§ 25-40. Agreements and improvement securities.

• (a) Agreements. The construction of all public improvements required as a condition of the approval of a subdivision map, a parcel map, or any other type of permit, or required as the condition of approval of a reversion to acreage, or lot consolidation or combination, shall be guaranteed by the execution of a suitable agreement, in a form prescribed herein and approved by the city attorney. All such agreements shall contain the terms and conditions to be met by the subdivider, developer or permittee, and shall specify a reasonable time in which to construct the improvements or perform the requirements and obligations of the agreement. The time allowed for the completion of the work shall be as specified by the director of public works and shall depend upon the amount and complexity of the work involved, the type of development, and any other factors he may deem important. All agreements shall be executed by the owner, developer or the subdivider of the property or land being divided or developed. The signatures shall be acknowledged before a notary public and the agreements shall be accompanied by evidence substantiating the signer's position, title and authority to bind the person, company, partnership, corporation, joint venture, or other entity to the actions and obligations contained in the agreement. Prior to the expiration of the time allowed by the agreement in which to perform or complete the obligations contained therein, the subdivider, owner or developer who executed the agreement may request, in writing, that the director of public works extend the term of the agreement. The written request shall contain the reasons for the requested additional time,

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City of Cypress, CA § 25-40

CYPRESS CODE

§ 25-40

the length of the additional time requested, and any other data deemed necessary or informative. The request shall be accompanied with written concurrence from the surety or bonding company whose bonds or securities were posted as a guarantee of the performance of the agreement, and a statement from the surety that they agree with and have no objection to the extension of time as requested by the agreement principal. Upon consideration of the written request, and the evidence presented, the request shall be acted upon and shall be either approved, rejected or modified. Additional requirements or compliance with updated standards may be imposed by the city council as a condition of approval of such time exten-sion.

• (b) Improvement securities. Improvement securities shall be required to be posted as a guarantee of the performance of any act or obligation required as a condition of the approval of any final tract map, parcel map, reversion to acreage, lot consolidation or combination. Unless otherwise provided herein, all such improvement securities shall be one of the following:

  • (1) A cash deposit, made with the City of Cypress;

  • (2) A time certificate of deposit, or a savings passbook, made out to or assigned to the City of Cypress in a form approved by the city attorney and city treasurer;

• (3) A bond or bonds from a duly authorized corporate surety.

Cash bonds, certificates, and surety bonds shall be in a form prescribed by the director of public works, subject to the approval of the city attorney. Improvement securities shall be in the amount of the total estimated cost of all the required improvements and conditions, which amount shall include an amount equal to 10% of the total estimated cost for the purpose of securing payment to the city for its costs for overhead, administration, and other costs and expenses pertaining to the subdivision, division or project.

• (c) Improvement securities for land divisions. Improvement securities posted as a guarantee of the performance of an agreement or act made a condition of the approval of a land division or reversion requiring a parcel map or tract map, shall be in the following amounts for the following purposes:

  • (1) One hundred percent of the total estimated cost of all of the required public and private improvements within the land division or reversion conditioned upon the faithful performance of the agreement, act or contract; and

  • (2) One hundred percent of the total estimated cost of all the required public and private improvements within the land division or reversion securing payment to the contractor, subcontractors and to persons furnishing labor, materials or equipment to them for the improvement or the performance of the required act;

  • (3) Provided, however, that where the improvement securities posted are in the form of cash, certificates of deposit, savings passbooks, or letters of credit, the amounts set forth hereinabove shall be reduced by 50% if the director of public works determines that said reduction will not substantially impair the ability of the city to cause the improvements to be constructed and the persons mentioned in subdivision (2) hereof to be paid, all at no expense to the city.

• (d) Improvement securities for lot combinations, consolidations and other permits.

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City of Cypress, CA

SUBDIVISIONS

§ 25-40

§ 25-40

Improvement securities posted as a guarantee of the performance of any agreement, act or contract made a condition of the approval or issuance of a lot combination or consolidation, or other permit, shall be in an amount equal to 100 percent of the total estimated cost of all of the required public and private improvements required. Surety bonds therefor shall be in the form as prescribed by the city attorney and the director of public works.

the performance of any agreement, act or contract made a condition of the approval or issuance of a lot combination or consolidation, or other permit, shall be in an amount equal to 100 percent of the total estimated cost of all of the required public and private improvements required. Surety bonds therefor shall be in the form as prescribed by the city attorney and the director of public works.

• (e) Release and reduction of improvement securities. The securities posted in conformance with subsections (c) and (d) above, may be released in whole or in part, as specified in Government Code section 66499.7, upon receipt of a written request from the principal. The director of public works shall determine the validity of the request, and if all of the work has been satisfactorily completed, and all of the requirements imposed have been met, and all cash fees, charges and assessments have been paid in full, and all required departmental releases have been granted, then the improvement securities may be released in the manner specified by law and the improvements and work accepted by the filing of a written instrument with the city clerk, signed by the city official so designated and empowered to do so by the city council. If only a portion of the work has been completed, the director of public works may recommend the reduction of the face amount of the security held for faithful performance to an amount equal to the estimated total cost of the improvements remaining. Such reduction shall be approved upon the filing of a written instrument with the city clerk, signed by the city official so empowered to do so by the city council. No reduction in the amount of improvement securities held shall be authorized or approved for an amount less than 100% of the total estimated cost of the remaining improvements, and the total amount of securities held shall not be reduced to an amount less than 20% of the total securities, until final completion and acceptance of any or all of the improvements constructed at the time of the reduction. It shall only be construed as an acknowledgment of the completion of a portion of the required work.

• (f) Additional amounts of security required. All improvement securities shall also secure the faithful performance of any changes or alterations in the work to the extent that the changes or alterations do not exceed 10% of the total estimated cost of the required improvements.

• (g) Exceptions. Under special circumstances, as determined by the director of public works, the requirement for improvement securities required for the guarantee of an act, obligation or agreement made a condition of a building or use permit, public works permit, lot consolidation or combination, or other act or process not involving a subdivision tract map may be waived, provided a suitable agreement guaranteeing completion of the required act or obligation is executed. Such circumstances may include or be related to the size of the proposed building, structure or addition, its permit valuation, the estimated value or cost of the required improvements; the condition and makeup of the surrounding or adjacent areas, the likelihood of other improvements in the area, the status of other public improvements in the area, and the demonstrated financial responsibility of the developer or applicant involved.

• (Ord. No. 582, § 2, 9-13-76; Ord. No. 630, § 1, 8-28-78; Ord. No. 717, §§ 21, 22, 11-28-83)

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City of Cypress, CA § 25-41

SUBDIVISIONS