Town Engineer to conduct a final construction inspection. Upon satisfactory completion of all required improvements, the Town Engineer shall certify to the Planning Board that the improvements are complete and in satisfactory condition.
2. 
Maintenance Guarantee.
The applicant shall not record the Final Plan until a maintenance guarantee for all public improvements that are being dedicated to the Town for acceptance and/or maintenance is accepted by the Administrative Officer.
Duration. After the Town Engineer certifies to the Planning Board that the improvements are complete and in satisfactory condition and the maintenance guarantee has been accepted, the one year maintenance period shall begin. In cases where the Planning Board finds there are extenuating circumstances, the maintenance period may be established for a period longer than one year. The reasons for establishing a longer maintenance period and the nature of the extenuating circumstances shall be made a part of the record.
Release. Upon expiration of the maintenance period, the Developer shall submit a written request to the Town Engineer to conduct a final maintenance inspection, as required in these Regulations. Thereafter, the Developer shall submit a written request to the Planning Board for release of the maintenance guarantee, which shall be accompanied by a certification from the Town Engineer that all improvements are in satisfactory condition for release of the maintenance guarantee.
(1) 
The Town of Cumberland shall hold the Developer in default should the Developer fail to:
[Amended 6-29-2018]
a. 
Meet all specifications for construction of required improvements to the land, as set forth in these Regulations or as stipulated during the approval process; or
b. 
Meet the following preconstruction requirements prior to the beginning of any site work, which shall include the scheduling of a preconstruction conference with the Town Engineer, or his/her authorized field representative, to secure Town authorization to commence work; and the staking of the limits of disturbance in the field, as delineated on the approved Final Plan(s); or
c. 
Properly notify the Town Engineer of the beginning and completion of all phases of construction of required improvements to the land, as outlined in these Regulations; or
d. 
Protect existing improvements and/or properly repair such improvements should damage occur during construction of the subdivision or land development project; or
e. 
Remove all debris, including boulders and stumps, from the site and adjacent areas immediately upon completion of construction and/or as directed by the Town Engineer or Building Official; or
f. 
Complete required improvements to the land within the time prescribed in these Regulations; or
g. 
Correct improvement deficiencies evident within one year of completion of said improvements; or
h. 
Keep the road passable upon the occupancy of any units; or
i. 
Provide the Town Engineer, or his/her authorized representative, with as-built plans of the improvements.
j. 
Final Plans shall specify all approved waivers and shall further specify the aforementioned requirements with general construction notes.
(2) 
Should any of the conditions cited above occur, the Town Engineer shall certify in writing to the Administrative Officer that the Developer has not complied with the requirements of these Regulations and the plans as approved by the Planning Board. The Town Engineer shall further explain the extent of non-compliance and the conditions thereof. The Planning Board shall give the Developer an opportunity to respond at a Planning Board meeting. If the Planning Board concurs with the Town Engineer and deems the Developer to be in default, the Planning Board may authorize the Solicitor to enforce the guarantees by all appropriate legal and equitable remedies.
When projects are approved and constructed in phases, the Planning Board shall specify improvement guarantees related to each particular phase. If any off-site improvements or other improvements or conditions which are not directly related to a particular phase are required as a condition of approval, the Planning Board shall, in setting the guarantee amount for each phase, clearly specify when such guarantees are to be provided and the amount for same.
The Planning Board may require improvements that are proposed to be privately owned and maintained to be covered by an improvement guarantee in a manner similar to the process for public improvements.
Developer shall be responsible for the construction, maintenance, and overall quality of required improvements until the Town formally accepts the improvements for ownership and maintenance. The Developer shall be responsible for the construction, maintenance, and overall quality of required improvements until such time, notwithstanding the transfer of ownership to, the delegation of duties to, or damages caused by:
(1) 
An agent, contractor, or sub-contractor hired by, or on behalf of the Developer;
(2) 
A builder;
(3) 
A public or private utility company; or
(4) 
Any other person or entity performing work as part of the proposed subdivision or land development.