Performance and Maintenance Agreement/Sureties Guidelines
Administrative Action Date and Deadlines Schedule
Administrative Action Notices
For more complete information concerning the entire performance and maintenance agreement process, please click here [PDF].
A legally binding notarized contract signed by the applicant that requires specific improvements be built according to the plan approved by the Franklin Municipal Planning Commission (FMPC) and/or City of Franklin (COF). Agreements are prepared by the Planning Department after the applicant supplies the information requested in the approval letter.
A letter sent to the applicant following FMPC/COF approval that states the amount of sureties that shall be posted. If the applicant will use a letter of credit for the surety, the approval letter should be forwarded to the applicant’s bank to aid in preparation of the letter of credit. As stated in the approval letter, the applicant should contact (615) 591-5631 to provide the following information so the performance agreement can be prepared:
- Type of surety
- Legal name of company
- Type of charter and what state is company chartered in (example: Tennessee LLC, Georgia Corporation, etc.)
The applicant may choose between an irrevocable standby letter of credit or cash:
- Cash shall be posted in the form of a cashier's check made payable to the City of Franklin. Funds are deposited in a City of Franklin non-interest bearing escrow account; therefore, no interest shall be paid to the applicant for the time funds are held.
- See the bullet points below under “Frequently Asked Questions by Banks” for information regarding requirements for letters of credit.
Anything required by the FMPC/COF approval of a site plan or final plat to be constructed or planted for that project. Examples: water lines, sewer lines, sidewalks, streets, traffic signals, stormwater drainage/detention, landscaping, etc.
A mandatory one-year agreement that is required following the release of the performance agreement, to ensure the quality of the workmanship and materials used in constructing the improvements. Generally, a smaller amount of surety is held during the maintenance period.
The initial agreement phase that the applicant enters into which ensures the improvements required by the conditional approval of the FMPC/COF are constructed according to the approved plan. The performance agreement remains in effect until each individual improvement is complete, although each improvement is considered independently from the others. Example: if the sewer improvements are complete before any other improvements, the sewer improvements may be released from performance and enter the maintenance agreement phase prior to any other improvements being complete. See the section labeled “Action Request” for information regarding what is required from the applicant to request a release of the performance agreement.
Inspections are regularly performed by City personnel, depending on the individual cycles of each improvement. All improvements shall be inspected a minimum of once per year.
A form that the applicant fills out to tell the Planning Department how far along in the construction phase they are for each individual improvement. The choices available to the applicant are extend, reduce and extend, and release. Each request for either a reduction or release MUST be signed/sealed/dated by the applicant’s project engineer or landscape architect (for landscaping improvements). If it is time for a regular agenda for an improvement, an Action Request will be sent to the applicant. The applicant may also print a blank Action Request from this website for use in requesting an earlier agenda, if the improvements are complete prior to the next regularly scheduled agenda.
If the project is not progressing in a manner acceptable to the FMPC, the improvements may be called. If a letter of credit is posted for the surety, it will be presented to the issuing bank for payment, and the funds will then be used by the City to complete the improvements according to the approved plan. If the surety posted is cash, then the cash will be used to complete the improvements according to the approved plan.
Extensions can be requested and may be granted if improvements are not complete prior to the deadline for a scheduled agenda.
When an improvement is complete according to the plan approved by the FMPC/COF, the applicant shall request a release via their project engineer or landscape architect (see Action Request). The improvement shall then be placed on the next available inspection list/agenda, and the City’s inspector shall inspect the improvement to verify satisfactory completion. If the improvements are found to be complete, the performance agreement is released and a mandatory one-year maintenance agreement is established. The applicant is still responsible for the improvements during the maintenance phase. Towards the end of the one-year period, the improvements are again inspected by the City. If the improvements are found to be in the same condition as when released from performance, the maintenance agreement is released and the applicant’s obligation for the improvement is complete.