Atwater Municipal Code Ch. 16.36 Improvement Security

A. Whenever this title authorizes or requires the furnishing of security in connection with the performance of any act or agreement, such security shall be one of the following at the option of and subject to the approval of the City Council.

1. Bond or bonds 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 Council, of money or negotiable bonds of the kind approved for securing deposits of public moneys.

3. An instrument of credit from one or more financial institutions subject to regulation by the state of federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment.

B. A bond or bonds by one or more duly authorized corporate sureties to secure the faithful performance of any agreement shall be in substantially the form outlined in Section 66499.1 of the Subdivision Map Act.

C. A bond or bonds by one or more duly authorized corporate sureties for the security of laborers and materialmen shall be in substantially the forms outlined in Section 66499.2 of the Subdivision Map Act.

(Prior Code § 10-2.1401; Ord. CS 347, 1977)

The subdivider shall guarantee and warranty the work done on required improvements for a period of one year following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished.

(Prior Code § 10-2.1402; Ord. CS 347, 1977)

A. Security to guarantee the performance of any act or agreement shall be in the following amounts:

1. An amount 100 percent of the total estimated cost of the improvements or of the act to be performed, conditioned upon the faithful performance of the act or agreement; and

2. An additional amount, not less than 50 percent of the total estimated cost of the improvements or the 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; and

3. An amount not less than ten percent of the total estimated cost of the improvements to guarantee and warranty the work for a period of one year as required by Section 16.36.020.

B. 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 local agency in successfully enforcing the obligation secured.

(Prior Code § 10-2.1403; Ord. CS 347, 1977)

Such money, negotiable bond or instrument of credit shall be a trust fund to guarantee performance and shall not be subject to levy or attachment by any creditors of the depositor until the obligation secured thereby is performed to the satisfaction of the City Council.

(Prior Code § 10-2.1404; Ord. CS 347, 1977)