Letter of credit for site development works - Letter of Credit

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					                                                                                   COST ESTIMATE and
                                                                                    LETTER OF CREDIT
                                                                        FOR SITE DEVELOPMENT WORKS
                                                                              PREPARED BY DEVELOPMENT AND TECHNICAL SERVICES
                                                                                                             Revised October 2010


S:\Planning \General\Development Review\Site Development\Site Plans\Forms\Letter of Credit
                                   SITE DEVELOPMENT WORKS

                         Requirements for Cost Estimate and Letter of Credit
For development proposals approved under Section 41 of the Planning Act (“Site Plan Approval”), the
City may require the posting of performance securities, such as a Letter of Credit to be held against the
completion of required site development works. This security is most commonly in the form of a Letter of
Credit.


There are two alternatives for calculating the amount of the required Letter of Credit:
1.   Complete a cost estimate for 100% of the cost of the site development works
       •   can be either “itemized” or “lump sum”
       •   include cost and installation of on-site and off-site development items 1-9 (listed below) as
           shown on the approved plans
       •   include cost of Project Management/Coordination, Site Supervision/Inspection of all required
           installations
       •   include cost of Certification of Compliance with the Site/Landscaping, CPTED Report, Grading
           and Storm Water Management, Outdoor Lighting Plans, and Noise Studies
       •   cost estimate is to be approved by the Supervisor of Site Plan Development, Planning Division
       •   upon approval of cost estimate, the Letter of Credit may be submitted for 50% of the cost of all
           site development works to be installed by the developer


2.   ”Fast Track” Calculation
       •   does not require an itemized cost estimate
       •   saves time prior to the issuance of final site plan approval
       •   establishes the amount of the Letter of Credit based on the area of the lot, and the type of
           land use



All Letters of Credit must be issued by a Schedule I or II Bank or Trust Company with an R-1 (high or
middle) AA, AAA (low) rating. Other forms of performance security, acceptable to the City Treasurer and City
Solicitor, may be substituted (e.g. cash or a certified cheque made out to the City of Kitchener) The developer
should contact Sandy Dancey 519.741.2269 in advance of obtaining their Letter of Credit, in order to have the
DBRS rating checked and pre-cleared.




                                                    - 1 -
               Site Development Works to be Installed by the Developer

1. Grading
         Rough Grading
         Erosion Control

2. Stormwater Management
        SWM Quantity Control
        SWM Quality Control

3. Servicing
          Storm Servicing

4. Surfacing

5. Curbing

6. Vegetation
         Site Plantings
         SWM Pond Plantings
         Ground Cover

7. Landscape

8. Lighting

9. Consultant Fees


Public Agencies
Letters of Credit or other forms of financial securities will not apply to the City or any local board
thereof, the Regional Municipality of Waterloo or any local board thereof, the Hydro-Electric
Commission of Kitchener-Wilmot, the Waterloo Region District School, The Waterloo District Catholic
School Board, or the Federal or Provincial Government or any crown agency thereof, or hospitals as
defined in the Public Hospitals Act, R.S.O. 1990. Development approvals for such agencies may be
subject to the following Council requirement:

That, in the event that the facilities or improvements required by the Agreement are not
completed prior to occupancy, as specified by this agreement, due to adverse weather
conditions or other extenuating circumstance, occupancy will be approved, provided that a
Letter of Undertaking and Indemnity is given by the Owner to the City’s Director of Planning
agreeing to complete the outstanding site work within a specified time.




                                              - 2 -
                                          Letter of Credit Itemized Cost Estimate For:
                                                 100% Site Development Costs
The following form is to be filled out by the Project Consultant(s) and submitted to the City of Kitchener, Planning Division for review.
      Date:
      Site Plan Number:
      Project Name:
      Address:
      Owner:
      Prepared by (Consultant(s)):
      Prime Consultant1
      Subconsultant - Civil
      Subconsultant - Lighting
      Subconsultant - Landscape
      Subconsultant - CPTED
      Subconsultant - Other

Note: All estimated costs below to include material and installation costs of on-site and off-site works.

