La Quinta Municipal Code Ch. 13.28 Improvement Security

Pursuant to Sections 66462 and 66499 of the Government Code, this chapter specifies forms and amounts of security required to guarantee the completion of improvements and satisfaction of obligations which are conditions of approval of subdivision, reconfiguration and/or consolidation of real property.

(Ord. 272 § 1, 1995)

The provisions of this chapter apply to all subdivision, reconfiguration and/or consolidation of real property for which conditions of approval have not been satisfied prior to approval of a final map, parcel map, waiver of parcel map, or other required developmental approval.

(Ord. 272 § 1, 1995)

Security furnished in guarantee of the performance of any act or the fulfillment of any obligation shall be of a form or forms approved by resolution of the city council and shall meet any acceptance standards established by the resolution.

(Ord. 272 § 1, 1995)

Security in guarantee of the performance of any act or agreement shall be in the following amounts:

A. Performance Security. One hundred percent (100%) of the total estimated cost of the public and private improvements or the act to be performed, which shall include all survey monumentation, design, construction and construction engineering;

B. Labor and Material Security. One hundred percent (100%) of the total estimated cost of the public improvements or act to be performed, securing payment to the contractor, the subcontractors and to persons furnishing labor, materials or equipment to them for the improvement or the performance of the required improvement or act. Labor and materials security shall not be required for private improvements or monumentation;

C. Warranty Security. Ten percent (10%) of the total estimated cost of public improvements necessary to guarantee or warranty the work against any defective work or labor completed, or defective material provided, for a period of one (1) year following the completion and acceptance of the work. Warranty security shall be provided after improvements are complete and accepted/approved by the city council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for private improvements or monumentation;

D. Deferred Improvements. One hundred percent (100%) of the pro rata cost of deferred improvements which are a condition of subdivision map approval, but which are to be constructed by others. The type of deferred improvements include, but are not limited to traffic signals, bridge construction or major thoroughfare improvements. Deferred improvements shall be secured by performance security alone. No labor and materials or warranty security is required;

E. Improvement Plans. The city council may, by resolution, adopt procedures and security requirements for approval of final maps and parcel maps for which improvement plans are not complete. In the absence of such resolution, improvement plans shall be complete and approved by the city engineer prior to city council approval of final maps and parcel maps.

(Ord. 448 § 2, 2007; Ord. 320 § 3, 1998; Ord. 272 § 1, 1995)

The improvement security required by this chapter shall be released in whole or in part in the following manner:

A. Performance security shall be released upon the final completion and acceptance or approval, by the city council, of all improvements required to be constructed by the subdivider, subject to the provisions of subsection B of this section.

B. The city engineer may authorize partial reduction of performance security as work progresses, upon application by the subdivider. However, no such reduction shall be for an amount less than ten percent (10%) of the total performance security provided for the faithful performance of the act or work. In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus ten percent (10%). The city engineer shall not allow more than two (2) partial reductions of security furnished for any improvement agreement.

C. If the city receives no notice of recorded claims of lien, labor and materials security shall be released in full ninety (90) days after final acceptance and/or approval by the city council, of all improvements required to be constructed by the subdivider. If the city receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply.

D. Warranty security not utilized during the warranty period shall normally be released one (1) year after final acceptance or approval by the city council of all improvements required to be constructed by the subdivider. If, at the end of the one (1)-year warranty period, there are one (1) or more outstanding requests by the city for performance of work or provision of materials under the terms of the warranty, any remaining warranty security shall be retained until the outstanding requests are satisfied or until the subdivider has made other arrangements satisfactory to the city engineer.

(Ord. 272 § 1, 1995)