Hemet Municipal Code Art. VIII Security Improvements

(a) As a condition of approval by the city council of any final map or the acceptance of the dedication of any of the streets, alleys or other public places shown thereon, the owner or subdivider shall enter into a subdivision improvement agreement with the city, in a form acceptable to the city engineer and the city attorney, whereby the owner or subdivider agrees to construct the public improvements required as a condition of final map approval. Completion of such public improvements shall occur prior to issuance of a certificate of occupancy. The subdivision improvement agreement shall be secured in any manner allowed by California law as set forth in Section 66499 et seq. of the Subdivision Map Act. Security for the subdivision improvement agreement may be in the form of any security allowed under Section 66499 of the Subdivision Map Act, as it may be amended from time to time. The security for a subdivision improvement agreement shall be in an amount to be set by the city council but the value of the security provided may not in any case be less than the city engineer's estimate of the cost of construction of the public improvements. In the event that interest in real property is pledged as security, it shall be accepted by the city council in a first deed of trust, fee simple title to the real property.

(b) If the owner or subdivider, within the time and in the manner provided in this section or in the subdivision improvement agreement does not install and complete all improvements required by city ordinance or as a condition of approval of the final map to the satisfaction of the city engineer, all security provided under this section or the penal sum of any bond posted shall be forfeited to the city, and thereupon the council shall order such improvements constructed or completed as the case may be.

(c) When it has been determined by the city engineer that the owner or subdivider completed the required improvements as provided in the subdivision improvement agreement, the security deposited or the bond posted shall be exonerated or the security returned upon acceptance of the public improvements by the city.

(Ord. No. 1564, § 2, 7-29-97; Ord. No. 1612, § 1, 9-7-99)

The subdivider shall be required, as a condition of approval of the final map or parcel map, to improve any and all streets adjacent to such subdivision in the following manner: In residential subdivisions with lot sizes greater than two and one-half acres in size, the street improvement requirements may be waived or modified by the planning commission at the time of tentative map or tentative parcel map approval.

(a) Construct and install curbs, gutters and sidewalks on the proximate side to the approval of the city engineer and in accordance with the latest adopted City of Hemet Standard Specifications for Public Works Construction.

(b) Grade and pave all required streets from the curb to existing pavement; or, if the street is unpaved, paving shall be to the centerline thereof in accordance with the latest adopted City of Hemet Standard Specifications for Public Works Construction.

(Ord. No. 1564, § 2, 7-29-97)

(a) Improvements shall be required in and upon the streets, alleys and other public places within the limits of the subdivision and as required by section 70-222. The improvements shall consist of the following:

(1) Grading or filling the street, alley or other public place to the grade established or approved by the city engineer and constructing all necessary grade crossings, culverts, bridges, drains and other works necessary to put the streets, alleys and other public places in a condition for public use and travel to the approval of the city engineer.

(2) Constructing and installing all drains, drainage sewers and drainage works in conformity with the plans and specifications approved by the city engineer as provided in section 70-221, or which may be found by the city council, pursuant to a report of the city engineer, to be necessary to protect all lots in the subdivision from flood or overflow by stormwaters or floodwaters.

(3) Constructing and installing concrete curbs, gutters and sidewalks on both sides of each street wholly within the subdivision, and on the proximate side of each street along the exterior boundaries of the subdivision and abutting thereon, whether or not such last-mentioned streets already exist or are dedicated in whole or in part by the subdivision map. The curbs and gutters shall be located parallel to the property line. Unless otherwise specially ordered by the city council, the distance between curbs on all streets less than 100 feet in width shall be 36 feet. The distance between curbs on streets 100 feet in width shall be subject to individual determination in each case by the city engineer.

(4) Laying water and sewer mains as follows:

a. Water mains, of the size prescribed by the water department superintendent, and gas mains shall be laid in streets, alleys or easements adjacent to and so as to serve each lot in the subdivision. All water mains, gas mains, sewer mains and sewer laterals laid in any street of the subdivision shall be laid before the street is paved. If any point of a subdivision lies within a reasonable distance, but in any case within 660 feet, of an existing sewer main which, in the opinion of the city engineer, is capable of serving the subdivision, sewer mains shall be laid adjacent to and so as to serve each lot in the subdivision. If the sewer mains are laid in any street, laterals shall be laid to the property side of the curb opposite each lot in the subdivision abutting on the street. Subsequent laying of laterals for water and gas services shall be done in such a manner that the paving shall not be cut except where necessary to connect to the main.

b. If becomes necessary to determine a reasonable distance beyond the 660-foot minimum requirement for sewers, the city council shall so determine, arnl its decision, based on economic factors and other facts pertinent to the situation, shall be final.

