Peabody planning board approves partial bond release for Stonegate subdivision, retains about $89,622

The Peabody Planning Board voted unanimously May 1 to reduce the surety for the Stonegate subdivision by $196,905, leaving $89,621.50 with the city while outstanding erosion-control and stabilization items are addressed.

The board's decision follows a day of late filings that included a memo from the Department of Public Services (DPS), photographic evidence from DPS and the developer, and a written response from PBD Living LLC, the developer. The retained funds reflect DPS's recommendation for work the city may need to complete at prevailing wage rates.

The developer, represented at the meeting by Hugo DiBiase, one of the owners of PBD Living LLC, told the board his team had performed erosion-control work, hydroseeded areas and used a high-pressure wet-vac to clean drainage structures. “We received that memo from the Department of Public Service this morning around, 9AM,” Drew (city staff) said, explaining the volume of late documents. DiBiase said his company was “okay with that, while also reserving some of our rights” under the tri-party surety agreement.

Board members debated the size and application of a contingency that was part of the original bond calculation. Several members said they were concerned that the current holding duplicated other line-item withholdings. “It seems like a duplication of these items,” one member said, noting the board was holding 30% of the original contingency plus line-item withholdings. Another member suggested trimming the contingency and revisiting the hold at the next meeting.

City staff and DPS argued that their estimate accounted for the higher costs of city crews performing the work at prevailing wages. “If DPS has to go out and do a lot of this work… DPS is paying prevailing wages on this and it’s a lot more expensive than if a private contractor was to come and do this,” Drew said.

Doctor Otto, a board member, urged the board to accept DPS’s recommendation and work further with DPS and staff to resolve questions about duplicated line items. “I think the better part of valor here is to accept the recommendation from public services,” Otto said, while also encouraging continued communication between the parties.

After discussion, a board member moved to reduce the bond by $196,905 and leave $89,621.50 with the city; the motion was seconded and carried unanimously.

The board also accepted multiple late-added documents into the record — including DPS photographs and two packets of color images submitted by the developer — after hearing from staff that the materials had arrived that morning. Several board members and staff expressed frustration with the timing and volume of late filings and asked that future material be distributed earlier so members can review it before meetings.

No permit approvals or street acceptances were made at the meeting; board members noted that other line items will remain until the public way is accepted by the council and the subdivision is complete.

The board’s action reduces the financial surety held by the city while retaining funds that DPS identified as necessary to address remaining erosion-control and stabilization work. The parties agreed to continue communicating and to revisit remaining items as necessary at a future meeting.