HomeMy WebLinkAbout400-01OF Re
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POLICY & PROCEDURE
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Subject: Index:
PUBLIC WORKS/BUILDING
BONDS AND DEFERRALS
Number:
400-01
Effective Date: Supersedes: Page Of Prepared by: Approved by:
10-1-87 1-1-87 Page 1 of 6 R. Houghton
1.0 PURPOSE:
To establish a policy for the review and approval of deferred public or
private improvements and the enforcement of bonds for said deferrals.
2.0 ORGANIZATIONS AFFECTED:
Public Works Department, Building and Zoning Department, Board of Public
Works.
3.0 REFERENCES:
Renton Municipal Code: Chapter 1, Title IV
Chapter 22, Title IV
Chapter 11, Title IX
4.0 POLICY:
The City of Renton desires to assure the timely and complete fulfillment
of the requirements of its development ordinances. This policy provides
for the proper approval, acceptance, and enforcement of improvements
deferred in the construction process.
4. 1 Administrative responsibility for bonds and deferrals.
4. 1. 1 The Public Works Department shall administer deferrals and
bonds for off-site or on-site public improvements.
4. 1.2 The Building and Zoning Department shall administer
deferrals and bonds for on-site private improvements.
4.2 Covenants and Bonds. For all improvements required by the city' s
development ordinances, the developer must either construct those
J improvements prior to occupancy or secure a deferral as outlined in
this document.
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BONDS AND DEFERRALS
PAGE 2
4.2. 1 All deferrals for on-site or off-site improvements must be
accompanied by adequate security and engineering plans
acceptable to the approving authority.
4.2.2 A restrictive covenant running with the land, signed and
properly recorded after City Attorney review, may be
accepted as security in lieu of a bond if the covenant
guarantees that the property will join in any future L.I.D.
established to install the required improvements in addition
to the following conditions :
a) The restrictive covenant for deferrals occurs only for a
single family development no larger than a short plat.
b) There are no similar improvements in the vicinity and
there is no likelihood that the improvements will be
needed or required in the next five years.
c) There will be no detrimental effect on the public
health, safety or welfare if the improvements are not
installed.
d) There is no likelihood that the zoning or land use on or
adjacent to the site will change to a higher
classification within a five-year period, thus
increasing the likelihood that the improvements will be
needed.
4.2.2. 1 A covenant approved by the Board shall contain
language that stipulates the property owner will
immediately install the deferred improvements at
his or her expense upon a determination of the
Board of Public Works that the improvements have
become necessary.
5.0 DEFINITIONS:
5. 1 Deferral or Deferred Improvements:
The process by which a required improvement may be delayed to a
time certain by the appropriate administrative authority.
5.2 Bond:
Monetary security insuring installation of deferred improvements.
Bonds may include cash, performance bonds, letters of credit, and
irrevocable set aside letters conforming to the City' s standard
format.
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BONDS AND DEFERRALS
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5.3 Chronological Bond File:
A file extending 52 weeks in advance, providing for ready access to
and reminder of the impending expiration of bonds and/or deferrals.
5.4 Off-site Improvements:
Per Section 9-1102-9. 1 -- Subdivision Ordinance.
5. 5 On-site Improvements:
Parking lot improvement specified by the Parking and Loading
Ordinance, Chapter 11, Title IV.
5.6 Covenant:
A pledge in writing, signed, notarized or the legal equivalent, and
recorded, committing the applicants to perform or refrain from
performing a certain act or acts.
6.0 PROCEDURE:
6. 1 Administrative Authority:
The following persons or boards shall have administrative authority
in accordance with ordinance provisions for the following bonds of
deferral actions:
6. 1. 1 Street Break Permit - Public Works Director.
6. 1.2 Plat Bond - Board of Public Works.
6. 1.3 Plat Maintenance Bond - Public Works Director.
6. 1.4 Deferred Street or Public Improvement - Board of Public
Works.
6. 1.5 Temporary Occupancy - Building Director.
6. 1.6 Deferred On-site Private Improvement - Board of Public Works.
6. 1.7 Street Use Permit - Board of Public Works.
6. 1.8 Mining, Excavation and Grading Bond - Building Director.
6. 1.9 Street Clean-up (Grading Related) Bond - Building Director.
6.2 Bonds shall have a duration of twelve (12) months, unless a
duration of less than twelve (12) months is established by the
administrative authority.
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BONDS AND DEFERRALS
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6.3 Deferrals shall have an initial duration not exceeding eleven ( 11)
months and may be extended by the administrative authority in
accordance with ordinance provisions for periods up to twelve (12)
months. Deferral durations shall be one (1) month less than the
bond duration.
