17.16.050 Improvement Security.
A. Agreement. When the improvement work required by this chapter is not satisfactorily completed prior to final map or parcel map filing, the subdivider shall enter into an agreement with the City Council for completion of the work within the time specified in such agreement. The agreement shall specify that, in the event such work is not satisfactorily completed within the time limit, the City may complete or have completed all specified improvements and recover the cost thereof from the subdivider. The agreement may provide for the improvements to be installed in units, for extensions of time under specific conditions, or for the termination of the agreement upon a reversion of the subdivision or a part thereof to acreage. The agreement shall be secured by a good and sufficient improvement security, which shall be in an amount sufficient to cover the estimated cost of improvements.
B. Security Form. The form of improvement security shall be one of the following:
1. Bond or bonds by one or more duly authorized corporate surety.
2. A deposit, either with the City or a responsible escrow agent or trust company, of the kind approved for securing deposits of public monies.
3. An instrument 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.
C. Work to be Secured. Improvement securities shall be required for all of the following:
1. Faithful Performance. One hundred (100) percent of the total estimated cost of the improvement or of the act to be performed conditioned on the faithful performance of the act or agreement.
2. Labor and Materials. One hundred (100) percent of the total estimated cost of the improvements or of the act securing payment to the contractor, subcontractors and persons furnishing labor, materials or equipment.
3. Mud and Debris. The City Engineer may require the subdivider to furnish a bond guaranteeing the removal from public streets of mud and debris derived from the graded surfaces within the subdivision.
4. Monument Placement. If a certificate of responsibility for survey and monument placement states that monuments will be set on or before a specified later date, the subdivider shall furnish to the City a bond or cash deposit, at the option of the City, in an amount equal to the estimated cost of setting of such monuments.
5. Maintenance. Ten (10) percent of the total estimated cost of the improvements or of the act to be performed to serve as a guarantee and warranty of the work for a period of one year following thereof against any defective work or labor done or defective materials furnished.
D. Security Exemptions. Subdivisions of four (4) or fewer lots shall be exempt from the requirement for a labor and materials security and maintenance security when improvements will not be accepted for maintenance by the City.
E. Security Reduction. When the improvements have been partially completed, the City Engineer may authorize, from time to time, a reduction in the faithful performance security in an amount equal to the estimated cost of the completed portion of the improvement work.
F. Security Release. The City Engineer shall release the faithful performance, labor and materials, and mud and debris securities after the satisfactory completion of the improvements and upon receipt of the maintenance security. The maintenance security shall be released following conclusion of the maintenance period and upon correction of all deficiencies. The monument placement security shall be released following certification by the subdivider’s engineer that all monuments have been set and that they have been paid for setting the monuments. When the monument placement security is a cash deposit, the depositor may request that it be used to pay the subdivider’s engineer. Partial release of the monument placement security shall not be permitted. (Ord. 1062 § 14, 2022; Ord. 1030 § 2(11), 2018; Ord. 584 § 1 (part), 1977)