Chapter 17.16 — IMPROVEMENT SECURITY

Any improvement agreement or contract required by the Subdivision Map Act or of this chapter, shall be secured by one of the following:

• A. A bond or bonds by one or more duly authorized corporate sureties substantially in the form prescribed by the Subdivision Map Act;

• B. A deposit either with the City or a responsible escrow agent or trust company selected by the City of cash or negotiable bonds of the kind approved for securing deposits of its public moneys;

• C. An irrevocable instrument of credit from one or more responsible financial institutions regulated by the Federal or state government and pledging that the funds necessary to carry out the act or agreement are on deposit and guaranteed for payment on demand by the City;

• D. A lien upon the property to be divided, created by contract between the owner and the City, if the City Council finds that it will be in the public interest to require the installation of the required improvement sooner than two years after the recordation of the map;

• E. Any form of security, including security interests in real property, which is acceptable to the City Council.

(Prior code § 30-25)

• A. The improvement security shall be provided in the amount of:

  1. One hundred percent of the total estimated cost of the improvement or act to be performed conditioned upon the faithful performance of the act or agreement;

  2. One hundred percent of the total estimated cost of the improvement or act to be performed securing payment to the contractor, the subcontractors and to persons furnishing labor, materials or equipment to them for the improvement of the performance of the required act;

  3. The amount determined by the City Council necessary to guarantee or warranty the work for a period of one year following completion or acceptance thereof against any defective work or labor done, or defective materials furnished;

  4. If the improvement security is other than a bond or bonds furnished by duly authorized corporate surety an additional amount shall be included as determined by the City Council as necessary to cover the cost and reasonable expenses and fees, including reasonable attorney's fees, which may be incurred by the City in successfully enforcing the obligation secured.

• B. The improvement security shall also secure the faithful performance of any changes or alterations in the work to the extent that such changes or alterations do not exceed ten percent of the original estimated cost of the improvement.

• (Prior code § 30-26)

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City of Yorba Linda, CA

SUBDIVISIONS

§ 17.16.030

§ 17.16.050

In the event the required subdivision improvements are financed and installed pursuant to special assessment proceedings, the subdivider may apply to the City Council for a reduction in the amount of the improvement security required by this chapter, up to an amount corresponding to the amount of faithful performance and labor and material bonds required by the special assessment act being used. The City Council may grant such reduction if it finds that such bonds have been in fact provided and that the obligations secured thereby are substantially equivalent to that required by Section 17.16.020. (Prior code § 30-27)

The improvement security required by this chapter shall be released in the following manner:

• A. 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 the provisions of subsection B of this section.

• B. The City Council or Director of Public Works 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; provided, however, that no such release shall be for an amount thirty percent of the total improvement security given for faithful performance of the act or work and that the security shall not be reduced to an amount less than ten percent of the total improvement security given for faithful performance until final completion and acceptance of the act or work. In no event shall the City Council or Director of Public Works 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 or the improvement agreement.

• C. Security given to secure payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment, shall, six months after the completion and acceptance of the act or work, be reduced to an amount equal to the amount of all claims therefor filed out of which notice has been given to the legislative body, plus an amount reasonably determined by the City Council or Director of Public Works to be required to assure the performance of any other obligations secured thereby. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.

• D. No security given for the guaranty or warranty of work shall be released until the expiration of the period thereof.

• (Prior code § 30-28)

Upon the failure of the subdivider to complete any improvement, acts or obligations within the time specified, the City Council may, upon notice in writing of not less than ten days serviced upon the person responsible for the performance thereof or upon notice in writing of not less than twenty days, serviced by registered mail addressed to the last known address of such person, determine that the subdivider is in default and may cause the improvement security or such

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City of Yorba Linda, CA

YORBA LINDA CODE

§ 17.16.050

§ 17.16.050

portion thereof as is necessary to complete the work or act and any other obligations of the subdivider secured thereby to be forfeited to the City. (Prior code § 30-29)

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City of Yorba Linda, CA

SUBDIVISIONS

§ 17.20.010

§ 17.20.060

CHAPTER 17.20 REVERSION TO ACREAGE