Chapter 17.32
INSTALLATION OF IMPROVEMENTS
Sections:
17.32.010 Completion of improvements.
17.32.020 Agreement to improve.
17.32.050 Cost of required public improvements.
17.32.060 Improvement security.
17.32.070 Release of guarantee.
17.32.080 Effect of final approval by the city.
17.32.090 Exemption from claims.
17.32.120 Waiver of improvements.
17.32.010 Completion of improvements.
Before a final plat of subdivision may be approved by the planning commission, all subdividers shall complete, in accordance with the decision of the commission and to the satisfaction of the city engineer, the head of the public works department, and the water and sewer departments, construction of all street, water, sewer and electric service improvements, and any other improvements required as a condition of commission approval or conditional approval of the preliminary plat, or otherwise required by this title or law, and to dedicate the same free and clear of any and all liens and encumbrances on the property and public improvements so dedicated. (Ord. 681 § 2, 1996)
17.32.020 Agreement to improve.
A. The planning commission, in its sole discretion, may waive the requirement that the subdivider complete and dedicate all improvements prior to the approval of the final subdivision plat; provided the subdivider enters into one of the agreements to improve provided in subsection (A)(1) or (A)(2) of this section and deposits the improvement security provided in DPMC 17.32.060:
1. A written agreement with the city to thereafter construct and to install all such improvements at the subdivider’s expense. Such agreement shall include, but not be limited to, the following provisions:
a. Designation of required public improvements to be constructed;
b. Any performance or other schedule of completion required by the planning commission;
c. A provision providing the city with an adequate guarantee for the completion of required public improvements and for warranties of all improvements for a period of one year from date of approval;
d. A warranty that the subdivider has title to the subdivision property and the authority to execute the subdivision agreement.
2. A written agreement with the city to thereafter initiate and consummate local improvement district proceedings for the financing and completion of all such improvements, and if not completed under such local improvement district proceedings, to complete such improvements at the subdivider’s expense not later than the date required for improvements to be installed as provided in this title.
B. To assure the installation of required public improvements which are not completed and approved at the time the final plat is approved and recorded, the planning commission and the agreement to improve, shall require the subdivider to guarantee the completion of all such improvements by one or more of the methods specified in DPMC 17.32.060. The means of guarantee may be changed during the guarantee period through a written modification of the agreement to substitute another approved form of improvement security upon the mutual agreement of the city and the subdivider. The amount of guarantee shall be determined on the basis of the subdivider’s cost estimate as approved by the city engineer. The guarantee shall remain in effect until final approval of the improvements and the posting of an acceptable security for the warranty period.
C. Cost Estimates. The subdivider’s cost estimate provided for in subsection B of this section shall state the estimated cost of completion for each required public improvement. Cost estimates for each required improvement must be approved by the city engineer. For the purposes of establishing the amount necessary for the guarantee of completion of public improvements, a percentage for overrun allowance, including inflation, shall be added to the total estimated cost of public improvements as follows:
|
Total Estimated Cost of Improvements |
Percentage for Overrun Allowance |
|---|---|
|
$0 – $500,000 |
20% |
|
$500,000 – $1,000,000 |
15% |
|
$1,000,000 and over |
10% |
(Ord. 681 § 2, 1996)
17.32.030 Improvement plans.
In the event the subdivider enters into an agreement to construct and install improvements pursuant to DPMC 17.32.020, the subdivider shall prepare and deposit with the planning director detailed plans and specifications of the improvements to be constructed and such plans and specifications shall be made a part of any such agreement and of the improvement security. (Ord. 681 § 2, 1996)
17.32.040 Completion date.
The improvements required under the terms of the subdivision agreement shall be fully completed for final approval within two years of the date of approval of the final plat by the planning commission unless upon a showing of good cause the date of completion is extended by the planning commission for an additional period not to exceed one year. (Ord. 681 § 2, 1996)
17.32.050 Cost of required public improvements.
A. The cost of any improvements shall be defined to include the cost of design, engineering, contract administration, inspection, testing and surveillance as well as all work, labor and materials furnished for the construction of the improvements.
