§ 16.14

Any improvement agreement, contract or act required or authorized by the Subdivision Map Act of this title, for which security if required, shall be secured in accordance with Section 66499 of the Government Code and as provided in this chapter.

No final map or parcel map shall be recorded until all improvement securities required by this section have been received and approved by the city council.

(Ord. 235, 1987)

The form of security shall be one or the combination of the following at the option and subject to approval of the City Attorney and City Manager.

A.

Bond or bonds by one or more duly authorized corporate sureties;

B.

A deposit, either with the city or a responsible escrow agent or trust company, at the option of the City Attorney and City Manager, of money or negotiable bonds of the kind approved for securing deposits of public moneys.

(Ord. 235, 1987)

16.14.030 - Amount of Security.

A performance bond or security in the amount of one hundred percent (100%) of the estimated construction cost to guarantee the construction of installation of all improvements shall be required of all subdivisions. An additional amount of one hundred percent (100%) of the estimated construction cost shall be required to guarantee the payment to the subdivider's contractor, sub-contractors and to persons furnishing labor, materials or equipment for the construction or installation of improvements.

The estimate of improvement costs shall be prepared and validated by a registered engineer and approved by the city engineer. The estimate shall provide for:

A.

The true construction contract costs as bid on the open market;

B.

Not less than five percent (5%) nor more than ten percent (10%) of the total construction cost for contingencies;

C.

Incremental increase for projected inflation computed to the estimated midpoint of construction;

D.

All utility installation costs or certification acceptable to the City engineer from the utility company that adequate security has been deposited to insure installation.

(Ord. 235, 1987)

The developer shall deposit with the city not less than five hundred dollars ($500.00) cash for subdivisions of four (4) or less lots and one thousand dollars ($1,000.00) for other subdivisions or such higher amount as required by the city council. The deposit may be used at the discretion of the city to correct deficiencies and conditions caused by the subdivider or his contractor that may arise during or after the construction of

the subdivision. Any unexpended amount will be returned to the developer at the time all bonds are released.

If any portion of the deposit is used by the City, the subdivider shall replace the monies expended within ten (10) days of being notified by the City.

(Ord. 235, 1987)

Upon acceptance of the subdivision improvements by resolution of the City Council, the subdivider shall provide security in an amount determined by the City Council to be necessary for the guarantee and warranty of the work for a period of one year following acceptance. The security shall be in an approved warranty form and filed with the city clerk.

(Ord. 235, 1987)

Security given to secure payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment may, six (6) months after the completion and acceptance of the improvements by the city council, be reduced to an amount equal to the amount of all claims on which an action has been filed and of which notice has been given to the city. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.

(Ord. 235, 1987)

The City Council may authorize the release of a portion of the security in conjunction with the acceptance of the satisfactory completion of a part of the improvements as the work progresses upon application by the subdivider.

No such release shall be for an amount less than ten percent (10%) of the total improvement security given for faithful performance and that the security shall not be reduced to an amount less than fifty percent (50%) of the total improvement security given for faithful performance. In no event shall a release of the improvement security be authorized which would reduce such 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.

(Ord. 235, 1987)

The warranty security shall be released upon satisfactory completion of the warranty period provided;

A.

All deficiencies appearing on the final deficiency list for the subdivision have been corrected;

B.

Not less than twelve (12) months have elapsed since the acceptance of the improvements by the City Council.

(Ord. 235, 1987)

Chapter 16.16 - REVERSIONS TO ACREAGE

Sections: