Whenever a property owner or applicant is required to furnish security in connection with the performance of any act or agreement, such security shall be one of the following at the option of, and subject to the approval of, the city.
A. 
A bond or bonds by one or more duly authorized corporate sureties;
B. 
A deposit, either with the city or a responsible escrow agent or trust company, at the option of the city, of money or negotiable bonds of the kind approved for securing deposits of public monies; or
C. 
An 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 act or agreement are on deposit and guaranteed for payment.
(Ord. 92-134, 1992)
A. 
Form. A bond or bonds by one or more duly authorized corporate securities to secure the faithful performance or for the security of laborers and material providers offered in conjunction with a tentative, final or parcel map shall be in substantially the form prescribed in Government Code sections 66499.1 and 66499.2 (the Subdivision Map Act).
B. 
Amount. The improvement security shall be in the amount set forth as follows:
1. 
An amount which equals 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. 
An additional amount which equals 100% of the total estimated cost of the improvement or performance of the required act, securing payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment to them for the improvement or the performance of the required act.
3. 
An additional amount which equals 15% of the total estimated cost of the improvement or act to be performed, to guarantee and warranty the work for a period of one year following the completion and acceptance thereof against any defective work or labor done or materials furnished.
C. 
Additional Amount. If the improvement security is other than a bond or bonds furnished by duly authorized corporate surety, an additional amount shall be included as determined by the city council as necessary to cover the cost and reasonable expenses and fees, including reasonable attorney fees, which may be incurred by the city in successfully enforcing the obligation secured.
D. 
Additional Alterations Coverage. The improvement security shall also secure the faithful performance of any changes or alterations in the work to the extent that such changes or alterations do not exceed 10% of the original estimated cost of the improvement.
(Ord. 92-134, 1992)
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 of this section.
B. 
The city manager 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 25% of the total improvement security given for faithful performance of the act or work and that security shall not be reduced to an amount less than 50% of the total improvement security given for faithful performance until final completion and acceptance of the act or work. In no event shall the city manager 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, his or her subcontractors and to persons furnishing labor, materials or equipment may, 30 days after the completion and acceptance of the act or work, be reduced to an amount equal to the amount of all claims therefor filed and of which notice has been given to the city council, plus an amount reasonably determined by the city manager to be required to assure the performance of any other obligations for which the security was given.
D. 
Security given for the guaranty or warranty of work shall be released upon the expiration of the period for which it is given. The city council shall have one year after completion and acceptance 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.
(Ord. 92-134, 1992)