Sierra County Municipal Code Ch. 23.17 Improvement Security

A. General. Any improvement agreement, contract or act required or authorized by the Subdivision Map Act or this title, for which security is required, shall be secured in accordance with Cal. Gov’t. Code §§ 66499 et seq. of the Subdivision Map Act and as provided below.

No final map or parcel map shall be signed by the County Surveyor or recorded until all improvement securities and improvement agreements required by this section have been completed and accepted by the county or responsible agency.

B. Form of Security. The form of security shall be one of or the combination of the following at the option and subject to the approval of the county.

1. Bond or bonds by one or more duly authorized corporate sureties. The form of the bond or bonds shall be in accordance with Cal. Gov’t. Code §§ 66499.1 and 66499.2 of the Subdivision Map Act.

2. A deposit, either with the county or a responsible escrow agent or trust company, at the option of the county, of money or negotiable bonds of the kind approved for securing deposits of public moneys.

3. An instrument of credit or letter 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.

4. A lien upon the property to be divided, created by contract between the owner and the local agency, if the Board of Supervisors finds that it would not be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map.

5. Security interests in real property, found to be acceptable to the Board of Supervisors.

Any contract or security interest in real property entered into as security for performance pursuant to subsections (B)(4) or (B)(5) of this section shall be recorded with the County Recorder of the county in which the subject real property is located. From the time of recordation of the written contract or document creating a security interest, a lien shall attach to the real property particularly described therein and shall have the priority of a judgment lien in an amount necessary to complete the agreed-to improvements. The recorded contract or security document shall be indexed in the grantor index to the names of all record owners of the real property as specified on the map and in the grantee index to the local agency approving the map.

6. Any other form of security as provided in Cal. Gov’t. Code § 66499 of the Subdivision Map Act.

C. Security for Performance. The form of security shall comply with Cal. Gov’t. Code § 66499.1.

D. Amount of Security. A performance bond or other security in the amount of 100 percent of the total estimated construction costs to guarantee the construction or installation of all improvements shall be required of all subdivisions. An additional amount of 50 percent of the estimated construction cost shall be required to guarantee payment to subdivider’s contractor, subcontractors, and to persons furnishing labor, materials or equipment for the construction or installation of improvements. As a part of the obligation guaranteed by the security, and in addition to the full amount of the security, there shall be included costs and reasonable expenses and fees, including attorneys’ fees, incurred by the county in enforcing the obligations secured.

The estimate of improvement costs shall be as approved by the Director of the Department of Public Works and shall provide for:

1. Not less than five percent nor more than 10 percent of the total construction costs for contingencies.

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

3. All utility installation costs or a certification acceptable to the Department of Public Works from the utility company that adequate security has been deposited to ensure installation.

E. Warranty Security. Upon acceptance of the subdivision improvements by the county, the subdivider shall provide security in the amount as required by the Department of Public Works to guarantee the improvements against any defective work or labor done or defective materials used in the performance of the improvements throughout the warranty period which shall be the period of one year following completion and acceptance of the improvements. The amount of the warranty security shall not be less than 15 percent of the cost of the construction of the improvements.

F. Reduction in Performance Security. The Department of Public Works may authorize in writing the release of a portion of the security in conjunction with the acceptance of the satisfactory completion of a part of the improvements as the work progresses upon application by the subdivider, but in no case shall the security be reduced to less than 15 percent of the total improvement security given for faithful performance. The amount of reduction of the security shall be determined by the Department of Public Works; however, in no event shall the Department of Public Works authorize a release of the improvement security which would reduce security to an amount below that required to guarantee the completion of the improvements and any other obligation imposed by the Subdivision Map Act, this title or the improvement agreement.

G. Release of Improvement Security.

1. Performance Security. The performance security shall be released only upon acceptance of the improvements by the county and when an approved warranty security has been filed with the Department of Public Works. If a warranty security is not submitted, performance security shall be released 12 months after acceptance of improvements and correction of all warranty deficiencies.

2. Material and Labor Security. Security given to secure payment to the contractor, subcontractors and to persons furnishing labor, materials or equipment may, six months after the completion and acceptance of the improvements by the county, be reduced to an amount equal to the amount of all claims therefor filed and of which notice has been given to the Board of Supervisors. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given.

3. Warranty Security. The warranty security shall be released upon satisfactory completion of the warranty period, provided:

a. All deficiencies appearing on the warranty deficiency list for the subdivision have been corrected.

b. Not less than 12 months have elapsed since the acceptance of the improvements by the county.

H. Alternative Release of Improvement Security. If and when subdivision improvements are financed and installed by special assessment proceedings, the Director of Public Works may permit a reduction in the subdivider’s security in an amount equal to the contractor’s bonds for faithful performance, labor and material.

I. In all cases where the performance of the obligation for which the security is required is subject to the approval of another agency, the Department of Public Works shall not release the security until the obligation is performed to the satisfaction of such other agency. Such agency shall have two months after completion of the performance of the obligation to register its satisfaction or dissatisfaction. If at the end of that period it has not registered its satisfaction or dissatisfaction, it shall be conclusively deemed that the performance of the obligation was done to its satisfaction. (Formerly 23.17.001)

Unless otherwise specified in the conditions of approval, the construction methods and materials for all improvements shall conform to the standard engineering specifications and all other standard plans and specifications of the county.

