San Fernando Municipal Code Art. IV Bonding and Improvement Security

Prior to the approval by the city council of the subdivision final map, the subdivider shall execute and file an agreement between himself and the city. The agreement shall specify the period within which he shall complete all improvement work to the satisfaction of the city engineer and shall provide that, if he shall fail to complete such work within such period, the city may complete the work and recover the full cost and expense thereof from the subdivider. This agreement shall also provide for inspection of all improvements by the city engineer and reimbursement of the city for the cost of such inspection by the subdivider. Such agreement may also provide for the following:

(1) The construction of the improvements in units;

(2) An extension of time under conditions therein specified;

(3) The termination of the agreement upon the completion of proceedings under an assessment district act for the construction of improvements deemed by the city engineer to be at least the equivalent of the improvements specified in such agreement and required to be constructed by the subdivider; and

(4) Progress payments to the subdivider, or his order, from any deposit money which the subdivider may have made in lieu of providing a surety bond, provided that no such progress payment shall be made for more than 90 percent of the value of any installment of work and provided, further, that each such installment of work shall be completed to the satisfaction of the city engineer.

(Code 1957, § 24.36)

To guarantee the performance of any action or agreement with regard to the proposed subdivision, security shall be furnished in the following amounts:

(1) An amount determined by the city engineer to be not less than 100 percent of the total estimated cost of the improvement or of the act to be performed, conditioned upon the faithful performance of the act or agreement;

(2) An additional amount determined by the city engineer, not less than 50 percent of the total cost of the improvement; and

(3) An amount determined by the city engineer 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.

(Code 1957, § 24.37)

The monumentation agreements for a subdivision shall be accompanied by a faithful performance bond in a sum equal to the cost of setting such monuments, guaranteeing the faithful performance of all such work of setting monuments and furnishing notes.

(Code 1957, § 24.38)

All bonds referred to in this article shall be furnished by a surety company rated A and AA and authorized to write the bonds in the state and shall be subject to the approval of and acceptance by the city attorney and city council.

(Code 1957, § 24.39)

In lieu of any security bond required by this article, the subdivider may deposit with the city a sum of money or negotiable bonds equal to the required amount of such bond or security for the faithful performance thereof.

(Code 1957, § 24.40)

The improvement security required under this article 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 subsection (2) of this section.

(2) The city council, upon recommendation of the city engineer, 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. However, no such release shall be for an amount more than 75 percent of the total improvement security given for faithful performance of the act or work 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 chapter, the Subdivision Map Act, Government Code § 66410 et seq., or the improvement agreement.

(Code 1957, § 24.41)