HomeMy Public PortalAbout1986_07_09_O034v~s§urg in ~Virginin
ORDINANCE NO.
AN ORDINANCE:
PRESENTED July 9. 1986
86-0-34 ADOPTED July 9~ 1986
AMENDING THE SUBDIVISION AND LAND DEVELOPMENT REGULATIONS
REGARDING BONDING REQUIREMENTS
WHEREAS, the Council on February 12, 1986, initiated amendments to
the Subdivision and Land Development Regulations regarding the bonding of
required, improvements within subdivisions and developments and referred
these amendments to the Planning Commission for recommendation; and
WHEREAS, the Planning Commission on May 1, 1986, held a public hearing
on the proposed amendments, and hearing no public objections recommended to
Council approval of the proposed amendments with proposed revisions; and
WHEREAS, the Council on June 25, 1986, held a public hearing on the
proposed amendments with revisions; and
WHEREAS, these amendments are required by public necessity, con-
venience, general welfare and good zoning practice:
THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia
as follows:
SECTION I: Sections 13-92 through 13-96 of the Leesburg Subdivision
and Land Development Regulations are repealed and replaced by new Sections
13-92 through 13-96 to read as follows:
Sec. 13-92. Bondin~ of Required Improvements
(a) The purpose of the bondin~ process is to obtain ~uarantees
acceptable to the Town insurinK the timely and proper installation of re-
quired development and subdivision improvements. Bonds shall be posted to
~uarantee the installation of improvements for all developments described
below.
(1) All improvements described in Section 15.1-466(f) of the Code
of VirKinia, as amended, that will be accepted for public use and
public maintenance by the Town of Leesbur~.
(2) All other improvements required by the Zonin~ Ordinance and
Subdivision and Land Development Regulations and also as specified
in Section 15.1-466(f) of the Code of Virginia, as amended and as
determined by the Land Development Official.
ORDINANCE REGARDING BONDING 2
(3) Improvements proffered as part of any zoning map amendment
application and required by the Zoning Administrator in accordance
with Section 15.1-491.3 of the Code of Virginia, as amended.
(4) Improvements offered as part of any variance or special
exception application or required by the Board of Zoning Appeals in
accordancewitM Sections 15.1-495(b)(3) and (f) of the Code of
Virginia; as amended.
(b) Ail improvements proffered during the rezonin~ process shall be
bonded at the time the first development plan or subdivision plat is
approved.
(c) These bonding procedures shall not apply to the following
developments:
(1) Developments that only require the installation of entrances
to public streets. All such improvements shall be guaranteed through
the issuance of a right-of-way permit.
(d) The Town Council shall have the authority to:
(1) Review and approve, disapprove and modify performance agree-
ments.
(2) Accept public improvements which have been installed in
accordance with final plans; subject to the requirements of Section
13-97 of this Article.
(3) Release subdividers and developers from obligations of
performance agreements for installation of public improvements and
release performance bonds posted to guarantee such contracts as des-
cribed in Section 13-97 of this Article.
(e) The Town Manager shall have the authority to approve any per-
formance agreement for any development or subdivision with less than
$10,000 in public improvements.
Section 13-93. Procedure for establishing a bond agreement.
(a) To establish a bond agreement with the Town of Leesburg the
following forms shall be executed:
(1) Performance Agreement
(2) Estimate of improvements
(3) Bond guarantee, as described in Section 13-94
(4) Water Extension Permit, if~applicable
(5) Sewer Extension Permit, if applicable
The bond agreement forms must be filed with the Land Development
Official at least ten days prior to the Council meeting at which first
ORDINANCE REGARDING BONDING
consideration is desired. The Director of Engineering shall provide the
Town Council with an estimated cost of the bonded improvements. The Town
Attorney shall review the bond agreement document and provide the Town
Council with a recommendation.
(b) Any improvement in a proposed subdivision or development may be
bonded in sections provided that these sections are indicated on the
approved subdivision or development plans and the Director of Engineering
has found that provisions have been made to insure that these improvements
can be enjoyed without undue risk to public safety. Improvements such as
temporary cul-de-sacs and traffic barricades will be included in the
estimate of improvements. Where possible~ sections shall begin and termin-
ate at street intersections or other logical points.
Section 13-94. Bond Guarantee
(a) The purpose of the bond guarantee is to provide the Town with a
source of funds to complete the required improvements if the developer is in
default of the performance agreement as described in Section 13-96.
(b) The following bond guarantees are acceptable provided they are
consistent with the regulations below:
(1) Cash escrow may be posted to guarantee any performance agreement.
The funds on deposit shall bear an interest rate of seven percent per
annum. Interest will be available to the Town in the case of default
or breach of the performance agreement. If the improvements are
successfully completed this interest shall be refunded to the
developer.
(2) Irrevocable letters of credit from financial institutions are
acceptable provided they are approved by the Town Attorney and
the following conditions are met:
((a))
Ail letters of credit shall conform to the letter of
credit form provided by the Town or be approved by the
Town Attorney.
((b))
Letters of credit shall extend at least three months
beyond the expiration date of the performance agree-
ment.
