Pursuant to the Subdivision Map Act, if any public improvement required as part of the approval of the subdivision will not be completed and accepted in accordance with Section
16.30.060 prior to approval of the final tract map, then prior to a determination of a complete and timely filing of the final tract map by the director of public works, the subdivider, at his expense, shall be required to enter into a subdivision improvement agreement with the city to complete such public improvements in accordance with Section
16.30.060. Performance of the agreement shall be guaranteed by the security specified in this section.
A. The
form and content of subdivision improvement agreements shall be approved
by the city attorney. The agreement shall include, but not be limited
to, the following minimum terms and conditions:
1. Construction
of all improvements as set forth in the approved plans and specifications;
2. The
maximum period within which all improvements shall be completed to
the satisfaction of the director of public works;
3. Provisions
for inspection of all improvements by the director of public works
and payment of fees by the subdivider for the cost of such inspection
and all other incidental costs incurred by the city in enforcing the
agreement;
4. A
provision that if the subdivider fails to complete the work within
the specified period of time, or any extended period of time that
may have lawfully been granted to the subdivider, the city may, at
its option, complete the required improvement work and the subdivider
and his surety shall be firmly bound, under a continuing obligation,
for payment of the full cost and expense incurred or expended by the
city in completing such work, including interest from the date of
notice of the cost and expense until paid;
5. A
provision that, in the event of litigation occasioned by a default
of the owner or subdivider, his successors or assignees, the owner
or subdivider, his successors or assignees will pay all costs involved,
including reasonable attorney's fees, and that the same may be recovered
as part of a lien against the real property;
6. Additional
terms or provisions, as may be necessary, pertaining to the forfeiture,
collection, and disposition of improvement security upon the failure
of the contracting party to comply with the terms and provisions thereof
or with the terms and provisions of this code.
B. Subdivision
improvement agreements shall be valid for a period specified in the
agreement, but not to exceed two years from the effective date of
the agreement. The director of public works may, in his discretion,
extend the term of the subdivision improvement agreement. The agreement
shall not only bind the present subdivider, but also his heirs, successors,
executors, administrators, and assignees so that the obligation runs
with the real property. All agreements shall be executed by all those
parties executing the final or parcel map, with all signatures acknowledged
before a notary public, and shall be transmitted by the city clerk
to the county recorder concurrently with the final tract map. The
agreement shall be recorded upon the title of said real property,
in the office of the county recorder, at the expense of the subdivider.
C. Improvement
securities shall be required to be posted as a guarantee of the performance
of any act, improvement, or obligation required as a condition of
approval of any final tract map, parcel map waiver, lot line adjustment,
or lot merger. Unless otherwise provided herein, all such improvement
securities shall be provided in one of the following forms, subject
to the approval of the director of public works and city attorney:
1. A
bond or bonds by one or more duly authorized corporate sureties substantially
in the form prescribed in the Subdivision Map Act and subject to the
approval and acceptance of the city attorney and city council;
2. A
deposit with the city of either, immediately negotiable bonds or a
letter of credit;
3. Any
other form of security, including a lien or other security interests
in real property, which the director of public works and the city
attorney may, in their discretion, allow provided they determine that
it is equivalent to the foregoing forms of security in terms of security
and liquidity.
Any written contract or document creating security interest
established pursuant to subsection (C)(3) of this section shall be
recorded in the office of the county recorder. From the time of recordation,
a lien shall attach to the real property described therein, which
lien shall have the priority of a judgment lien in the amounts specified.
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D. The
subdivider shall provide as security to the city:
1. For
performance and guarantee: an amount determined by the director of
public works equal to one hundred percent of the total estimated cost
of the improvement to be performed, including grading monumentation.
The estimated cost of improvement shall include a ten percent contingency
and a ten percent increase for projected inflation computed to the
estimated mid-point of construction;
2. For
payment: an amount determined by the director of public works equal
to fifty percent of the total estimated cost of the improvement to
be performed, excluding grading and monumentation.
E. Improvement
security may be released upon the final completion and acceptance
of the act or work by the city council; provided, however, such release
shall not apply to the amount of security deemed necessary by the
director of public works for the guarantee and warranty period, nor
to costs and reasonable expense fees, including reasonable attorney's
fees, incurred by the city in enforcing any improvement agreement.
The subdivider shall not be entitled to any reduction in security
until all improvements have been completed to the satisfaction of
the director of public works.
F. The
subdivider shall enter into a separate parkland/landscape improvement
agreement and provide security for any public park facility, landscape
median and TCSD slope maintenance area in conformance with this title
and all applicable TCSD standards.
(Ord. 99-23 § 1)