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Design & Construction Specifications - Town of Kernersville

Design & Construction Specifications - Town of Kernersville

Design & Construction Specifications - Town of Kernersville

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SURETIES OR IMPROVEMENT GUARANTEES:Prior to the recording <strong>of</strong> any plat, all improvements required by this Manual and theUDO shall be completed or the remaining improvements secured by a surety approvedand accepted by the <strong>Town</strong> Manager; the surety shall be a performance bond providedby a certified surety company authorized to issue bonds in North Carolina; anIrrevocable Letter <strong>of</strong> Credit provided from a bank insured by the FDIC; or cash. If thesurety is a guarantee other than cash, the Letter <strong>of</strong> Credit or bonding instrument mustbe readily convertible into cash, payable to the <strong>Town</strong> <strong>of</strong> <strong>Kernersville</strong> at face value uponthe <strong>Town</strong>'s request. Prior to recording the Plat, the developer shall contact the PlanningDepartment and request an estimate for bonding purposes. If any work has beencompleted and paid for prior to recording the plat, the developer shall providedocumentation that work-to-date has been paid in full.Refer to Appendix 4 for the administrative procedures regarding the submittal <strong>of</strong>sureties.In no case shall the duration <strong>of</strong> the financial guarantee exceed two (2) years, unlesssaid guarantee is extended with the consent <strong>of</strong> the <strong>Town</strong> Manager.All developments whose public improvements are not completed and accepted thirty(30) days prior to the expiration <strong>of</strong> the financial guarantee shall be considered in default.Upon default, the surety company or financial institution holding the escrow accountshall pay to the <strong>Town</strong>, all or any portion <strong>of</strong> the bond or escrow amount deemednecessary by the <strong>Town</strong> to complete all or any portion <strong>of</strong> the required improvements,including administration cost incurred by the <strong>Town</strong>. The <strong>Town</strong> shall complete theproject, or a portion there<strong>of</strong>, using the guaranteed funds. The <strong>Town</strong> shall return anyfunds not spent in completing the improvements.Default on a project does not release the developer from the liability he has or may haveincurred during the performance <strong>of</strong> work prior to the default or the responsibility forpayment <strong>of</strong> items that may exceed the current surety being held by the <strong>Town</strong>.See Horizontal Street <strong>Design</strong> for bonding <strong>of</strong> improvements to property lines whereexisting topography prevents construction without encroachment on others.DEDICATION AND ACCEPTANCE:A. Right-<strong>of</strong>-Ways and EasementsThe recordation <strong>of</strong> a properly executed final plat constitutes dedication to the<strong>Town</strong> the right-<strong>of</strong>-ways <strong>of</strong> each public street and all easements as proposed onthe final plat. The approval and recordation <strong>of</strong> a final plat does not constituteacceptance <strong>of</strong> maintenance responsibility within such right-<strong>of</strong>-way or easement.Improvements within such right-<strong>of</strong>-way or easements, such as street paving,drainage facilities or sidewalks may be accepted for maintenance by the PublicWorks Director after a final inspection has been conducted and approved by

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