(5) Installing utility lines as follows:

a. Utility lines, including but not limited to electric, communications, street lighting and cable television lines, shall be placed underground. The subdivider is responsible for complying with the requirements of this subsection, and he shall make the necessary arrangements with the utility companies for the installation of such facilities. For the purpose of this subsection, appurtenances and associated equipment such as but not limited to surface-mounted transformers, pedestal-mounted terminal boxes and meter cabinets and concealed ducts in an underground system may be placed above ground. The city council may waive the requirements of this subsection if topographical, soil or any other conditions make such underground installations unreasonable or impractical.

b. This subsection shall not apply to utility lines which do not provide service to the area being subdivided.

(6) Paving each street or portion of street within and dedicated by the subdivision and installing all curbs, gutters and sidewalks within the dedicated streets in accordance with the latest adopted City of Hemet Standard Specifications for Public Works Construction.

(7) Planting street trees of the variety and at intervals approved by the city, provided that the city shall procure and sell such trees to the subdivider.

(8) Furnishing and installing fire hydrants at locations designated by the fire chief.

(9) Furnishing and installing street name signs of the type and at locations approved by the city engineer.

(10) Installing street lighting in accordance with the latest adopted City of Hemet Standard Specifications for Public Works Construction.

(b) No person shall occupy all or any part of any subdivision, including a TR-20 subdivision, until final approval of all improvements required by this article have been given by the city engineer.

(c) No municipal or private utility shall be connected to or serve any lot in any subdivision, including a TR-20 subdivision, and no prefabricated structure, including but not limited to a mobile home, shall be placed on any lot in any subdivision, including a TR-20 subdivision, until the city engineer has given final approval of all of the improvements required by this article.

(d) When, in the opinion of the city engineer, all improvements, as required by this article, adjacent to any lot have been satisfactorily completed, the city engineer may authorize occupancy of the lot, if the city engineer has first determined that sufficient improvements throughout the subdivision, as required by this article, have been completed to ensure the health, safety and welfare of the occupant.

(e) When, in the opinion of the city council, the strict enforcement of the provisions set forth in subsections (b), (c) and (d) of this section may cause undue hardship, the city council may, in its discretion, waive such provisions, in whole or in part.

(Ord. No. 1564, § 2, 7-29-97)

(a) The subdivider/property owner ("subdivider") may, in lieu of posting a security described in section 70-221 of this article, enter into an agreement with the city to construct in the future the public portions of the subdivision improvements required by the map conditions of approval and/or section 70-223 of this article, as determined by the city engineer, including, but not limited to: master planned or "missing link" streets, drainage and sewer improvements, community facilities, offsite improvements, fire access, fire flow and traffic signals (hereinafter "required improvements") and securing such performance by granting the city a lien on the real property to be divided. Such agreements shall be known as "lien agreements." The use of lien agreements shall only be allowed if all requirements in section 70-224 of this article are satisfied.

(b) Government Code § 66499(a)(4) authorizes the city to enter into lien agreements if the city council finds that it would not be in the public interest to require the installation of the required improvements sooner than two years after the recordation of the map.

(c) Where the city council finds it would not be in the public interest to require the installation of the required improvements sooner than two years after recordation of the map, the subdivider may execute a lien agreement with the city at the time the subdivider enters into the improvement agreement specified in section 70-221 ("subdivision improvement agreements and security therefor").

(d) At the sole discretion of the city, a lien agreement may be used to substitute an existing security furnished under section 70-223 for required improvements under a previously-executed subdivision improvement agreement, if: (i) no activity for the subdivision has transpired; (ii) no inspections have occurred; (iii) no permits for construction of improvements have been issued within one year of the recordation of the subdivision map; and (iv) upon a finding by the city council that it would not be in the public interest to require the installation of the required improvements sooner than two years after the recordation of the map.

(1) The city will not accept a lien agreement from any subdivider, either at the time of execution of the subdivision improvement agreement, or as a substitute for existing security, if: (i) any individual lots have been sold; (ii) any construction permits, including but not limited to any grading or building permits, have been issued on any of the property; or (iii) construction of any of the required improvements has begun.

