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, the applicant must request a pre-bond reduction submission meeting with their assigned site inspector. This meeting must occur before formal submission of the reduction request in PLUS. The meeting provides an opportunity to:
- Discuss the proposed bond reduction to ensure that both the county and the submitting engineer agree with the approach.
- Review the draft bond reduction estimate to minimize any uncertainty about the request and what the county will approve.
- Conduct a joint site inspection, if deemed necessary by staff.
Meetings may be held on-site or virtually. Applicants should contact their assigned site inspector directly to request a meeting. Inspectors will schedule the meeting within one week of the request and will document the discussion in PLUS using the Bond Reduction Pre-Submission inspection type.
Once the pre-bond reduction meeting is held and the draft Surety Value Estimate (SVE) draft is deemed acceptable by the SDID site inspector – as documented in PLUS by a passed Bond Reduction Pre-Submission inspection - the applicant may submit the bond reduction request in PLUS for processing by the Bonds and Addressing (BAC).
Note: the pre-bond reduction meeting date must be noted on the first page of the SVE.
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.
