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A. The following criteria must be met, unless otherwise waived by the town engineer, before water facilities are conveyed to the town:

1. A public utility easement of adequate dimensions must be concurrently granted to the town;

2. The facilities must be inspected for conformance with the standards specified in the most current edition of the APWA Standard Specifications for public water facilities. The town engineer may require any test to demonstrate conformance. The applicant must notify the town engineer when the water lines are ready for inspection;

3. The applicant must pay all required fees;

4. The town engineer may require the applicant to post a maintenance bond (in accordance with subsection B of this section) to cover the cost of replacing or repairing any of the facilities.

B. If a maintenance security is required by the town engineer, the applicant must deposit with the town a maintenance bond or other acceptable surety to cover the cost of replacing or repairing any or all required improvements and to warrant against defects in labor and material, and against any damage or defects caused by construction activity on the site, for a period of two years from acceptance of improvements by the town. The maintenance security must be one of the following:

1. A surety bond executed by a surety company authorized to transact business in the state of Washington in a form approved by the town attorney;

2. A personal bond approved by the town attorney co-signed by at least one additional person together with evidence of financial responsibility and resources of those signing the bond sufficient to provide reasonable assurance of ability to proceed in accordance with the agreement;

3. Cash;

4. A letter of credit approved by the town attorney from a financial institution stating that the money is held for the purposes of development of the stated project.

C. The bond or other approved surety will be for 20 percent of the estimated value of all the required improvements as determined by the town engineer.

D. When the warranty period ends, and upon restoration of the improvements to successful operation and the repair of any defects or damage in the improvements, the town engineer will authorize the release of the maintenance bond.

E. The town engineer may withhold release of the bond or surety up to one year from the date of any restoration or repairs to insure that the restoration or repairs were adequate.

F. The mayor and the applicant must sign a notarized security agreement, approved in form by the town attorney, in accordance with SPMC 15.02.130.

G. When the town accepts water facilities, the developer must provide the town engineer with as-built drawings of the water facilities, signed, stamped, and acknowledged by an engineer. [Ord. 378 § 2 (Exh. 1), 1999.]