Improvement guarantees.
§ 255-20120. Improvement guarantees.
A. Definition and purpose.
(1) An "improvement guarantee" is a security instrument accepted by the Town to ensure all improvements, facilities, or work required by this article or as a condition of approval of a wind facility will be completed in compliance with the approved plans and specifications.
(2) Improvement guarantees shall be provided to ensure the proper installation and maintenance of required street, utility and other physical improvements and maintenance of other physical improvements and to ensure compliance with other nonstructural conditions of approval (if any). The nature and duration of the guarantee shall be structured to achieve this goal without adding unnecessary costs to the developer.
B. General procedures.
(1) Before final plan approval of any wind facility, the developer must secure the agreement of the Zoning Board to approve agreements for the completion of all required improvements. Such agreements may take the form of cash or bond.
(2) At the preliminary plan review stage, the developer shall submit a letter requesting that security sufficient to cover the cost of required improvements be established by the Board.
(3) If improvements are to be guaranteed, the provisions of this section shall apply.
C. Procedures for financial guarantees.
(1) Amount.
(a) Improvement guarantees shall be in an amount and with all necessary conditions to secure for the Town the actual construction and complete installation of all of the required improvements, and the satisfactory completion of all conditions of final approval within the time periods required for completion provided therein.
(b) The amount shall be based upon actual cost estimates which would be required for the Town to complete all improvements required as a condition of final approval. These estimates shall be initially prepared by the Municipal Engineer and/or the Director of Public Works and submitted to the Administrative Officer, who shall review the estimates, if requested, with the developer. If the developer disagrees with the estimated amount, he/ she shall have the opportunity to submit a revised estimate along with supporting justification for the revisions.
(c) The Technical Review Committee shall review the Municipal Engineer's and the Director of Public Works' cost amount of the improvement guarantee, or the developer's revision, and make a recommendation to the Zoning Board, which shall review and set the final amount.
(d) The Zoning Board may set the guarantee in a reasonable amount in excess of the estimated costs in order to anticipate for increases in economic or construction conditions. However, the amount of such increase shall not exceed 120% of the estimated costs of improvements as recommended by the Technical Review Committee or as recommended by the Municipal Engineer and Director of Public Works.
(e) At the expiration of the approval period, if all required improvements are not complete, the Zoning Board shall review the status of improvements and may implement one of the following actions:
[1] Require the developer to extend the duration of the entire improvement guarantee;
[2] Reduce the amount of the improvement guarantee to cover the estimated costs of remaining improvements; or
[3] Authorize the Administrative Officer to take the steps necessary to ensure completion of the remaining work by using the improvement guarantee funds.
(f) If at any time during the guarantee period the procedures, implementation measures, methods, materials, and/or schedules of construction are determined by the Zoning Board not to be in compliance with the approved plans, the Board may, after proper notification to the developer, authorize the use of improvement guarantee funds to insure proper compliance.
(2) Form and amount of guarantee. The developer shall submit to the Zoning Board an improvement guarantee in the form required by the Zoning Board and based upon the recommendation of the Town Manager. Said guarantee shall be payable to the Town of Coventry.
(3) Conditions.
(a) Establishment of reliability. The Town Manager shall establish the reliability of the person, persons, or company furnishing the required improvement guarantee to the developer.
(b) Binding agreement. Acceptance of the required improvement guarantee by the Zoning Board, certification by the Town Treasurer of the receipt of such guarantee(s), and the recording of such action in the minutes of the Zoning Board meeting shall constitute a binding agreement between the principal, surety, and the Town of Coventry.
(4) Duration and release of guarantee.
(a) Term of duration of the required improvement guarantee shall begin with the date of acceptance of such instrument of guarantee by the Zoning Board.
(b) Expiration. The required improvement guarantee shall be condition on the faithful completion of construction and installation of required improvements to the land within a period of one year. Said guarantee shall have a minimum expiration date of one year after completion of said improvements as certified by the Municipal Engineer in coordination with the Director of Public Works and shall contain the provision that same may be released to the developer only upon the due authorization of the Coventry Town Council.
(c) Release of guarantee. At the end of the one-year period, the developer may apply to the Town Council at a regularly scheduled meeting for the release of the improvement guarantee. This application shall be accompanied by certificates from the Director of Public Works, Municipal Engineer, the Town Surveyor, and the Zoning Board that all required improvements have been installed, constructed, and completed within the specified time limit and in accordance with the specifications contained in these regulations.
(d) Approval of release. Certificates for release of the improvement guarantee shall be promptly executed by the Town Council upon receipt of the prescribed certificates of completion of required improvements from the Director of Public Works, Municipal Engineer, the Town Surveyor, and the Zoning Board.
(5) Extension of time. If, due to circumstances beyond the control of the developer, the construction or required improvements to the land cannot be completed in the prescribed time, the Zoning Board may grant a one-time extension for a period not to exceed 90 days. During such time extension, the guarantees shall remain in full force.
(6) Default.
(a) Conditions of default.
[1] The Town of Coventry shall hold the developer and surety in default of guarantee should the developer:
[a] Fail to meet all specifications for construction of required improvements to the land.
[b] Fail to properly notify the Director of Public Works and the Municipal Engineer of the beginning and completion of all phases of construction of required improvements to the land.
[c] Fail to protect existing improvements and/or properly repair such improvements should damage occur during construction of the development.
[d] Fail to clean debris from the site and adjacent areas upon completion of construction within the development.
[e] Fail to complete required improvements to the land within the time prescribed.
[f] Fail to correct improvement deficiencies evident within one year of the completion of said improvement.
[g] Fail to correct improvement deficiencies evident within one year of the completion of said improvement.
[2] Within the time periods of the improvement guarantee, the Zoning Board shall make any and all tests and inspections necessary to determine if any conditions of default exist. The Board shall require the developer to pay any inspection fee.
(b) Certification of default.
[1] Should any of the conditions cited above occur, the Municipal Engineer and agents retained by the Zoning Board shall certify in writing to the Zoning Board that the developer has not complied with the requirements of these regulations, the Municipal Engineer shall further certify the extent of noncompliance and the conditions thereof.
[2] The Zoning Board shall submit in writing to the Town Council its concurrence with or disapproval of the determination of the Municipal Engineer.
(c) Execution of guarantee. The Town Council shall, under the provision to Title 45, Chapter 23-46-11 of the General Laws of Rhode Island (1956 as amended), execute only that portion of the guarantee which shall be necessary to correct the deficiency for which the developer and surety are held in default.
(d) Payment of surety. Upon notification to the surety by the Town Council that the developer has been held in default of guarantee, the surety shall promptly pay to the Town of Coventry that portion of the guarantee which shall be necessary to correct the deficiency for which the developer and surety are held in default.
(7) Partial releases. Partial releases or reductions in the guarantee amount may also be authorized at any time prior to the expiration of final approval. A written request for release or reduction of any improvement guarantees shall be made to the Town Council, which shall act thereon upon receipt of a recommendation from the Zoning Board.