(2) Notwithstanding the provisions of subsection 70-224(d)(1), the city may accept a lien agreement from a subdivider as a substitute for an existing security if grading has commenced on the land divided, so long as the grading is in strict accordance with a valid grading permit and all the following conditions are met:

(A) There is no need for the city to construct the required improvements if the subdivider's project is abandoned or delayed for any period of time;

(B) The grading has no effect on the use, operation and maintenance of existing streets or highways, public or private;

(C) The grading has not caused the modification or closure of any public access points, existing streets or highways, public or private;

(D) Additional drainage improvements and/or erosion controls are not necessary and/or installed in the road right-of-way due to the grading;

(E) Delay of the construction of the subdivider's required improvements do not affect or delay the improvements of an adjacent subdivider who has already commenced work on his/her/its required improvements;

(F) The completion of any public improvements are not required by the city's general plan circulation element, master plan of drainage, master sewer plan or master water plan or for any other reason for the purposes of preserving public health, safety or welfare;

(G) The subdivider provides a separate security, a deposit either with the city or a responsible escrow agent or trust company approved by the city of cash or negotiable bonds of the kind approved for securing deposits of its public moneys, for the maintenance of the graded land, including without limitation, dust control, erosion control, fencing, and any other maintenance as required by the city; and

(H) In the case that any individual lots have been sold, at the discretion of the city and only after the city has performed a comprehensive review of the development (which may include approval of a construction phasing plan); completion of required improvements to serve the individual lots as determined by the city engineer; and other requirements and conditions to be met prior to acceptance of the lien agreement.

(3) Lien agreements used to substitute for existing security shall be recorded against all lots that have not passed a final inspection and for which all required associated improvements, as determined by the city engineer, have not been completed ("undeveloped lots"). Such lien agreements shall also meet all of the requirements set forth in subsections 70-224(e) through 70-224(l), below.

(e) Lien agreements, including those used to substitute for existing security under subsection 70-224(d), above, shall:

(1) Be allowed only where the subdivider provides a title insurance policy and title report from a title company approved by the city documenting that: (i) the subdivider is the record owner of the entire property to be subdivided (or in the case of a substitute security, documenting that the subdivider is the record owner of all undeveloped lots) against which the lien agreement is to be recorded; and (ii) such aforementioned property is not encumbered by any mortgages, deeds of trust, or liens. The title insurance policy and title report shall be issued 45 days prior to the execution of the lien agreement.

(2) Be in a form acceptable to and approved by the city council, the city attorney, and the city's risk manager.

(3) Be executed by the mayor on behalf of the city, and by all current record owner(s) of the property to be divided (or in the case of a substitute security, all owners of the undeveloped lots), as evidenced by the title insurance policy and report specified in subsection 70-224(e)(1), above.

(4) Be used only to secure future improvements that would be required for any final map and/or when a subdivider would be required by article VIII to construct, or agree to construct, the required improvements for a subdivision.

(5) Contain a detailed itemization of the required improvements (or in the case of a substitute security, any remaining required improvements) and an engineer's estimate of costs to construct same, as approved by the city engineer, and specify that the subdivider's obligation, and that of subdivider's successors in interest, extends to the actual cost of construction of the aforementioned improvements if such costs exceed the estimate.

(6) Be allowed if the city engineer determines the estimated costs to construct the required improvements (or in the case of substitute security, the remaining required improvements) do not exceed the fair market value of the real property against which the lien agreement is to be recorded, based on an appraisal conducted by an independent, licensed real estate appraiser not more than 60 days prior to the date any lien agreement is entered. Subdivider shall furnish such appraisal to the city at least 45 days prior to the date any lien agreement is entered.

(7) Contain a legal description of the entire real property against which the lien agreement is being recorded as security for the required improvements (or in the case of substitute security, as security for the remaining required improvements).

(8) Be recorded with the Riverside County Recorder against the entire property to be divided by the map (or in the case of substitute security, against all undeveloped lots). The recorded lien agreement shall be indexed in the grantor index to the names of all record owners of the real property as specified on the map and/or in subsection 70-224(e)(1) above, and in the grantee index to the city.

(9) Be approved concurrently with the approval of the final map and the subdivision improvement agreement executed by subdivider, with a note of the lien agreement's existence placed on the map, except where the lien agreement is being used as substitute security after final map approval under subsection 70-224(d) above, in which case the lien agreement shall be signed and acknowledged by all parties having any record title interest in the property against which the lien agreement is being recorded, as prescribed by Government Code § 66436, consenting to the subordination of their interests to the lien agreement.

