Bonding for Public Improvements

As an alternative to construction of required improvements prior to final plat approval, the subdivision applicant may request that they be allowed to provide a surety bond or other secure method acceptable to the City Engineer and City Attorney pursuant to YMC 14.05.200.

The three forms of bonding the City may accept a request for include:

  • Deferral Agreement (Covenant for Frontage Improvements)
  • Cash in Lieu of Actual Public Improvements
  • Irrevocable Assignment of Funds in Lieu of Construction Surety Bond

Deferral Agreement

The City Engineer may determine that actual construction of specified improvements is not immediately necessary, appropriate, or useful and may be deferred until a period of time has passed, a development milestone has been reached, or some other event makes actual construction of such specified improvement necessary, appropriate, or useful. The person or entity responsible for actual construction of such specified improvements may enter into a written agreement with the City Engineer to complete such specified improvements at some later time when, in the judgment of the City Engineer, actual construction of such specified improvements will become useful.

Improvements the City Engineer determines will be necessary for development and must be constructed immediately as part of the initial phase of a project or development and may not be included in the written agreement allowing specified improvements to be constructed at some later time, and shall be constructed prior to final approval of the initial phase of the proposed development.

Contact the Development Engineer to discuss viability of a deferral: Kirsten McPherson, (509) 575-6228 or Kirsten.McPherson@yakimawa.gov.

Deferral Agreement Process:

  1. Schedule meeting with Development Engineer to discuss viability of deferral. If deemed viable, continue to next steps;
  2. Provide Development Engineer with last vesting deed for property;
  3. Development Engineer will fill out the Covenant for Frontage Improvements agreement and provide the document for review and signature;
  4. Applicant shall sign the agreement and have the agreement notarized;
  5. Applicant shall return the signed agreement to the Development Engineer for the City Engineer and City Manager’s signatures;
  6. The Development Engineer shall provide the signed agreement to the applicant and the applicant shall record agreement at the County Auditor’s Office (128 N 2nd St, Yakima, WA 98901) – applicant is responsible for all recording costs; and
  7. Applicant shall submit proof of recording to the Development Engineer.

Cash In Lieu of Actual Public Improvements

In order to obtain plat approval from the City prior to and in lieu of actual construction and completion of all of the required improvements prior to approval of the final plat or providing a surety bond, the developer may secure actual completion of the required public improvements by depositing funds into a City account created for the project. The work must be completed within a year of the date of the agreement.

Cash In Lieu Process:

  1. Schedule meeting with Development Engineer to discuss the viability of the cash in lieu of bond. If deemed viable, continue to next steps;
  2. Provide Development Engineer with last vesting deed for property and the engineer’s estimate for the work to be bonded for. The bond shall be 115% of the engineer’s estimate.
  3. Development Engineer will fill out the Cash In Lieu of Bond agreement and provide the document for review and signature;
  4. Applicant shall sign the agreement and have the agreement notarized;
  5. Applicant shall return the signed agreement to the Development Engineer for the City Engineer and City Attorney’s signatures, and submit a check (made payable to City of Yakima) to the Development Engineer;
  6. The Development Engineer shall provide the signed agreement to the applicant and the applicant shall record agreement at the County Auditor’s Office (128 N 2nd St, Yakima, WA 98901) – applicant is responsible for all recording costs; and
  7. Applicant shall submit proof of recording to the Development Engineer.

Irrevocable Assignment of Funds In Lieu of Construction Surety Bond

In order to obtain plat approval from the City prior to and in lieu of actual construction and completion of all of the required improvements prior to approval of the final plat, the developer may secure actual completion of the required public improvements by assigning to the City funds within a Certificate of Deposit that was created for the project through a financial institution. The work must be completed within a year of the date of the agreement.

Release of Bond or Cash In Lieu

Upon completion of the required public improvements, the applicant shall submit a formal request to the Development Engineer to release the bond or agreement.