Chapter 16.42 — IMPROVEMENT SECURITY

Any improvement agreement, contract or act required or authorized by the Subdivision Map Act, for which security is required, shall be secured in the manner provided for in Section 66499 of the Subdivision Map Act.

(Ord. 508 § 2 (part), 1993)

• A. 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. The estimate of improvement costs shall be as approved by the public works director and shall provide for:

  1. Not less than five percent nor more than ten percent of the total construction cost for contingencies;

  2. Increase for projected inflation computed to the estimated midpoint of construction;

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

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

• B. Prior to final occupancy of the first home in a subdivision or final map, the builder shall deposit with the city not less than five thousand dollars cash for subdivisions of four or fewer parcels, and twenty-five thousand dollars, or an additional amount as required by the public works director, not to exceed ten percent of the construction cost for this subdivision. The deposit may be used at the discretion of the city to correct deficiencies and conditions caused by the builder or contractor that may arise during or after the construction of the subdivision. Any unexpended amount will be returned to the builder at the time all improvement securities are released.

• C. Upon acceptance of the subdivision improvements by the city, the subdivider shall provide security in the amount of ten percent of the cost of construction of the improvements but in any case, not less than one thousand dollars to guarantee the improvements throughout the one-year warranty period. The subdivider shall also be required to file a maintenance bond to cover the estimated cost of maintenance/replacement of landscaping for three years. The builder shall pay the current street tree fee on interior lots and triple the current street tree fee (for three trees total) on corner lots. There shall be a one-year warranty on all street trees. The warranty period shall start once the last tree in a given phase or final map is accepted by the city. Just prior to the end of the one-year warranty period, the builder shall replace all dead, diseased, or unacceptable street trees. Once the builder has completed all the required corrections, the city shall reimburse the builder two-thirds of the street tree

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City of Patterson, CA

DIVISIONS OF LAND

§ 16.42.020

§ 16.42.050

fees collected and retain one-third of the amount. The fees retained will be used for tree replacements, tree education, or other tree maintenance needs as determined by the city. (Ord. 508 § 2 (part), 1993; Ord. 676, 2006)

The furnishing of security shall be required in connection with any improvement agreement. No final or parcel map may be approved until all required security has been received and approved. The form of security shall be one or a combination of the following at the option of and subject to the approval of the city:

• A. Bond or bonds by one or more duly authorized corporate sureties in the form required per Sections 66499.1 and 66499.2 of the Government Code;

• B. 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;

• C. A deposit of money or negotiable bonds of the kind approved for securing deposits of public moneys.

• (Ord. 508 § 2 (part), 1993)

In the event the required subdivision improvements are financed and installed pursuant to special assessment proceedings, the subdivider may apply to the city council for a reduction in the amount of the improvement security required under this chapter up to an amount of faithful performance and labor and material bonds required by the special assessment act being used. The city council may grant such reduction if it finds that such bonds have been in fact provided and that the obligations secured thereby are substantially equivalent to that required by this title. (Ord. 508 § 2 (part), 1993)

The improvement security required under this chapter shall be released in the following manner:

• A. Security given for faithful performance of any act or agreement shall be released upon the final completion and acceptance of the act or work subject to the provisions of subsection B of this section.

• B. Security given to secure payment to the contractor, his subcontractors, and to persons furnishing labor, materials or equipment may, forty-five days after the completion and acceptance of the act or work, be reduced to an amount equal to the amount of all claims therefor filed and of which notice has been given to the legislative body, plus an amount reasonably determined by the city council to be required to assure the performance of any other obligations secured thereby. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given.

• C. No security given for the guarantee or warranty of work shall be released until the expiration of the period thereof.

• (Ord. 508 § 2 (part), 1993)

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City of Patterson, CA

DIVISIONS OF LAND

§ 16.44.010

§ 16.44.040