Beaumont Municipal Code Ch. 16.56 Security for Improvements

If the improvements are not completed prior to the approval of the final map, the land divider shall enter into an agreement with the City to complete the improvements and in connection therewith shall furnish the City improvement security in the amounts required by Section 16.56.040. Acceptable forms of security shall be limited to the following:

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

B. A deposit with the City of cash;

C. An irrevocable 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 agreements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by the City;

D. An irrevocable letter of credit issued by a financial institution subject to regulation by the State or Federal Government guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon the written demand of the City Engineer, and that such written demand need not present documentation of any type as a condition of payment, including proof of loss;

E. A recorded covenant with the City, if approved by the Planning Commission and City Council, to defer improvements until the City requires them to be completed.

(Ord. 547 §14.1(A), 1983)

The agreement and the improvement security shall be executed only upon forms and terms approved by the Council and shall be checked by the City Engineer. If bonds are to be used they shall substantially be in the form provided for in the Subdivision Map Act.

(Ord. 547 §14.1(B), 1983)

The original period of the agreement and security shall be 12 months. If a written request for an extension of time is filed with the City Clerk prior to the expiration of the initial 12-month period, or any granted extension, the Council may grant extensions for additional one-year periods. Such extensions may be granted only at the request of the landowner and after a showing that, if construction of improvements has commenced, reasonable progress is being made toward completion of the required improvements, or, if construction has not been commenced, the additional security has been furnished to cover the increased cost of construction of the improvements. In addition to the above requirements, and as a further condition to granting an extension of time, the Council may require additional agreements or security be furnished as are necessary to guarantee the completion of the improvements.

(Ord. 547 §14.1(C), 1983)

A. 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 of the act to be performed, conditioned upon the faithful performance of the act or agreement;

2. 0.50 percent of the total estimated cost of the improvement 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;

3. Ten percent of the total estimated cost of the improvement or the performance of the required act for the guarantee and warranty of 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. 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 attorney's fees incurred by the City in successfully enforcing any obligation, all to be taxed as costs and included in any judgment.

(Ord. 547 §14.1(D), 1983)

A. The security may be released, in whole or in part, in the following manner:

1. The security given for faithful performance of any act or agreement shall be released upon the performance of the act and final completion and acceptance of the required work. A maximum of three partial releases of the security may be granted by written order of the City Engineer upon a determination by the City Engineer of the acceptable work that has been completed and the amount of security that is necessary to guarantee the completion of the remaining improvements. Requests for partial releases, setting forth in detail the amount of work completed, shall be made in writing to the City Engineer;

2. Security securing the payment to the contractor, his subcontractors, and to persons furnishing labor, materials or equipment may, six months after the performance of the act or the completion and acceptance of the work, be reduced to an amount not less than the total of all claims on which an action has been filed and notice thereof given in writing to the Council, and, if no such actions have been filed, the security may be released in full;

3. The release of such security shall not apply to any required guarantee and warranty period, nor to the amount of the security given for such guarantee and warranty period, nor to costs and reasonable expenses and fees, including reasonable attorney's fees.

B. In any case where 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. The City shall notify the serving agency in writing and such agency shall have two months after completion of the performance of the obligation to register its satisfaction or dissatisfaction. If at the end of that period it has not registered its satisfaction or dissatisfaction, it shall be conclusively deemed that the performance of the obligation was done to its satisfaction.

(Ord. 547 §14.1(E, F), 1983)

The liability upon the security given for the faithful performance of any act or agreement shall be limited to:

A. The performance of the work covered by the agreement between the subdivider and the Council for the performance of the required act;

B. The performance of any changes or alterations in such work; provided, that all such changes or alterations do not exceed ten percent of the original estimated cost of the improvement;

C. The guarantee and warranty of the work for a period of one year following completion and acceptance thereof against any defective work or labor done or defective materials furnished in the performance of the agreement or the performance of the act;

D. Costs and reasonable expenses and fees, including reasonable attorney's fees.

(Ord. 547 §14.1(G), 1983)

If the estimated cost of completing the street/drainage improvements, water system improvements, sewer system improvements or the setting of the monuments, is $5,000.00 or less, a cash bond shall be required for that specific improvements. A cash bond shall also be required to guarantee the payment of taxes of $2,500.00, or less, which at the time of filing the map are a lien against the real property, but not yet payable.

(Ord. 547 §14.1(H), 1983)

The City Engineer is authorized to release or reduce the security in accordance with the provisions of this section.

(Ord. 547 §14.1(I), 1983)