Santa Clara County Municipal Code Part 8 Improvement Agreement and Securities

The subdivider shall, concurrent with the acceptance of the final map, or parcel map where applicable, or prior to the start of construction, whichever is earlier, enter into an agreement with the County to complete required improvements within a specified time. In the case of a subdivision for which a final map is required, the agreement shall be executed by the subdivider and the Board of Supervisors. In the case of a subdivision for which a parcel map is required, the agreement shall be executed by the subdivider and the County Surveyor. Standard agreement forms are available from the County Surveyor.

(Ord. No. NS-1203.35, § 4, 3-13-78)

Security to assure satisfactory completion of the improvements shall be in one of the following forms:

(a) Bond by one or more duly authorized corporate sureties,

(b) Cash or certificate of deposit with a financial institution, or

(c) An instrument of credit from one or more financial institutions, subject to state or federal regulation, pledging that the funds necessary to carry out the terms of the agreement are on deposit and guaranteed for payment.

(d) A lien upon the property to be divided, created by contract between the County and the owner, if the Board of Supervisors determines that it would not be in the public interest to require the installation of required improvements sooner than two years after recordation of the map.

(e) Deeds of trust on any real property, including the property to be divided, which are not subject to prior security interests.

In accordance with the Subdivision Map Act, the names and purposes of the securities are as follows:

(1) Performance bond. An amount equal to 100 percent of the total estimated cost of the improvements as determined by the County Surveyor conditioned upon the faithful performance of the work 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.

(2) Labor and materialmen's bond. An amount equal to 100 percent of the total estimated cost of the improvement as determined by the County Surveyor to secure payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment to them for the improvements.

(3) Monument bond. An amount of 100 percent of the cost of setting all monuments shown on the final map or parcel map to guarantee the setting of said monuments and the payment to the engineer or Surveyor, as provided by the Subdivision Map Act.

The security furnished by the subdivider may be released in whole or in part in the following manner:

(1) Performance bond. Security may be released by the County Surveyor upon the completion and acceptance of the work, in whole or in part; except that no reduction shall be less than 25 percent of the total security amount, nor shall the aggregate of all deductions exceed 75 percent of the original security amount. An amount determined by the County Surveyor may be required to remain in effect for a minimum of one year following the completion and acceptance of the work for the guarantee and warranty of the work against any defective work or labor done or defective materials furnished.

(2) Labor and materialmen's bond. Security for the payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment to them may, six months after the performance of the act or the completion and acceptance of the work, be reduced to a amount not less than the total of all claims on which a action has been filed and notice thereof given in writing to the Board of Supervisors, and if no such actions have been filed, the security may be released in full by the County Surveyor.

(3) Cash bonds. In the event a cash or other similar nonsurety company-type bond is deposited in the amount of 100 percent of the estimated cost of the improvements, it shall be deemed to satisfy County requirements with respect to both performance and labor and materialmen's bonds. Such bonds may be released incrementally as provided herein, not to exceed 50 percent of the original bond amount The remainder may be released after completion and acceptance of all work and the requirements with respect to the California Mechanics Lien laws, with the exception of a amount that may be retained for one year as the warranty bond.

(4) Monument bond. Security may be released after written receipt by the engineer or Surveyor that the final monuments have been set and evidence is submitted that the engineer or surveyor has been paid.

(5) Trust deeds or contract liens. Security may be released by the County Surveyor upon the completion and acceptance of the work, provided that security in a amount sufficient to secure payment to the contractor, his subcontractors, and to persons furnishing labor, materials or equipment to them shall be retained for a period of six months after completion and acceptance.

(Ord. No. NS-1203.58, § 1, 11-30-81)