                                                                                                           FOR RELEASE OF SECURITIES2
                                                                        UNIT
                          ITEM                          UNITS                             COST             COMPLETE              OUTSTANDING
                                                                       PRICE
 1    GRADING
a)    Rough Grading
      Mobilization/demobilization
      Temporary site trailer
      Clearing and grubbing
      Topsoil stripping and stockpiling
      Pre-grading
      Import/export of soil
      Temporary site entrance
      Removals & disposals
      Other

b)    Erosion Control
      Silt fencing
      Temporary sedimentation ponds
      Catchbasin/manhole protection
      Tree protection fencing
      Temporary protective fencing
      Entrance protection (mud mat)
      Hickenbottom
      Temporary flow check dam
      Rip-rap
      Site maintenance3


                                                                        - 3 -
                                                        FOR RELEASE OF SECURITIES2
                                          UNIT
                 ITEM            UNITS           COST   COMPLETE     OUTSTANDING
                                         PRICE

2 STORMWATER MANAGEMENT
a) SWM Quantity Control
   Orifice
   Weir
   Infiltration chamber
   Cistern
   Pond grading
   Inlet structure
   Outlet structure
   Roof top storage device
   Access road
   Fencing
   Monitoring and sampling
   Pond cleanout and maintenance
   Rip-rap
   Other

b) SWM Quality Control
   Infiltration ponds/swales
   Sedimentation chambers
   Stormwater cooling facility
   Oil grit separator
   Other

3   SERVICING 4
    Storm Servicing
    Catchbasin
    Double catchbasin
    Catchbasin manhole
    Ditch inlet catchbasin
    Storm manhole
    Splitter manhole
    Subdrains
    ______ dia Storm sewer
    ______ dia Storm sewer
    ______ dia Storm sewer
    Pipe insulation
    Cleanout
    Other




                                         - 4 -
                                                             FOR RELEASE OF SECURITIES2
                                               UNIT
                 ITEM                 UNITS           COST   COMPLETE     OUTSTANDING
                                              PRICE
4   SURFACING
    Gravel areas
    Granular bases for pavement
    Concrete pavement
    Concrete pavement coloured
    Asphalt pavement
    Asphalt walkway
    Asphalt coloured
    Concrete sidewalk
    Pavement markings
    Other

5   CURBING
    Porta curbs
    Barrier curb
    Barrier curb & gutter
    Mountable curb & gutt er
    Other

6 VEGETATION
a) Site Plantings (Botanical Name and Size)




b) SWM Pond Plantings (Botanical Name and Size)




    Other




                                              - 5 -
                                                                                       FOR RELEASE OF SECURITIES2
                                                          UNIT
                   ITEM                     UNITS                        COST          COMPLETE          OUTSTANDING
                                                         PRICE

c) Ground Cover
   Topsoil & sod
   Topsoil & seed
   SWM Pond topsoil & seed
   Mulch
   Geotextile fabric
   Edging
   Planting bed preparation
   Growing Media (min 10m3/tree)
   Other

7   LANDSCAPE
    Fencing
    Decks & patios
    Retaining wall
    Recycling and garbage enclosure
    Planter
    Play area and equipment
    Bike rack
    Irrigation system
    Site furniture
    Multiple Unit Identification Sign
    Noise Barrier
    Brick pavers
    Patio stones
    Other

8   LIGHTING
    Wallpack
    Pole, base and luminaire
    Electrical, conduit and wire
    Other

9   CONSULTING FEES (To Include: Tendering, Project Management, Site Supervision, Inspection, Certification, Other)
    Engineering
    Landscaping
    Lighting
    Acoustical
    CPTED
    Other



                                                          - 6 -
     Total Estimated Cost                                                       $


     Total Works Outstanding                                                                                          $



     Site Plan Review Fee (5% of Total Estimated Cost)                          $


     Letter of Credit Required (50% of Total Estimated Cost)                    $




     1
      The Prime Consultant is the contact for the City and is responsible for arranging sub-consultants as needed.
     2
      Release of any securities cannot be applied for until over 50% of the site development works have been completed.
     Letter of Credit will not be reduced below 50% of original letter of credit amount or $250,000 whichever is the lesser
     until all works are complete and all conditions have been met.
     3
         Includes: dust control, street cleaning, erosion control maintenance and removal.
     4
         Servicing Items to include all servicing related costs except for the portion to be installed and restored by City forces
         between the main and the subject property line.




