Los Angeles County Municipal Code Ch. 21.36 Bonds and Deposits

Before commencing any improvement or requesting the issuance of a final clearance, the subdivider shall pay the following to the director of public works:

A.

The sum required by Section 21.44.075 of this code for all street lights or street light systems to be installed;

B.

The sum required by Division 2 of Title 20 of this code, for all sewers and other improvements described in that division, to be constructed or installed;

C.

The sum required by Sections 21.44.065 and 21.44.067 of this code for plan checking and inspection of all storm drain improvements to be constructed or installed, except for those inspected pursuant to subsection E of this section;

D.

A sum estimated by the director of public works to cover the actual cost of plan checking and inspection of all improvements under his jurisdiction other than the improvements referred to in subsections A, B and C of this section and a sum estimated by the director of public works to cover the actual cost of reviewing documents for the issuance of a final clearance for compliance with tentative map conditions under his jurisdiction. This section shall not affect the requirements for deposits or fees as may be prescribed in any other ordinance. This subsection applies to all tract maps, parcel maps, waivers, or certificates of compliance processed by the director of public works;

E.

The fee for the inspection of all highway or street improvements, including drainage structures determined by the director of public works to be incidental thereto. This fee shall be based on the estimated construction cost and calculated in accordance with the following schedule:

The foregoing fee shall be reviewed annually by the director of public works. Beginning on July 1, 1997, and thereafter on each succeeding July 1st, the amount of each fee shall be adjusted as follows: Calculate the percentage movement between March of the previous year and March of the current year in the Consumer Price Index (CPI) for all urban consumers in the Los Angeles-Long Beach-Anaheim areas, as published by the United States Government Bureau of Labor Statistics, adjust each fee by said percentage amount and round up to the nearest dollar. Provided, however, no adjustment shall decrease any fee and no fee shall exceed the reasonable cost of providing services. When it is determined that the amount reasonably necessary to recover the cost of providing services is in excess of this adjustment, the director of public works may present fee proposals to the board of supervisors for approval.

(Ord. 96-0059 § 1, 1996; Ord. 12392 § 3, 1981; Ord. 11169 § 1, 1975; Ord. 6347 § 1 (part), 1954; Ord. 4478 Art. 11 § 211, 1945.)

* Editor's note: Fee changes in this section include changes made by the Department of Public Works due to increases in the Consumer Price Index and are effective July 1, 2025.

Should the cost of inspecting any improvement, for which fees are set in accordance with Section 21.36.010, exceed 135 percent of the established fee and the work has not been completed, and the director of public works determines that the cause of the inspection cost overrun is the result of the actions of the subdivider and/or his contractor(s) and/or subcontractor(s), then the director may require that the subdivider pay additional inspection fees for the facility being inspected in the amount equal to the actual cost incurred.

(Ord. 96-0059 § 3, 1996.)

If any deposit or fee made pursuant to Section 21.36.010 is less than sufficient to pay all of the costs of plan checking or inspection, the subdivider, upon demand of the Director of Public Works, shall pay an amount equal to the deficiency. If the subdivider fails or refuses to pay such deficiency upon demand, the county may recover the same by action in any court of competent jurisdiction. Until such deficiency is paid in full the improvement shall be considered uncompleted.

(Ord. 96-0059 § 4, 1996: Ord. 11169 § 2, 1975: Ord. 4478 Art. 11 § 214, 1945.)

The agreement referred to in Chapter 21.32 shall be accompanied by:

A.

A faithful performance bond guaranteeing the faithful performance of all work, the inspection of which is the duty of the county engineer, in a penal sum which, in the opinion of the county engineer equals the cost thereof, except for

monumentation work. In the case of monumentation, the agreement shall be accompanied by money, negotiable bonds, savings and loan shares, or instruments of credit guaranteeing the faithful performance of the work;

B.

A faithful performance bond guaranteeing the faithful performance of all work, the inspection of which is the duty of the road commissioner, in a penal sum which, in the opinion of the road commissioner, equals the cost thereof.

(Ord. 11665 § 54, 1978: Ord. 4478 Art. 11 § 215, 1945.)

If the subdivider shows to the satisfaction of the county engineer that he has entered into a contract with a water utility, as defined in the water ordinance set out at Division 1 of Title 20 of this code, to construct water mains as required by this Title 21, which contract makes the county of Los Angeles a party thereto and provides that such contract may not be modified or rescinded without the consent of the county except as required by the Public Utilities Commission, and has deposited with such water utility security for the payment of such water utility which the county engineer finds adequate, the subdivider need not accompany his agreement to install such water mains with a faithful performance bond or a labor and materials bond. The county engineer is hereby authorized to execute said contract on behalf of the county of Los Angeles.

(Ord. 83-0020 § 4, 1983: Ord. 11665 § 55, 1978: Ord. 7994 § 3, 1961: Ord. 4478 Art. 11 § 215.1, 1945.)

Improvement security shall be for the following amounts unless otherwise stated in this Title 21:

A.

An amount estimated by the county to be equal to the cost of improvements covered by the security, guaranteeing the faithful performance of the improvement work, plus an amount equal to the cost of inspecting the improvement work; plus an amount estimated by the county to be necessary for the guarantee and warranty of the work for a period of one year following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished.

B.

An amount estimated by the county to be equal to 50 percent of the cost of the improvements covered by the security, securing payment to contractors and subcontractors and to all persons renting equipment or furnishing labor or materials to them.

