Improvement security required of a subdivider pursuant to this chapter shall be one of the following, as determined by the city engineer:
A. 
A bond or bonds by one or more duly authorized corporate sureties.
B. 
A deposit, either with the city or with a responsible escrow agent or trust company, at the option of the city engineer, of money or negotiable bonds of the kind approved for securing deposits of public moneys.
C. 
An instrument of credit from one or more financial institutions subject to regulation by the state or federal government and pledging that the funds necessary to carry out the act or agreement on deposit and guaranteed for payment or a letter of credit issued by such a financial institution.
D. 
A lien upon the property to be divided, created by contract between the owner and the city, if the city engineer finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map.
(Prior code § 21-8.1; Ord. 1418 § 24, 1983)
Any written contract or security interest in real property entered into as security for performance pursuant to Section 12.48.010 shall be recorded with the county recorder.
(Prior code § 21-8.2; Ord. 1418 § 24, 1983)
The city engineer shall have the authority to release all or any portion of the property subject to any lien or security interest created pursuant to this chapter, or to subordinate such lien or security interest to other liens or encumbrances if the city engineer determines that security for performance is sufficiently secured by a lien on other property or that the release of subordination of the lien will not jeopardize the completion of agreed upon improvements.
(Prior code § 21-8.3; Ord. 1352 § 1, 1980; Ord. 1947, 4/9/2024)
A bond or bonds by one or more duly authorized corporate sureties to secure the faithful performance of any agreement shall be in substantially in the form set forth in Government Code Section 66499.1, as it may be amended from time to time.
(Prior code § 21-8.4; Ord. 1352 § 1, 1980; Ord. 1947, 4/9/2024)
A bond or bonds by one or more duly authorized corporate sureties for the security of laborers and materialmen shall be in substantially in the form set forth in Government Code Section 66499.2, as it may be amended from time to time.
(Prior code § 21-8.5; Ord. 1352 § 1, 1980; Ord. 1947, 4/9/2024)
A. 
The security to guarantee the performance of any act or agreement shall be in the following amounts:
1. 
One hundred percent of the total estimated cost of the improvement or the act to be performed, conditioned upon the faithful performance of the act or agreement; and
2. 
An additional amount of fifty percent of such total estimated cost, 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 of forty percent of such total estimated cost 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 defective materials furnished.
B. 
Whenever an entity required to furnish security in accordance with paragraphs 1 and 2 of subsection A is a California nonprofit corporation, funded by the United States of America or one of its agencies, the entity shall not be required to comply with said paragraphs if the following conditions are met:
1. 
The contractor installing the improvements has bonded to the nonprofit corporation and the city as co-obligee the amount of one hundred percent of the contract for the faithful performance of the work, and has further bonded to the nonprofit corporation and the city as co-obligee an amount of not less than fifty percent of the contract for the payment of labor and materials, and those bonds comply with the provisions of the Subdivision Map Act.
2. 
All moneys payable to the contractor by the nonprofit corporation are deposited in a depositary complying with the provisions of the Subdivision Map Act, and out of which moneys progress payments are conditional upon the following:
a. 
The contractor's certification to the nonprofit corporation that all labor performed in the work, and all materials furnished to and installed in the work, have been paid for in full to the date of the certification.
b. 
The final written approval of the nonprofit corporation.
c. 
Final payment to the contractor not being made until sixty days shall have expired after the filing and recording of the notice of completion of the work and acceptance of the work by the city in writing.
3. 
All certifications as to progress payments shall be delivered through the United States mail to the nonprofit corporation. The term "progress payments" means payments made in compliance with the schedule of partial payments agreed upon in the contract for the work. No less than ten percent of the total contract price shall be retained for the sixty days following the filing of the notice of completion.
C. 
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 attorneys' fees, incurred by the city in successfully enforcing the obligation secured.
(Prior code § 21-8.6; Ord. 1418 § 25, 1983)
A. 
Security given for the faithful performance of any act or agreement shall be released upon the performance of the act or final completion and acceptance of the required work.
B. 
Security securing payment to the contractor, his or her subcontractors, and to persons furnishing labor, materials or equipment shall, after the passage of the time when 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 city council. If no such claims have been recorded, the security shall be released in full.
C. 
Any such release shall not apply to the required guarantees and warranty period as set forth in subsection C of Section 12.48.060 not to the amount of security retained for such period, nor to costs and reasonable expenses and fees, including reasonable attorney's fees.
D. 
The city engineer shall have the authority to cause release of the security in accordance with the provisions of this chapter.
(Prior code § 21-8.7; Ord. 1418 § 26, 1983)
Notwithstanding any other provision of this chapter, whenever 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. Such agency shall have two months after completion of the performance of the obligation to register its satisfaction or dissatisfaction, and if the agency has not done so within such period, it shall be conclusively deemed that the performance of the obligation was done to its satisfaction.
(Prior code § 21-8.8; Ord. 1352 § 1, 1980)