Town of levant

Article 900 - Improvement Guarantees

910 - Improvement Guarantees Required

Before the submission of a Final Plan, the subdivider in major subdivisions as defined in this Ordinance shall provide the Town with improvement guarantees if road construction, offsite improvements, utilities, common water and/or sewer, or drainage work is planned. Such improvement guarantees shall be in the form of one or more of the guarantee options listed in Article 980 that will cover at least 100% of the cost of completing the construction of street, storm drainage system, utilities, common water and/or sewer and any offsite improvements. If the subdivider fails to complete the required improvements or fails to complete them satisfactorily to the Levant Board of Selectmen in accordance with the approved final subdivision plan.

920 – Procedure

If the Planning Board determines by majority vote that road construction, offsite improvements, utilities, common water, common sewer, or drainage work is required to accept the subdivision, the Planning Board shall, in writing, describe to the Board of Selectmen the improvements necessary to approve the project.
The subdivider shall file with the Selectmen a proposed improvement guarantee, a plan by a professional engineer for the required improvements, and estimates to complete the required work by at least two contractors.
The Selectmen shall request an opinion of the improvement plan and the cost of the improvements from the Municipal Engineer. The Municipal Engineer shall also recommend what types of inspections would be required to guarantee the standards of this Ordinance and the approved plan are met. The recommended inspections shall become part of any improvement guarantee accepted by the Selectmen.
The Selectmen shall determine whether the form, amount and duration of the improvement guarantee are sufficient.
In the event the Selectmen refuse to approve the proposed improvement guarantee as filed by the subdivider, they shall notify the subdivider and the Planning Board. The Planning Board shall not grant final approval until it has received such notification from the Selectmen.
The burden of submitting improvement guarantees in compliance with this Ordinance shall at all times remain with the subdivider.

930 - Time Limit

931 - Completion Deadline

All required improvements within a subdivision shall be completed within two (2) years of final subdivision approval. The improvement guarantee must provide performance protection to the Town during said two (2) year period plus at least six (6) months following the expiration of the two (2) year period. The additional six (6) month period is required as protection to the Town in the event the subdivider fails to complete the required improvements or fails to complete them satisfactorily.

932 - Extension

The Board of Selectmen may extend the completion deadline for two (2) additional years at one-year increments only where the subdivider presents substantial reason for doing so. No request for extension shall be considered until at least six (6) months prior to the original or extended completion deadline. Before extending the initial deadline or the initial extension, the Selectmen shall require that the improvement guarantee be extended in duration to cover the extended period of time plus an additional six (6) month period. Before extending the initial deadline or the initial extension, the Selectmen shall review the form and amount of the improvement guarantee to make certain it remains adequate.

940 - Inspection and Certification

941 – The Municipal Engineer and/or the Board of Selectmen, and/or their duly appointed representative shall regularly inspect the construction of the required improvements for defects. The subdivider shall cooperate with the Selectmen or their representative who is carrying out these inspections. Upon completion of the improvements, the Selectmen shall notify the subdivider and the Planning Board, in writing, that the improvements have or have not been satisfactorily completed according to the approved final subdivision plan. If the improvements have not been satisfactorily completed, the Selectmen shall list the defects.
For all road construction, the following inspections are required by, and must be approved by, the Municipal Engineer before work may continue:
 Stumping and grubbing;

 Sub-grade preparation, and drainage;

 Application of the base gravel;

 Application of final grade;

 Hot top, and seeding.
942 - Upon completion of the improvements, the subdivider shall file the following with the Board of Selectmen:
a. A sworn statement from the subdivider’s engineer that all required improvements are completed in strict compliance with all applicable construction standards and the approved subdivision plan and that the engineer knows of no defects from any cause in the improvements;
b. A sworn statement from the subdivider that the improvements are free and clear of any encumbrance or lien and that the subdivider knows of no defects from any cause in the improvements.

950 - Release of Guarantee

As soon as the Municipal Engineer and/or Board of Selectmen or their authorized representative have inspected the improvements and certified that they are satisfactorily completed, and the subdivider has filed the letter required in Article 942 of this Ordinance with the Selectmen, the Selectmen shall release the previously required improvement to the subdivider.

