Yuba City Municipal Code Art. 10 Improvement Security

Whenever this chapter authorizes or requires the furnishings of security in connection with the performance of any act or agreement, such security shall be one of the following at the option of and subject to the approval of the City:

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

(b) A deposit, either with the City or a responsible escrow agent or trust company, at the option of the City, of money or negotiable bonds of the kind approved for security deposits of public moneys; or

(c) An instrument of credit from one or more financial institutions subject to regulations 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, or a letter of credit issued by such a financial institution; or

(d) A lien upon the property to be divided, created by contract between the owner and the City, if the City 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.

(§ 2, Ord. 1095, eff. March 22, 1990)

(a) Bonds. A bond or bonds by one or more duly authorized corporate sureties shall be obtained to secure the faithful performance or security of laborers and material men and shall be in substantially the form prescribed by the State Subdivision Map Act.

(b) Amount of security. The amount of improvement security shall be based upon the total estimated cost of the improvements as determined by the City Engineer. Improvement security securing the faithful performance of the subdivision agreement shall be an amount equal to 100% of such estimated cost of the improvements. At least 5% of such faithful performance security shall be retained 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. Improvement security securing payment to the contractor, his or her subcontractors, and to persons furnishing labor, materials, or equipment to them for the improvement of the performance of the required act shall be an amount equal to 100% of the total estimated cost of the improvement, except if such securities is in the form of a cash deposit or deposit or instrument of credit, the amount shall be equal to 50% of the total estimated cost of the improvements.

(c) Liability on security. Any liability upon the security given for the faithful performance of any act or agreement shall be limited to the condition prescribed by the State Subdivision Map Act.

(d) Release of security. Improvement security may be released in whole or in part in the manner prescribed by the State Subdivision Map Act and in accordance with any such rules prescribed by the City Council.

(§ 2, Ord. 1095, eff. March 22, 1990)