Chapter 21.15


21.15.010    Financial guarantee conditions.

21.15.020    Financial guarantees – Form and amount.

21.15.030    Performance guarantee reductions.

21.15.040    Release of financial guarantees.

21.15.050    Scheduling of final performance, maintenance, and defect inspections.

21.15.060    Financial guarantee waivers.

21.15.070    Status of current financial guarantees.

21.15.080    Performance guarantees authorized.

21.15.090    Maintenance and defect guarantees authorized.

21.15.100    Default.

21.15.010 Financial guarantee conditions.

A. Every financial guarantee shall obligate the applicant to comply with all of the provisions of this code and complete all conditions required by the permit or approval within the time limit specified.

B. The City may collect against the financial guarantee when work is not completed in a timely manner in accordance with conditions of the permit and/or approval granted pursuant to KMC Titles 12, 13, 15, 17, or 18 (or their successors). It is in the director’s sole reasonable discretion to determine whether the permit or approval conditions have been satisfied in a timely manner, and to determine whether the performance guarantee shall be collected to remedy the violation. The director shall notify the applicant in writing of any such determination. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.010).]

21.15.020 Financial guarantees – Form and amount.

Financial guarantees shall be in a form approved by the director, in consultation with the department of public works, the prosecuting attorney’s office, and other affected agencies. The amounts of the financial guarantees shall be based on the schedules appropriate to the required work which are updated on a periodic and frequent basis to ensure that the amount fully captures likely costs. Financial guarantees shall also require a contingency in an amount to be determined by the director. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.020).]

21.15.030 Performance guarantee reductions.

The director may allow reductions in performance guarantee amounts in accordance with the City’s cost estimate of the work remaining to be completed. No more than one reduction will be allowed except that two reductions may be allowed at the director’s discretion for phased subdivisions. The reduction shall not exceed 70 percent of the initial guarantee value including contingency. The request for reduction shall be in writing, accompanied by a schedule for completion of remaining work. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.030).]

21.15.040 Release of financial guarantees.

The department shall not release performance guarantees until all permit fees have been paid to date; maintenance guarantees and defect guarantees have been posted, if applicable; inspection of the development site has been performed; and the director has determined that the conditions and requirements of the permit/approval otherwise specified in the financial guarantee have been met and granted final construction approval if applicable. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.040).]

21.15.050 Scheduling of final performance, maintenance, and defect inspections.

The department shall be responsible for scheduling final performance, and maintenance and defects inspections. The department should schedule such inspections approximately 45 days prior to expiration of the performance or maintenance period. If necessary to determine completion of performance, additional inspections should also be made after the expiration of the performance period. Periodic inspections may also be made at the discretion of the director of the department of community development or the director of the department of public works. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.050).]

21.15.060 Financial guarantee waivers.

Consistent with Chapter 36.32 RCW, the City of Kenmore shall not require any State agency, unit of local government, or gas company or electrical company (as those terms are defined in RCW 80.04.010) to secure the performance of a permit requirement with a financial guarantee as a condition of issuing a permit or approval for a building construction project. The director, however, may require such State agency or unit of local government, gas company or electric company to sign an agreement to complete required improvements and protect the City’s rights and duty to remedy unsatisfactory performance. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.060).]

21.15.070 Status of current financial guarantees.

All financial guarantees required by the department and posted by the applicant prior to the effective date of the ordinance codified in this title shall continue to be in force until released by the director following satisfactory compliance with financial guarantee conditions. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.070).]

21.15.080 Performance guarantees authorized.

A. The department is authorized to require all applicants constructing improvements pursuant to any permits and approvals granted pursuant to KMC Titles 12, 13, 15, 17, or 18 (or their successors) to post performance guarantees with the director to guarantee completion of required improvements and compliance with this code.

B. If more than one such guarantee is required, the applicant may, with the permission of the director, and to the extent allowable by law, combine guarantees; provided, that at no time shall the guaranteed amount be less than the total amount which would have been required in the form of separate financial guarantees; and provided further, that such guarantee shall on its face clearly delineate those separate additional financial guarantees which it is intended in lieu of.

C. Unless otherwise specifically indicated in this code, performance guarantees shall require actual construction and installation of required improvements within two years after recording for final subdivision, two years after recording for short subdivision, one year after right-of-way permit issuance or six months after temporary building occupancy issued for a building permit. The time limit for performance guarantee compliance may be extended by six months at the director’s discretion, if circumstances beyond the control of the applicant warrant an extension. The request for an extension shall be in writing, accompanied by a schedule for completion of remaining work. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.080).]

21.15.090 Maintenance and defect guarantees authorized.

A. The department is authorized to require all applicants to post a maintenance guarantee and/or defect guarantee warranting the successful operation and maintenance of improvements, and guaranteeing the workmanship, materials, and design used in construction of improvements required by the conditions of any permits or approvals issued pursuant to KMC Titles 12, 13, 15, 17, or 18 (or their successors) and assuring compliance with this code.

B. Unless otherwise specifically indicated in this code, all maintenance guarantees and defect guarantees shall guarantee successful operation, workmanship, materials, and design of required facilities for a period of two years following final inspection and approval of improvements.

C. Inspections of facilities required pursuant to KMC Titles 12, 13, 15, 17, or 18 (or their successors) should be scheduled by the appropriate department approximately 45 days prior to the end of the two-year maintenance and/or defect period. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.090).]

21.15.100 Default.

A. Determination of default shall be made by the department after an inspection has indicated that improvements need to be corrected or completed. In the event of failure to comply with any of the conditions and terms of the permits and/or approvals covered by this title, the director shall notify the applicant and guarantor in writing of the default. If satisfactory assurance is not received by the department within a time period determined by the director, that conditions will be appropriately corrected, the department may:

1. Order the applicant to perform all necessary corrective work; and/or

2. Demand payment on the financial guarantee(s). Nothing in this title shall limit the ability of the City of Kenmore to enforce or otherwise compel compliance with conditions of any City permit or approval in accordance with any enforcement provision set forth in Chapter 1.20 KMC.

B. The guarantor shall be responsible, up to the limits of the financial guarantee, for the payment of any and all necessary costs and expenses that have been or will be incurred or expended by the City of Kenmore in causing any and all such required work to be done. In the event that total costs associated with the required work exceed the guarantee amount, the applicant shall remain responsible to the City of Kenmore for the payment of any remaining amount.

C. In the event of default, the City of Kenmore may contract with a third party to complete work required pursuant to this title. [Ord. 99-0058 § 1; Ord. 98-0020 § 1 (KCC 27A.30.100).]