Fillable Right-of way Construction Assurances (City of Phoenix)

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Right-of way Construction Assurances (City of Phoenix)

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Right-of way
Construction Assurances
This publication can be made available in alternate formats (Braille, large print, computer diskette, or audiotape)
upon request. Contact the Development Services Department at (602) 262-7811 voice or (602) 534-5500 TTY.
S:\Right-of-way, Construction Assurances.doc TRT/DOC/00032
Web\dsd_trt_pdf_00032 Rev3/10
Chapter 31 and 32 of the Phoenix City Code mandates that the customer provide an "assurance" of construction
to the City of Phoenix. The assurance guarantees that improvements will be installed in accordance with
approved plans and that the customer will provide record drawings. The secured amount is determined by the
customer's civil engineer and approved by the Development Services Department, pursuant to the current Fee
Schedule/Appendix A.2. of the Phoenix City Code.
Posting of construction assurances is a pre-condition to obtaining final construction plan approval and release of
right-of-way construction permits. Posting of construction assurances is also a pre-condition for final approval of
site plans, subdivision plats, abandonments, lot divisions, offsite improvements compliance, plat recording, and
related development activities.
If a customer defaults, some forms of construction assurance may be used to complete the improvements, while
other methods stop the project and/or deny occupancy.
ASSURANCE INSTRUMENTS
Cash
Cash/check shall be deposited with the Development Services Department in an amount equal to the cost of the
work to be done in the right-of-way, pursuant to the current Fee Schedule/Appendix A.2. of the Phoenix City
Code. Upon permit acceptance by the offsite inspector and submittal of required as-built plans, the cash bond will
be refunded. Allow four to six weeks for the refund to be processed. Samples and more detailed requirements of
the following Instruments are attached:
Chapter 31 Performance Bond
Bond shall be executed with a corporation accepted by the Development Services Department and duly
authorized to transact surety business in the State of Arizona. Bond shall be in an amount equal to the cost of the
work to be done in the right-of-way. Upon permit acceptance by the offsite inspector and submittal of any
required as-built plans, the bond will be returned to the bond/insurance company. Allow two weeks for this
process.
"Letter of Credit"
This "Letter" may be acquired from a bank and form approved by the Development Services Department. The
letter shall specify an amount equal to the cost of the work to be done in the right-of-way. Upon permit
acceptance by the offsite inspector and submittal of any required as-built plans, the letter will be returned to the
issuing bank. Allow two weeks for this process.
"Occupancy Clearance Agreement"
At the discretion of the Development Services Department, the "Agreement" is an acceptable form of assurance
on those projects involving building construction. The agreement form may be acquired through Development
Services. An officer of the company or an authorized representative of the developer/owner must sign the form.
This agreement withholds final utility clearance, thus withholding occupancy of the building(s). Upon permit
acceptance by the offsite inspector and submittal of any required as-built plans, the "hold" can be released within
one week. This agreement is attached to the parcel, and subsequent owners are subject to its provisions.
"Infrastructure Clearance Agreement"
At the discretion of the Development Services Department, the "Agreement" is an acceptable form of assurance
on those projects involving infrastructure construction (water, sewer, streets and street appurtenances, and
landscaping in the right-of-way). The agreement form may be acquired through Development Services. The form
must be signed by an officer of the company or an authorized representative of the developer/owner and recorded
with the Maricopa County Assessor's Office. The agreement withholds issuance of any building permits. Upon
permit acceptance by the offsite inspector and submittal of any required as-built plans, the "hold" can be released
within one week. This agreement is attached to the parcel and subsequent owners are subject to its provisions.
Additional questions regarding bonding requirements may be addressed to the Development Services
Department, Financial Services Section, (602) 262-7852.
Performance Bond
For more information or for a copy of this publication in an alternate format, contact Planning & Development at
602-262-7811 voice or TTY use 7-1-1.
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Surety Bond#: ______________________________________ KIVA Bond ID#: _________________________________
KNOW ALL MEN BY THESE PRESENTS:
That we, ________________________________________________________________________________ as Principal and
NAME OF PRINCIPAL
___________________________________________________________________________ a corporation created, organized
NAME OF SURETY
