(i) When the town is the lead agency for a proposal requiring an EIS and the responsible official determines that the EIS shall be prepared by employees of the town, the town may charge and collect a reasonable fee from any applicant to cover the costs incurred by the town in preparing the EIS. The responsible official shall advise the applicant of the projected costs for the EIS prior to actual preparation; the applicant shall post bond or otherwise ensure payment of such costs.

(ii) The responsible official may determine that the town will contract directly with a consultant for preparation of an EIS or a portion of the EIS, for activities initiated by some person or entity other than the town and may bill such costs and expenses directly to the applicant. The town may require the applicant to post bond or otherwise ensure payment of such costs. Such consultants shall be selected after input from the applicant, after a call for proposals. The town shall have the final decision on the selection of the consultant.

(iii) If a proposal is modified so that an EIS is no longer required, the responsible official shall refund any fees collected under subsection (1)(b)(i) or (1)(b)(ii) of this section which remain after incurred costs are paid.