(10) Require the subdivider to pay an application fee to the city for the processing of the lien agreement in an amount established and revised from time-to-time by resolution of the city council and included in a schedule of fees.

(f) From the time of recordation of the lien agreement, a lien shall attach to the real property described therein and shall have the priority of a judgment lien in an amount necessary to complete the required improvements (or in the case of substitute security, the remaining required improvements) and under no circumstances shall the city be obligated to agree to subordinate the lien.

(g) The lien agreement shall provide that:

(1) The subdivider must deliver acceptable replacement security to the city in the types and amounts specified in section 70-221 of this chapter and approved by the city council in place of the lien agreement and commence construction of the required improvements and any other improvements imposed as map conditions of approval (hereinafter "other improvements") within three years following recordation of the map; or

(2) In the case of a substitute security, the subdivider must deliver acceptable replacement security to the city (in the types and amounts specified in section 70-221 of this chapter and approved by the city council) in place of the lien agreement and commence construction of the remaining required improvements and other improvements within three years following recordation of the lien agreement; and

(3) Once the lien agreement is recorded, the city shall not issue any development or construction permits for the property subject to the lien agreement until the aforementioned delivery of acceptable replacement security to the city has occurred.

(h) The time for delivery of acceptable replacement security to the city and commencement of construction as specified in sections 70-224(g)(1) and (2) above, may be extended once for an additional three-year period as approved by the city engineer or his or her designee. A lien agreement may therefore only be in effect for a total of six years. In order to receive an extension of time under this subsection (h), both of the following conditions must be met:

(1) The subdivider shall provide a title insurance policy and title report from a title company approved by the city documenting that: (i) the subdivider is the record owner of the entire subdivided property against which the lien agreement is currently recorded as security (or in the case of a substitute security, documenting that the subdivider is the record owner of all undeveloped lots against which the lien agreement has been recorded); and (ii) such subdivided property or undeveloped lots are not encumbered by any mortgages, deeds of trust, or liens. The title insurance policy and title report shall be issued 45 days prior to the date the extension of time is requested; and

(2) The city engineer determines that the estimated costs for the required improvements (or in the case of substitute security, the remaining required improvements) do not exceed the fair market value of the real property against which the lien agreement is recorded, based on an appraisal conducted by an independent, licensed real estate appraiser not more than 60 days prior to the date an extension of time is requested. Subdivider shall furnish such appraisal to the city at least 45 days prior to the date the extension of time is requested.

(i) The lien agreement shall specify that no individual lots shall be sold while the lien agreement is in effect. However, fee title to the entire property encumbered by the lien agreement or to all lots designated on any individual final map which is encumbered by the lien agreement, may be sold in the aggregate to a single purchaser, provided that the proposed purchaser must, prior to or concurrent with assuming title to the property, either:

(1) Execute a new lien agreement in a form acceptable to the city which will encumber the property to be conveyed, specifying the respective obligations of the owners of the property subject to the original and new lien agreement.

(2) Deliver acceptable replacement security to the city as set forth in section 70-221 as a condition to development of the property conveyed.

(j) The subdivider shall also be required to provide to the city a cash deposit per recorded subdivision tract map in an amount established and revised from time-to-time by resolution of the city council and included in a schedule of fees, regardless of whether the project was subdivided by a single tract map or by multiple tract map recordings through phasing, for the purpose of reverting the property to acreage if the subdivider breaches or is in default of the terms of the lien agreement. Reversion to acreage and the cash deposit by reason of default or breach of the lien agreement shall only be applicable to properties where none of the required improvements for which securities were provided have been installed and/or have been constructed. Any unused portion of the cash deposit shall be refunded to the subdivider who made such cash deposit, following completion of the reversion to acreage. If the cost of the reversion to acreage exceeds the amount deposited per recorded subdivision tract map, the subdivider shall pay such additional costs to the city prior to recordation of the reversion to acreage map.

(k) The lien agreement shall only be released: (i) upon delivery to the city of acceptable replacement security for such lien agreement prior to construction and issuance of permits as set forth in subsection 70-224(g) above; (ii) to facilitate a sale as specified in subsection 70-224(i) above; or (iii) upon recordation of a reversion to acreage map.

(l) Under no circumstances shall any lien agreement compel the city to construct the required improvements, any remaining required improvements and/or other improvements.

(Ord. No. 1967(2020-006), § 1(Exh. A), 3-24-20; Ord. No. 1972, § 2, 2-9-21)