6.4 Requests for deferrals of improvements (other than temporary
occupancy certificates).
6.4. 1 Applications shall be made to the Public Works Director
DIRECTOR) in accordance with Section 6. 1 of this policy.
6.4.2 The DIRECTOR shall circulate the deferral request for
comment from affected departments.
6.4.3 The DIRECTOR shall determine that all required plans are
complete and approved and that a required bond amount has
been established.
6.4.4 The DIRECTOR shall request Board of Public Works (BOARD)
consideration of the requested deferral.
6.4.5 When a date of BOARD action is established, the BOARD
secretary shall inform the applicant of the time, date, and
location for BOARD consideration.
6.4.6 If the BOARD approves the requested deferral, the applicant
shall be informed by the DIRECTOR of:
A) Duration of the deferral.
B) Amount of the required bond.
C) Any special conditions of approval.
D) Posting of bond or letter of credit to take place
within a 30-day period or deferral will be revoked and
the process must start again.
6.4.7 The deferral shall commence upon a determination of the
DIRECTOR that the bond and any special conditions of the
BOARD have been complied with.
6.5 Upon receipt of a bond in proper form, the DIRECTOR shall provide
for filing of the ORIGINAL BOND with the FINANCE DIRECTOR WHO SHALL
NOTIFY THE ESCROW AGENT. A copy of the bond denoting the applicant
and project common name(s) and deferral duration, if applicable,
shall be placed in the Chronological Bond File nine (9) weeks prior
to expiration of the bond.
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6.5. 1 Bonds, Letter of Credit, or cash will be placed in escrow
until the deferred improvements are completed or it is no
longer necessary as recommended by the BOARD OF PUBLIC
WORKS. (An Escrow Agent is to be named by the City of
Renton. ) The cost of the escrow is to be borne by the
recipient of the deferral.
6.5.2 A fee of $100 for escrow costs will be charged at the time
the bond is presented to the PUBLIC WORKS DIRECTOR. This
will be a one-time charge.
6.6 Each week the DIRECTOR shall cause the Chronological Bond File to
be checked to establish bonds expiring nine (9) weeks hence.
6.6. 1 The DIRECTOR shall determine if the bond and/or deferral, if
any, requires extension.
6.6.2 If extension of the bond and/or deferral is required, the
DIRECTOR shall inform the applicant of a date certain that
such extension must be requested. This date should be at
least twenty (20) days prior for bond or deferral expiration.
6.6.3 Upon receipt of a request for extension, the DIRECTOR shall
40` act accordingly where authority rests with the DIRECTOR. In
the case of action requiring BOARD approval, BOARD action
shall be sought. The BOARD secretary shall inform the
applicant of the time, date, and location for BOARD
consideration.
6. 7 Upon approval of an extension for a bond or deferral, the DIRECTOR
shall inform the applicant of:
A) Duration of the extension.
B) Amount of the revised bond.
C) Any special conditions of the extension.
D) Date certain to provide the updated bond and to comply with
any special conditions.
6.8 Each week, the DIRECTOR shall cause the Chronological Bond File to
be checked to establish bonds expiring three (3) weeks hence.
6.8. 1 Any such bond requiring continuation, but not properly
extended, shall be referred to the City Attorney for action
to secure the value of the bond.
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6.8.2 The DIRECTOR shall provide the City Attorney with any
required documentation.
6.8.3 The DIRECTOR shall inform the applicant of the referral of
the expiring bond to the City Attorney. The DIRECTOR shall
seek compliance from the applicant prior to litigation.
6.9 Upon securing the bond amount from the City Attorney, the DIRECTOR
shall seek installation of the improvements as quickly as practical.
6.9. 1 The DIRECTOR shall seek compliance through the original
applicant. Where compliance is not forthcoming within a
reasonable period, the DIRECTOR shall provide for completion
of the work by a private contractor hired by the City.
6.9.2 Upon completion of the work, the City's actual costs shall
be deducted from any proceeds remaining from the bond.
6.9.3 Any remaining proceeds shall be refunded to the applicant.
6. 10 If a deferral is being approved subject to a restrictive covenant
rather than a bond, the deferral shall not take effect until :
a) The restrictive covenant is prepared by the applicant and has
been reviewed and approved by the City Attorney.
b) The restrictive covenant has been signed by the legally
authorized party representing the property.
c) The restrictive covenant has been legally filed and recorded
with the King County Records Division.
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