Click here for spreadsheet version




                                                                    - 7 -
                 LETTER OF CREDIT BASED ON LOT AREA & USE

If an itemized cost estimate is not completed the following formulae may be used for calculating the value of a
required letter of credit:

For new development, the amount of the letter of credit shall be based on the following, which may or may not
represent 50% of the total cost of all site development works, but in no case shall the amount be less than
$100,000.00:

Residential:          $200,000. per hectare
Industrial:           $150,000. per hectare
Institutional:        $150,000. per hectare
Commercial:           $200,000. per hectare


For additions, alterations or additional buildings on developed sites, the amount of the letter of credit shall be
based on the following, which may or may not represent 50% of the total cost of all site development works, but in
no case shall the amount be less than $50,000.00:

Residential:          $100,00. per hectare
Industrial:           $ 75,000. per hectare
Institutional:        $ 75,000. per hectare
Commercial:           $100,000. per hectare

After satisfactory completion of all site development works and receipt of all required certification forms, the
total amount of security held by the City shall be released.

Subsequent to the provision of performance securities based on the calculations above, a cost estimate may be
submitted for approval in order to allow for partial reductions in the letter of credit.




                                                      - 8 -
                    BANK EXAMPLE OF IRREVOCABLE LETTER OF CREDIT

To be typed on bank letterhead (name of Kitchener-Waterloo branch)


LETTER OF CREDIT NO:                                                 DATE: ____________________________

TO: THE CORPORATION OF THE CITY OF KITCHENER

UNCONDITIONAL IRREVOCABLE LETTER OF CREDIT

We hereby authorize you to draw on the NAME OF BANK, KITCHENER-WATERLOO BRANCH for
account of NAME OF CLIENT an aggregate amount of AMOUNT WRITTEN OUT IN FULL ($AMOUNT)
DOLLARS of lawful money of Canada available by drafts at sight. Pursuant to the request of our customer
NAME, we hereby establish and give to you an irrevocable letter of credit in your favour pursuant to an
Agreement between the Corporation of the City of Kitchener and NAME ON SECTION 41 AGREEMENT
dated the DAY of MONTH, YEAR, with respect to ADDRESS OF SITE in the total amount of AMOUNT
WRITTEN IN FULL ($AMOUNT) DOLLARS, which may be drawn on by you at any time and from time to
time upon written demand for payment made upon us by you, which demand we shall honour without enquiring
whether you have a right as between yourself and our said customer, to make such demand and without
recognizing any claim of our said customer.

This letter of credit will continue in full force and effect for one year from the date hereof and thereafter from year
to year unless we notify you in writing by registered mail not less than 30 days prior to the expiration of each
year’s term that this letter of credit will not be renewed. Upon receipt by you of such notice you may draw
hereunder.

Partial drawings are permitted. Drafts must be drawn at any time not later than the close of business at our
counters on the date upon which this letter of credit will expire.

Drafts shall state on their face that they are drawn under the NAME OF BANK, KITCHENER-WATERLOO
BRANCH Letter of Credit No. ________________ dated the ________ day of _______________, 20____. The
amount of this letter of credit may be reduced from time to time as you advise us by notice in writing.

We hereby agree with the drawers, endorsers and bona fide holders of the bills drawn in compliance with the terms
of this letter of credit that the bills shall be duly honored upon presentation to us.



________________________                                             _____________________________
ASSISTANT MANAGER                                                    MANAGER




                                                        - 9 -
Letter of Credit Release
1. The securities posted based on a cost estimate are to cover 50% of the cost of all site development works.
   Therefore, full or partial release of any securities cannot be applied for until over 50% of the site development
   works have been completed.

2. Any request for full or partial release of the letter of credit must be supported by the following documentation,
   which certifies that the site development works have been completed in accordance with the approved plans:

   a) A Site Development Works Certification Form for items #1-5 (SWM/Grading) from the Engineering
      Consultant who prepared the plan must be sent to:
       Engineering Technologist, Engineering Division
       Development and Technical Services
       City of Kitchener, City Hall
       P.O. Box 1118
       200 King Street West
       Kitchener, Ontario N2G 4G7
With copies to:
       (i)     Administrative Assistant to the Director of Building
               Development and Technical Services
       (ii)    Urban Designer, Planning Division
               Development and Technical Services

   b) A Site Development Works Certification Form for items #6-7 from the Landscape Architect/ Consultant
      who prepared the Landscape Plan.

   c) A Site Development Works Certification Form for the site lighting (item #8) from the Lighting
      Engineer/Consultant who prepared the Lighting Plan.

   d) A Site Development Works Certification Form for the site noise from the Engineer/Consultants who
      prepared the Noise Study.

