A. 
If the improvements are not completed prior to approval of the final map or parcel map, the land divider shall enter into an agreement with the City to complete the improvements and in connection therewith shall furnish to the City improvement security in the amounts required by subsection D of this section. Acceptable forms of security shall be limited to the following:
1. 
A bond or bonds by one or more duly authorized corporate sureties;
2. 
A cash deposit with the City;
3. 
An irrevocable instrument of credit from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreements are on deposit until released by the City;
4. 
An irrevocable letter of credit issued by a financial institution subject to regulation by the state or federal government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon the written demand of the Director of Transportation, and that such written demand need not present documentation of any type as a condition of payment, including proof of loss.
B. 
The agreement and the improvement security for Schedules "A," "B," "C," "D" and "E" maps shall be executed for the City by the chairperson of the Council only upon forms and terms approved by the Council, which shall be checked by the Director of Transportation. The Director of Transportation shall be authorized to execute on behalf of the City agreements and improvement security in accordance with the provisions of this chapter for Schedules "F," "G," "H" and "I" maps. The agreement and improvement security for Schedules "F," "G," "H" and "I" maps shall be executed for the City by the Director of Transportation only upon forms and terms approved by the Council. If bonds are to be used, they shall be substantially in the form provided for in the Subdivision Map Act.
C. 
The original period of the agreement and security shall be 24 months. Extensions of time may be granted at any time by the City Manager only upon terms and conditions approved by the City Council either at its own option, with or without notice to the land divider and surety, or at the written request of the land divider, with or without notice to the surety. Each extension shall be for a period not to exceed one year. In addition to the above, and as a further condition to granting an extension of time, the City Engineer may require additional agreements or security as necessary to guarantee the completion of the improvements.
D. 
Security to guarantee the performance of any act or agreement shall be in the following amounts:
1. 
100% of the total estimated cost of the improvement or of the act to be performed, conditioned upon the faithful performance of the act or agreement;
2. 
50% of the total estimated cost of the improvement or the performance of the required act, securing payment to the contractor, his or her subcontractors, and the persons furnishing labor, materials or equipment to them for the improvement or the performance of the required act;
3. 
10% of the total estimated cost of the improvement or the performance of the required act for the guarantee and warranty of the work for a period of one year following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished. As a part of the obligation guaranteed by the security and in addition to the face amount of the security, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees incurred by the City in successfully enforcing the obligation, all to be taxed as costs and included in any judgment.
E. 
The security may be released, in whole or in part, in the following manner:
1. 
Security given for faithful performance or any act or agreement shall be released upon the performance of the act and final completion and acceptance of the required work. Once one-third of the bonded work has been completed, a request for a partial release of securities may be submitted. The request shall be made in writing to the Transportation Director, and a fully detailed description of the bonded work completed shall be provided with the request. A maximum of three partial releases of the security may be granted by written order of the Director of Transportation upon a determination by the Director of Transportation of the acceptable work that has been completed and the amount of security that is necessary to guarantee the completion of the remaining improvements. Requests for partial releases, setting forth in detail the amount of work completed, shall be made in writing to the Director of Transportation.
2. 
Security securing the payment to the contractor, the subcontractors, and the persons furnishing labor, materials or equipment may, after the time within 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 Council, and if no such claims of lien have been recorded, the security may be released in full. Requests for release shall be made to the Director of Transportation who may, prior to the release of any security under this subdivision, require the land divider to provide a title report or other form of evidence sufficient to show what claims of lien, if any, are of record on the land division.
3. 
The release of such security shall not apply to any required guarantee and warranty period, nor to costs and reasonable expenses and fees, including reasonable attorney fees.
F. 
In any case where the performance of the obligation for which the security is required is subject to the approval of another agency, the security shall not be released until the obligation is performed to the satisfaction of such other agency. The City shall notify the servicing agency in writing and such agency shall have two months after completion of the performance of the obligation to register its satisfaction or dissatisfaction. If at the end of that period it has not registered its satisfaction or dissatisfaction, it shall be conclusively deemed that the performance of the obligation was done to its satisfaction.
G. 
The liability upon the security given for the faithful performance of any act or agreement shall be limited to:
1. 
The performance of the work, covered by the agreement between the subdivider and the City for the performance of the required act;
2. 
The performance of any changes or alterations in such work, provided that all such changes or alterations do not exceed 10% of the original estimated cost of the improvement;
3. 
The guarantee and warranty of the work for a period of one year following completion and acceptance thereof against any defective work or labor done or defective materials furnished in the performance of the agreement or the performance of the act;
4. 
Costs and reasonable expenses and fees, including reasonable attorneys' fees.
H. 
