[Amended 3-11-2006 ATM by Art. 24[1]]
[Amended 3-28-2009 ATM by Art. 20]
A.
Prior to final plan approval, the subdivider shall provide one of the following performance guarantees, unless a waiver is obtained from the Board of Selectmen pursuant to Subsection B below, for an amount adequate to cover the total construction costs of all required improvements, taking into account the time span of the construction schedule and the inflation rate for construction costs:
(1)
Either a certified check payable to the Town or a
savings account or certificate of deposit naming the Town as owner,
for the establishment of an escrow account;
(2)
A performance bond payable to the Town issued by a
surety company;
(3)
An irrevocable letter of credit from a financial institution
establishing funding for the construction of the subdivision, from
which the Town may draw if construction is inadequate.
B.
For all subdivision applications, the conditions and
amount of the performance guarantee shall be reviewed and approved
by the Board of Selectmen, with the advice of the Municipal Engineer
and/or Town Attorney. Final plan approval by the Planning Board shall
not be granted, nor shall any conditional approval be granted, until
the applicant provides the Planning Board with a copy of a written
approval from the Board of Selectmen, of the form, amount, and terms
of any performance guarantee, prepared pursuant to this article. Provision
of a performance guarantee shall be required for any subdivision approval,
unless the applicant obtains a written waiver from the Board of Selectmen.
The performance guarantee shall contain a construction
schedule, cost estimates for each major phase of construction taking
into account inflation, provisions for inspections of each phase of
construction, provisions for the release of part or all of the performance
guarantee to the developer, and a date after which the developer will
be in default and the Town shall have access to the funds to finish
construction.
A cash contribution to the establishment of
an escrow account shall be made by either a certified check made out
to the municipality, the direct deposit into a savings account, or
the purchase of a certificate of deposit. For any account opened by
the subdivider, the municipality shall be named as owner or co-owner,
and the consent of the municipality shall be required for a withdrawal.
Any interest earned on the escrow account shall be returned to the
subdivider unless the municipality has found it necessary to draw
on the account, in which case the interest earned shall be proportionately
divided between the amount returned to the subdivider and the amount
withdrawn to complete the required improvements.
A performance bond shall detail the conditions
of the bond, the method for release of the bond or portions of the
bond to the subdivider, and the procedures for collection by the municipality.
The bond documents shall specifically reference the subdivision for
which approval is sought.
An irrevocable letter of credit from a bank
or other lending institution with offices in the region, shall indicate
that funds have been set aside for the construction of the subdivision
for the duration of the project and may not be used for any other
project or loan.
The Board may approve plans to develop a major
subdivision in separate and distinct phases. This may be accomplished
by limiting final approval to those lots abutting that section of
the proposed subdivision street which is covered by a performance
guarantee. When development is phased, road construction shall commence
from an existing public way. Final approval of lots in subsequent
phases shall be given only upon satisfactory completion of all requirements
pertaining to previous phases.
Prior to the release of any part of the performance
guarantee, the Board shall determine to its satisfaction that the
proposed improvements meet or exceed the design and construction requirements
for that portion of the improvements for which the release is requested.
If, upon inspection, the Code Enforcement Officer
finds that any of the required improvements have not been constructed
in accordance with the plans and specifications filed as part of the
application, he shall so report in writing to the municipal officers,
the Board, and the subdivider or builder. The municipal officers shall
take any steps necessary to preserve the Town's rights.
Performance guarantees shall be tendered for
all improvements required to meet the standards of these regulations
and for the construction of the streets, stormwater management facilities,
public sewage collection or disposal facilities, public water systems,
and erosion and sedimentation control measures.
