The purpose of this article is to insure, through the mechanisms contained in this article, that all improvements levied against a subdivision are completed by the owner(s) of the property or if said owner(s) should fail to accomplish the improvements for whatever reasons that the Town can accomplish the same said improvements at no expense to itself.
This article also provides for the maintenance of said improvements for a specified period of time after their completion and the release of the Town from all liability associated with the improvements until acceptance for maintenance and operation by resolution or the City Council.
(§ 1, Ord. 572, eff. February 18, 2018)
If all the improvement work has not been satisfactorily completed, before the final map is filed for approval, the owner or owners of the land being subdivided shall enter into a written subdivision agreement with the Town as approved by the City Attorney specifying that within one year or such other period of time as agreed upon by the parties involved, the owner or owners shall complete all specified improvement work in accordance with Article 11 and that the said owner or owners shall maintain and keep said improvements in good condition and repair for an additional period of two years from date of acceptance of the said improvements by the City Council.
(a) 
The Council, by resolution, shall establish the date of satisfactory completion of said improvements after the certification of same by the City Engineer.
(§ 1, Ord. 572, eff. February 18, 2018)
The subdivision agreement shall in substance provide:
(a) 
That if the owner(s) fails to complete the said improvements or to maintain them in accordance with the terms and time frame of the agreement, the Town may complete the same and recover the full cost and expense thereof from the owner(s);
(b) 
For the inspection of all improvements by the City Engineer;
(c) 
For the furnishing of a 100% cash or surety bond or bonds securing the faithful performance by the owner(s) with all the terms of said agreement, together with a 100% cash or surety labor and material bond or bonds;
(d) 
For the indemnification of the Town, its City Council, officers, officials, agents, boards, Commissioners, volunteers, and employees from claims of any nature arising or resulting from the performance of any acts required by the Town to be done in accordance therewith in form acceptable to the City Attorney;
(e) 
For the termination of the agreement upon the completion of proceedings under an assessment district act for the construction of improvements deemed by the City Engineer to be at least equivalent to the improvements specified in such agreement and required to be constructed by the owner(s):
(f) 
For progress payments to the owner(s) from any deposit money which the subdivider may have filed;
(g) 
For the furnishing of liability and of property damage insurance as hereinafter specified;
(h) 
As a consideration for the foregoing and any other provisions of the said agreement, the Town agrees to accept the roads or streets, storm drains, paths, sanitary sewers and all other required improvements including easements in which they lie, at such time as the owner(s) have fully complied with all the terms of the subdivision agreement. Ten percent of the security bond shall remain in full force and effect for a period of two years, guaranteeing the maintenance of the improvements, including landscaping; and
(i) 
For extensions of time under conditions therein specified.
In addition to the foregoing, said agreement may contain such other and further terms, covenants, conditions or provisions as the parties may agree on.
(§ 1, Ord. 572, eff. February 18, 2018)
The owner(s) of the land being subdivided shall furnish and file with the Town a good and sufficient cash or corporate surety bond or bonds executed by a surety company authorized to transact a surety business in the State of California, in an amount not less than 100% of the estimated cost of completion of said improvements, as determined by the City Engineer. The terms of the said improvement agreement by the owner(s) shall be all in a form approved by the City Attorney which is substantially in accord with Government Code Section 66499.1. The bond shall remain in full force and effect at all times until the expiration of two years after satisfactory completion and acceptance by resolution of the Council of all improvements, and thereafter until all deficiencies in construction, maintenance, and repair have been rectified. Whenever a failure to perform under the said improvement agreement has not been satisfactorily rectified by the owner(s) or his or her surety within 30 calendar days after notice to the surety at the office of its authorized representative, the Town at its option may thereafter without further notice declare said bond forfeited and cause all required construction, maintenance or repair to be done. In lieu of said bond the owner(s) may deposit cash or certified cashier's check with the City Treasurer.
In addition to the aforementioned faithful performance bond, the owner(s) shall furnish and file with the Town a good and sufficient cash or corporate surety labor and material bond in an amount of not less than 100% of the estimated cost of completion of said improvements, in a form approved by the City Attorney, which is substantially in accord with Government Code Section 66499.2 to secure payment to all contractors, subcontractors, laborers, suppliers and other persons employed in the performance of the work installing and completing said subdivision improvements. In lieu of said bond, the owner(s) may deposit cash or a certified cashier's check with the Town Finance Manager.
(§ 1, Ord. 572, eff. February 18, 2018)
No final map shall be presented for approval or be approved until the owner(s) file with the City Clerk a certificate or policy of public liability and property damage insurance, in a form satisfactory to the City Attorney, providing public liability insurance limits in the amount of not less than $100,000 for each person and $300,000 for each accident or occurrence and property damage insurance limits or not less than $50,000, wherein the Town, and in their capacity as such its City Council, officers, officials, agents, boards, Commissioners, volunteers, and employees will be insured, indemnified, and held harmless from and against any and/or all claims of any kind or nature arising or resulting from the construction of said improvements or other work and/or arising or resulting from or concerning the doing or failure to do by said owner(s) of all things required to be done by the owner(s) under the terms of the said improvement agreement. Said insurance shall include an operations endorsement to cover a period of not less than two years after date of satisfactory completion of the improvements, and shall provide for noncancellation without 10 days' prior written notice to the Town of intention to cancel.
(§ 1, Ord. 572, eff. February 18, 2018)
No extension of time, progress payments from cash deposits, or releases of surety bond or cash deposit shall be made except upon certification by the City Engineer that the work covered thereby has been satisfactorily completed, and upon recommendation of the City Manager and approval of the City Council.
(§ 1, Ord. 572, eff. February 18, 2018)
The improvement agreement referred to in Section 66499 of the Subdivision Map Act shall be accompanied by a faithful performance bond in a penal sum, which in the opinion of the City Engineer equals the cost of setting monuments, guaranteeing the faithful performance of all such work of setting monuments and furnishing notes, and in every respect complying with such agreement.
(§ 1, Ord. 572, eff. February 18, 2018)
If the subdivider shows to the satisfaction of the City Engineer that he or she has entered into a contract with a water utility company, district or mutual, to construct water mains and appurtenances, including fire hydrants as required by said company, district or mutual, which contract makes the Town a party thereto, and provides such contract may not be modified or rescinded without the consent of the Council except as required by the Public Utilities Commission, and has deposited with such water utility security for the payment of such water utility improvements which the City Engineer feels adequate, the owner(s) need not include in their agreement and faithful performance bond with the Town installation of such water mains and appurtenances including fire hydrants.
(§ 1, Ord. 572, eff. February 18, 2018)
When any portion or unit of an improvement has actually been fully completed, the City Engineer shall inspect such improvement and may at his or her discretion authorize from time to time a reduction in the bonds or instruments of credit, or a partial withdrawal of funds for which bonds or instruments of credit were deposited, in lieu of the faithful performance bond required by this Article, equal to 90% of the estimated cost of such completed portion.
This section does not authorize a reduction or withdrawal for partial completion of a portion or any unit of such improvements.
(§ 1, Ord. 572, eff. February 18, 2018)