Details
Type: Bulletin
Topic or Program: Access Management | OAR 734-051
Final Number: AM22-01(B)
Effective Date: 05/16/2022
Updated Date: 05/16/2022
Signature on File: Angela Kargel, Access Management Program Manager
Purpose
This bulletin pertains to a deposit in lieu of a bond received by a District office for a permit to construct a road approach. The purpose is to ensure that such deposits are handled in a consistent manner and in accordance with Oregon Department of Transportation (ODOT) financial standards.
Definitions
- Applicant
- A person, corporation, or other legal entity with a legal property interest, including a lease, option or reservation of access, to land abutting the highway that applies for an approach permit or a deviation from approach permitting standards, or their designated agent. OAR 734-051-1070(7).
- CHAMPS
- Central Highway Approach Maintenance Permit System
- Department
- Oregon Department of Transportation (ODOT)
- Deposit
- Check, money orders or cashier’s check received in lieu of a bond.
- OAR 734-051
- Oregon Administrative Rules Chapter 734, Division 51
- ODOT Financial Standards
- Financial standards contained in ODOT Financial Administration & Standards Manual
- Permit to Construct
- A permit that is issued by the department that includes all attachments, required signatures, conditions and terms, and any bond and insurance documentation provided by the applicant as required by the department to construct or modify an approach and any related mitigation within the state highway right of way. OAR 734-051-1070(48)
Background/Reference
This Bulletin provides clarification to improve consistency and customer service within the District offices in their processes for handling deposits in lieu of bond for a permit to construct a road approach. A deposit in lieu of bond is different from a deposit to construct a temporary access. Refer to
AM07-02(b) for information on handling deposits to construct a temporary approach.
Bonds for access permits are held by Maintenance & Operations Branch (MOB) on behalf of Access Management Unit (AMU).
Explanation
OAR 734-051-5020(2)(d) states as follows: “Submit proof of liability insurance and bond or deposit in lieu of bond as required by OAR 734-051-5060.”
OAR 734-051-5020(3) states as follows: “If the applicant does not complete the actions required in section (2) of this rule within the 60-day timeframe, then the department will not issue a construction permit and all approvals associated with approach application will be revoked. The 60-day time frame may be extended if the permittee and the department agree in writing before the deadline pursuant to OAR 734-051-5040.
OAR 734-051-5060(8) states as follows: “The permittee must furnish, in an amount specified by the region manager and for the time period necessary to install the approach, a cash deposit or a bond issued by a surety company licensed to do business in the State of Oregon to ensure the approach is installed in conformance with the requirements of this division and that any damage to the highway has been corrected to the department’s satisfaction; and no construction is performed until a deposit or bond is filed with the department.”
Responsibilities
District Office
- Determine the amount of deposit required.
- Collect deposit in lieu of a bond from, and issue receipt to applicant. Endorse checks with the following format:
FOR DEPOST ONLY
Treasurer, State of Oregon
ODOT - Enter deposit amount in CHAMPS.
- Forward deposit with the
Cash in Lieu of Bond Information Sheet to:
Maintenance & Operations Branch
Attn: Utility and Miscellaneous Permits Coordinator
455 Airport Rd. SE Bldg. K
Salem, OR 97301 - When construction of approach has been completed and approved by ODOT,
- Use the Permit Insurance & Bond Database to request the deposit be refunded.
- If an address has changed, send an email to the MOB Utilities & Miscellaneous Permits Coordinator to have the information updated in the database. Include name of person that submitted the deposit, new address, CHAMPS ID#, deposit amount, check number, and any contact information for the customer.
- If, after providing notice to the applicant, applicant fails to complete or correct construction to ODOT satisfaction and ODOT will incur expense to correct or complete construction:
- Complete an Order to Render Service and send to Financial Services at
ODOTOrderToRenderServiceGrp@odot.oregon.gov along with the number of the Permit to Construct, deposit amount, check number, and applicant name and contact information to have a B# EA set up to charge costs incurred by ODOT. The Order to Render Service form (ORSM) is available on the Financial Services Branch website, as well as the instruction document for the form.
- When District has completed charges to the EA, complete the Notice of Completion section at the bottom of the ORSM form and send to the ORSM group email at
ODOTOrderToRenderServiceGrp@odot.oregon.gov.
TEAMS will automatically bill the applicant for the amount in excess of the deposit when the District charges to the new B# EA, or refund the difference, if ODOT’s expense is less than the deposit.
Maintenance & Operations Branch
- Receive and process deposit in accordance with ODOT financial standards (see Special Instructions section below).
- Upon receiving email notification from District Office that construction of the approach has been completed and approved, return deposit to applicant.
- Upon receiving notification from the District office that ODOT will incur cost to complete or correct construction via an ORSM form provide information on the deposit from the Permit Insurance & Bond Database as requested by Financial Services.
- Keep copies for record purpose.
- Attach copies of the Order to Render Service request and any emails from the permit specialist for the purpose of tracking the cash in lieu of bond in the bond database.
Financial Services
- Upon receiving an ORSM form from the District Office, set up EA and notify District office.
- Upon receiving email of Notice of Completion, bill applicant for the amount in excess of the deposit or refund the difference if the expense is less than the deposit.
Action Required
- District Manager
- Ensure that District responsibilities described in this bulletin are communicated and implemented. Ensure that new staff is informed of the process in this bulletin.
- Maintenance & Operations Branch, Maintenance Services Manager
- Ensure that Districts are notified when there is a change in contact person assigned to process deposits made in lieu of bonds.
- Financial Services Branch Manager
- Ensure that District offices, Maintenance & Operations Branch Utility and Miscellaneous Permits Coordinator, and Access Management Unit are notified when there is a change in contact person in Financial Services for coordinating this bulletin.
Special Instructions
Chapter 8.1 of ODOT Financial Administration & Standards Manual states as follows: “Department business offices must deposit cash receipts received at their location no later than the next business day Department employees must safeguard cash receipts at all times and un-deposited receipts must be secured in a locked cabinet or safe at the end of the business day. The business office will issue a written receipt for all cash receipts received by the office.
Department business offices that do not routinely make deposits the next business day may accept cash receipts in the form of checks, money orders or cashier checks from customers for products or services. However, these business offices
should not accept currency.