((c))
The financial institution must notify the Land Develop-
ment Official in writing at least one month in advance
of any cancellation including normal expiration of
term. Failure to do so will automatically extend
the letter of credit for an additional three months.
((d))
The financial institution issuing the letter of credit
shall be insured by the Federal Depository Insurance
Corporation or the Federal Savings and Loan Insurance
Corporation and be chartered in the State of Virginia
ORDINANCE REGARDING BONDING 4
or shall have a designated agent in Virginia.
Corporate surety bonds are an acceptable method of guaranteeing
performance agreements provided the following conditions are met:
((a)) All corporate surety bonds shall conform to the form
provided by the Town or be approved by the Town
Attorney.
((b))
Bonds shall be furnished by an insurance company
licensed to transact fidelity and surety insurance in
Virginia.
((c))
The surety shall hold a certificate of authority to act
as surety from the Federal Government to act as surety
on Federal projects or have a rating of XV or better as
evaluated by Best's Key Rating. These lists will be
maintained by the Director of Finance.
Section 13-95. Extensions and Reduction of Performance Bonds
(a) Performance agreements may be extended for one year periods or
less. Any request for extension shall be accompanied by an estimate of the
remaining work and a timetable for the completion of the improvements.
Upon recommendation of the Land Development Official, Council shall act
within 30 days of any written request to extend a performance agreement.
In considering an extension of the performance agreement, the Council should
consider the following factors:
(1) Current rating of corporate surety and status of the financial
institution.
(2) Progress in completing the development plan or subdivision.
(3) Complaints received about nuisances resulting from development
of the property.
(4) Cost estimate of completing the subdivision.
(b) The amount of bonded improvements may be reduced by action of the
Town Council. Upon recommendation of the Land Development Official, the
Council shall act within 30 days of the receipt of any written request for a
bond reduction. If any deficiencies in completed improvements remain, the
Land Development Official shall transmit a list of the deficiencies to the
applicant within 30 days of the reduction request. Council shall act or
respond within thirty days of any request for an extension or reduction of a
performance bond.
Section 13-96. Establishment of a Maintenance Agreement
A maintenance agreement shall be executed for the repair or replace-
ment of defective materials and workmanship within the required public
improvements for a period of time extending for one year from the actual
ORDINANCE REGARDING BONDING
date of Council acceptance of such improvements. A maintenance bond
conforming with requirements of Section 13-94 shall be submitted with the
maintenance agreement. The maintenance bond shall equal five percent of the
total cost of the bonded improvements in the subdivision or development.
Section 13-97. Acceptance of Improvements and Release of Performance
Agreement
(a) The Council shall accept public improvements installed by a
subdivider or developer which meet the following conditions:
(1) The completed improvements comply with the design standards
of Division 4,
(2) Public improvements have been completed in accordance with
the requirements of Division 5.
(3) Installation of public improvements has been completed in
accordance with approved plans.
(4) Ail final inspections required by this Article have been
completed by the town and the bonded improvements were found to be
acceptable by the Director of Engineering.
(5) The subdivider or developer shall have prepared and submit-
ted one reproducible set and two sets of prints of plans that ac-
curately depict the bonded improvements as actually built.
(6) The subdivider or developer, by appropriate instrument in a
form approved by the Town Attorney, has conveyed to the Town ~ood
title free of all liens to all public improvements for which the town
is to be responsible for operation and maintenance.
(b) The Council shall release developers from performance a~reements
when the subdivisions are vacated pursuant to Section 15.1-481 or 15.1-482
of the Code of Virginia, as amended.
Section II. Sections 13-97 and 13-98 are recodified as follows:
Sec. 13-~798. Required approvals of final plan and final plat.
The following approvals shall accompany or be shown on a final plat
and shall be necessary for its approval.
(a) Certification by a registered surveyor that the final plat is
correct.
(b) Certification by a registered engineer or a licensed 3(b) land
surveyor that the final plan has been prepared in accordance with the
requirements of this Article.
ORDINANCE REGARDING BONDING
(c) Land Development Official approval of the final plan and final
plat.
(d) Commission approval of the final plan and final plat.
(e) Town Attorney approval of the final plat.
(f) Agreement for public improvements authorized by Council and one
of the requirements of Sec. 13-58(d) and Sec. 13-68(d) completed.
Sec. 13-9~98.1 Prior approvals.
The requirements of this article shall apply to any subdivision or
development which has not received approval of the preliminary plat and the
plans and specifications for public improvements required by the Subdivision
Ordinance of Leesburg, Virginia, adopted August 15, 1955, as severally
amended, or Chapter 9-A of the Zoning Ordinance, Town of Leesburg, effective
March 9, 1959, as severally amended. Subdivisions and developments which
have received approval of the preliminary plat and the plans and specifica-
tions for public improvements pursuant to these ordinances shall be governed
thereby so long as the approval remains valid under the terms of the
ordinance.
Section III. This ordinance shall be in effect upon its passage.
PASSED this 9th day of
ATTEST .'
dl~rk of Co6nCi~l '~
July , 1986.
Robert E. Sevila,
Town of Leesburg