Section 148-25 DEVELOPERS' SECURITIES.


A.  All required on-site and off-site improvements shall be secured with a performance bond, cash escrow or letter of credit to ensure that the required improvements are satisfactorily completed. The amount of the security shall be calculated by the Director of Public Works based on the projected cost of installation of the improvements. The amount of such security shall not exceed the total of the estimated cost of construction based on unit prices for new public or private sector construction in the locality and a reasonable allowance for estimated administrative costs, inflation, and potential damage to existing roads or utilities, which shall not exceed twenty-five percent (25%) of the estimated construction costs. Such security shall be payable to and held by the Town.  The form of the security shall be approved by the Town Attorney.

 

(Ord. No. 14-98 Amended 8-10-98-Effective Upon Passage)

(Ord. No. 04-05 Amended 2-14-05-Effective Upon Passage)

 

B.  Upon completion of part or all of the individual facilities covered by a security, the subdivider or developer may request a partial or final release of the security as provided below. All such requests shall be made in writing and shall be acted upon within thirty (30) days of receipt by the Town Council. Requested releases shall be approved unless the governing body or its designated administrative agency notifies the subdivider or developer, in writing, prior to the expiration of the 30-day period of the non-receipt of approval by any applicable state agency or of any specified defects or deficiency in construction and the suggested corrective measures to be taken. However, not more than three (3) partial releases shall be permitted in any 12-month period, and periodic partial releases may not occur before the completion of at least thirty percent (30%) of the facilities covered by the security. Partial releases shall be granted in such amounts as represent the percentage of the facilities and work completed at the time of the request for partial release, provided that in no case shall a partial release result in the Town retaining less than ten percent (10%) of the original bond until full and final completion and acceptance of the facilities covered by the security. Upon final completion and acceptance of the facilities covered by the security, the governing body or designated administrative agency shall release any remaining security. For the purpose of final release, the term "acceptance" is deemed to mean when said public facility is accepted by and taken over for operation and maintenance by the town or such other public authority which is responsible for maintaining and operating such a facility upon acceptance.

 

1. Partial releases of securities for road and/or street improvements may not be considered or granted before the completion and acceptance of final pavement of any road, street, road segment or street segment, and then, upon request, shall be granted in full; provided such road, street, road segment or street segment connects to a street in the accepted Town street system. For the purpose of this section road segment and street segment shall mean the length of any complete road or block thereof and shall include all public facilities within the full width of any right-of-way.

 

2. Releases of the portion of securities for electrical facility improvements shall not be considered or granted before such facilities are completed, and then, upon request, shall be granted in full.

 

3.  Releases of the portion of securities for water, sewer, storm sewer and/or drainage facilities shall not be considered or granted before such facilities are completed, and then, upon request, shall be granted in full.

 

4.  Releases of the portion of securities for sidewalk and/or curb and gutter facilities shall not be considered or granted before such facilities are completed, and then, upon request, shall be granted in full.

 

(Ord. No. 14-98 Amended (B) 8-10-98-Effective Upon Passage)

(Ord. 04-05 Amended (B) and Added (1-4) 2-14-05-Effective Upon Passage)

 

C.  For all securities issued pursuant to Subsection A and in an original amount of $10,000 or less, the Director of Planning hereby is designated as the Town Council's administrative agent for authorizing partial and final releases as set forth in Subsection B herein.

 

(Ord. No. 14-98 Added (C) 8-10-98-Effective Upon Passage)

(Ord. No. 04-05 Amended (C) 2-14-05-Effective Upon Passage)

 

D.  For the purpose of this section the terms "developer's securities" and "securities" shall mean any bond, escrow, letter of credit or other performance guarantee required by the Council in a form approved by the Town Attorney and in such amount(s) approved by the Director of Planning and/or the Director of Public Works sufficient to guarantee the completion of public improvements shown on a subdivision plat or site plan and to be completed by the developer as part of the approval of a subdivision plat or site plan process.

 

 (Ord. No. 04-05 Added (D) 2-14-05-Effective Upon Passage)