Roadway StandardsSection 190 - Performance Surety, Warranty And Acceptance Of Work

190.1 General

To ensure the acceptable completion of permitted private or public improvements, a Performance Surety and/or Warranty Surety may be required and integrated into Engineering related permits.

1. A Performance Surety shall be required prior to:
   1. Issuance of a Utility Permit for mainline utilities or other utility work that significantly impacts the existing roadway except when performed by a "public utility company or municipal authority" per County Code 7.03.130.E. Per County Code, if an existing roadway is left in disrepair and is a hazard to the traveling public, the County may repair the road and call the surety to cover the cost of repairing the road. If the Performance Surety is redeemed to repair a road during the course of a project, an additional surety may be required by the County to complete the project;
   2. Issuance of a Development Permit impacting an existing roadway under the jurisdiction of the County. If at any time, an existing roadway is left in disrepair and is a hazard to the traveling public, the County reserves the right to repair the road or call the surety to cover the cost of repairing the road. If the Performance Surety is redeemed to repair a road during the course of a project, an additional surety may be required by the County to complete the project;
   3. Issuance of a Certificate of Occupancy when all improvements required by the Development Permit and the land use requirements are not completed and accepted; or
   4. Recordation of a plat when all improvements required by the Development Permit and the land use conditions are not completed and/or accepted.
   5. A Performance Surety may be required prior to issuance of a Right of Way Permit for events that have a strong potential of damage occurring to the right-of-way.
2. Substantial Completion of residential partitions and subdivisions shall be achieved prior to acceptance of any surety for guarantee of work to record a plat.  Requests for acceptances of a surety for guarantee of work without achieving Substantial Completion will be evaluated by Engineering using the criteria in Section 190.2 if minimum fire, life and safety issues are met.
3. A Warranty Surety shall be required for improvements located in the right-of-way under County jurisdiction after the acceptance of improvements.

Typically, Performance Surety or Warranty Surety will not be required for Entrance Permits or Right-of-Way Permits, but may be required by the Road Official.

190.2 Substantial Completion for Development Permits

Substantial completion is achieved when:

1. All required right-of-way dedications and easements have been accepted or are shown on the final plat.
2. The sanitary sewer mainline and service laterals under subject roadways are constructed and accepted.
3. The roadway drainage system is constructed and accepted, including LIDA when required.
4. The water main line and service laterals are constructed and accepted and water is available for fire suppression.
5. Conduits for franchise utilities within the roadway are installed and accepted.
6. The pavement wear course is installed.  If pavement is not required, the full gravel structural section has been placed and properly compacted.
7. Shared private roadways and emergency access turnouts and turnarounds are constructed.
8. All other land use or Development Permit conditions required to be met prior to plat or occupancy approval are completed.
9. The EOR shall complete a Certificate of Compliance and Completion.

190.3 Performance Surety

Acceptable Performance Sureties include a Performance Bond, a Security Agreement (commitment of funds), or a Cash Acknowledgement.

1. Performance Bonds shall be provided only through State regulated surety companies
2. A Security Agreement, or commitment of savings or loan proceeds, shall be through State regulated financial institutions. 
3. A Cash Acknowledgment is a cash surety held directly by the County.
4. A Development Agreement shall accompany all types of sureties and be recorded.

190.3.1 Forms

All sureties and Development Agreements shall be submitted on forms provided by the County and are subject to review and approval by County Counsel.

190.3.2 Timeframe/h3>

Sureties shall be in effect at the time of plat approval or issuance of a Certificate of Occupancy and until County acceptance of the improvements resulting in release of the surety. 

190.3.3 Amount

1. The financial amount established for the Performance Surety shall be equal to 125% of the estimated value of the improvement. 
2. An Engineer's estimate is required and shall be approved by Engineering.  A contractor's bid or estimate is not acceptable.  The surety shall cover the County's cost for completing the work with public contracting procedures and include project management and inspection services.
3. The minimum amount for Performance Sureties shall be $10,000.  The minimum amount for all other sureties including the Cash Acknowledgment shall be $2,500.
4. Engineering will not approve more than one surety reduction throughout the life of the project, not including the reduction of Performance Surety to the Warranty Surety.

190.4 Maintenance and Warranty Period for Development Permits

1. Typically, the Warranty Period will begin when all improvements, with the exception of street trees, are accepted by the County.  If there are remaining improvements to be constructed, the Warranty Surety will also include a Performance Surety.  All outstanding performance items shall be guaranteed at 125%. This combined surety may require the minimum warranty period to be extended to two years from the date all performance improvements have been completed.
2. The applicant shall provide a Warranty Surety as part of a Development Permit for work located in a public right-of-way under County jurisdiction.  The Warranty Surety/maintenance requirements shall be held for a minimum of two years.
3. The required Warranty Surety shall be valued at 25% of the Engineer's estimate and approved by Engineering.
4. The County may require an extension of the Warranty Surety/maintenance period for more than the minimum required if the required improvements show signs of failure during a final inspection and work is completed to correct these deficiencies.
5. The Warranty Surety does not expire and may only be released after a final inspection has been completed and the minimum warranty period has elapsed. At the time of final warranty inspection, any items not completed or maintained to County standards will be included in a punch list provided to the applicant and/or guarantor. These items shall be addressed prior to the release of the Warranty Surety.

190.5 Maintenance and Warranty Period for Utility Permits

1. Utilities installed as part of Utility Permits do not have a Warranty Period.
2. When related to a Development Permit, the Warranty Surety/maintenance requirements for utility work will follow those listed under 190.4 for work located in a public right-of-way under the jurisdiction of the County.

190.6 Acceptance of Work

Prior to County acceptance of the improvements and release of the Performance Surety and/or Warranty Surety/maintenance period, the following shall occur:

1. The applicant shall repair any damage caused by the construction of the work to any public roads, private roads and/or property that is not part of the project as well as any identified haul routes per Section 225.6.
2. The applicant shall perform a thorough cleaning of the roadway surface and storm drain system.
3. If a private PI is required, the PI shall conduct an inspection of the improvements.
4. If the private PI indicates that the work is complete, the EOR shall complete a Certificate of Compliance and Completion.
5. The County shall conduct an inspection of the improvements.
6. The County shall make a determination of completion in conformance with the permit. 
7. Any deficiencies resulting in non-acceptance of the work permitted in the Development Permit shall be identified in writing on a punch list and presented to the applicant with a date named for correction and completion. 
8. Upon correction of the noted deficiencies and the determination that all work is in conformance with the requirements, repeat steps a) through f).
9. When the improvements are found complete and the work is accepted, the Performance Surety will be released and the Warranty Period will begin.
10. Once the Warranty Period has passed, and there are no defects in workmanship found by County inspection, the Warranty Surety will be released.

190.7 Acceptance of Roads

When the permit requirements are met and the Warranty Period is over and all sureties have been released, the County will then accept the road right-of-way as dictated by the road's classification. 

190.8 Nonperformance of Permit

Failure to complete the project prior to expiration of the Development Permit and Utility Permit shall be construed as nonperformance and may be considered a violation of the permit.  The surety may be demanded in order to bring the project to completion.  If compliance is not achieved, the permit is subject to code enforcement.  Development Agreements should not be extended unless there is adequate surety to guarantee the improvements through the extended period.

 

A part of the Roadway Standards.