Bond Extensions
Once permits have been issued for a project, the developer must complete the public improvements by the date identified in the agreement. If the work is incomplete by that date, a bond extension is required.
The developer of an incomplete project is notified 60 and 30 days prior to the expiration date. If an extension is not submitted prior to the expiration date, the project is in default.
To begin the extension process, a Development Agreement Extension Request Form and the appropriate fee must be submitted to the Bonds and Agreements Center.
View a chart of the Bond Extension process.
Staff reviews the extension request to ensure it is complete and consistent with the original agreement. However, before an extension is granted for a third and subsequent extension requests, the county conducts research to determine if the project is likely to default.
Once complete, the extension package is submitted to the Bond Committee for approval.
Bond Reductions
Bond reductions are requested when a project developer seeks to decrease the original bond amount posted with the county, based on the work completed. Before submitting a reduction request, it is recommended that the developer and engineer conduct a site walk with the site inspector. Reductions will not be granted for projects less than 30% complete, and no bond will be reduced to an amount insufficient to cover total project completion, including the full original 10% contingency. Each project is eligible for up to three reductions per year.
A current Surety Value Estimate (SVE) using the current year's Unit Price Schedule, showing the percentages of work completed for each listed item, must be submitted with the appropriate fee to the Bonds and Addressing Center for review. Reduction "milestones" exist for each section of the SVE, with criteria that must be met to receive a reduction. The submitting engineer should refer to the Reduction Milestone Guidelines before submitting the request.
Please note that each bonded project is unique, and the milestones provided are general guidelines. Some bonded items, such as proffered improvements, may not be eligible for reduction if they are not fully installed. Proffered improvements include, but are not limited to, bike racks, bus shelters, tot lots and landscaping. Not all projects will align with the percentage ranges listed. Final percentages are determined by the site inspector and may differ from the tables below. Also, as-built plans will receive 0% if the associated SAB or SAN record is not "approved" in PLUS.
Once the Reduction Request is submitted, the Bonds and Addressing Center will route it to the site inspector for review. The inspector will verify the completion percentage for each item on the SVE. Once the work is verified, the Bonds and Addressing Center will notify the developer of the reduction. Please note that reductions will not be approved until Bonds and Addressing Center receives a revised bond (e.g., an amended letter of credit or verification certificate). Due to inflation since the original bond was posted, the remaining bonded items may exceed the original bond amount. In such cases, a reduction may not be possible; however, the county will not require the increased bond amount to be posted.
Bond reductions are often combined with extension requests. Please confirm with your site inspector if your project requires a simultaneous extension.
