14.60.260 Assurance device | Bellevue City Code

14.60.260 Assurance device.

As provided in this section, the director may require a developer to provide a performance assurance device to ensure transportation-related improvements will be completed in a timely manner and in accordance with approved permits, agreements, plans, specifications, requirements, conditions, regulations, and policies and may require a maintenance assurance device to ensure transportation-related improvements are maintained and repaired accordingly.

A. If a certificate of occupancy is requested prior to the satisfactory completion of all work or actions required by a permit or approval, and if the director determines that no feasible alternative exists to approving the certificate of occupancy prior to the completion of such work or actions, the director may require a performance assurance device.

B. The use of a performance assurance device to ensure the completion of improvements may be allowed if:

1. The covered work or improvements are related to residential development, including residential subdivisions; and

2. The developer is unable to complete the work or improvements to be covered by the assurance device because of unavoidable circumstances that in no way resulted from the actions or inaction of the developer; and

3. It is reasonably certain that the developer will be able to complete the work or improvements to be covered by the assurance device within a reasonable amount of time; and

4. Granting a certificate of occupancy prior to completion of the work or improvements will not be materially detrimental to the city or to the properties in the vicinity of the subject property.

C. The director may allow a performance assurance device for work or improvements related to commercial development when the criteria in subsections (B)(2) through (B)(4) of this section are clearly met.

D. A maintenance assurance device may be required when transportation-related improvements are constructed as part of a subdivision or short subdivision to ensure that the improvements remain in continued compliance with city standards during the duration of the maintenance assurance device.

1. The performance or maintenance assurance device must be in a form acceptable to the city and may be in the form of an assignment of funds, a nonrevocable letter of credit, set-aside letter, certificate of deposit, deposit account, bonds, or other readily accessible source of funds.

2. Any interest from the assurance device will accrue to the benefit of the developer.

1. The amount of the performance assurance device will be 150 percent, and the amount of the maintenance assurance device will be 20 percent, of the cost of the work or improvements covered by the assurance device based on estimated costs immediately following the expiration of the device. The amount of the assurance device is to be based on reasonable estimates of costs, as approved by the director in consultation with the director of the utilities department.

2. The director may consult with one or more persons with applicable special knowledge or expertise in determining the cost of work or improvements covered by an assurance device. The developer shall pay the actual costs of this consultation prior to the director accepting the device.

1. A performance assurance device shall ensure that the work or improvements to be performed will be completed in a reasonable amount of time, as determined by the review engineer, but in no case longer than two years from the date of the city’s acceptance of the assurance device, except as approved by the review engineer.

2. A maintenance assurance device shall ensure that the covered work or improvements remain in continued compliance with city standards. The duration of the maintenance assurance device shall be for one year, following the date of the city’s acceptance of the covered improvements.

H. Release of Assurance Device. After the work or improvements covered by an assurance device have been completed or the maintenance period has expired, the developer shall request an inspection of the work or improvements. Upon acceptance of the work or improvements by the director, the developer shall submit a written request to the director for the release of the assurance device. The director shall release, or cause to be released, such device within a reasonable time after completion of the work and receipt of the request for release. No portion of a maintenance assurance device shall be released until the end of the maintenance period.

I. Use of the Proceeds – Notice to Developer. If, after the date by which the required work or improvements are to be completed under an assurance device, the director determines that the work or improvements have not been completed, he/she shall notify the developer. The notice must state:

1. The work that must be done or the improvement that must be made to comply with the requirements of the assurance device; and

2. The amount of time that the developer has to commence and complete the required work or improvements; and

3. That, if the work or improvements are not commenced and completed within the time specified, the city will use the proceeds of the assurance device to have the required work or improvements completed.

J. Use of Proceeds – Work by the City. If the work or improvements covered by the assurance device are not completed within the time specified in the notice given under subsection I of this section, the city may obtain the proceeds of the device and do the work or make the improvements covered in the device. The city may use any lawful means to complete the work or make the improvements.

K. Use of Proceeds – Emergency Work by the City. Notwithstanding any other provision of this chapter, if at any time the director determines that actions or inaction associated with any work or improvements covered by any assurance device endanger the public health, safety, or welfare, create a potential liability for the city, or endanger city property, the city may use the assurance device to correct the situation without notice to the developer. The city may use any lawful means to complete the work or improvements. If the city uses the assurance device as provided by this section, the developer shall be notified in writing within four working days of the commencement of work.

L. Use of Proceeds – Refund of Excess, Charge for All Costs. The developer is responsible for all costs incurred by the city in doing the work and making or maintaining the improvements covered by the assurance device and in obtaining the benefit of the assurance device, including reasonable attorney’s fees, if any. The city shall release or refund any proceeds of an assurance device remaining after subtracting all costs for doing the work covered by the device. The developer shall reimburse the city for any amount expended against the subject property for the amount of any excess.

M. Itemized Statement. In each case where the city uses any of the proceeds of the device, it shall give the developer of the subject property an itemized statement of all proceeds and funds used. (Ord. 6181 § 2, 2014.)