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Bonding Procedures and Bond Examples

Subdivision Forms and Requirements

The following is a summary guide for bonding requirements and types of bonds. See Section 28.4 of the Zoning regulations and Section X of the Subdivision Regulations (attached) for more detailed description of regulatory requirements.

NOTE: all bonding will be in place prior to the start of any construction. Bond amount shall include an amount and cover escalation costs for two years. Every two years the bond will be reviewed and adjusted.

TYPES.

Four types of bonds are used for site improvements.

  1. Performance- for site plan improvements, including those for road construction and Subdivision improvements
  2. Landscape- for vegetative measures (installation and replacement)
  3. Erosion Control- all measures, cost installation and replacement (cash or letter of credit only)
  4. Maintenance- required 10% of original bond, to remain for at least one year after project/road completion

FORMS of bonding allowed

  1. Cash
  2. Certified Check
  3. Passbook
  4. Surety Bond (shall expire not less than 1 year after issuance)
  5. Irrevocable Letter of Credit

Attached find Bond Forms allowed by the Town of East Hampton

PROCEDURE

  1. Bond estimate shall be submitted as a part of the application
  2. Bond amount shall be approved by staff
  3. Bond amount shall be approved by the appropriate Commission
  4. Bond/s shall be filed prior to any construction
  5. Bond reduction shall be requested in writing
  6. Bond reduction shall be in accordance with the format as described
  7. Bond reduction shall be approved by the appropriate Commission
  8. Bond release shall be requested in writing
  9. Bond release shall be approved by staff
  10. Bond release shall be approved by the appropriate Commission where applicable
  11. Where applicable, a 10% Maintenance bond is required

RELEASE REQUIREMENTS

PARTIAL release may be approved under the following conditions

  • Subdivisions
    1. Binder course for road is in place
    2. Site is stable
    3. 10% maintenance bond is required
  • Site Plan Improvements
    1. Site is stable
    2. 10% maintenance bond is required
  • Landscape- no partial release
    1. 10% maintenance bond required
  • Erosion Control- no partial release                       

Release Requirements

  1. Request for release in writing
  2. Inspection by staff with recommendation to PZC for release
  3. PZC approval
  4. Release shall not be less than the 10% Maintenance bond required

FINAL RELEASE

  • A release of the remainder of the bond minus a 10% maintenance bond requirement may be requested at the time of road approval or project completion
  • At the end of one year the 10 % maintenance bond may be released upon inspection by staff, that all requirements in accordance with the subdivision or site plan have been met

OTHER REQUIREMENTS

  • All bonds shall contain an expiration date
  • Provider shall include the following in all bonds Sixty (60) days prior to the expiration of the bond, the provider shall notify the Town of East Hampton.
  • The provider shall forward proof of renewal at least 30 days prior to the expiration date