A. Financial Guarantee In Lieu Of Improvements: Financial guarantees may be provided in lieu of improvements upon review and approval by the director and all affected agencies prior to application for final approval of a subdivision. If an agency is unwilling or unable to approve a financial guarantee, the director may assume this authority. The amount of the guarantee shall be one hundred fifty percent (150%) of the estimated cost of construction and the expiration date of the guarantee shall be at least sixty (60) days after the expected agency approval date for the improvements. Cost estimates shall be developed by the design professional who developed the construction plans. If it is anticipated that improvements will be completed over a period of time, separate financial guarantees should be provided (e.g., 1 for roads, another for the water system, etc.). Partial releases are not permitted.
B. Warranty: A separate financial guarantee is required as a warranty to ensure correction of any deficiencies identified within twelve (12) months of final agency approval of improvements. The amount of this warranty shall be ten percent (10%) of the total cost of construction. If improvements are completed and approved by applicable agencies and design professionals prior to application for final subdivision approval, the warranty shall be provided with the application. If improvements are to be completed after final approval, the warranty shall be provided prior to release of the financial guarantee for construction. If the applicant fails to provide this warranty, the director may withdraw a portion of the construction guarantee to meet this requirement, or may take other enforcement action as authorized by law.
C. Subdivision Completion And Warranty Agreements: A subdivision completion and warranty agreement which complies with the requirements of section 8.6.903 of this chapter shall accompany each financial guarantee, and must be approved by the director. These agreements shall be contractually binding on the department and the property owner, and, if a party to the agreement, the contractor. Financial guarantees shall provide for installation and agency approval of improvements within two (2) years from the date of final subdivision approval. Upon written request by the property owner, the director may grant one extension of up to one year for good cause shown.
D. Financial Guarantee For Property Corners And Street Monumentation: Interior monuments for a subdivision need not be set prior to the recording of the subdivision plat if the following conditions are met:
1. The land surveyor performing the survey work in connection with the plat certifies that the interior monuments will be set within one year of the recordation of the plat; and
2. The applicant furnishes to the county a bond or cash deposit guaranteeing the payment of one hundred percent (100%) of the estimated cost of setting the interior monuments for the subdivision as provided in sections 50-1332 and 50-1333, Idaho Code.
E. Types Of Financial Guarantees:
1. The county will accept the following types of financial guarantees:
a. An irrevocable letter of credit issued by a financial institution chartered by the federal government or a state government.
b. Cash deposit (cash, cashier's check, bank draft, or money order).
c. Certificate of deposit or other similar bank account which provides that the board and the director have exclusive access to the account.
2. In addition, the director may accept surety bonds for required warranties, and for a portion of financial guarantees for incomplete improvements, except those related to stormwater and erosion control. A surety bond will not be accepted for stormwater or erosion control work. If accepted for other incomplete improvements, at least seven thousand five hundred dollars ($7,500.00) of the required financial guarantee must be provided in the form of a letter of credit, cash or a bank account.
F. Failure To Complete Improvements Or Correct Deficiencies: Any failure to complete improvements or correct deficiencies in accordance with a subdivision completion or warranty agreement and approved plans shall constitute good and sufficient cause for the director to take enforcement action in accordance with chapter 8, article 8.6 of this title or as otherwise authorized by law, and/or to draw on the funds and contract for completion of the work. In addition to direct costs to complete the work, the director may also withdraw funds to cover the department's administrative costs associated with such actions. Before any action may be taken, the department shall give the property owner written notice via certified mail. Any notice sent via certified mail which is returned to the department shall be re-sent via first class mail. The property owner shall permit the contractor and department staff to access the property to complete the necessary improvements. If the director or board is unable to gain access to the funds, or if costs exceed the value of the financial guarantee, the property owner will be billed for the outstanding balance.
G. Release Of Financial Guarantee: No financial guarantee shall be released until the associated improvements have been approved in writing by the agencies with jurisdiction or providing services, the developer's design professional and the director. No partial releases are permitted. (Ord. 493, 6-9-2016)