Construction shall not commence until all required improvement plans have been approved by the Department of Public Works. All improvements are subject to inspection by the Department of Public Works in accordance with the county’s approved specifications. Any work completed without inspection by the county may be rejected. (Formerly 23.17.002)

A. Subdivisions of Five or More Parcels. The improvements for subdivisions of five or more parcels shall be completed by the subdivider within 12 months, or such later time as approved by the Department of Public Works, not to exceed 36 months, from the recording of the final map, unless an extension is granted as provided herein.

Should the subdivider fail to complete the improvements within the specified time, the county may, by resolution of the Board of Supervisors and at its option, cause any or all uncompleted improvements to be completed and the parties executing the security or securities shall be firmly bound for the payment of all necessary costs.

B. Subdivisions of Four or Fewer Parcels.

1. Whenever improvements are required to be constructed as a condition of approval of a parcel map, requirements for the construction of such improvements shall be notified by certificate on the parcel map and by recording a covenant of improvement requirements. The Planning Commission may require that the subdivider enter into a secured agreement to construct all or part of the required improvements. The construction of such improvements shall be completed prior to subsequent issuance of a permit or other grant of approval for the development of the parcels being created or at a time specified pursuant to an agreement between the subdivider and the county.

2. Agreement to Improve. If, as a condition of approval of a parcel map, the subdivider has been required to enter into an agreement to construct or install improvements required under this title, the subdivider shall provide a good and sufficient improvement security as defined in Cal. Gov’t. Code § 66499 in the amounts provided in SCC 23.17.010. The subdivider shall prepare detailed plans and specifications of the improvements to be constructed. After said plans and specifications have been approved by the Director of Public Works, such plans and specifications shall be made a part of any such agreement and of the improvement security.

3. Covenant of Improvement Requirements. In addition to the certificate of improvements under SCC 23.07.010, as noticed on the parcel map, the subdivider shall execute a covenant of improvement requirements to be filed in the office of the County Recorder. This document shall act as constructive notice of the improvements required and the time of their completion.

4. All required improvements shall be inspected and approved by the Director of Public Works. Improvements shall be installed in accordance with the county’s standards and specifications and the county’s grading regulations approved by the Board of Supervisors and on file in the office of the Public Works Department.

5. Release of Improvement Requirements. Upon satisfactory completion of the improvements as noticed on the parcel map by the certificate of improvements, a request may be made to have the county file a release of improvement requirements in the office of the County Recorder. The person or persons requesting the release of improvement requirements to be filed shall submit such requests in writing to the Department of Public Works along with satisfactory proof that the improvements are completed. The recording of this release of improvement requirements will be constructive notice to any government agency when an application for a development permit or other grant of approval for the development of any of the parcels of a parcel map is made.

C. Extensions. The completion date may be extended by the Director of Public Works Department upon written request by the subdivider and the submittal of adequate evidence to justify the extension. The request shall be made prior to expiration of the subdivision improvement agreement.

The subdivider shall enter into a subdivision improvement agreement extension with the county. The agreement shall be prepared by the Department of Public Works, approved as to form by the County Counsel, executed by the subdivider and surety and transmitted to the Board of Supervisors for its consideration. If approved by the Board, the Clerk to the Board shall execute the agreement on behalf of the county.

In consideration of a subdivision improvement agreement extension, the following may be required:

1. Revision of improvement plans to provide for current design and construction standards when required by the Department of Public Works.

2. Revised improvement construction estimates to reflect current improvement costs as approved by the Department of Public Works.

3. Increase of improvement securities in accordance with revised construction estimates.

4. Inspection fees may be increased to reflect current construction costs but shall not be subject to any decrease or refund.

The Board of Supervisors may impose additional requirements as recommended by the Department of Public Works or as it may deem necessary as a condition to approving any time extension for the completion of improvements.

The subdivider shall pay a fee in an amount set by the Board of Supervisors.

D. As-Built Plans. Upon completion of the improvements, the subdivider shall submit to the Department of Public Works a reproducible set of as-built improvement plans. (Formerly 23.17.003)

A. General. With respect to all subdivisions, when all improvement deficiencies have been corrected and as-built improvement plans submitted, the completed subdivision improvements shall be considered by the Department of Public Works for acceptance.

Acceptance of the improvements shall imply only that the improvements have been completed satisfactorily.

B. Acceptance. If the subdivision improvements have been accepted by the Board of Supervisors, the Board of Supervisors shall direct the County Clerk to file an acceptance of public improvements with the County Recorder.

C. Acceptance of a Portion of the Improvements. When requested by the subdivider in writing, the Department of Public Works may consider acceptance of a portion of the improvements. Such improvements will be accepted by the Department of Public Works only if the Department of Public Works finds that it is in the public interest to do so and such improvements are for the use of the general public.

Acceptance of a portion of the improvements shall not relieve the subdivider from any other requirements imposed by this title. (Formerly 23.17.004)