SECTION 7

FINANCIAL ASSURANCE
(revised 4-22-09)

15.7.1.        Improvement installation guarantee.
15.7.2.        Default.
15.7.3.        Maintenance guarantee.
15.7.4.        Acceptance release of surety.
15.7.5.        Engineering review and inspection fee.


15.7.1. Improvement installation guarantee.

   (1)  In lieu of actual installation of off-site and common open space improvements required by this chapter, and before final plat approval by the Town Council, the subdivider/developer shall guarantee the installation of such improvements by one or a combination of the following financial guarantee methods: a corporate surety bond, a deposit in escrow with an escrow holder or a letter of credit with a financial institution. The Town Council shall review the plat and may review the financial guarantee for the subdivision improvements at a public meeting where it can approve or deny the plat.  If approved, the plat shall be recorded within ninety days or it shall be void.  The Town Council may authorize the Mayor and Town attorney to review and approve the financial guarantee and the final conveyance of water rights after approval of the final plat, but prior to the final plat being recorded.

   (2)  The guarantee shall be in an amount equal to 120% of the projected costs of required improvements as estimated by a licensed engineer retained by the subdivider and approved by the Town engineer.  The guarantee shall assure the actual construction of such improvements within two years immediately following the approval of the final plat by the Town Council and shall include a maintenance guarantee as required by Section 16.7.3 herein.

   (3)  The guarantee shall be filed with the Town recorder.

   (4)  The guarantee shall be approved as to method, institution and form by the Town attorney.

15.7.2.  Default.

   In the event the subdivider/developer defaults or fails or neglects to satisfactorily install required improvements within two years from date of approval of the final plat, the Mayor may declare the bond, escrow, deed of trust, or letter of credit forfeit and may execute thereon and install or cause the required improvements to be installed using the proceeds from the collection to defray the expenses thereof.  The subdivider shall be responsible for all costs incurred by the Town to complete the required improvements in excess of the proceeds of the guarantee amount.

15.7.3.  Maintenance guarantee.

   (1) The subdivider/developer shall guarantee that all required improvements will remain in good condition for a period of one year after the date of initial acceptance by the Town.  The subdivider shall make all repairs to and maintain the improvements in good condition during the warranty period, at no cost to the Town.  The Town may require that the improvement assurance warranty be in place for a period of two years following final acceptance by the Town, if the Town determines for good cause that a lesser period would be inadequate to protect the public health, safety and welfare, and has substantial evidence of prior poor performance of the subdivider/developer; unstable soil conditions exist within the subdivision or development area; or extreme fluctuations exist in climatic conditions that would render impracticable the discovery of substandard or defective performance within a one year period.   The guarantee shall extend to and include, but shall not be limited to necessary utilities, the entire street, subgrade, base, and surface and all pipes, joints, valves, backfill and compacting, trails, as well as the working surface, curbs, gutters, sidewalks, landscaping and other accessories that are, or may be, affected by construction operations.






(1)