If the estimated cost of completing the street/drainage improvements, water system improvements, sewer system improvements or the setting of the monuments is less than $5,000.00, a cash bond shall be required for that specific improvement.
I. 
The Director of Transportation is authorized to release or reduce the security in accordance with the provisions of this section.
(Ord. 18 § 2, 2008, RCC § 16.60.010; Ord. 60 § 2, 2011)
A. 
Certificates for taxes and special assessments, as prepared by the tax collector, and security for unpaid taxes and special assessments shall be furnished as required by the Subdivision Map Act. This section applies to land divisions located within the City.
B. 
When a land division is located within the City:
1. 
If the certificate shows that there are no liens against the land division or any part thereof for unpaid taxes or special assessments collected as taxes, the City Clerk shall certify that such certificates have been filed and shall transmit the final map or parcel map to the County Recorder without placing the matter on the agenda of the Council.
2. 
If the certificate shows that there are no liens against the land division or any part thereof for unpaid taxes or special assessments collected as taxes, except for taxes or special assessments that are not yet payable, the land divider shall file with the City Clerk acceptable security in the amount determined by the tax collector as necessary to pay the taxes and special assessments which are a lien but not yet payable. Upon approval of the security by the City Attorney, the City Clerk shall certify that such certificates and security have been filed and shall transmit the final map or parcel map to the County Recorder without placing the matter on the agenda of the Council.
3. 
When a land division is located within the City, the land divider shall furnish the required certificate as to tax and assessment liens to the Director of Transportation who shall handle the matter as a part of the processing of the final map or parcel map.
C. 
Acceptable forms of security for taxes shall be as provided in Section 16.56.010(A) for security for improvement; provided, however, that a cash bond shall be required to guarantee the payment of taxes in amounts less than $2,500.00. The forms of security offered shall not have an expiration date prior to that of the expiration of the map.
(Ord. 18 § 2, 2008, RCC § 16.60.020; Ord. 60 § 3, 2011)
A. 
The land divider may, in lieu of posting a security described in Section 16.56.010, enter into an agreement with the City to construct the required improvements in the future, securing such performance by granting the City a lien on the real property to be divided. Such agreements shall be known as "lien agreements." The use of lien agreements shall only be allowed if all requirements of this section are satisfied.
B. 
Government Code Section 66499(a)(4) authorizes the City to enter into lien agreements if it is found by the City that it would not be in the public interest to require the installation of the required improvements sooner than two years after the recordation of the map.
C. 
Where the City finds that it would not be in the public interest to require that installation of the required improvements occur sooner than two years after recordation of the map, the land divider may execute a lien agreement with the City at the time the land divider enters into an agreement with the City to construct required improvements pursuant to this section .
D. 
A lien agreement may be used to substitute for an existing security which was furnished under Section 16.56.010; provided, however, that use of a lien agreement as substitution for an existing security shall be at the City's sole discretion.
E. 
The City will not accept a lien agreement from any land divider, either at the time of execution of the agreement to construct improvements, or as a substitute for existing security, if any individual lots have been sold (except as providing in subsection J of this section), if any construction permits, including, but not limited to, any grading or building permits, have been issued on any of the property, or if construction of any of the required improvements has begun. Notwithstanding the above, the City may accept a lien agreement from any land divider as a substitute for existing security if grading has commenced on the land to be divided so long as the grading is in strict accordance with a valid grading permit and all the following are met:
1. 
There is no need for the City to construct the required improvements if the land divider's project is abandoned or delayed for any period of time or for any other reason;
2. 
The grading has no effect on the use, operation and maintenance of existing streets or highways, public or private;
3. 
The grading has not caused the modification or closure of any public access points, existing streets or highways, public or private;
4. 
Additional drainage improvement and/or erosion controls are not necessary and/or installed in the road right-of-way due to the grading;
5. 
Delay of the construction of the land divider's required improvements does not affect or delay the improvements of an adjacent land divider who had already commenced work on his or her required improvements;
6. 
The land is fully in compliance with stormwater quality requirements and has established a program for maintenance of such requirements.
F. 
Lien agreements shall:
1. 
Be allowed only for Schedules "A," "B" and "E" maps.
2. 
Be allowed only where the land divider provides a title insurance policy and current title report from a title company approved by the City that documents that the land divider is the record owner of the real property to be divided and that the real property to be divided is not subject to any mortgages, deeds of trust, or judgment liens. The title insurance policy and title report shall be issued within the 60 days prior to the execution of the lien agreement.
3. 
Be in a form acceptable to and approved by City Attorney.
4. 
Be used to secure future improvements that would be required for Schedules "A," "B" and "E" maps.
5. 
Be used only when a land divider would be required by this section to construct or agree to construct the required improvements.
6. 
