3.17.5 Terms of Security

The terms of any security arrangement offered to the Town shall state a date certain by which the developer agrees to have on and/or off site improvement work completed in accordance with the plans, and further provide that in the event that the developer has not completed required site improvement work by that date, the Town may at its option and on its schedule, draw on the funds escrowed, or credit established, or such other security device by its own act, and shall not be required to obtain consent of developer to withdraw funds for completion of the work shown on approved plans. The Town's actual costs in administering the completion of work in the event of a default by the developer shall be reimbursed from the escrow or other security arrangements in an acceptable and timely manner. 3.17.6 Form of Security Security arrangements offered in lieu of simultaneous completion of buildings and site improvements shall be in an amount fixed under the terms of Section 3.17.4, and shall be in one or more of the following forms as approved by the Town Attorney: (a) An irrevocable letter of credit from a bank authorized to do business in the State of Utah, naming Amalga Town Municipal Corporation as the payee of funds drawn against that letter of credit and guaranteeing the availability of funds for one year, or, (b) A deposit of cash with a third party escrow, or, (c) An agreement with the construction lender providing that the lender will withhold funds in the construction loan in an amount equal to the amount calculated in Section 3.17.4, above, and will disburse those funds only with the written consent of the Town, and only for the completion of any required improvements. As improvement work is completed, the Town will consent to the disbursement of the funds set aside by the lender. (d) Some combination of the above approved by the Town. 3.17.7 Retainage The amount in excess of the actual construction costs, but in no event more than 25% of the actual construction cost, shall be held for a period of one year following final inspection and approval of the required on and/or off site improvement work by the Town. No retainage shall be held for landscaping improvements once the installation of the required materials has been approved by the Town. The retainage amount may be provided in any of the ways described in Section 3.17.6. If the developer fails to provide new security instruments within 30 days from the expiration of the security instruments provided for the initial construction under Section 3.17.6, the Town shall make a demand or draw on that security to the extent of the required retainage amount, and hold the proceeds in cash until and unless other adequate security, as provided in this Code, is posted by the developer. Retainage will be used to replace or repair any site improvements which fail or appear to be defective during the one year retainage period. The corrective work may be done by the Town or the developer. At the completion of that work, the retainage, or so much of it as remains, shall be released. Retainage amounts may be drawn and applied to any outstanding fees owed by the developer to the Town, provided that such fees are imposed by ordinance and the amount of the fees is not to be contested by the developer. Any amount in excess of the retainage amount necessary to complete any replacement or repair, shall be paid by the developer or reimbursed to the town, upon demand. 3.17.8 Modification of Plans A developer may, at its option, request modifications to plans covering on and/or off site improvement work by submitting revised plans to the Town for review and action. Until the revised plans have received approval by the Town, the developer shall be required to offer security for the performance of the improvement work as shown on the last set of plans to have received Town approval. Upon acceptance of revised plans by the Town, the Town shall release any cash, credit or other security held, which is in excess of 125% of the completion cost (estimated) of work shown on the most recently revised plan. If the modification of the plans increases the cost of required improvements, additional security must be provided by the developer to cover the increased costs. 3.17.9 Payment of Interest Any interest accruing on escrowed funds shall, unless expended for completion of site improvements required, inure to the benefit of the developer upon release and not to the Town, and the Town shall not be required to pay interest to the developer on any funds escrowed for this purpose. 3.17.10 Detailed Improvement Plans and Specifications Detailed on and/or off site improvement plans and specifications shall be presented, showing the location, design and nature of all Streets, Drainage drainage works, utility pipelines, storage tanks, pumping systems and related facilities, grade changes, retaining walls and landscaping, together with any trails, paths, or walkways that may be included or required under these or other provisions of the Land Management and Development Code. All plans and supporting documentation must be approved by the Town and/or its Engineer before commencement of any work by the Developer. The Developer is responsible for all plan review fees that must be incurred by the Town or its consultants. 3.17.11 Phased Projects and Concurrency On and/or off-site improvements applicable to each phase of a phased project or development shall be completed concurrently with the first phase of the project and appropriate securities shall be put in place to insure that the total infrastructure is completed along with the first phase. Phasing of improvements may be allowed only under special circumstances as outlined by the Town planning staff and/or technical review committee and approved by the Town Council. If phasing is allowed, adequate security for completion of each phase must be provided to insure that each phase of infrastructure is constructed and either platted or occupied.