B. The agreement to improve shall provide for payment of the cost of required improvements as provided below:
1. Administrative and Recording Costs Relating to Public Improvement Guarantees. The subdivider shall pay 100 percent of all costs incurred in supplying and administering any method of public improvement security and guarantee.
2. Inspection, Surveillance and Testing. The subdivider shall pay 100 percent of all costs relating to any inspection, surveillance and testing by the city necessary for final approval of any required public improvement or during the warranty period. Surveillance shall be performed by the city during the course of construction and up to the point of final approval of the completed project. Inspection shall be performed by the city during the warranty period. (Ord. 681 § 2, 1996)
17.32.060 Improvement security.
A. The agreement to improve shall include and be secured by one or more of the following methods to guarantee the construction and installation of required public improvements:
1. Performance and Payment Bonds. The subdivider may elect to provide a performance and payment bond, or bonds, from a surety company authorized to do such business in the state of Washington guaranteeing the construction, installation and payment for all required improvements, including monuments, and for all labor and materials for the construction and installation thereof. The bond or bonds shall be in an amount equal to the estimated cost of all required public improvements plus an overrun allowance as provided in DPMC 17.32.020. The performance bond shall be payable to the city in the event that any required public improvements are not finally approved in accordance with the provisions of this title. The payment bond shall inure to the benefit of all persons who provide labor or materials for the construction or installation of the public improvements.
2. Cash or Cashier’s Check. The subdivider may elect to deposit with the city clerk money, or a cashier’s check payable to the city equal to the amounts referred to in subsection (A)(1) of this section.
3. Letter of Credit. The subdivider may elect to provide from a bank or other responsible financial institution authorized to do such business in Washington a irrevocable letter of credit in the amount referred to in subsection (A)(1) of this section. Such letter of credit shall be filed with the city and shall certify the following:
a. That the bank or financial institution issuing the letter of credit irrevocably guarantees funds in an amount equal to the estimated cost of all required improvements plus overrun allowances as provided above for the completion of all such improvements;
b. That in the case of failure on the part of the subdivider to complete or pay for any specified improvements within the required time period the bank or financial institution shall pay to the city immediately and without further action such funds as are necessary to finance the completion of those improvements up to the limit of credit stated in the letter.
B. The agreement to construct and install improvements, and the improvement security referred to in this title, shall comply with all statutory requirements and shall be satisfactory to the city attorney as to form, sufficiency, and manner of execution.
C. The city shall be under no obligation to deposit any improvement security into an interest bearing account; however, in the event of such deposit, any interest accrued thereon shall be added to such security and may be used as additional security, and shall be returned to the subdivider in the same manner as the security. (Ord. 681 § 2, 1996)
17.32.070 Release of guarantee.
The city shall release the obligation for performance guarantees upon the final approval of all the improvements covered by the agreement to improve and improvement security together with the posting of adequate security for warranty. (Ord. 681 § 2, 1996)
17.32.080 Effect of final approval by the city.
Final approval by the city of the construction and installation of required public improvements shall not obligate the city thereafter to inspect, maintain or repair, or constitute an agreement or assumption by the city or any duty or responsibility to thereafter inspect, maintain or repair any such improvements until the final plat is recorded. (Ord. 681 § 2, 1996)
17.32.085 Warranty.
A. Required. The subdivider shall warrant and guarantee for a period of one year after final plat approval that the required improvements constructed under the agreement will remain in good condition and will meet operating specifications for the warranty period. Such warranty includes defects in design, workmanship, materials and any damage to improvements caused by the subdivider, his agents or other engaged in work to be performed under the agreement to improve.
