Chapter 12.14
SUBDIVISION IMPROVEMENT AGREEMENTS AND IMPROVEMENT SECURITY
Sections:
12.14.010 Agreements relating to public improvements not completed.
12.14.020 Content of subdivision improvement agreements.
12.14.030 Improvement security.
12.14.010 Agreements relating to public improvements not completed.
If, at the time of approval of a final map by the city council, any public improvements required by the city pursuant to the Subdivision Map Act or any city ordinance have not been completed and accepted in accordance with standards established by the city by ordinance applicable at the time of the approval or conditional approval of the tentative map, the city council, as a condition precedent to the approval of the final map, shall require the subdivider to enter into a subdivision improvement agreement with the city upon mutually agreeable terms to thereafter complete the improvements at the subdivider’s expense. Performance of the subdivision improvement agreement shall be guaranteed by the security specified in Section 12.14.030.
(Ord. 1946 § 2 (part), 5-25-93)
12.14.020 Content of subdivision improvement agreements.
The subdivision improvement agreement shall be in a standard form as authorized by the city council, subject to such modifications as may be approved from time to time by the city engineer and the city attorney. The subdivision improvement agreement shall include, without limitation, provisions relating to the following:
A. Construction of all improvements, including any required off-site improvements, within a specified period and in accordance with improvement plans and related specifications approved by the city engineer;
B. Fifteen days’ prior written notice to the subdivider to accelerate construction of all or any portion of the improvements upon a determination by the city engineer that such acceleration is essential to protect the public health, welfare and safety, or is necessary for the orderly development of the surrounding area. Any such determination shall be subject to appeal by the subdivider to the city council within ten days after receipt of written notice from the city engineer;
C. Inspection of all improvements by the city engineer and payment of all inspection and other fees by the subdivider as required by city ordinance or resolution;
D. Subdivider’s obligation to indemnify, hold harmless and defend the city, its officers, agents and employees, from and against all losses, claims, costs, expenses, liabilities, damages, actions, causes of action and judgments, including reasonable attorney’s fees, arising out of or attributable to subdivider’s performance under the agreement;
E. Subdivider’s obligation to repair, replace or reconstruct any defective improvements within a one-year period following acceptance by the city council of the last of the improvements;
F. Subdivider’s obligation to correct or eliminate all dangerous conditions created by defects a design or construction of the improvements for a period of ten years following acceptance by the city council of all or any portion of the improvements;
G. The guarantee of performance of the subdivider’s obligations by the security specified in Section 12.14.030;
H. Any other provisions reasonably required by the city to effectuate the purposes and provisions of the Subdivision Map Act and this title.
(Ord. 1946 § 2 (part), 5-25-93)
12.14.030 Improvement security.
A. General. Each subdivision improvement agreement, and any other agreement relating to the performance by a subdivider of any act or obligation required as a condition of approval of any parcel map waiver, lot-line adjustment or lot merger, shall be secured in accordance with the applicable provisions of Government Code Sections 66499 et seq. and as provided herein.
B. Form of Security. The form of improvement security shall be one or a combination of the following, at the option of the subdivider, and subject to the approval of the city:
1. Bond or bonds by one or more duly authorized corporate sureties. The form of the bond or bonds shall be in substantial conformity with Government Code Sections 66499.1, 66499.2, 66499.3 and 66499.4.
2. 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 securing deposits of public moneys.
C. Amount of Security. Subdivider shall provide as security to the city:
1. For performance and guarantee: security in an amount equal to one hundred percent of the estimated total cost of the improvements, including grading and monumentation. With this security, the form of which shall be subject to the city’s prior approval, the subdivider shall assume faithful performance of the agreement and guarantee the improvements for one year after the completion and acceptance of the last of such improvements against any defective workmanship or materials or any unsatisfactory performance. The estimated total cost of the improvements shall be subject to prior approval of the city engineer and shall provide for: (a) not less than five percent nor more than ten percent of the estimated total cost for contingencies; and (b) an increase for projected inflation computed to the estimated midpoint of construction.
2. For payment: security in an amount equal to one hundred percent of the estimated total cost of the improvements (excluding grading and monumentation). With this security, the form of which shall be subject to the city’s prior approval, the subdivider shall guarantee payment to contractors, subcontractors and persons renting equipment or furnishing labor or materials to them or to the subdivider. If monumentation is involved, this improvement security shall also guarantee to the subdivider’s engineer or surveyor payment of the estimated total cost of setting monuments, as required by Government Code Section 64497.
D. Reduction or Release of Security. Upon acceptance of all or any specified category of improvements by the city council, and upon request of the subdivider, the improvement security may be reduced or released as follows:
1. Security for performance and guarantee: unless subdivider submits new or additional warranty security in an amount equal to ten percent of the estimated total cost of the improvements, the security for performance and guarantee shall not be reduced or released in an amount greater than ninety percent of the aggregate principal amount thereof prior to the expiration of the one-year guarantee and warranty period specified in subsection (C)(1) of this section, nor until all claims filed or deficiencies identified during such period have been settled or corrected. New or additional warranty security shall be released upon expiration of the one-year guarantee and warranty period, provided that all claims filed or deficiencies identified during the period have been settled or corrected.
2. Security for payment: security furnished to secure payment to contractors, subcontractors, and to persons providing labor, materials or equipment shall, six months after acceptance of all of the improvements, be reduced to an amount equal to the total amount claimed by all claimants for whom all liens have been filed and of which notice has been given to the city, plus an amount reasonably determined by the city engineer to be required to assure the performance of any other obligations secured by the security. The balance of the security shall be released upon settlement or release of all claims and obligations for which the security was given.
(Ord. 1946 § 2 (part), 5-25-93)