960 - Reduction of Guarantee

The Board of Selectmen may reduce, at their discretion, the guarantee subject to the following provisions:

a. The project is 90% complete as determined by the Town Engineer.

b. There are no deficiencies in the project.

c. A cash bond performance guarantee is agreed to for one-hundred fifty percent (150%) of the remaining cost of the project.

970 - Incomplete or Unsatisfactory Work

If the Board of Selectmen determines, according to the procedures laid out in Article 940, Inspection and Certification of this Ordinance, that the improvements have not been satisfactorily completed according to the accepted subdivision plan within the agreed upon time, they shall inform the subdivider in writing of the Town’s intent to exercise its rights against the improvement guarantee. They shall cause the incomplete or unsatisfactory work to be completed and to be paid for from the improvement guarantee assets. Any guarantee assets unused in the completion of the unsatisfactory or incomplete work, and associated costs, shall be returned to the subdivider at the discretion of the Selectmen.

980 - Improvement Guarantee Options

981 - Performance Bond

Under this improvement guarantee option, the subdivider shall obtain a subdivision bond from a surety bonding company authorized to do business in the State of Maine. The bond shall be payable to the Town of Levant and shall be in an amount sufficient to cover the full cost of all required improvements as estimated by a licensed Professional Engineer and as approved by the Board of Selectmen. The duration of the bond shall be for a period of time acceptable to the Selectmen, but in any case shall be for at least two (2) years and six (6) months and for not more than three (3) years, unless the subdivider is granted an extension in accordance with Article 932 of this Ordinance. In the event an extension is granted, the Selectmen shall require the duration of the subdivision bond to be extended for at least six (6) months from the termination of the new time limit but not for more than one (1) year from the termination of the new time limit.

982 - Conditional Agreement

The Board at its discretion may provide for the applicant to enter into a binding agreement with the municipality in lieu of the other financial guarantees. Such an agreement shall provide for approval of the Final Plan on the condition that no lots be sold or built upon until either:

a. The Municipal Engineer or other agent of the Board of Selectmen has certified that all of the required improvements have been installed in accordance with these regulations and with the regulations of the appropriate utilities; or
b. A performance guarantee, acceptable to the Town of Levant, is submitted in an amount necessary to cover the completion of the required improvements.
Notice of the agreement and any conditions shall be recorded on the final plan that is recorded at the Registry of Deeds.
983 - Letter of Credit
Under this improvement guarantee option, the subdivider shall provide as a guarantee an irrevocable letter of credit from a bank or other reputable institution satisfactory to the Board of Selectmen, such letter of credit to be in a form satisfactory to the Selectmen. The letter of credit shall be for an amount sufficient to cover the full cost of all required improvements as estimated by a licensed Professional Engineer and as approved by the Selectmen. The letter of credit shall be deposited with the Selectmen and shall certify the following:
a. That the creditor does guarantee funds in an amount equal to the costs of completing all required improvements as estimated for the subdivider by a licensed Professional Engineer approved by the Selectmen,
b. In case of failure on the part of the subdivider to complete the specified improvements satisfactorily within the required time period, the creditor shall pay to the Town of Levant immediately, and without further action, such funds as are necessary to finance the proper completion of these improvements, up to the credit limit stated in the letter;
c. That the letter of credit is valid for the period of time required by the Selectmen. The period of time, not less than two (2) years and six (6) months from the date of subdivision approval, shall be stated in the letter. During that time, the letter may not be withdrawn or reduced in amount except with the approval of the Selectmen.

984 - Cash Escrow

Under this improvement guarantee option, the subdivider shall provide as guarantee cash held in an account at a bank or other reputable institution subject to the approval of the Selectmen. The amount of cash shall be in an amount sufficient to cover the full cost of all required improvements as estimated by a licensed Professional Engineer who is approved by the Selectmen. The subdivider shall enter into an agreement with the Town that shall stipulate the terms under which the Town may accept a cash escrow.