§ 4-4.605. Agreement and Security for Improvement.

(a)

Provisions of Agreement.

(1)

Prior to the approval by the Council of the final map, the subdivider shall execute and file an agreement between himself and the City, specifying the period within which he/she shall complete all improvement work to the satisfaction of the Public Works Director or designee, and providing that if he/she shall fail to complete such work within such period, the City may complete the same and recover the full cost and expense thereof from the subdivider. The agreement shall also provide for inspection of all improvements by the Public Works Director or designee, and reimbursement of the City by the subdivider for the cost of such inspection. The agreement shall also provide that the subdivider shall guarantee and warrant subdivision improvements for a period of one (1) year following the completion and acceptance thereof against any defective work or labor done, or any defective materials furnished.

(2)

Such agreement may also provide:

(i)

For the construction of the improvements in units;

(ii)

For extension of time under conditions therein specified;

(iii)

For partial release of the improvement securities upon acceptance by the City Council of the work as it progresses;

(iv)

For the financing and construction of any or all of such improvements under an appropriate special assessment act proceeding, the subdivider shall agree, in writing, to initiate, and so far as may be in his/her power, to consummate such proceedings, within such time as may be prescribed by the Council.

(b)

Improvement Security. The subdivider shall also file with the aforesaid agreement, two (2) improvement securities, each to be in an amount based upon the total estimated cost of the improvement as determined by the Public Works Director. One (1) improvement security shall secure faithful performance of said agreement and shall be in an amount equal to one hundred (100) percent of the estimated cost of the improvement. The second improvement security shall secure the obligations set forth in subsection (b) of Section 66499.2 of the Government Code, for payment of the contractor, his/her subcontractors and to persons renting equipment or furnishing labor or materials to them for said improvements, and shall be in an amount equal to fifty (50) percent of the total estimated cost of the improvements. Such improvement securities shall be in one (1) of the following forms:

(1)

A cash deposit or deposits;

(2)

A bond or bonds issued by one (1) or more duly authorized corporate sureties;

(3)

A savings and loan certificate and share in accordance with Article 6 of Chapter 4 of Title 2 of this Code;

(4)

An instrument or instruments of credit from one (1) or more financial institutions subject to regulations by the State or Federal Government pledging that the funds necessary to meet the performance are on deposit and guaranteed for payments and agreeing that the funds designated by the instrument shall become trust funds for the purposes set forth in the instrument;

(5)

Any other form of improvement security authorized by the Subdivision Map Act, including the deposit, with a responsible escrow agent or trust company approved by the Council, of money or negotiable bonds of the kind approved for securing deposits of public money.

The required security shall be in an amount determined by the Public Works Director as sufficient to cover the cost of said improvements, engineering, inspection, fees and incidental expenses. The required improvement security shall be approved by the Finance Director as to sufficiency and by the City Attorney as to form.

(c)

Forfeiture of Improvement Security. In the event the subdivider shall fail to complete all improvement work in accordance with the provisions of this chapter and the City shall have to complete same, or if the subdivider shall fail to reimburse the City for the cost of inspection, engineering, fees and incidental expenses, the City shall call on the surety for reimbursement, or shall appropriate from any cash deposits, savings and loan certificates and shares, or instruments of credit, funds for reimbursement. In any case, if the amount of the surety bond, savings and loan certificate and shares, instrument or credit, or cash deposit shall exceed all cost and expenses incurred by the City it shall release the remainder of such bond, savings and loan certificate and share of cash deposit. If the amount of the surety bond, savings and loan certificate and share, instrument of credit, or cash deposit shall be less than the cost and expense incurred by the City, the subdivider shall be liable to the City for such difference.

(d)

Release of Improvement Security. Improvement securities may be released or reduced, in whole or in part, only in the time and manner prescribed in Section 66499.7 of the Government Code, as it now exists or is hereafter amended, and only after certification by the Public Works Director that the work covered thereby has been satisfactorily completed and upon approval of the Council.

(e)

Guarantee and Warranty Security. In addition to the improvement securities specified in subsection (b) of this section, the subdivider shall file with the subdivision agreement an amount as specified in said agreement to guarantee and warrant subdivision improvements for a period of one (1) year following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished. The Public Works Director is authorized to release said security upon expiration of the guarantee and warranty period if it is determined that subdivision improvements so guaranteed and warranted are satisfactory.

(Ord. 1041-N.S., amended by Ord. 546-C.S., Ord. 638-C.S., Ord. 1154-C.S., Ord. 1254-C.S., Ord. 1436-C.S., Ord. 1437-C.S., Ord. 2117-C.S., § 1, Ord. 3128-C.S., § 4, and Ord. 3364-C.S., § 3, effective 12-9-04)