Gwinnett County Considers Revising Bonding Requirements

(Update September 13th) – At the September 13th sub-committee meeting, several individuals from the DAC met to discuss the proposed bonding requirements. Also in attendance were individuals from the Surety industry, who helped the DAC members understand the financial implications of the proposed requirements. Among the concerns voiced was the inability to write surety bonds for 36 month maintenance agreements. County staff removed the portions about maintenance responsibility related to fences. The re-inspection fee was also removed for developments that successfully completed the requirements demanded by county officials when performance is questioned. The bonding requirements will continue to be revised by the sub-committee before being forwarded to the full DAC.

(Posted August 15th) – On August 15th, the Gwinnett Development Advisory Committee (DAC) met at its regular meeting to discuss several important issues including a proposal to revise the county bonding requirements for new developments. A sub-committee was established to further discuss and revise the proposed policies if necessary. The next sub-committee meeting is planned for 3 PM on September 12th in Law Department Conference Room, 2nd Floor, GJAC.

The current changes include the designation of a Bond Manager for Planning and Development. This person would be responsible for managing all maintenance and performances bonds related to new developments. Water and sewer systems would be exempt from bonding requirements. Cash bonds would be eliminated due to accounting issues. All bonding companies would be required to have an A-6 rating or higher. Developers would have to prepare a master maintenance bond and it should be effective for 36-months. Items to be covered by a maintenance bond include: streets, drainage facilities, sidewalks, detention/retention facilities, landscaping, street trees, street signs, and fences. Planning and Development would have to establish and estimate list for the cost of various maintenance work and the amount boned would have to equal 120% of such estimates. Below is a copy of the proposed changes:

Bonding Procedure Revisions

Draft Letter of Credit