For nonresidential development over 10,000 square feet;
For multifamily development over 10,000 square feet; and
For any subdivision in excess of five lots.

Construction of Improvements.
No land alteration or grading, removal of trees or other vegetation, land filling, construction of improvements, or other material change, except for location of surveying stakes for purposes of aiding in preparation of final engineering drawings or plans, shall commence on the subject property until the applicant has:

Received a development order from the Administrator approving the construction plans and granting final plat approval;

Entered into a voluntary development agreement and a subdivision improvement agreement as applicable; and

Deposited with the Administrator cash, a letter of credit, an escrow agreement, surety bond, or a payment and performance bond, sufficient to cover the cost of completion of all improvements, together with costs, expenses and attorney’s fees in the event of default (as set forth in the engineer’s cost estimate below), required to be made pursuant to the conditions of the development order granting final plat approval, the development and subdivision improvement agreements executed pursuant to this Chapter and the approved construction plans. The acceptance of any surety bond or letter of credit shall be subject to the approval of the Administrator and County Attorney.

Engineer’s Cost Estimate.
A cost estimate for all required public and private site improvements or reclamation shall be prepared by a New Mexico registered professional engineer and shall be submitted with the financial guaranty. The cost estimate shall be valid for a period of 12 months.

Form of Guaranty.
Any letter of credit, escrow agreement, performance and payment bond or surety bond shall utilize the standard County template (guide) for the format and content of such Agreements. The template may be obtained from the Administrator. The guaranty shall conform to the following standards:
 

A payment and performance surety bond executed by a surety company licensed to do business in New Mexico in the amount of 100 percent of the cost estimate of all required improvements, or

An irrevocable letter of credit in an institution licensed to do business in the State of New Mexico in the amount of 125 percent of the cost estimate of all required improvements.

Maintenance Bonds. The applicant shall warranty any public improvements against defects in workmanship and materials for a period of five (5) years from the date of acceptance of such improvements.

Engineering Inspection and Tests.
The Administrator may make inspections of improvements constructed pursuant to § 7.22.11 Inspection and As-Built Plans and this Section of the SLDC to ascertain compliance with the provisions of this Section and to ascertain compliance with the standards in the SLDC.
 

The Administrator will charge the applicant for the actual costs of such inspections during construction and for final inspection; however, it is to be understood that the County will do no layout work or daily inspection.

Releases and Financial Guaranty.

When an applicant has given payment and performance security in any of the forms provided in this Chapter, and when required site improvements have been completed and accepted, the original guaranty may be substituted with a new guaranty in an amount equal to 125% of the cost for completing the remaining site improvements. Such new guaranty need not be in the same form as the original guaranty. However, in no event shall the substitution of one security for another in any way alter or modify the obligation under the performance and payment bonds, letter of credit, or cash. Releases shall not be requested more than once a month.

 

As the improvements are completed, applicant may submit a written request, prepared by the project engineer, for a partial or full release of the financial guaranty. Such application shall show, or include:

1. Dollar amount of commitment guaranty,
2. Improvements completed, including dollar value,
3. Improvements not completed, including dollar value,
4. Amount of previous releases,
5. Amount of commitment guaranty requested released,
6. Release or waivers of mechanic’s liens of all parties who have furnished work, services, or materials for the Improvements, and
7. Reasonable fee, if the County requires any, to cover the cost of administration and inspections.
 

Upon receipt of the application, the Administrator shall inspect the required improvements, both those completed and those uncompleted. If the Administrator determines from the inspection that the required improvements shown on the application have been completed as provided herein, that portion of the collateral supporting the commitment guaranty shall be released. The release shall be made in writing signed by the Administrator and the County Attorney. The amount to be released shall be the total amount of the collateral:

1. Less 100 percent of the costs of the required improvements not completed;
2. Less 100 percent of the cost of any required landscaping, which shall be retained for at least one year following the landscape installation to guaranty its survival; and
3. Less 100 percent of the contingency.

 

If the Administrator determines that any of the required improvements are not constructed in substantial compliance with specifications, it shall furnish the Applicant a list of specifications and shall be entitled to withhold collateral sufficient to insure substantial compliance.

Demand on Financial Guaranty. If the Administrator determines that the Applicant will not construct any or all of the improvements in accordance with all required specifications, the Administrator may demand on the collateral of such funds as may be necessary to construct the improvements in accordance with the specifications.

Guaranty. The applicant shall require his construction contractors, with whom he contracts for furnishing materials and for installation of the improvements required under this Section, that each obtains the proper financial guaranty under the SLDC, and shall furnish to the County a written guaranty of all workmanship and materials, that each shall be free of defects for a period of two years from the date of acceptance by the Administrator.

See § 7.22.11 Inspection and As-Built Plans.

See § 7.22: FINANCIAL GUARANTY for complete, detailed information.