9-13-7 SECURITY FOR COMPLETION

A. Policy: In order to ensure compliance with certain provisions of this title for subdivisions, building projects and other permits, the Town Manager, or designee, is hereby authorized to ensure completion of the approved design through a form of security as deemed necessary by this section, or as determined by the provisions of the required permit. (amd. ord. 24-014, 10-8-24) B. Subdivisions And Other Projects: In the event that approval is sought for the completion of a subdivision, commercial project or Master Planned Development (MPD) the Town shall ensure that all of the following conditions are met: (Ord. 08-016, 8-12-2008, amd. Ord. 15-018, 128-2015) 1. The developer shall submit to and obtain approval from the appropriate Land Use Authority for all final construction plans, improvements and development agreements. The developer shall guarantee the installation and construction of the required improvements free from defects in material or workmanship and in compliance with Town standards. In subdivisions this shall include the public and private utilities, trails, drainage systems, streets, curbs, retaining structures, and land reclamation. In commercial projects and Master Planned Development (MPD) this shall include all of the above and any additional work so that if the building components are not completed, the land will be free from erosion, flooding, barren landscape, or other situations that would create a negative visual or ecological impact. (Ord. 08-016, 8-12-2008, amd. Ord. 15018, 12-8-2015, amd. ord. 24-014, 10-8-24) 2. The guarantee shall be in the form of a corporate surety bond, escrow agreement, cashier's check or money market certificate made payable only to the Town, or irrevocable letter of credit in forms acceptable to the Town and for an amount equal to one hundred ten percent (110%) of the estimated cost of the improvements. The form of any guarantee of improvements shall be reviewed and approved by the Town Attorney before acceptance of the guarantee or security by the Town. The cost estimates shall be reviewed by the Town Engineer or Town Manager to ensure completion of all public improvements as shown on the approved plans. In the event that the Town Engineer or Town Manager disputes the amounts stated in the bid bond, the developer shall provide contracts supported by a full performance and payment bond by the contractor, or the Town Engineer, or Town Manager’s price shall be used. All improvements must be completed within one (1) year of posting of the required security. Such one (1) year period may be extended once at the discretion of the Town Manager, or designee, where weather or other circumstances justify the extension. In the event of any extension, the bond amounts shall be reviewed and adjusted as necessary. (Ord. 08-016, 8-12-2008, amd. Ord. 15-018, 12-8-2015, amd. ord. 24-014, 10-8-24) C. Other Permits: In order to ensure compliance with certain provisions of this title for projects requiring other permits, the Town Manager, or designee, is authorized to ensure completion of the approved design through a form of security as deemed necessary by this section or as determined by the provisions of the required permit. D. Logging And Tree Removal, Grading, Trenching And Horse Boarding Permits: In the event that approval is sought for the completion of project requiring logging and tree removal, grading, trenching or horse boarding, the applicant may be required to submit a guarantee similar to that required for subdivisions (see subsection B of this section). E. Term Of Security: The terms of any security arrangement offered to the Town shall include, but not be limited to: 1. An approved final plat, permit application and all associated data required for the completion of the subdivision or permitted project, including approved construction plans which are used to compute the cost of the improvements by the Town Engineer or Town Manager. 2. The improvements shall be completed to the satisfaction of the Town Manager, or designee, and according to Town specifications as established in this title. 3. The Town shall have exclusive control over the security proceeds, and they may be released only upon written approval of the Town Manager, or designee. 4. The security proceeds may be reduced upon request of the developer or permittee, with approval of the Town, as the improvements are installed. The amount of the reduction shall be determined by the Town Manager, on advice from the Public Works Department or Town Engineer. Such requests may be made only once every thirty (30) days, and no reductions may be authorized until such time as the Public Works Department or Town Engineer has inspected the improvements and found them to be in compliance with Town specifications. Any reductions may only be granted by written authorization of the Town Manager. 5. If the security proceeds are inadequate to pay the cost of the completion of the public improvements according to Town specifications for whatever reason, including previous reductions, then the owner, developer or permittee shall be responsible for the deficiency; in the context of subdivision improvements, no further building permits shall be issued in the subdivision until the improvements are completed or a new security agreement has been approved and executed to ensure completion of the remaining improvements. 6. If, upon written demand of the Town after expiration of the security time period, the security proceeds are not transferred to the Town within thirty (30) days of the demand, then the Town’s costs of obtaining the proceeds, including the Town Attorney's fees and costs of any outside attorney fees and/or court costs, shall be deducted from the security proceeds. (amd. ord. 24-014, 10-8-24) 7. Upon receipt of the security proceeds after the expiration of the time period, the costs of completion shall include reimbursement to the Public Works Department or Town Engineer and all other Town departments for the costs of administration of the completion of the improvements, including inspection costs. 8. The owner, developer or permittee agrees to hold the Town harmless from any and all liability that may arise as a result of the improvements which are installed until such time as the Town accepts the improvements. 9. All improvements required under this title shall be installed by a contractor or subcontractor licensed by the state, as required by law. F. Payment Of Interest: The Town shall not be required to deposit any funds provided as security in an interest-bearing account. However, any interest accruing on deposited funds shall accrue to the benefit of the owner, developer, or permittee and not to the Town, unless expended for completion of required improvements. G. Release Of Funds: The Town shall relinquish funds held or security posted for the purpose of paying for required improvement work performed according to the plans as that work is completed. In such an event, the Town shall release funds equal to the actual cost of performing the work as the work progresses, minus five percent (5%). Upon satisfactory completion of all required improvement work, all funds, up to the final five percent (5%), shall be immediately released to the owner, developer, or permittee. The final five percent (5%) shall be reserved by the Town for a one (1) year warranty period. (See subsection K of this section.) H. Modification Of Plans: An owner, subdivider or permittee may request modifications to plans covering required improvements by submitting revised plans to the Town Manager, or designee, for review and approval by the appropriate Land Use Authority. If the modification of the plans increases the cost of required improvements, additional security must be provided by the owner, subdivider, or permittee to cover the increased costs. I. Phased Projects: Security for improvements applicable to each phase of a phased project or development shall be provided as each phase is platted or permitted. J. Final Inspection: After completion of all required improvements, the owner, developer or permittee shall make a written request to the Town Manager, or designee, for a final inspection to be made by all affected Town Departments as required by this title. Upon receipt of inspection reports from all affected departments, a summary of the final inspections shall be provided by the Town Manager, or designee, specifying the acceptability and/or completion of all required improvements. K. Warranty Period: Once all required subdivision improvements are inspected and approved by the Town, a one (1) year warranty period shall begin and any guarantee or security filed with the Town with regard to such improvements shall be released, provided at least five percent (5%) of the guarantee or security amount is held to guarantee the quality of workmanship and materials during the one (1) year warranty period. At the end of the oneyear guarantee period, any remaining guarantee or security shall be released only in accordance with subsection G of this section. (Ord. 08-016, 8-12-2008)