3.17.1 Policy

3.17.1.1 Security Required In order to protect the Town from the financial burdens resulting from damage to or increased maintenance costs for Town facilities and Infrastructure that may occur as a result of incomplete or inadequate site improvements on private construction projects or off-site improvements performed by the developer as required by the Town and as required through the Infrastructure Impact review analysis process as defined in chapter 1, it is the policy of the Town to require that developers either complete all required on or off-site improvements prior to occupancy, or if that is not possible, that adequate financial security for that completion, together with a right of entry to the property to complete that work be granted to the Town. It is specifically the intention of the Town to require that storm drainage work, paving, curb and gutter, water and sewerage facilities, soil retention structure, and landscaping as needed to control erosion be completed according to standards adopted by the Town, so that residents and taxpayers at large are not required to pay the costs of damage repair or disproportionately increased maintenance for any of these facilities. No plat will be approved, where required, and no certificate of occupancy granted unless and until adequate financial security is posted in accordance with this section. 3.17.1.2 No Third Party Beneficiaries Intended It is the intention of the Town that this financial security given by the developer be limited to a contract between the Town and the developer for the express purpose of providing for the protection of Town facilities and elimination of conditions which could become public nuisances. It is not intended that this security be available for payment of subcontractors or material suppliers in the nature of a surety bond, or that the security provided become available to the purchasers of property to correct construction flaws or defects which are the fault of the developer. In no event will the funds be used for purposes other than those stated in this section and the time and manner of the expenditure, and prioritization of work performed shall rest in the sole discretion of the Town. 3.17.2 Construction According to Approved Plans All construction shall be completed according to the approved plans and specifications on which the zoning clearances were issued. The approved plans shall also include the site improvements shown on the site plan. For purposes of this Code, the term "site improvements" shall include all roads, sidewalks, curbs, gutters, drains, drainage works, grades, walls, landscaping, planting, paving, utility lines and related facilities, paths and trails, and similar improvements as shown on the set of plans on which the final approval and zoning clearances are based. "Off-site Improvements" shall refer to all facilities as defined in "site improvements" above but off of the development parcel(s) and required by the infrastructure impact review studies. These improvements will be constructed at the same time as the building development that required the improvements and will be constructed to Town standards and approved, inspected and constructed under the authority of the Town Engineer or his/her representative. These two types of improvements may be referred to collectively as "Improvements". Deviations from the approved plans must be approved in advance by the Town or its staff. 3.17.3 Security for Completion No certificate of occupancy will be issued, nor any plat approved when plats are required by this Code, unless the building and all required on and off site improvements are completed, or the developer has provided adequate security to guarantee timely completion of the improvements. When all of the improvements and the building cannot be completed simultaneously due to weather conditions or other factors beyond the control of the developer (excluding financial inability to complete the project) the Town may grant plat approval for recording and/or issue certificates of occupancy for the project, provided the following conditions are met: (a) The building or buildings, or portions thereof, on the property to be platted or occupied have been constructed in accordance with the approved plans for those buildings, and are in full compliance with applicable building and fire codes, and are completed to the extent that only exterior site improvement work remains unfinished; and, (b) The Building Official determines that occupancy of the buildings, or portions thereof, prior to completion of required site improvements is safe and that access for emergency vehicles is adequate with the site improvements unfinished; and, (c) The developer posts adequate security for the benefit of the Town to insure completion of the site improvements in full compliance with the approved plans within one year from the date of plat approval (if required) or issuance of the certificate of occupancy, whichever occurs first. 3.17.4 Amount of Security The amount of the security to be posted by the developer shall be determined by the Town Engineer, and shall be equal to 125% of the amount reasonably estimated by the Town as being necessary to complete remaining on and off site improvements as shown on the approved plans. In the event that the developer disputes the cost estimate of the Town, the developer may prove a lower construction cost by providing binding contracts between the developer and contractor or subcontractor appropriate to perform the required work at a stated, fixed price. These contracts must be supported by a 100% performance bond, insuring performance by the subcontractor or contractor. Bid proposals are not satisfactory for this purpose. If the contracts submitted are acceptable in form, the amount of security required shall be 125% of the total contract price of all such contracts submitted, plus the estimated reasonable cost of performing any work not covered by the contracts. Specifications in such contracts shall be sufficiently clear to identify the work called for under the contract.