Cupertino Municipal Code Art. VIII Improvement Security

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

B. No final map or parcel map shall be signed by the City Engineer or recorded until all improvement securities required by this article have been received and approved.

(Ord. 2085, § 2 (part), 2011; Ord. 1384, Exhibit A (part), 1986)

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

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

B. A deposit, either with the local agency or a responsible escrow agent or trust company, at the option of the local agency, of money or negotiable bonds of the kind approved for securing deposits of public moneys;

C. An instrument of credit from one or more financial institutions subject to regulation by the State or Federal government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment, or a letter of credit issued by such a financial institution;

D. A lien upon the property to be divided, created by contract between the owner and the local agency, if the local agency finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map.

The provisions of the bond or bonds shall be in accordance with Sections 66499.1 and 66499.2 of the Government Code.

(Ord. 2085, § 2 (part), 2011; Ord. 1384, Exhibit A (part), 1986)

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

B. The estimate of improvement costs shall be as approved by the City Engineer and shall provide for:

1. Ten percent of the total construction cost for contingencies;

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

3. In addition to the full amount of the security, there shall be included costs and reasonable expenses and fees, including attorney's fees, incurred in enforcing the obligation secured.

(Ord. 2085, § 2 (part), 2011; Ord. 1384, Exhibit A (part), 1986)

The developer shall deposit with the City not less than one thousand dollars cash for subdivisions of four or less parcels, and three thousand dollars for other subdivisions, or such additional amount as required by the City Engineer, not to exceed one percent of the construction cost. The deposit may be used at the discretion of the City to correct deficiencies and conditions caused by the subdivider or his or her 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.

(Ord. 2085, § 2 (part), 2011; Ord. 1384, Exhibit A (part), 1986)

Upon acceptance of the subdivision improvements by the City Council, the subdivider shall provide security in the amount as required by the City Engineer to guarantee the improvements throughout the warranty period. The amount of the warranty security shall be not less than ten percent of the cost of the construction of the improvements, including the cash bond which shall be retained for the one-year warranty period. In hillside areas, the warranty security shall be not less than fifty percent of the construction cost of improvement.

(Ord. 2085, § 2 (part), 2011; Ord. 1384, Exhibit A (part), 1986)

The City Engineer may authorize in writing the release of a portion of the security in accordance with Government Code Section 66499.7.

(Ord. 2085, § 2 (part), 2011; Ord. 1384, Exhibit A (part), 1986)