A performance bond is posted by the subdivider
to guarantee to the Village that he will faithfully construct or cause
to be constructed the required public improvements which were an integral
part of his approved final plat and, further, that the construction
shall be completed within a reasonable period of time.
A.
The amount of the performance bond will be based on
the Village Engineer's quantity takeoff of the proposed improvements
who will prepare the performance bond estimate of the total cost of
the required capital improvements, including but not limited to roads,
clearing and drainage, plus a reasonable estimate of anticipated increased
construction costs during the life period of the bond.
B.
The Planning Board shall pass a resolution either
approving or modifying the performance bond estimate as recommended
by the Village Engineer.
C.
The subdivider shall present his performance bond
executed on the standard performance bond form to the Village Attorney
for review as to form and sufficiency.
D.
The Village Attorney shall arrange to have the performance
bond placed before the Board of Trustees' meeting.
E.
The Board of Trustees shall approve or disapprove
the performance bond as presented by the Village Attorney. If the
performance bond is approved, it shall be filed with the Village Clerk.
F.
The Chairman or Secretary of the Planning Board shall
not sign a final plat until notification of the approval of the performance
bond by the Board of Trustees.
G.
After construction of the public improvements covered
by the performance bond and prior to the release of the bond, the
subdivider shall prepare a set of the approved drainage plans and
street profiles amended to indicate as-constructed information. The
subdivider then may apply to the Village Engineer for a final inspection
of the work. When the work has been completed to the satisfaction
of the Village Engineer, he shall recommend to the Board of Trustees
that the performance bond be released.
A.
At the time of the release of the performance bond,
a maintenance bond shall be furnished by the developer to guarantee
upkeep and the workmanship and materials of all required improvements
for a period of one year from the date of release of the performance
bond. This bond shall be in an amount which is 1/3 of the performance
bond estimate. If the improvements are not taken over by the Village,
an annual maintenance bond shall be required, annually updated and
running until the improvements are dedicated to the Village. The amount
of this bond shall be determined by the Village Engineer.
B.
Where dedication of required improvements has not
been accepted by the Board of Trustees, maintenance inspection shall
be made annually by the Village Engineer. In the event that such required
improvements are not maintained according to the Village's specifications,
the Village Engineer shall recommend to the Planning Board that such
maintenance bond be declared in default and the offer of dedication
be accepted by the Board of Trustees.
A.
Form of security. Any security to a bond must be provided
pursuant to a written security agreement with the Village, approved
by the Board of Trustees and also approved by the Village Attorney
as to form, sufficiency and manner of execution, and shall be limited
to:
(1)
The deposit of funds in a savings passbook or a certificate
of deposit (CD) issued by a bank or trust company located and authorized
to do business in the State of New York and maintaining an office
for the transaction of its business in the Town of Southampton. The
Board of Trustees may require that the savings passbook or CD be accompanied
by an executed withdrawal slip made payable to the Village of Sagaponack
and/or an assignment of the right to the funds upon a default. Each
passbook or CD shall also be accompanied by a letter from the bank
acknowledging the use of the passbook or CD as security to a bond
and that no funds will be released unless authorized by a resolution
of the Board of Trustees.
(2)
An unconditional and irrevocable letter of credit
from a bank or a corresponding bank located and authorized to do business
in the State of New York and maintaining an office for the transaction
of business in the Town of Southampton. The letter of credit shall
certify the following:
(b)
That, in the case of failure on the part of
the subdivider to complete the specified improvements within the required
time period, the creditor shall pay to the Board of Trustees immediately,
and without further action, such funds as are necessary to finance
the completion of those improvements, up to the limit of credit stated
in the letter.
(c)
That the letter of credit may not be withdrawn,
or reduced in amount, until released by the Board of Trustees.
(d)
That the term of the letter of credit shall
extend at least six months past the term of the bond.
(3)
Obligations of the United States of America.
(4)
Any obligations fully guaranteed as to interest and
principal by the United States of America, having a market value at
least equal to the full amount of the security required.
B.
If the term of the performance bond will expire prior
to the completion of the public improvements, the Village Engineer
shall recommend to the Planning Board either that the term of the
bond be extended to permit completion of the work by the subdivider
or that the bond be declared in default. The Planning Board shall
advise the Board of Trustees, by resolution, if its recommendation
is for default of the bond. The Board of Trustees shall act on the
release of or declaration of default on the performance bond.
C.
The performance bond shall have a term of two years.
The term of a performance bond may be extended by the Planning Board,
with the approval of the Board of Trustees. When such an extension
is granted, it may be required that the performance bond estimate
be increased to take into consideration changes in construction costs
in order to carry out the required capital improvements.
