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Article 8: Performance and Maintenance
Section 8.1. Performance
8.1.3. Performance Guarantees
Morrisville, NC
June 2013
Unified Development Ordinance - Public Hearing Draft
Page 8-3
E.
Release or Reduction of Performance Guarantees
536
1.
Requirements for Release or Reduction
The Town Engineer (for public infrastructure improvements) or Planning Director (for private site
improvements, replacement trees, buffer screening, and landscaping) shall release or reduce a
performance guarantee only after:
a.
The owner or developer has submitted to the Town Engineer or Planning Director, as
appropriate, an application for a release or reduction of the performance guarantee that
includes certification by the owner‘s or developer‘s engineer or landscape architect, as
appropriate, that installation of the guaranteed improvements has been completed in
accordance with approved plans and specifications;
b.
The Town Engineer or Planning Director, as appropriate, has performed a final inspection of
the improvements for which a release or reduction is requested, and certified in writing that
installation of the guaranteed improvements has been completed in accordance with
approved plans and specifications;
c.
The owner or developer has reimbursed the Town for all costs associated with conducting any
inspection that finds the guaranteed improvements for which a release or reduction is
requested have not been installed in accordance with approved plans and specifications;
d.
The owner or developer has provided the Town Engineer or Planning Director, as
appropriate, assurances that liens against guaranteed public infrastructure improvements will
not be filed after their acceptance by the Town (e.g., through affidavits, releases, or waivers
of liens from all contractors and subcontractors); and
e.
The owner or developer has provided the Town Engineer or Planning Director, as
appropriate, any required maintenance guarantee for the same improvements (see Section
8.2.2, Maintenance Guarantees).
2.
Limits on Reductions
537
No performance guarantee for public infrastructure improvements shall be reduced to less than
30 percent of the full amount of the performance guarantee until all guaranteed public
infrastructure improvements have been completed by the owner or developer. No performance
guarantee for required private site improvements, replacement trees, buffer screening, and
landscaping shall be reduced to less than 75 percent of the full amount of the performance
guarantee, until all guaranteed private site improvements, replacement trees, buffer screening,
and landscaping have been completed by the owner or developer.
F.
Default and Forfeiture of Performance Guarantee
1.
Notice of Failure to Install or Complete Improvements
538
If the owner or developer fails to complete installation of the guaranteed improvements within the
term of the performance guarantee (as may be extended), the Town Engineer (for public
infrastructure improvements) or Planning Director (for private site improvements, replacement
trees, buffer screening, and landscaping) shall give the owner or developer 30 days written
notice of the default by certified mail.
536
This incorporates the release criteria scattered among various provisions in Sec. 14.12.2, adding the provision relating to the
lack of liens.
537
This carries forward the current 30% limit on reductions in Sec. 14.12.2.3, as applied to public infrastructure improvements, but
allows up to 75% reductions of guarantees for private improvements, replacement trees, buffer screening, and landscaping. This
additional flexibility is intended to recognize the variable nature of such improvements.
538
This new subsection requires the Town to provide the owner/developer at least 30 days‘ notice of a default of the
performance guarantee before using the surety funds to complete the defaulted work.