Payson amends performance-guarantee code to require plat recording before construction under traditional bonds

Payson City Council on Aug. 6 approved amendments to Payson City Code Title 12.5.0.02 to clarify how performance guarantees and bonding interact with plat recording and construction.

City staff described the change as tightening an existing rule so that a plat must be recorded before developers may begin construction under a traditional performance bond. A staff presenter said the city also added language allowing developers who start with an "at-risk" bond(defined in the packet as a bond in which the developer pays 10% of the public-improvement cost plus inspection fees) to switch to a traditional bond at any time and to switch back.

"The plat has to be recorded before we'll let them go to construction on a traditional bond," the presenter said, explaining that an unrecorded plat means there is no legal lot to sell. The change, staff said, responds to past cases where lots were marketed or sold before legal lots existed.

Councilors asked several clarification questions about how public improvements are bonded. A staff member said the city historically has not included electrical work inside the standard improvement bond and that power utilities provide a separate cost sheet; those costs are paid outside the municipal bond process.

The council approved the ordinance amendment by roll call vote. Councilor Hyatt, Councilor Moss (Anne Moss), Councilor Rowley and Councilor Christiansen voted yes; Councilor Hewitt was excused. The ordinance amendment took effect at adoption; staff said the change is intended to reduce instances of lots being sold before plats are recorded.

Kicker: Staff noted the amendment improves clarity for both developers and city reviewers and does not eliminate the option to use at-risk bonding arrangements.