The purpose of a performance guarantee is to secure the completion of all required improvements or the restoration of the site as the Town deems appropriate. Prior to approval, or as a condition of approval, the applicant shall provide a construction schedule and cost estimate for all required improvements to the Town Planner. Required improvements include, but are not limited to, street and utility construction, stormwater management, landscaping, erosion control, and monumentation, The Town Planner shall submit the cost estimate to the Town Engineer and Town Manager for review and approval.
A. Once the amount for the performance guarantee is set, the applicant shall provide a performance guarantee in one of the following acceptable forms:
(1) An escrow account funded by cash or a certified check payable to the Town of Cumberland and governed by an escrow agreement in a form reviewed by the Town Attorney and acceptable to the Town Manager. Any interest earned on the escrowed funds shall be retained by the Town.
(2) An irrevocable letter of credit from a financial institution in a form reviewed by the Town Attorney and acceptable to the Town Manager that provides at least 60 days' written notification of expiration. The terms and conditions shall include a maximum two-year time limit and an inflation clause.
(3) Any other performance guarantee reviewed by the Town Attorney as to form that provides security in an amount substantially equivalent to an escrow account or an irrevocable letter of credit.
B. Completion of required improvements shall be determined by the Town Manager, who shall receive written certification from the Town Engineer that all improvements assured by the performance guarantee have been constructed in conformance with the approved plan and all applicable codes and ordinances. In addition, the developer shall furnish at his own expense the signed certification by a registered surveyor or civil engineer that all permanent boundary markers or monuments have been installed and are accurately in place in the locations designated in the approved plan.
C. The performance guarantee may, in the discretion of the Town Manager, provide for a partial release of the performance guarantee amount as specific portions of the required improvements are completed.
D. Inspection of required improvements.
(1) The following are required improvements: monuments, street signs, water supply, sewage disposal, storm drainage, lighting and signing and pavement markings for traffic control, walking and biking trails, erosion control, or other improvements required by the Board, except where the Board may waive or modify such improvements in accordance with the provisions of these standards.
(2) At least five days prior to commencing construction of required improvements, the developer shall pay a fee of not less than 2% of the cost of the required improvements for construction inspections. Any amount in excess of actual cost shall be returned to the developer.
(3) If the Town Engineer shall find, upon inspection of the improvements performed before expiration date of the performance bond, that any of the required improvements have not been constructed in accordance with plans and specifications filed by the developer, he/she shall so report to the Code Enforcement Officer and Town Planner, who shall then inform the Town Manager. The Town Manager shall then notify the developer and, if necessary, the bonding company or bank holding the letter of credit and take all necessary steps to preserve the municipality's right under the performance guarantee.
(4) Upon completion of the development, the developer shall notify the municipal officers in writing stating that all improvements have been completed.