(Ord. 11665 § 57, 1978: Ord. 4478 Art. 11 § 215.7, 1945.)

All tax bonds furnished under authority of the Subdivision Map Act, and all faithful performance bonds referred to in this chapter shall be:

A.

Furnished by a surety company authorized to write the same in the state of California; and

B.

Subject to the approval and acceptance by the clerk of the board of supervisors.

(Ord. 83-0020 § 5, 1983: Ord. 11665 § 58, 1978: Ord. 4478 Art. 11 § 216, 1945.)

The agreement referred to in Section 21.20.070 shall be accompanied by money, negotiable bonds, savings and loan shares, or instruments of credit in a penal sum which, in the opinion of the county engineer, equals the cost of setting such monuments, guaranteeing the faithful performance of all such work of setting monuments and furnishing notes, and in every respect complying with such agreement. A labor and materials security shall not be required.

(Ord. 11665 § 56, 1978: Ord. 6721 § 1 (part), 1955: Ord. 5883 § 5, 1952: Ord. 4478 Art. 11 § 215.5, 1945.)

The security required for unpaid special assessments by Section 66493(c) of the Subdivision Map Act shall be money, negotiable bonds, savings and loan shares or instruments of credit, and shall comply with Section 21.36.110.

(Ord. 11665 § 59, 1978: Ord. 4478 Art. 11 § 216.1, 1945.)

In lieu of any faithful performance bond required by this chapter, including the bond required by Sections 21.36.090 and 21.36.100, the subdivider may deposit with the county engineer, director of parks and recreation, and/or road commissioner, on behalf of the board of supervisors, a sum of money or negotiable bonds, or savings and loans certificates or shares equal to the required amount of the improvement security for the faithful performance thereof. If the subdivider deposits savings and loan certificates or shares, he also shall assign such certificates and shares to the county of Los Angeles, and such deposit and assignment shall be subject to all of the provisions and conditions of Chapter 4.36 of this code. Instruments of credit, pursuant to Section 66499 (a) (3) of the Subdivision Map Act, may also be furnished in lieu of any faithful performance security required by this chapter.

(Ord. 90-0068 § 2, 1990: Ord. 83-0020 § 6, 1983: Ord. 11665 § 60, 1978: Ord. 9523 § 1, 1968: Ord. 7876 § 1 (part), 1960: Ord. 4478 Art. 11 § 217, 1945.)

A.

When any portion of an improvement has actually been fully completed, the county engineer, director of parks and recreation, and/or road commissioner whose duty it is to inspect such improvement may, in his discretion, authorize from time to time a reduction in the bonds or instruments of credit, or a partial withdrawal of funds, or a partial reassignment and withdrawal of savings and loan certificates or shares, which bonds, instruments of credit, funds, certificates or shares were deposited in lieu of a faithful performance bond required by this chapter, equal to the estimated cost of such completed portion.

B.

This section does not authorize a reduction or withdrawal for partial completion of any or all of such improvement.

(Ord. 83-0020 § 7, 1983: Ord. 9523 § 1 (part), 1968: Ord. 7876 § 1 (part), 1960: Ord. 4478 Art. 11 § 218, 1945.)

The county shall refund unused deposits as provided in Division 1 or Division 2 of Title 20, on water and sewers, respectively. In all cases not covered by either Division 1 or Division 2 of Title 20, if the actual cost of inspection is less than the amount deposited, the county shall refund to the applicant any amount still remaining in the same manner as provided by law for the repayment of trust moneys.

(Ord. 6347 § 1 (part), 1954: Ord. 4478 Art. 11 § 212, 1945.)

Upon the failure of a subdivider to complete any improvement within the time specified in an agreement, the county engineer, the director of parks and recreation, and/or the road commissioner may, upon notice in writing of not less than 10 days, served upon the person, firm or corporation signing such contract, or upon notice in writing of not less than 20 days served

by certified mail addressed to the last known address of the person, firm or corporation signing such contract, determine that said improvement work or any part thereof is uncompleted, and may cause to be forfeited to the County such portion of said sum of money or bonds given for the faithful performance of said work, or may cash any savings and loan certificates or shares deposited and assigned to assure faithful performance of said work in such amount as may be necessary to complete such improvement work. The county counsel shall take legal action required for the enforcement of subdivision improvement agreements when requested to do so by the county engineer, the director of parks and recreation, and/or the road commissioner.

(Ord. 83-0020 § 8, 1983: Ord. 10382 § 6, 1971: Ord. 7876 § 1 (part), 1960: Ord. 4478 Art. 11 § 219, 1945.)

A.

The board of supervisors hereby delegates to the county engineer, the director of parks and recreation, and the road commissioner the authority to extend the time for completion of the improvement, and accept the completed work and release improvement agreements, and accept, reduce the securities amount, exonerate and forfeit securities posted for the installation of improvements required for tract and parcel maps. The board of supervisors further delegates to the county engineer, the director of parks and recreation, and the road commissioner the authority to declare in default any agreement submitted to guarantee the performance of any act relating to tract and/or parcel maps.

B.

The county engineer, the director of parks and recreation, and the road commissioner shall, on behalf of the county of Los Angeles, approve work that has been satisfactorily completed in accordance with the appropriate plans and specifications and/or any agreement submitted pursuant to Section 21.32.020. They shall also accept for public use, as appropriate, all subdivision improvements constructed as part of said work.

(Ord. 83-0020 § 9, 1983.)