Any improvement agreement or contract required by the Subdivision
Map Act or this Title shall be secured by one or a combination of
the following:
(a)
Bond. A bond or bonds by one or more duly authorized incorporated
sureties in the form prescribed by the Subdivision Map Act;
(b)
Deposit. A deposit, either with the City or a responsible escrow
agent or trust company selected by the City, of cash or negotiable
bonds of the kind approved for securing deposits of its public monies;
(c)
Irrevocable Instrument of Credit or Letter of Credit. An irrevocable
instrument of credit or letter of credit from one or more responsible
financial institutions regulated by federal or State government and
pledging that the funds are on deposit and guaranteed for payment
on demand by the City;
(d)
Lien Upon Property. A lien upon the property to be subdivided, created
by contract between the owner of the property and the City, when the
City finds that it is not in the public interest to require installation
of the required improvement sooner than two (2) years after the recordation
of the map; and/or
(e)
Other Form of Security. Any other form of security, including security
interests in real property, which the Council shall determine to be
acceptable.
(Ord. 249 § 3, 1989)
The improvement security shall be provided in the amount determined
by the Engineer to cover all of the following:
(a)
One hundred percent (100%) of the total estimated cost of the improvement
or act to be performed;
(b)
One hundred percent (100%) of the total estimated cost of the improvement
or act to be performed securing payment to the contractor, the subcontractors
and to persons furnishing labor, materials or equipment to them for
the improvement or the performance of the required act;
(c)
The amount necessary to guarantee or warranty the work for a period
of one year following completion or acceptance thereof against any
defective work or labor done or defective materials furnished; and
(d)
An amount sufficient to secure the faithful performance of any changes
or alterations in the work, to the extent that such changes or alteration
do not exceed ten (10) percent of the original estimated cost of the
improvement.
(Ord. 249 § 3, 1989)
In the event that required subdivision improvements are financed
and installed pursuant to special assessment or special tax proceedings,
the subdivider may apply to the Council for a reduction in the amount
of the improvement security required hereunder up to an amount corresponding
to the amount of faithful performance and labor and material bonds
required by the special assessment or special tax statutes being used.
The Council may grant such reduction if it finds that such bonds have
been in fact provided and that the obligations secured thereby are
substantially equivalent to those required by this Chapter.
(Ord. 249 § 3, 1989)
The improvement security required hereunder shall be released
in the following manner:
(a)
Security given for faithful performance of any act or agreement shall be released upon the final completion and acceptance of the act or work, subject to the provisions of subsection (b)
(b)
The Council or Planning Director may release a portion of the security
in conjunction with the acceptance of the performance of the act or
work as it progresses, upon application therefor by the subdivider;
provided, however, that no such release shall be for an amount less
than thirty percent (30%) of the total improvement security given
for faithful performance of the act or work and that the security
shall not be reduced to an amount less than ten (10) percent of the
total improvement security given for faithful performance, until final
completion and acceptance of the act or work. In no event shall the
Council or Planning Director authorize a release of the improvement
security which would reduce such security to an amount below that
required to guarantee the completion of the act or work and any other
obligation imposed by this Title, the Subdivision Map Act or the improvement
agreement.
(c)
Security given to secure payment to the contractor, any subcontractors
and persons furnishing labor, materials or equipment shall, after
passage of the time in which claims of lien are required to be recorded
pursuant to article 3 (commencing with section 3114) of Chapter 2
of Title 15 of part 4 of division 3 of the Civil Code and after acceptance
of the work, be reduced to an amount not less than the total claimed
by all claimants for whom claims of lien have been recorded and notice
thereof given in writing to the legislative body. If no such claims
have been recorded, the security may be released in full, except an
amount reasonably determined by the Council or the Engineer to be
required to assure performance of any other obligations secured thereby.
The balance of the security shall be released upon the settlement
of such claims and obligations for which the security was given.
(d)
No security given for the guaranty or warranty of work shall be released
until the expiration of the period thereof.
(Ord. 249 § 3, 1989)
Upon the failure of the subdivider to complete any improvement,
acts or obligations within the time specified, the Council or the
Planning Director may, upon notice in writing of not less than ten
(10) days, served upon the person responsible for the performance
thereof or upon notice in writing of not less than twenty (20) days,
served by registered mail addressed to the last-known address of such
person, determine that the subdivider is in default and may cause
the improvement security or such portion thereof as is necessary to
complete the work or act and any other obligations of the subdivider
secured thereby to be forfeited to the City.
(Ord. 249 § 3, 1989)
Where an improvement is to be constructed by a public district
or other political subdivision, wholly or partly located in the City,
and an agreement to that effect is executed by such public or other
political subdivision, the subdivider and the City, no bond or cash
deposit need be offered to guarantee the performance of such work.
(Ord. 249 § 3, 1989)