These above noted forms must be sent to:
       Urban Designer,
       Development and Technical Services,
       Planning Division, 6th Floor
       P.O. Box 1118
       200 King Street West
       Kitchener, Ontario N2G 4G7

   e) A Site Development Works Certification Form from the CPTED Consultant (item #9) verifying the
      CPTED measures have been implemented in accordance with the approved report must be sent to:
       Planning Technician (Site Development)
       Development and Technical Services,
       Planning Division, 6th Floor
       P.O. Box 1118
       200 King Street West
       Kitchener, Ontario N2G 4G7


                                                       - 10 -
3. Upon receipt of the five above noted forms, the Development and Technical Services Department may make an
   inspection to verify that the Site Development Works are installed in accordance with the approved plans.
   Should we find any discrepancies and/or deficiencies, an inspection report will be issued to the owner and the
   appropriate consultant(s). Any revisions to the approved Site, Landscaping, Tree Management, Lighting plans,
   CPTED Report and/or Noise studies require approval from the Supervisor of Site Plan Development prior to
   installation of the works.


   Upon completion of the items outlined in the inspection report, the applicant shall notify the Department of
   Development and Technical Services for further inspection in order to obtain a final release of the security.

   If more than one (1) inspection must be carried out to obtain a complete release of the security for site
   development works, it will be at cost of $280.00 per inspection and paid in advance.

   All site development works are to be maintained and all plant material is to be in a healthy vigorous state for
   approval. A landscape contractor’s plant material guarantee is not acceptable to receive release related to dead
   or poor condition plant material.

4. Final acceptance of the site development works by the City may occur between May 1st and Oct.31st only.
   Due to environmental conditions, final inspection and/or acceptance of the installation of plant material,
   sodding and/or seeding may not be possible between November 1st and April 30th. Consequently between
   these months, it may not be possible to reduce the portion of the Letter of Credit held to ensure satisfactory
   completion of the installation of plant material, sodding and/or seeding. The reduction to the Letter of Credit
   will be based on the amount of site and landscape works that the Department of Development and Technical
   Services is able to assess at the time of the site inspection. Please note that a reduction to the Letter of Credit
   does not necessarily constitute full acceptance of any of the site development works.

   The City will not reduce the Letter of Credit below 25% of the cost of all site development works (50% of the
   value of the original letter of credit) or $250,000 whichever is the lesser, until the City has received all required
   Site Development Works Certification Forms, giving complete certification of the site, and the City is in
   complete agreement with the certification.




                                                        - 11 -
                           SITE DEVELOPMENT WORKS CERTIFICATION FORM
                            FOR PROFESSIONAL ENGINEER/CONSULTANT
                      For item number 1a, 1b, 2a, 2b, 3, 4, 5 on the Itemized Cost Estimate Form

Date:

Project Name:                                         Site Address:

Owner’s Name:

I,                                                           of
certify to the City of Kitchener that the following Site Development Works for the grading and storm water
management scheme, as submitted and subsequently reviewed by the Development and Technical Services
Department on __________________, has been implemented and constructed in general accordance with all
applicable Policies and Guidelines of the City of Kitchener.

     PLANS:                                      DATE OF CITY                  DATE OF
                                                 ACCEPTANCE                    COMPLETION/INSPECTION
     Servicing plan
     Grading plan
     SWM plan
     SWM analysis
     WORKS:                                      DOLLAR VALUE OF               DATE OF
                                                 OUTSTANDING WORK              COMPLETION/INSPECTION
     1 GRADING
     a) Rough Grading
     Mobilization/demobilization
     Temporary site trailer
     Clearing and grubbing
     Topsoil stripping and stockpiling
     Pre-grading
     Import/export of soil
     Temporary site entrance
     Removals & disposals
     Other

     b) Erosion Control
     Silt fencing
     Temporary sedimentation ponds
     Catchbasin/manhole protection
     Tree protection fencing
     Temporary protective fencing
     Entrance protection (mud mat)
     Hickenbottom
     Temporary flow check dam
     Rip-rap
     Site maintenance3
     Other