Contain an itemization of the required improvements and an estimate of costs approved by the City Engineer and shall specify that the land divider's or subsequent owner's obligation extends to the actual cost of construction of the required improvements if such costs exceed the estimate.
7. 
Be recorded with the County Recorder. The recorded lien agreement shall be indexed in the Grantor Index to the names of all record owners of the real property as specified on the map and in the Grantee Index to the County.
8. 
Be approved concurrently with the approval of the subdivision improvement agreement and the final map with a note of the lien agreement's existence placed on the map, except where the lien agreement is being substituted after final map approval for other security previously deposited pursuant to Section 16.56.010 in which case the lien agreement shall be signed and acknowledged by all parties having any record title interest in the property, as prescribed by Government Code Section 66436, consenting to the subordination of their interests to the lien agreement.
G. 
From the time of recordation of the lien agreement, a lien shall attach to the property and shall have the priority of a judgment lien in an amount necessary to complete the required improvements. Under no circumstances shall the City agree to subordinate the lien.
H. 
The lien agreement shall provide that the land divider shall substitute acceptable security for the lien agreement and commence to construct the improvements required pursuant to this section within three years following recordation of the map, or in the case of a lien agreement which has been substituted for existing security pursuant to Section 16.56.010 within three years following recordation of the lien agreement.
I. 
The time for substitution of acceptable security and commencement of construction of the required improvements in subsection H of this section, may be extended up to three times, by the City Manager only upon forms and terms approved by the City Council. Each extension shall be for a period not to exceed one year. However, the City Council may grant additional time extensions, as it deems appropriate, for substitution of acceptable security and commencement of construction of the required improvements pursuant to agreements secured either by: (1) lien agreements executed at the time of recordation of the map; or (2) lien agreements substituted for an existing security furnished under Section 16.56.010. For each extension of time under this subsection, the land divider shall provide a title insurance policy and current title report from a title company approved by the City that documents that the land divider is the record owner of the real property to be divided and the real property to be divided is not subject to any mortgages, deeds to trust, or judgment liens. The title insurance policy and title report shall be issued within the 60 days prior to request for an extension of time.
J. 
The entirety of the map (except for any areas dedicated to public agencies) must be under the same ownership at the time a lien agreement is approved and at all times while the lien agreement is in place, except as expressly permitted by this subsection J. Fee title to the entire property encumbered by the lien agreement or to all lots designated on any individual final map which is encumbered by the lien agreement, may be sold in the aggregate to a single purchaser. A proposed purchaser of any land that is subject to a lien agreement shall, prior to assuming title to the property, execute a new subdivision improvement agreement, and either: (1) execute a new lien agreement in a form acceptable to the City which will encumber the property to be conveyed, specifying the respective obligations of the owner of property subject to the original and new lien agreement; or (2) provide acceptable alternative security for the required improvements to be constructed as a condition to development of the property conveyed, pursuant to Section 16.56.010. Any new lien agreement must require that acceptable security be substituted therefor, and the improvements be substituted therefor, and the improvements secured thereby commenced by the same date provided in the lien agreement with the original owner, unless such date shall be extended by the City Council as provided in subsection I of this section. A lien agreement may be used as security in the City's sole discretion where there are different ownerships within a final tract or parcel map in the following situations:
1. 
The final tract or parcel map was approved as a phased map and each phase is under the same ownership.
2. 
The final tract or parcel map includes mixed uses and all outstanding improvements for the map will be fully secured by the lien agreements or other security provided.
3. 
The final tract or parcel map was approved as a single-phase map, but the construction will occur in a phased manner, provided that all outstanding improvements for the map will be fully secured by the lien agreements or other security provided.
K. 
At the time the City Council approves a lien agreement, the land divider shall provide a cash deposit in the amount of $12,000.00 to the City for the purpose of reverting the property to acreage if the land divider breaches the terms of the lien agreement. In addition, at such time as title to any property subject to a lien agreement shall be conveyed, the transferee thereof, if such transferee executes a new lien agreement to secure construction of the improvements imposed upon such property as described in subsection I of this section, shall provide a substitute cash deposit in the amount of $12,000.00 to the City for the purpose of reverting the property to acreage if the land divider breaches the terms of the lien agreement. Any unused portion of any such deposit shall be refunded to the land divider following completion of such reversion. If the cost of reverting the property to acreage exceeds $12,000.00, the land divider shall pay such additional costs to the City prior to recordation of the reversion to acreage map.
L. 
The lien agreement shall only be released upon substitution of acceptable security for the lien agreement under Section 16.56.010 in order to begin construction of the required improvements, or upon recordation of a reversion to acreage map.
M. 
In no instance shall the lien agreement compel the City to construct the required improvements.
(Ord. 60 § 4, 2011; Ord. 184 § 1, 2020)