Chula Vista Municipal Code Ch. 18.17 Construction of Improvements

Sections:

• 18.17.010 Construction prerequisites – Requirements generally. 18.17.020 Construction prerequisites – Soil report. 18.17.030 Construction prerequisites – Subdivision improvement agreement. 18.17.040 Construction prerequisites – Security arrangements – Generally. 18.17.050 Construction prerequisites – Security – Bonds. 18.17.060 Construction prerequisites – Security – Cash deposits. 18.17.070 Construction prerequisites – Security – Instruments of credit. 18.17.080 Construction prerequisites – Security – Other forms. 18.17.090 Construction prerequisites – Security – Unapproved plans. 18.17.100 Construction prerequisites – Security – Posting required prior to endorsement. 18.17.110 Construction prerequisites – Security – Applicability to parcel maps. 18.17.120 Work prior to improvement agreement – Construction permit required. 18.17.130 Security – Progress payments. 18.17.140 Security – Release of surety. 18.17.150 Security – Forfeiture of surety – Liability of subdivider when. 18.17.160 Security – Maintenance bond required. 18.17.170 Security – Required by reason other than subdivision of land – Applicability of this chapter.

Prior to any construction of improvements and/or land development required, the subdivider shall have complied with and performed the following requirements, set forth in CVMC 18.17.020 through 18.17.120. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.312. Formerly 18.16.190).

The City may require the subdivider to file detailed soil reports which shall be approved by the City Engineer prior to commencement of any work. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.312(A). Formerly 18.16.200).

In the event that the subdivider has not completed the improvements prior to the filing and approval of the final map, in accordance with CVMC 18.16.180, the subdivider shall have entered into a subdivision improvement agreement, secured in the manner identified in this chapter, which agreement shall require the subdivider to make, install and complete within a time fixed, but in no case more than two years from the date of execution of said agreement, all improvements and/or land development in accordance with approved plans. In the coastal zone, all required public facility improvements, resource restoration, or resource enhancement shall be implemented to the maximum extent feasible either prior to or concurrently with the approved subdivision development. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.312(B). Formerly 18.16.210).

The subdivider shall file surety to guarantee completion of improvements in the amount and type identified in CVMC 18.17.050, 18.17.060, 18.17.070, 18.17.080, or 18.17.090 as deemed appropriate by the City. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2625 § 1, 1995; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.312(C). Formerly 18.16.220).

Bonds shall be executed by a surety company authorized to transact a surety business in California, and shall be approved as to form by the City Attorney, and shall include:

A. A faithful performance bond in an amount deemed sufficient by the City Engineer to cover up to 50 percent of the total cost of all required on-site and adjacent off-site improvements including 25 percent of grading and slope planting expenses as applicable.

• B. A labor and material bond in a like amount.

• C. A monumentation bond in an amount stipulated by the subdivider’s engineer to cover the cost of placing lot corners and other related monuments.

D. If a separate landscape and irrigation bond is provided for the project, the amount of the bond shall be in an amount deemed sufficient by the City Engineer to cover up to 50 percent of the planting and irrigation. (Ord. 3153 § 2 (Exh. C), 2010).

In lieu of the faithful performance and labor and material bonds, the subdivider may submit cash deposits under the conditions hereinafter described. Total cash deposit surety shall include:

A. A faithful performance cash deposit in an amount deemed sufficient by the City Engineer to cover 50 percent of the total cost of all required on-site and adjacent off-site improvements including 25 percent of grading and slope planting expenses as applicable.

• B. A labor and material cash deposit in a like amount.

C. A monumentation cash deposit in an amount stipulated by the subdivider’s engineer to cover the cost of placing lot corners and other related monuments. Upon approval by the City Engineer of the required monumentsetting work, and upon subdivider’s request, such cash deposit may be released as payment directly to the engineer or surveyor performing such work.

Disbursements from cash deposits shall be made in accordance with a separate agreement between the subdivider and the City. The required bookkeeping fee(s) shall be submitted with each such bond. Disbursements from a cash deposit filed with an approved escrow agency shall be made in accordance with a separate agreement between the subdivider and the City. Disbursements from a cash deposit in any instance shall not be permitted unless and until authorized in writing by both the subdivider and the City Engineer. (Ord. 3153 § 2 (Exh. C), 2010).

In lieu of the faithful performance and labor and material bonds or cash deposits, the subdivider may submit instruments of credit under the conditions hereinafter described:

A. Such instruments of credit shall be issued by a financial institution subject to regulation by the state or federal government.

• B. They shall be in a form and content approved by the City Attorney.

C. They shall pledge that the funds necessary to meet the performance are on deposit, that they are guaranteed for payment, that the City can draw on demand, and that they shall become trust funds for the purposes set forth in the instrument.

• D. They shall be accompanied by the following:

  1. A current statement of assets.

  2. A resolution of the board of directors of the responsible organization authorizing the issuance and the amount of the letter.

  3. A statement setting forth the date upon which the responsible organization was established.

• E. The amounts and types of the instruments of credit shall be as follows:

  1. Faithful performance instrument of credit in an amount deemed sufficient by the City Engineer to cover 50 percent of the total cost of all required on-site and adjacent off-site improvements including 25 percent of grading and slope planting expenses as applicable.

  2. A labor and material instrument of credit in a like amount.

  3. A monumentation instrument of credit in an amount stipulated by the subdivider’s engineer to cover the cost of placing lot corners and other related monuments. (Ord. 3153 § 2 (Exh. C), 2010).

Alternative forms of security may be acceptable; provided, that:

A. In the determination of the City Engineer, the costs of completing the improvements being secured for a project do not exceed $5,000,000.

