18.28 — IMPROVEMENT SECURITY

Any improvement agreement, contract or act required or authorized by the Subdivision Map Act, and required under section 18.24.030, for which security is required, shall be secured in the manner provided

for in sections 66499, 66499.1, and 66499.2 of the Subdivision Map Act.

(Code 1972, § 18.28.010; Ord. No. 543, § 1(part), 1981)

(a)

The improvement security shall be in the amount set forth or authorized in section 66499.3 of the Subdivision Map Act. If the improvement security is other than a bond or bonds furnished by duly authorized corporate surety, an additional amount shall be included as determined by the city council as necessary to cover the cost and reasonable expenses and fees, including reasonable attorneys' fees, which may be incurred by the city in successfully enforcing the obligation secured.

(b)

The improvement security shall also secure the faithful performance of any changes or alterations in the work to the extent that such changes or alterations do not exceed ten percent of the original estimated cost of the improvement.

(Code 1972, § 18.28.020; Ord. No. 543, § 1(part), 1981)

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 hereunder up to an amount corresponding to the 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.

(Code 1972, § 18.28.030; Ord. No. 543, § 1(part), 1981)

The improvement security required hereunder shall be released in the following manner:

(1)

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 (2) of this section.

(2)

The city council may release a portion of the security in conjunction with the acceptance of the performance of the act or work as it progresses upon application therefor by the subdivider; provided, however, that no such release shall be for an amount less than 50 percent of the total improvement security given for faithful performance of the act or work and that the security shall not be reduced to an amount less than 50 percent of the total improvement security given for faithful performance until final completion and acceptance of the act or work. In no event shall the city council authorize a release of the improvement

security which would reduce such security to an amount below that required to guarantee the completion of the act or work and any other obligation imposed by this title, the Subdivision Map Act or the improvement agreement.

(3)

Security given to secure payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment, may, six months 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 city council, plus an amount reasonably determined by the city council to be required to ensure the performance of any other obligations secured thereby. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.

(4)

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

(Code 1972, § 18.28.040; Ord. No. 543, § 1(part), 1981)

CHAPTER 18.32. - RESERVATIONS AND FEES