Turlock Municipal Code Art. 6 Improvement Security

Any improvement agreement, contract, or act required or authorized by the Subdivision Map Act for which security is required shall be secured in accordance with Section 66499 of the Subdivision Map Act and as provided in this article.

No final map or parcel map shall be signed by the City Engineer or recorded until all improvement securities required by this article have been received and approved.

The form of security shall be one or the combination of the following at the option and subject to the approval of the City. The security shall remain on deposit in full until released by the City:

(a) A bond or bonds by one or more duly authorized corporate sureties;

(b) A deposit with the City of money or negotiable bonds of the kind approved for securing deposits of public moneys; and

(c) An instrument of credit from one or more financial institutions subject to regulation by the State or Federal government pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment.

The provisions of the bond or bonds shall be in accordance with Section 66499.1 and 66499.2 of the Subdivision Map Act.

A performance bond or security in the amount of one hundred (100%) percent of the estimated construction cost to guarantee the installation of survey monuments, lot corners, and construction staking by the engineer shall be required for all subdivisions. An additional amount of fifty (50%) percent of the estimated construction costs shall be required to guarantee the payment to the subdivider's contractor, subcontractors, and persons furnishing labor, materials, or equipment for the construction or installation of improvements.

The estimate of improvement costs shall be as approved by the City Engineer and shall provide for:

(a) Not less then five (5%) percent nor more than ten (10%) percent of the total construction costs for contingencies;

(b) An increase for projected inflation computed to the estimated mid-point of construction; and

(c) In addition to the full amount of the security, there shall be included costs and reasonable expenses and fees, including attorneys' fees, incurred in enforcing the obligation secured.

The subdivider shall deposit with the City an amount to be determined by a formula set by the Council. The deposit may be used at the discretion of the City to correct deficiencies and conditions caused by the subdivider or contractor which may arise during or after the construction of the subdivision. Any unexpended amount shall be returned to the subdivider at the time all bonds are released.

Before the final acceptance of the subdivision improvements by the City, the subdivider shall provide security in an amount as required by the City Engineer to guarantee the improvements throughout the warranty period. The amount of the warranty security shall be not less than ten (10%) percent of the costs of the construction of the improvements, including the cash bond which shall be retained for the one-year warranty period.

If the monuments are not to be set at the time the map is recorded, but will be set at a future date as specified and certified to by the engineer or surveyor, the subdivider shall post a separate security guaranteeing the payment of the cost of setting the monuments. The engineer or surveyor shall notify the subdivider and City Engineer within five (5) days after setting the monuments that the monuments have been set. The subdivider shall pay the engineer or surveyor for the cost of setting the monuments within three (3) months after the date of notification by the engineer or surveyor. If the subdivider does not pay the engineer or surveyor within three (3) months, the City shall pay the engineer or surveyor from the security and refund the difference, if any, to the subdivider.