B. In the determination of the Finance Director, the proposed security is backed by a guarantee and/or pledged assets with a net value equal to at least 50 times the estimated cost of the improvements being secured.

C. In the determination of the City Attorney, there exist adequate remedies to access such security in the event that the party obligated to construct such improvements defaults on such obligation.

D. The form of such security and the terms and conditions upon which such security may be accepted are subject to the approval of the City Attorney and the City Engineer. Such conditions shall include, at a minimum:

1. The right of the City to require that conventional replacement security be submitted for any uncompleted secured improvements at the time a certificate of occupancy is issued for the project.

2. Developer’s agreement to pay the City’s attorneys’ fees and costs if the City must enforce its remedies under the alternative security arrangement. (Ord. 3153 § 2 (Exh. C), 2010).

Notwithstanding CVMC 18.17.040 through 18.17.080, bonds or securities for improvements or grading that do not have approved plans shall be 150 percent of the aforementioned amounts; bonds or securities for improvements or grading for which there are no plans shall be 200 percent of the aforementioned amounts. (Ord. 3153 § 2 (Exh. C), 2010).

The City Clerk and City Attorney shall not endorse or sign their respective certificates contained on the final map unless and until improvement security as hereinabove specified has been posted. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.312(C)(4). Formerly 18.16.260).

The security requirements identified in this chapter are applicable to any parcel map for which the installation of any public improvements or grading is a condition of approval. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.312(C)(5). Formerly 18.16.270).

Should the subdivider desire to do certain work prior to entering into an agreement with the City to install and complete all subdivision improvements and land development work, he may make an application to do so under a construction permit. An application for such permit shall be accompanied by detailed plans describing the work which is proposed. The City Engineer may issue the construction permit to the subdivider or his contractor upon application of the applicant; provided, a bond has been posted in an amount which would assure the rehabilitation of the land, including grading and planting, in the event the subdivision map does not record. The performance bond and contractor’s qualifications shall be as provided in this code.

A. When such a construction permit is for all work required in connection with the subdivision and the work has been completed, the agreement identified in CVMC 18.16.180 will not be required.

• B. This section shall not apply in the coastal zone. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.313. Formerly 18.16.290).

As construction of improvements progresses, the City may make progress payments to the subdivider from any deposited money or instrument of credit which the subdivider may have made in lieu of providing a surety bond; provided, however, that no such progress payment shall be made for more than 90 percent of the value of any installment of work; and provided, that the aggregate amount thus paid is not in excess of 50 percent of the total amount posted as improvement security. No progress payments from cash deposits shall be made except upon joint certification by the City Engineer and the subdivider that work covered thereby has been completed. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.314(1). Formerly 18.16.300).

A. Improvement security given for faithful performance of the agreement shall be released upon the performance of the act secured or final completion and acceptance of the required work.

Notwithstanding the foregoing, the Director of Public Works may approve the partial release of the faithful performance security after the completion of all improvements in accordance with approved plans, to the satisfaction of the City Inspector in an amount not to exceed 75 percent of the dollar amount of the original security for faithful performance, provided the remaining balance of such security for faithful performance equals or exceeds the estimated cost, as determined by the Director of Public Works, in his sole discretion, to complete the outstanding work required under the subdivision improvement agreement and/or any supplemental subdivision improvement agreement.

B. The 50 percent labor and material bond shall be retained to secure payment to the contractor, his subcontractors and to persons renting equipment or furnishing labor or material for 35 days after completion and acceptance of the work. Following such 35-day period, this labor and material security may 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 City. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 3132 § 2, 2009; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.314(2). Formerly 18.16.310).

In the event the subdivider fails to complete all improvement work in accordance with the provisions of this chapter and the improvement agreement, and the City shall have to complete same, the City shall call on the surety for reimbursement or shall appropriate from any cash deposit funds for reimbursement. If the amount of the surety bond, cash deposit or instrument of credit exceeds all costs and expenses incurred by the City, it shall release the remainder of such bond, cash deposit or instrument of credit, and if the amount of the surety bond, cash deposit or instrument of credit shall be less than the cost and expense incurred by the City, the subdivider shall be liable to the City for such difference. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.314(3). Formerly 18.16.320).

The subdivider shall guarantee all public improvements for a period of one year from the date of final acceptance and shall correct any and all defects or deficiencies arising during said period as a result of the acts or omissions of the subdivider, his agents or employees. The subdivision guarantee shall be backed by a bond or cash deposit in the amount of 15 percent of the surety posted for improvements. The City shall provide written notice of the defect or deficiency. In any instance where the subdivider fails to take action within the specified time, or when immediate action is required to protect the public health, safety and/or welfare, the City may cause the work to be performed and call on the surety for reimbursement. The maintenance bond shall be submitted prior to final acceptance by the City. In the coastal zone, the maintenance bond shall guarantee all public improvements, including such habitat restoration or enhancement work as is required by the certified local coastal program, for a period of one year from the date of final acceptance or until the habitat restoration or enhancement has permanently established itself, whichever is greater. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2100 § 1, 1985; Ord. 1369 § 2, 1971; prior code § 28.314(4). Formerly 18.16.330).

To the extent consistent with other applicable provisions of this code, and all other applicable laws or regulations, the standards for performance, security obligations, and other requirements set forth in this chapter with respect to subdivision improvements shall also apply, under circumstances approved by the City Attorney and the City Engineer, to any and all other work or improvements constructed within the City requiring completion guarantees in favor of the City. (Ord. 3153 § 2 (Exh. C), 2010; Ord. 2625 § 3, 1995. Formerly 18.16.340).