§ 17.74

Any public improvement agreement, contract, or act required or authorized by the Subdivision Map Act for which financial assurance is required shall be secured in accordance with SMA Section 66499 et seq. and as provided in this chapter.

(Ord. No. 2469, § 19, 11-2-2010)

Whenever this title authorizes or requires the furnishing of security in connection with the performance of any act or agreement, the security shall be one of the following at the option of, and subject to the approval of, the city engineer and city attorney:

1.

A subdivision bond or bonds issued by one or more duly authorized corporate sureties.

2.

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.

3.

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.

4.

A bond or bonds to secure the faithful performance or for the security of laborers and materialmen shall be substantially in the form prescribed by Sections 66499.1 or 66499.2 of the Subdivision Map Act, respectively.

(Ord. No. 2469, § 19, 11-2-2010)

The improvement security shall be in the amounts set forth as follows:

A.

An amount which is equal to one hundred percent 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. The estimated cost of improvement shall include contingency costs and an estimated inflation factor. Contingency costs shall be determined by the city engineer, but in no case shall exceed ten percent of improvement costs; inflation adjustments shall be based on the change in the Construction Cost Index over the averaged previous three years' changes as published in the Engineering News Record.

B.

If the improvement security is other than a bond or bonds furnished by duly authorized corporate surety, an additional amount may be included as determined by the city attorney as necessary to cover the cost and reasonable expenses and fees, including reasonable attorneys' fees which may be incurred by the city in successfully enforcing the obligation secured.

C.

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 ten percent of the original estimated cost of the improvement.

D.

An additional amount equal to fifty percent of the total estimated cost of the improvement or performance of the required act, securing payment to the contractor, his subcontractors, and to persons furnishing labor, materials, or equipment to them for the improvement or the performance of the required act. The estimated cost of improvement shall include contingency costs and an estimated inflation factor. Contingency costs shall be determined by the city engineer, but in no case shall exceed ten percent of improvement costs; inflation adjustments shall be based on the change in the Construction Cost Index over the averaged previous three years' changes as published in the Engineering News Record.

(Ord. No. 2469, § 19, 11-2-2010)

In the event the required subdivision improvements are financed and installed pursuant to special assessment proceedings, the subdivider may apply to the city council for a reduction in the amount of the improvement security required under this chapter up to an amount corresponding to the amount of faithful performance and payment bonds required of the contractor by the special assessment act being used. The city council may grant the reduction if it finds that the bonds have been in fact provided and that the obligations secured thereby are substantially equivalent to that required by this title.

(Ord. No. 2469, § 19, 11-2-2010)

All required public improvements shall be constructed under the inspection of, and to the approval of, the city engineer. Cost of inspection and approval shall be paid by the subdivider on an hourly basis, and shall not exceed two percent of the cost of the improvement work.

(Ord. No. 2469, § 19, 11-2-2010)

A.

Required subdivision improvements shall be fully installed and inspected prior to recordation of a final map, except when formally deferred for construction at a later date in accordance with the security requirements of this chapter and an approved public improvement agreement as allowed by Section 17.40.060.B.

B.

Deferred subdivision improvements shall be completed by the subdivider within twenty-four months, or such time as approved by the city engineer not to exceed a period of thirty-six months from the recording

of the final map, unless an extension is granted by the city council.

C.

Timing of improvements required as a condition of approval for a parcel map shall be in accordance with Section 17.20.130.B.

D.

Public improvements shall be completed prior to final building inspection or occupancy of any unit within the subdivision. The city engineer shall have the authority to approve phasing of improvements when deemed appropriate to allow orderly phased development of the subdivision.

(Ord. No. 2469, § 19, 11-2-2010)

When all improvement deficiencies have been corrected and as-built improvement plans filed, the subdivision improvements shall be considered by the city for acceptance. The city engineer shall have the authority to accept on behalf of the city completed subdivision improvements in accordance with Section 17.40.060. Acceptance of the public improvements shall imply only that the improvements have been completed satisfactorily and that improvements have been accepted for public use.

(Ord. No. 2469, § 19, 11-2-2010)

Upon acceptance of the subdivision improvements by the city, the subdivider shall provide warranty security in the amount as required by the city engineer to guarantee the improvements throughout a oneyear warranty period. The amount of the warranty security shall be not less than five percent of the cost of the construction of the improvements.

(Ord. No. 2469, § 19, 11-2-2010)

The improvement security required under this chapter shall be released in the following manner:

A.

Performance Security. The performance security shall be released only upon acceptance of the improvements by the city and when an approved warranty security has been filed with the city engineer. If warranty security is not submitted, performance security shall be released twelve months after acceptance of improvements and correction of all warranty deficiencies.

B.

Reduction in Performance Security. The city engineer may authorize in writing the release of a portion of the security in conjunction with the acceptance of the satisfactory completion of a part of the improvements upon application by the subdivider. In no case shall the security be reduced to less than ten percent of the

total improvement security given for faithful performance. The amount of reduction of the security shall be determined by the city engineer; however, in no event shall the city engineer authorize a release of the improvement security which would reduce the security to an amount below that required to guarantee the completion of the improvements and any other obligation imposed by this ordinance, the Subdivision Map Act, or the improvement agreement.

C.

Material and Labor Security. Security given to secure payment to the contractor, his subcontractors, and to persons furnishing labor, materials, or equipment may, ninety days after the completion and acceptance of the improvements by the city council, be reduced to an amount equal to the amount of all claims filed and of which notice has been given to the city council. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.

D.

Warranty Security. The warranty security shall be released upon satisfactory completion of the warranty period, provided:

1.

All deficiencies appearing on the warranty deficiency list for the subdivision have been corrected.

2.

Not less than twelve months have elapsed since the acceptance of the improvements by the city council.

(Ord. No. 2469, § 19, 11-2-2010)