Secondary and Cumulative Impacts Master Management Plan - 2014

Article 8: Performance and Maintenance Section 8.1. Performance 8.1.3. Performance Guarantees

2. To ensure the completion of plantings of replacement trees, buffer screening, and landscaping that are required as part of Construction Plan Approval, but are not installed before issuance of a Certificate of Compliance/Occupancy (in conjunction with the grant of an extension to the time limit for installation of required landscaping). B. Term of Performance Guarantees The term of a performance guarantee shall reflect any time limit for completing installation of required improvements that is included in approval of the Major Subdivision Final Plat, Building Permit, or Certificate of Compliance/Occupancy, as appropriate—but in any case, the term shall not exceed two years. The Planning Director or Town Engineer, as appropriate, may, for good cause shown and with approval of the provider of the guarantee, grant extensions of the term for up to a total extended period of one year. C. Form of Performance Guarantee 534 1. Where required, the owner or developer shall furnish at least ten percent of the amount of a performance guarantee in the form of a cash deposit with the Town. 535 The remainder of the performance guarantee may be furnished in any of the following acceptable forms: b. Certified check from a North Carolina lender based upon a cash deposit, in a form acceptable to the Town Attorney; c. Irrevocable letter of credit from a North Carolina banking institution in a form acceptable to the Town Attorney; or d. Surety bond from a North Carolina surety bonding company in a form acceptable to the Town Attorney. 2. The performance guarantee shall be conditioned on the performance of all work necessary to complete the installation of the required improvements within the term of the performance guarantee. Performance guarantees shall provide that in case of the owner‘s or developer‘s failure to complete the guaranteed improvements, the Town shall be able to immediately obtain the funds necessary to complete installation of the improvements. 1. Performance guarantees for required improvements shall be in an amount equal to 150 percent of the estimated full cost of completing the installation of the required improvements within the term of the guarantee, including the costs of materials, labor, and project management. 2. Estimated costs for completing installation of required public infrastructure improvements shall be itemized by improvement type and certified by the owner‘s or developer‘s licensed Professional Engineer, and are subject to approval by the Town Engineer. Estimated costs for completing installation of required replacement trees, buffer screening, and landscaping shall be itemized and certified by the owner‘s or developer‘s registered landscape architect, and are subject to approval by the Planning Director. 3. If the guarantee is renewed, the Town Engineer or Planning Director, as appropriate, may require the amount of the performance guarantee be updated to reflect cost increases over time. 4. The amount of a performance guarantee may be waived or reduced by the Town Council where the improvements are being installed with federal funds or in other circumstances where similar third-party assurance of their completion exists. a. Cash deposit with the Town; D. Amount of Performance Guarantee

534 N.C.G.S. § 160A-372(c) expressly requires municipal subdivision regulations requiring performance guarantees to allow a range of types of performance guarantees, ―including, but not limited to, surety bonds or letters of credit.‖ 535 This 10% cash deposit requirement is carried forward from Sec. 4.12.2 of the current Design and Construction Ordinance.

June 2013 Page 8-2

Morrisville, NC

Unified Development Ordinance - Public Hearing Draft