Wherever a performance guarantee is required under the terms of this title, said guarantee shall be submitted in conformance with this chapter. (Ord. 17-02, 3-16-2017)

The performance guarantee shall be one (1) of the following:

   A.   Cash: A deposit of cash in a separate escrow account in an amount not less than one hundred twenty five percent (125%) of the estimated cost of performing the work for which the guarantee is required. Said account shall be made with a financial institution acceptable to the Town and shall be established in a manner that any release therefor shall require the advance written consent of the Town. Any interest derived from the account shall inure to the benefit of the developer.

   B.   Performance Bond: A performance bond in an amount not less than one hundred twenty five percent (125%) of the estimated cost of performing the work for which the guarantee is required, as established by the Town.

   C.   Letter Of Credit: An irrevocable letter of credit from a financial institution acceptable to the Town, in an amount not less than one hundred twenty five percent (125%) of the estimated cost of performing the work. The letter of credit shall be established in such a manner that any release of funds to the developer shall require the advance written consent of the Town. (Ord. 17-02, 3-16-2017)

Where a guarantee is posted for the purposes of ensuring the timely installation of required improvements in a subdivision, planned unit development or similar project, the Town may authorize a release of a portion of the guarantee in an amount commensurate with the proportion of improvements completed. (Ord. 17-02, 3-16-2017)

At the completion of the work, or not less than ten (10) days prior to the release date of the bond or other assurance, the developer shall submit to the Town one (1) copy of a Certificate of Completion. Following receipt of the Certificate, the Town Engineer or authorized representative shall make a preliminary inspection and shall submit a report to the Town Council setting forth the conditions of such facilities. If the condition of said improvements or activities for which the guarantee is required are found to be satisfactory, and all liens are paid, the Town Council shall authorize release of the remainder of the guarantee, except for that portion to be held as a durability retainer. (Ord. 17-02, 3-16-2017)

Where, in the opinion of the Town Council, a developer fails or neglects to satisfactorily install the required improvements or make required corrections, or to pay all liens in connection with said improvements, or otherwise fails in carrying out the activity for which the performance guarantee was required, the Town Council may, after a public hearing with due notice on the matter, declare the performance guarantee forfeited and thereafter may install or cause the required improvements to be installed using the proceeds from the guarantee to defray the costs; provided, that the Town shall not be responsible for work beyond the limits of the bond amount. Any funds remaining after completion of the required improvements will be returned to the developer. (Ord. 17-02, 3-16-2017)

A retainage of not less than twenty five percent (25%) of the total amount of the guarantee shall be retained by the Town for a period of not less than one (1) year following the date of final acceptance of the improvements by the Town. Such retainage shall be a guarantee of the durability of said improvements. If, during one (1) year, the durability of said improvements are found to be satisfactory, said retainage may be released following the procedures outlined under section 10-15-4 of this chapter. If, however, during said period, the condition of material or workmanship of the improvement or improvements fails or shows unusual depreciation, or if it becomes evident that certain work was not completed or that said improvements do not otherwise comply with accepted standards of durability, said condition shall be corrected by the person giving the performance guarantee. If the corrections are not made within a reasonable time, the Town Council, in accordance with section 10-15-5 of this chapter, may declare such person in default and use the retainage to defray the cost of any required work. At the conclusion of the durability guarantee period, the retainage to defray the cost of any required work may be released by the Town in accordance with the release procedure outlined under section 10-15-4 of this chapter. (Ord. 17-02, 3-16-2017)