Pursuant to the Subdivision Map Act, if any public improvement required as part of the approval of the subdivision will not be completed and accepted in accordance with PMC §
16.110.060 prior to approval of the final map, then prior to a determination of a complete and timely filing of the final map by the City Engineer, the subdivider, at his expense, shall be required to enter into a subdivision improvement agreement with the City to complete said public improvements in accordance with PMC §
16.110.060. Performance of said agreement shall be guaranteed by the security specified in this section.
(A) Subdivision Improvement Agreements. The form and content shall be approved by the City Attorney. The agreement shall include, but not be limited to, the following minimum terms and conditions:
(1) Construction of all improvements as set forth in the approved plans and specifications;
(2) The maximum period within which all improvements shall be completed to the satisfaction of the City Engineer;
(3) Provisions for inspection of all improvements by the City Engineer and payment of fees by the subdivider for the cost of such inspection and all other incidental costs incurred by the City in enforcing the agreement;
(4) A provision that, if the subdivider fails to complete the work within the specified period of time, or any extended period of time that may have lawfully been granted to the subdivider, the City may, at its option, complete the required improvement work and the subdivider and his surety shall be firmly bound, under a continuing obligation, for payment of the full cost and expense incurred or expended by the City in completing such work, including interest from the date of notice of said cost and expense until paid;
(5) A provision that, in the event of litigation occasioned by a default of the owner or subdivider, his successors or assignees, the owner or subdivider, his successors or assignees will pay all costs involved, including reasonable attorney's fees, and that the same may be recovered as part of a lien against the real property; and
(6) Additional terms or provisions, as may be necessary, pertaining to the forfeiture, collection, and disposition of improvement security upon the failure of the contracting party to comply with the terms and provisions thereof or with the terms and provisions of this title.
(B) Implementation of Subdivision Improvement Agreements. Subdivision improvement agreements shall be valid for a period specified in the agreement, but not to exceed two years from the effective date of the agreement. The agreement shall not bind only the present subdivider, but also his heirs, successors, executors, administrators, and assignees so that the obligation runs with the real property. All agreements shall be executed by all those parties executing the final or parcel map, with all signatures acknowledged before a notary public, and shall be transmitted by the City Clerk to the office of the County Registrar/Recorder concurrently with the final map. Said agreement shall be recorded upon the title of said real property, in the office of the County Registrar/Recorder, at the expense of the subdivider.
(C) Improvement Security. Improvement securities shall be required to be posted as a guarantee of the performance of any act, improvement, or obligation required as a condition of approval of any final map, parcel map waiver, lot line adjustment, or lot merger. Unless otherwise provided herein, all such improvement securities shall be provided in one of the following forms, subject to the approval of the City Engineer and City Attorney:
(1) A bond or bonds by one or more duly authorized corporate sureties substantially in the form prescribed in the Subdivision Map Act and subject to the approval and acceptance of the City Attorney and City Council; or
(2) A deposit with the City of cash, negotiable bonds or a letter of credit; or
(3) Any other form of security, including a lien or other security interests in real property, which the City Engineer and the City Attorney shall determine to be equivalent to the foregoing forms of security.
Any written contract or document creating security interest established pursuant to subsection
(C)(3) of this section shall be recorded in the office of the County Registrar/Recorder. From the time of recordation, a lien shall attach to the real property described therein, which lien shall have the priority of a judgment lien in the amounts specified.
(D) Amount of Security. The subdivider shall provide as security to the City:
(1) For performance and guarantee: an amount determined by the City Engineer equal to 120 percent of the total estimated cost of the improvement to be performed, including grading monumentation. The amount of security provides for a 10 percent contingency and a 10 percent increase for projected inflation computed to the estimated mid-point of construction;
(2) For payment: an amount determined by the City Engineer equal to 50 percent of the total estimated cost of the improvement to be performed, excluding grading and monumentation.
(E) Improvement Security Release. Improvement security may be released upon the final completion and acceptance of the act or work by the City Council; provided, however, such release shall not apply to the amount of security deemed necessary by the City Engineer for the guarantee and warranty period, nor to costs and reasonable expense fees, including reasonable attorney's fees, incurred by the City in enforcing any improvement agreement. The subdivider shall not be entitled to any reduction in security until all improvements have been completed to the satisfaction of the City Engineer.
(F) Forfeiture. In addition to any other remedy provided by law, upon the failure of the subdivider to complete any improvement, act or obligations within the time specified in the improvement agreement, or upon failure of the subdivider to faithfully comply with the terms and provisions of this section or any improvement security given thereby, the City Council may, upon notice in writing of not less than 10 days served upon the person responsible for the performance thereof or upon notice in writing of not less than 20 days, served by registered mail addressed to the last known address of such person, determine that the foregoing have not been complied with or said work has not been completed, and may cause to be forfeited to the City such portion of said improvement security given for the performance of the foregoing.
(Ord. 1091 § 5, 1996)