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Article 8: Performance and Maintenance
Section 8.1. Performance
8.1.3. Performance Guarantees
June 2013
Morrisville, NC
Page 8-2
Unified Development Ordinance - Public Hearing Draft
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
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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.
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The remainder of the
performance guarantee may be furnished in any of the following acceptable forms:
a.
Cash deposit with the Town;
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.
D.
Amount of Performance Guarantee
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.
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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.