A. Provisions: Prior to obtaining required signatures of city officials necessary for authorization for the subdivider to record a final subdivision plat, the subdivider shall provide the city with a subdivision surety bond (surety bond) in order to ensure proper completion of all public infrastructure and improvements required to be installed in the subdivision. The surety bond shall be issued in the name of the "developer" and subject to these provisions:
1. A subdivision surety bond is not required for a short plat subdivision that does not require any public dedication of new right of way.
2. A short plat subdivision that includes the dedication of right of way and associated infrastructure and improvements is subject to the provisions of this section.
B. Contents: The surety bond shall be in a form and contain such provisions as authorized by city council and approved by the city legal department. The surety bond shall include at minimum, but not be limited to, the following:
1. Incorporation by reference of the official name of the final subdivision plat and all data which is used to compute the total estimated cost of the public infrastructure and improvements and public utilities. Said data is to be prepared by the developer in accordance with the Idaho standards for public works for construction and submitted, in the appropriate electronic format, to the public works department for review and approval.
2. Two (2) sets of construction drawings and an electronic copy of the plans shall be submitted to the public works department for review and approval.
3. Subject to approval of the estimated cost data and construction drawings, the surety bond amount shall be set at a minimum of one hundred twenty five percent (125%) of the estimated cost of the required public infrastructure and improvements, and reviewed for accuracy by city staff.
4. The form of the surety bond shall be a performance surety bond issued by a surety acceptable to and also signed by the city with the city named as the obligee.
a. A valid surety bond shall remain in effect for the duration of the project and until the full release by the city at the satisfaction of the required two (2) year warranty period.
b. Failure to maintain the required surety bond shall result in the suspension of city authorization to continue with all development activities until such time as the surety bond is reinstated to the satisfaction of the city.
5. The completion date of the public infrastructure and improvements and public utilities is to be within a period of time not to exceed two (2) years from the date the surety bond is executed.
6. The public works director shall have authority over the surety bond proceeds which may be released, in whole or in part, only upon written approval of the public works director.
7. If the surety bond proceeds, in whole or in part, are inadequate to pay the cost of the completion of the public infrastructure and improvements and public utilities according to city standards for whatever reason, then the developer shall be responsible for the deficiency.
8. Building permits shall not be issued for any lot in the subdivision until the final subdivision plat has been recorded and all public infrastructure and improvements have been completed and accepted by the city and/or the service/utility provider.
9. The developer shall submit written and notarized disclosure statement and a current title report attesting to the fact that there are no outstanding bills, liens or other encumbrances associated with any portion of the public infrastructure and improvements being offered to the city for acceptance.
10. In the event of the developer's failure to perform, all of the city's costs of obtaining the proceeds of the surety bond shall be deducted from the surety bond proceeds.
11. The developer agrees to hold the city, its agents, employees, public officials, and directors, harmless from any and all liability which may arise as a result of the public infrastructure and improvements which are installed until such time as the city accepts the public infrastructure and improvements.
C. Disposition And Release Of The Surety Bond:
1. The developer giving the surety bond provided for herein shall be responsible for all costs, materials and workmanship of infrastructure and improvements and public utilities.
2. At the completion of the work, the developer giving the surety bond shall submit to the public works department one Mylar film copy of the final construction drawings and a digital copy of the "as built" drawings in accordance with the city electronic format and a certificate of completion signed by the developer and the developer's project engineer.
3. At completion of the work, the developer shall submit a written request to the public works director, or designee, requesting the city to accept the public infrastructure and improvements and release the surety bond in part or in whole.
4. The public works director, or designee, shall, within fifteen (15) business days of the receipt of the developer's written request, authorize city staff to conduct an inspection of the public infrastructure and improvements and prepare a written inspection report.
5. Upon completion of the inspection and the inspection report, the public works director, or designee, shall determine if the requested public infrastructure and improvements have been properly completed and passed inspection or if said infrastructure and improvements, or portions thereof, have not been properly completed and/or failed inspection.
6. Upon a determination of proper completion, the public works director, or designee, shall process the written request to accept the public infrastructure and improvements and distill the determination of proper completion into written findings. This action shall constitute a formal acceptance and action of the required public infrastructure and improvements.
7. Upon a determination that said infrastructure and improvements, or portions thereof, have not been properly completed and/or failed inspection, the public works director, or designee, will provide the developer with a copy of the inspection report and a detailed "punch list" of the deficiencies.
a. The developer must complete all identified deficiencies and pass required inspections in order to obtain a determination of proper completion and have their request for acceptance processed as outlined in division C.6.
8. In the event the developer fails to properly complete the public infrastructure and improvements and/or fails to comply with all applicable development standards within established time lines, the public works director, or designee, has the authority to initiate execution of the surety bond.
D. Partial Release Permitted: The public works director may, upon receipt of a written request from the developer, authorize a partial release of the surety bond in accordance with the following schedule:
Percentage Of Work Value Completed | Maximum Percent Of Surety Eligible For Release |
25% of total surety value | Up to 20% of original surety |
50% of total surety value | Up to 20% of original surety |
75% of total surety value | Up to 20% of original surety |
100% of total work | Up to 25% of original surety |
1. Based on this schedule, the city would retain fifteen percent (15%) of the original surety bond amount.
2. Upon the proper execution of the required warranty bond pursuant to subsection E of this section, the city will release any remaining balance of the surety bond.
E. Warranty Bond Requirements:
1. The warranty time period of two (2) years for all public infrastructure and improvements shall begin on the date following the completion of all said infrastructure and improvements and final acceptance by city staff.
2. The required warranty bond shall be for a minimum of twenty five thousand dollars ($25,000.00) or a maximum of five percent (5%) of one hundred twenty five percent (125%) of the original cost estimate for the required infrastructure and improvements, whichever is the greater amount.
a. The city of Pocatello shall be designated as the beneficiary with the right of execution and the bond shall cover the durability, condition, materials and workmanship of the infrastructure and improvements.
b. In lieu of providing a warranty bond, the developer may provide a cash surety with a title company or a financial institution with the city of Pocatello designated as the beneficiary and the cash surety being in conformance with the provisions of this section.
c. A developer and/or a developer's contractor that is a licensed and bonded contractor within the city of Pocatello may utilize their contractor's bond in lieu of a separate warranty bond, provided said contractor's bond complies with the provisions of this section.
3. If during the warranty period the durability, condition, materials, or workmanship of any of the infrastructure or improvements fails or shows unusual deterioration, the public works director, or designee, shall provide written notice to the developer detailing the issues and required corrections and establish a reasonable time line for the repair work to be completed.
4. If the developer fails to make the required corrections within the reasonable time set per subsection E3 of this section, the public works director, or designee, may declare such developer in default and initiate execution and use of the warranty bond to defray the cost of required work.
a. In the event the warranty bond is insufficient to cover the cost of making such corrections, the developer shall be responsible for all additional costs.
b. If corrections have been required by the public works director, or designee, the original warranty period shall be extended an additional one year, for that work which has been corrected, from the date all required corrections have been completed and approved by the public works director, or designee.
5. The developer shall acknowledge and agree to the warranty bond provisions of this section as a written condition in the required "development agreement" to be executed with the city prior to authorization to initiate construction activities pursuant to the provisions of municipal code chapter 12. (Ord. 3043, 2020: Ord. 2971, 2016)