                                                        - 12 -
WORKS:                          DOLLAR VALUE OF    DATE OF
                                OUTSTANDING WORK   COMPLETION/INSPECTION
2 STORMWATER MANAGEMENT
a) SWM Quantity Control
Orifice
Weir
Infiltration chamber
Cistern
Pond grading
Inlet structure
Outlet structure
Roof top storage device
Access road
Fencing
Monitoring and sampling
Pond cleanout and maintenance
Rip-rap
Other

b) SWM Quality Control
Infiltration ponds/swales
Sedimentation chambers
Stormwater cooling facility
Oil grit separator
Other

3 SERVICING 4
Storm Servicing
Catchbasin
Double catchbasin
Catchbasin manhole
Ditch inlet catchbasin
Storm manhole
Splitter manhole
Subdrains
______ dia Storm sewer
______ dia Storm sewer
______ dia Storm sewer
Pipe insulation
Cleanout
Other




                                    - 13 -
  WORKS:                                        DOLLAR VALUE OF                   DATE OF
                                                OUTSTANDING WORK                  COMPLETION/INSPECTION
  4 SURFACING
  Gravel areas
  Granular bases for pavement
  Concrete pavement
  Concrete pavement coloured
  Asphalt pavement
  Asphalt walkway
  Asphalt coloured
  Concrete sidewalk
  Pavement markings
  Other

  5 CURBING
  Porta curbs
  Barrier curb
  Barrier curb & gutter
  Mountable curb & gutter
  Other


Please note all deviations from the design drawing below (e.g. increase in paved areas, shortage of pond volumes,
roof drains, orifice installation, grade elevations at road right-of-way etc). Additional details may be required prior
to the City accepting the certification.




Professional Engineer/Consultant

Signature:
                                                                             AFFIX SEAL
Date:

cc:     Owner
        Landscape Architect/Consultant
        Lighting Engineer/Consultant
        Acoustical Engineer/Consultant
        CPTED Consultant


      PLEASE NOTE:

               This document is to be submitted on the Professional Engineer/Consultant letterhead.



                                                        - 14 -
                    SITE DEVELOPMENT WORKS CERTIFICATION FORM
                         FOR LANDSCAPE ARCHITECT/DESIGNER

                     For items numbered 6 and 7 on the Itemized Cost Estimate Form

  NOTE: The Site Development Works Certification Form for item number 1a, 1b, 2a, 2b, 3, 4, 5
        from the Professional Engineer/Consultant must be submitted and have full and final
        certification prior to the submission of this form.

  Date: ___________________________________

  Project Name: ____________________________       Site Address:______________________________

  Owners Name:

  I,                                               of                                        certify
  to the City of Kitchener that the following applicable site development works, as submitted and
  subsequently reviewed by the Development and Technical Services Department have been installed and
  maintained in accordance with the City approved plans and reports and any subsequent City approved
  amendments to such plans and reports.

ON SITE:                                  DOLLAR VALUE OF              DATE OF COMPLETION/
                                          OUTSTANDING WORK             INSPECTION
Plant material & installation
Topsoil spreading fine grading, sodding
and seeding
Landscape structures, including:
  -fencing
  -retaining walls
  -garbage/recycling enclosures
  -planters
  -play area & equipment
Landscape paving materials
Irrigation System
OFF SITE:                                 DOLLAR VALUE OF              DATE OF COMPLETION/
                                          OUTSTANDING WORK             INSPECTION
Boulevard works including:
 -fine grading and sodding or other
Other




                                                  15
 Please note all deviations from the design drawings below (all deviations to city approved plans are to
 be listed, i.e. change in plant material, extent of paving or any other item that has not been constructed
 in accordance with the city approved drawings and reports.) Additional details may be required prior to
 the City accepting the certification.




 Landscape Architect/Consultant


 Signature:
                                                                                    AFFIX SEAL

 Date:


 cc:     Owner
         SWM/Grading Engineer/Consultant
         Lighting Engineer/Consultant
         Acoustical Engineer/Consultant
         CPTED Consultant




PLEASE NOTE:
       This document is to be submitted on the Landscape Architect/Designer’s letterhead.
                Due to environmental conditions, final acceptance by the City of the
                installation of plant material, sodding or seeding may not be carried
                out between November 1 and April 30.