and existing under and by the virtue of the laws of the State of ___________________________________ , and licensed to do
business in the State of Arizona, as Surety, are held and firmly bound to the City of Phoenix, a municipal corporation in the
sum of _________________________________________________________________ dollars, $ ____________________ ,
WRITTEN AMOUNT NUMERIC AMOUNT
lawful money of the United States of America, to the payment of which, well and truly to be made, we bind ourselves, our
heirs, executors, administrators, successors, and assignees, jointly and severally, firmly by these presents.
THE CONDITION OF THE ABOVE OBLIGATION IS SUCH, that
WHEREAS, The Code of the City of Phoenix, Arizona states it shall be unlawful for any person to make, build, construct,
remove, haul, cut, or grade pavement, driveway, sidewalk, curb, gutter, pipeline, or landscape in the public right-of-way of the
City, without first having received a written permit from the Development Services Director, the plan for which has been
approved by the Development Services Director.
FURTHERMORE, the Code requires said Principal to post bond to guarantee that the work will be completed in accordance
with the Permit and City details and specifications.
THE CONDITIONS OF THIS BOND ARE SUCH, that when the above bounded Principal, his or her heirs, executors,
administrators, successors or assignees have faithfully and truly complied with the provisions of work described below, to the
satisfaction of the City of Phoenix, then this obligation will be released. Otherwise, it shall remain in full force and effect.
Description of Work: Project Name: _______________________________________________ Number: ______________
Address: ______________________________________________________________________________________________
Type of Work Amount Type of Work Amount
________________________________ $ _____________ ___________________________ $ _____________
________________________________ $ _____________ ___________________________ $ _____________
This bond includes and incorporates all provisions of Chapters 31, 32, and 32A of the Code of the City of Phoenix, Arizona.
Signed, Sealed, and Dated at ____________________________________ this ______ day of _______________ , 20 ____ ,
X ______________________________________________ ______________________________________________________________
CORPORATE OFFICER, PARTNER, OWNER, OR AUTHORIZED AGENT COMPLETE MAILING ADDRESS AND PHONE NUMBER
X _________________________________
AFFIX THE CORPORATION SEAL HERE
WITNESS, IF PRINCIPAL IS AN INDIVIDUAL OR
ATTEST, IF PRINCIPAL IS OTHER THAN INDIVIDUAL
Signed, Sealed, and Dated at ____________________________________ this ______ day of _______________ , 20 ____ ,
X ______________________________________________ ______________________________________________________________
SURETY NAME COMPLETE MAILING ADDRESS AND PHONE NUMBER
X _________________________________
AFFIX THE CORPORATION SEAL HERE
ATTORNEY-IN-FACT
(Attach Power of Attorney)
Work completed and approved on all permits on ___________ Bond released on _____________ by ___________________
200 W. Washington Street, Phoenix, AZ 85003
PLANNING & DEVELOPMENT DEPARTMENT
LETTER OF CREDIT REQUIREMENTS
(AS CONSTRUCTION ASSURANCE ON RIGHT-OF-WAY IMPROVEMENTS)
A Letter of Credit is financial instrument issued by a bank at the request of their customer. The city of Phoenix
accepts Letters of Credit only from banks rated "A" or better by Moody's or Standard & Poor. Banks customarily
maintain a standard format for Letters of Credit; the bank and format will need to be submitted to Planning &
Development prior to permit issue. Approvals from several departments are required before final acceptance of the
letter; this process may take up to 15 days.
The following elements are required:
Beneficiary:
City of Phoenix
Planning & Development Department
Financial Services
200 W. Washington, 3rd Floor
Phoenix, AZ 85003
Amount:
Dollar amount equal to the cost of work to be done in the right-of-way
Principal:
Name of Company/Developer/Owner for whom letter is guarantee
Bank Name/Address
Bank/Institution (name and address) upon which payment would be drawn
Improvements:
Text identifying location/address and required improvements
Expiration Deadlines:
Minimum two-year expiration, with notice of 45 days
Presentation of Draft:
Draw on local branch or presentable at a correspondent bank in Phoenix
Partial Draft Clause:
Text must indicate that partial draft draws are permissible
Questions or additional information regarding Letters of Credit may be directed to the Financial Services Section,
Planning & Development Department, (602) 495-0166.
_________________________________________________________________________________________________________________________________________________________
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Right-of way Construction Assurances (City of Phoenix)

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Completed 2 August 2020

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