The Engineering Department is responsible for establishing public improvement bonds and administering their reductions and releases. The purpose of these bonds is to ensure that construction of public improvements is performed according to City standards and are established to protect residents of the City. The City’s Municipal Code (§89-6-12) and Section 16.0 of the Development Processing Manual define how these bonds are to be administered and who has responsibility for various steps in the process. Please refer to those two documents for additional detail regarding the process. Download the generalized process diagram of the City’s bond process.
Developers are responsible for notifying the Engineering Department when they are ready for an inspection, as well as completing their project corrections lists (punch lists) in a timely manner. Projects established under the new enhanced process allow for 75-percent reductions in a particular system bond amount once a system (water system, sewer system, etc.) is completed. Once all public improvements are completed and verified by an inspection, the project may go into the warranty period and a 90-percent bond reduction approved. Once the warranty period is complete, an additional inspection is performed, a punch list completed, and the remaining 10-percent released.
As part of the project approval process, a bond is required to be established for all public improvements. The following types of bonds/forms are available to assist the developer in establishing a bond for a project.
Improvement Bond Forms:
Irrevocable Letter of Credit