B. Term – Security. To secure the warranty, the guarantee of performance provided in DPMC 17.32.060 shall remain in effect until:
1. The end of the warranty period; or
2. The subdivider furnishes the city with a corporate surety bond, cash deposit or irrevocable letter of credit in an amount equal to the percentage of the total construction costs as set forth below. This security shall guarantee the payment of any reconstruction or repair costs which may be undertaken due to failures occurring during the warranty period. Responsibility for identifying the necessity of repairs or reconstruction of the improvements shall rest with the community services director.
|
Total Construction Cost |
Percent to Secure Warranty |
|---|---|
|
$0 – $500,000 |
10% |
|
$500,000 – $1,000,000 |
7+% |
|
$1,000,000 and higher |
5% |
C. Correction of Deficiencies. Within 30 days (or a reasonable extension at the sole discretion of the city) of notification by the city of the need for repair or reconstruction, the subdivider shall correct the deficiencies, satisfactory to the city. Such notification shall be made by certified mail. If the subdivider fails to repair or reconstruct the deficiency within the time specified above, the city will make the repairs at the subdivider’s and surety’s sole expense. The city may declare the bond, deposit or other security forfeited and use such security to make repairs or may proceed to make the repairs and then bill the subdivider and surety for the cost thereof and bring suit and recover the same from the subdivider and the surety, jointly and severally, and the security; provided, however, the city shall not be required to proceed first against the subdivider and may proceed directly against any surety or guarantor to the subdivider or bank or other person issuing any letter of credit, or holder of any security.
D. Release of Warranty. Inspection will be made by the city at the end of the warranty period and prior to the release of guarantees. All known deficiencies shall be corrected by the subdivider prior to release of the warranty security. Upon satisfactory correction of all deficiencies, the city will release the remaining security. (Ord. 681 § 2, 1996)
17.32.090 Exemption from claims.
Any money, instrument or letter of credit or other improvement security deposited or held as provided in this title shall not be subject to levy or attachment by any creditors of the depositor until the obligation secured thereby is performed to the satisfaction of the city. (Ord. 681 § 2, 1996)
17.32.100 Default.
In the event that the subdivider defaults on any obligation to construct and pay for all required public improvements or the obligation to warrant and repair such improvements, the city shall demand immediate payment on the performance or warranty guarantee. In the case of a performance bond, deposits in escrow, or letter of credit, the city shall demand immediate payment of all or any portion of all sums obligated for the performance or warranty of any improvement. All funds received by the city shall be used for any construction, repair or reconstruction necessary to insure:
A. That all required improvements are built to specifications as necessary to receive final approval; and
B. The improvements remain in good condition for the completion of the warranty period. (Ord. 681 § 2, 1996)
17.32.110 Enforcement.
All provisions of this chapter are mandatory and may not be altered by the subdivision improvement agreement. The obligations contained in this chapter shall be enforceable by methods of enforcement of ordinance as well as contract. (Ord. 681 § 2, 1996)
17.32.120 Waiver of improvements.
Any or all of the provisions of this chapter requiring certain improvements be made or suitable security posted may be waived provided the planning commission makes written findings that all conditions of either subsection A, B, or C of this section exist:
A. The gross area of the proposed subdivision is less than two acres, and each of the following conditions are complied with:
1. Five or fewer lots are created; and
2. Sewage disposal and water can be provided by individual systems and are approved by applicable state agencies; and
3. Access roads are less that 500 feet in total length and intersect with a developed right-of-way.
B. The subdivision is such that no more than five parcels of five acres or more each are created and each of the following circumstances apply:
1. The size, use, zoning or location of the parcels are such that the parcels are not immediately developable.
2. The parcels can be reasonably expected to be resubdivided.
3. Installation of improvements would prejudice the future developability of the land.
C. The subdivision is such that the installation of an improvement or improvements will have no practical value and said improvements will be unusable for their normal purpose due to:
1. Remoteness and inaccessibility of the property resulting from its location, topography, bodies of water and other geographical barriers; and
2. Inadequacy or lack of connecting service facilities required to make the improvements functional. (Ord. 681 § 2, 1996)