Article 11 — Improvement Security

Any improvement agreement, contract, or act required or authorized by the Subdivision Map Act, for which security is required by the Subdivision Map Act or this Code, shall be secured in the manner and amounts provided in Sections 66499, et seq, of the Subdivision Map Act and in this Code. Such improvement agreements may be secured by any form of security, including security interests in real property, which security is accepted and approved by the City Attorney.

(Ord. 744-NS, eff. April 17, 1980)

Improvement security posted for the improvements required for the proposed subdivision shall be for the full amount of the estimated costs of the improvements as determined by the City Engineer pursuant to Section 9-3.1014 of Article 10 of this chapter. In addition, security shall be posted to secure payment by the subdivider to the contractor, his subcontractors, and to persons renting equipment or furnishing labor or materials to them for the improvement of the proposed subdivision in the full amount of the estimated costs of such materials and services as determined by the City Engineer. Five Hundred and no/100ths ($500.00) Dollars of the required improvement security shall be in the form of a cash deposit with the City. No interest shall be earned on the deposit. Such cash deposit may be used by the City in correcting unsafe or emergency road conditions occasioned by or arising out of the performance of any work in constructing the subdivision improvements, in weed abatement within the subdivision, in periodic street cleaning, or in the removal of trash from within the subdivision. The City may use the cash deposit only if the City is unable, after reasonable attempts, to contact the developer (or his contractor) to perform the required emergency work, weed abatement, or trash removal or if the developer or his contractor refuses to forthwith perform the required work after being informed of its necessity by the City. If any part of the Five Hundred and no/100ths ($500.00) Dollar cash deposit is used by the City, the developer shall be charged for the cost of the required work and shall remit to City, within (10) days after written notice of such expenditures, sufficient cash to bring the deposit to Five Hundred and no/100ths ($500.00) Dollars once more. Any portion of the cash deposit which has not been used by the City at the time the street improvements are accepted into the City roads system shall be returned to the developer. Any improvement security required in addition to the Five Hundred and no/100ths ($500.00) Dollars may be of any type specified in Section 66499 of the Subdivision Map Act.

(Ord. 744-NS, eff. April 17, 1980)

After the full and faithful performance of the improvement agreement by the subdivider, acceptance of the public improvements by the City Engineer, and the posting of the guarantee security pursuant to Section 9-3.1005 of Article 10 of this chapter, the City Engineer shall exonerate all improvement security posted to secure the execution of the agreement. The City Engineer may accept a cash deposit or a certificate of deposit necessary to accomplish the

required performance in lieu of all or part of such performance when he finds it is reasonable and necessary under all of the circumstances. Upon a request of the subdivider, the City Engineer, in his discretion, may reduce the amount of the improvement security by partial exoneration in an amount not exceeding ninety (90%) percent of the total estimated costs of the improvements of the subdivision when a corresponding percentage amount of improvements has been fully completed to the satisfaction of the City Engineer. However, under no circumstances shall such partial exoneration constitute acceptance of the improvements upon which such partial exoneration is granted. (Ord. 744-NS, eff. April 17, 1980, as amended by § 6, Ord. 1537-NS, eff. June 25, 2010)