The subdivider shall submit an estimate of guarantee funds with the final plat if any public improvements are necessary. This form is available at the planning office. An administrative cost of 10 percent of estimated costs shall be added to the letter of credit to cover inspection, mileage, contingencies, administration and unknown costs.
If the estimate of guarantee funds has been checked and approved by the town engineer, the subdivider shall submit in favor of the town a corporate completion bond, an irrevocable letter of credit, a cashier's check, establish an escrow account, or provide other collateral acceptable to the council to secure to the town the actual construction of the improvements within a period of 18 months after the recording of the final plat. This must be submitted in order to have the approved final plat recorded. If the collateral has not been submitted within six months of the approval of the plat, a revised cost estimate must be submitted for approval in order to adjust to price and materials changes.
Recall of funds, if necessary, will be at the discretion of the council and by written request. Recalled funds may be credited to a special account and an accurate accounting of the costs incurred in the completion of defaulted work will be maintained.
As an alternate to the preceding method of handling defaulted work, the town engineer may elect to make contractual agreements wherein defaulted work will be completed under his supervision by contracts, with payment to the contractor direct from guarantee funds by order. Administrative expenses in the amount of 10 percent of contract amounts will be paid to the town upon order. Any residue of guarantee funds will be returned to the proper source.
Performance guarantees may be extended beyond the 18-month period with the following conditions:
(a) That the request for extension is made by the grantor at least 30 days prior to the terminating date of the active guarantee;
(b) That a schedule of completion be approved by the town engineer (priority for construction of arterial streets shall be a policy in evaluating a satisfactory schedule); and
(c) That the request be approved by the council.
Upon satisfactory completion of a phase of work or a portion thereof, the subdivider may make a request in writing for a partial release of funds. Amounts, so released, will be calculated on the same basis as used in the original estimate of funds. A retainer of not less than 10 percent will be deducted therefrom in accordance with the conditions as set forth in the following: |
Upon the completion of all improvements to the satisfaction of the town engineer (as determined by final inspection) a release of all funds except those required to cover the inspection cost of the town engineer (maximum = 10 percent of guarantee funds) may be made on the recommendation of the town engineer and at the direction of the council. |
Upon release of guarantee funds, the town will become responsible for maintenance responsibility of the public improvements. |
(1996 Code § 7-99; Ord. 419 Ch. 5 § 6, 1976)