HomeMy WebLinkAbout1063RESOLUTION NO. /Db 3
A RESOLUTION of the City Council of the
City of Kent, Washington, relating to public
works; establishing procedures for filing
claims against retainage percentage.
WHEREAS, the City of Kent, pursuant to Chapter 60.28 RCW,
retains specified amounts due to contractors who work on public
works projects as a trust fund for the protection and payment of
any person, mechanic, subcontractor, or materialman who provides
material or labor for use in a public works project; and
WHEREAS, in accordance with the statute, such person,
mechanic, subcontractor, or materialman performing labor or
providing materials may thereafter perfect a lien against the
retained funds for monies due and owing; and
WHEREAS, it is deemed appropriate that the City outline
procedures for the filing and processing of such claims; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. The following policy and procedure is hereby
established for purposes of filing and processing claims against
the retained percentage withheld from monies due a public works
contractor:
A. Who May File. Any person performing labor or
furnishing supplies toward completion of any public works project
may file a claim against the retained funds.
B. Contents of a Claim.
l.
2.
3.
4.
retained fund;
Must
Must
Must
Must
be in writing;
contain the name
state the dollar
state that it is
of claimant;
amount of claim;
an action against the
5. Must state the name of the principal and surety
on the bond;
6. Must briefly describe the project;
7. Must be signed by the claimant.
c. Time of Filing. A claim must be filed within thirty
(30) days of acceptance of the contract by the Council. It may be
filed at any time prior to that. However, a claim expires four
(4) months after it is filed unless an action is brought in
superior court to foreclose the lien.
D. Where to File. Notice of a claim shall be filed with
the City Clerk, with a copy provided for the Engineering
Department. The claim should be date-stamped and entered into the
project file.
E. Disbursement of Retained Funds.
1. If there is an excess in the retained fund over
the amount of taxes due or to become due, and the amount of claims
filed:
a. If the contractor agrees, claims can be paid
and the excess paid to the contractor; or
b. If the contractor does not agree to pay the
claimants, the excess can be paid to the contractor; payments to
claimants would be determined after any foreclosure actions are
finally decided in superior court.
2. If the retained fund is insufficient to cover the
amount of taxes due or to become due, and the claims filed:
a. If the contractor and claimants agree, a pro
rata payment can be made to the claimants, claimants can then
proceed against the bond for the difference.
b. If there is no agreement between the
contractor and claimants, no disbursement shall be made until the
claims lapse or the superior court foreclosure actions are finally
decided.
3. If a superior court action is filed within four
(4) months, the City shall be named a party in such action and the
amount to be paid to the contractor/claimants will be determined
by the court.
4. If no superior court action is filed within four
(4) months, the money in the retained fund in excess of the amount
of taxes due is paid to the contractor.
F. Lien Status of Tax Claims
1. For projects where the contract price is over
$20,000:
a. Taxes due or to become due under Title 82 RCW
have priority over any other liens filed against the retained
percentage.
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b. Other taxes, increases and penalties are a
lien against the retained percentage, but are paid only after all
other lien claims have been paid.
2. Projects where contract price is less than
$20,000:
a. All taxes are a lien against the project but
are paid only after other statutory claims have been paid.
Passed at a regular meeting of the City Council of the
City of Kent Washington this .....:3.._ day of ff'~-1985.
~Concurred in by the Mayor of the City of Kent, this~
day of ·~ , 1985, ~ .)/,.
ISABEL HOGAN, MAYO~
APPROVED AS TO FORM:
I hereby certify that this is a true and correct copy of
Resolution No. /c:Yb-3. , passed by the City Council of the City of
Kent, washington, the 2 day of ?3f=~, 1985.
02610-110
~.~(SEAL)
MARIE JEN N;CITYCLif
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