                                                    16
                 SITE DEVELOPMENT WORKS CERTIFICATION FORM
                      FOR LIGHTING ENGINEER/CONSULTANT


                            For item 8 on the Itemized Cost Estimate Form



Date: __________________________________

Project Name:                                            Site Address: ____________________________

Owners Name:


I,                                                     of ______________________________________
certify to the City of Kitchener that all outdoor lighting fixtures for this development have been
installed and maintained in accordance with the City approved plans and any subsequent City approved
amendments to such plans and reports:

I further certify that:

a)      no additional outdoor lights have been installed.

b)      the illumination levels and uniformity ratios on site have been satisfied within generally
        accepted tolerances of the above noted plan.

c)      the lighting distribution pattern has not caused any veiling luminance (disability glare).

d)      no significant encroachment of light (0.5 Foot-candles or greater) or objectionable glare upon
        any adjacent property and that no light sources are visible from any adjacent residential site.


Please note all deviations from the design drawings below (all deviations to city approved plans are to
be listed, i.e. change in mounting height, light source type, model number, aiming direction, distribution
patterns, location of poles). Additional details may be required prior to the City accepting the
certification.




                                                    17
 Lighting Engineer/Consultant




 Signature:
                                                                             AFFIX SEAL

 Date:


 cc:     Owner
         SWM/Grading Engineer/Consultant
         Landscape Architect/Consultant
         Acoustical Engineer/Consultant
         CPTED Consultant




PLEASE NOTE:
          This document is to be submitted on the Lighting Engineer/Consultant’s letterhead.




                                                18
                 SITE DEVELOPMENT WORKS CERTIFICATION FORM
                 FOR ACOUSTICAL STUDY ENGINEER/CONSULTANT




 Date: _____________________________

 Project Name:                                       Site Address:

 Owners Name:



 I                                                   of                                           certify

  to the City of Kitchener that the recommendations/findings of the noise study have been installed on
 site. There are no noise levels above the maximum levels specified in the City’s Urban Design
 Standards and Policies from the stationary source (intercom ordering station), at the property line with
 adjacent residential and/or institutional land uses

 All required noise mitigation measures required by the Noise Study have been installed correctly and
 are functioning as designed.

 Acoustical Study Engineer/Consultant



 Signature:
                                                                                   AFFIX SEAL

 Date:


 cc:     Owner
         SWM/Grading Engineer/Consultant
         Lighting Engineer /Consultant
         Landscape Architect/Consultant
         CPTED Consultant



PLEASE NOTE:

       This document is to be submitted on the Acoustical Study Engineer/Consultant’s letterhead.




                                                   19
                 SITE DEVELOPMENT WORKS CERTIFICATION FORM
                            FOR CPTED CONSULTANT

  Date: ___________________________________

  Project Name: _____________________________ Site Address:_____________________________

  Owners Name:

  I,                                                 of                                      certify
  to the City of Kitchener that the recommendations/findings of the CPTED Report approved by the City
  of Kitchener have been installed on site.

  All required CPTED measures approved in the CPTED Report have been installed correctly and are
  functioning as designed.

ON SITE:                                    DOLLAR VALUE OF                   DATE OF COMPLETION/
                                            OUTSTANDING WORK                  INSPECTION
Access Control




Surveillance




Territorial Reinforcement




Maintenance




  Please note all deviations from the design drawings below (all deviations to city approved plans are to
  be listed, i.e. change in plant material, extent of paving or any other item that has not been constructed
  in accordance with the city approved drawings and reports.) Additional details may be required prior to
  the City accepting the certification.




                                                     20
CPTED Consultant


Signature:
                                                                             AFFIX SEAL

Date:


cc:     Owner
        SWM/Grading Engineer/Consultant
        Landscape Architect/Consultant
        Lighting Engineer/Consultant




 PLEASE NOTE:
         This document is to be submitted on the CPTED Consultant’s letterhead.

                 Due to environmental conditions, final acceptance by the City of the
                 installation of plant material, sodding or seeding may not be carried
                 out between November 1 and April 30.




                                               21

				
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