A. Agreements. The construction of all public improvements required as a condition of the approval of a subdivision tract map, a parcel map, a use permit or a building permit, or any other type of permit or required as the condition of approval of a reversion to acreage or a lot consolidation, shall be guaranteed by the execution of a suitable agreement in a form prescribed in this title and approved by the City Attorney. All such agreements shall contain the terms and conditions to be met by the subdivider, developer or permittee and shall specify a reasonable time in which to construct the improvements or perform the requirements and obligations of the agreement. The time allowed for the completion of the work shall be as specified by the City Engineer and shall depend upon the amount and complexity of the work involved, the type of development and any other factors he may deem important. All agreements shall be executed by the owner or developer or the subdivider of the property or land being divided or developed. The signatures shall be acknowledged before a notary public and the agreements shall be accompanied by evidence substantiating the signer's position, title and authority to bind the person, company, partnership, corporation, joint venture or other entity to the actions and obligations contained in the agreement.
Prior to the expiration of the time allowed by the agreement in which to perform or complete the obligations contained therein, the subdivider, owner, or developer who executed the agreement may request, in writing, that the City Engineer extend the term of the agreement. The written request shall contain the reasons for the requested additional time, the length of the additional time requested and any other data deemed necessary or informative. Upon consideration of the written request and the evidence presented, the request shall be acted upon and shall be either approved, rejected or modified. The request for extension may be handled at the staff level with written approval of the action by the City Administrator, or if the City Engineer feels the matter is of special interest or of unusual importance, he may place the request before the City Council for their consideration.
B. Improvement Securities. Improvement securities shall be required to be posted as a guarantee of the performance of any act or obligation required as a condition of the approval of any final tract map, parcel map, reversion to acreage, lot consolidation, or any use, or building permit. Unless otherwise provided in this title, all such improvement securities shall be one of the following:
1. A cash deposit made with the City;
2. A time certificate of deposit or a savings passbook, made out to or assigned to the City in a form approved by the City Attorney and City Treasurer;
3. A bond or bonds from a duly authorized corporate surety;
4. Irrevocable letter of credit.
Cash bonds, certificates, surety bonds, and irrevocable letters of credit shall be in a form prescribed by the City Engineer, subject to the approval of the City Attorney. Improvement securities shall be in the amount of the total estimated cost of all the required improvements and conditions, which amount shall include an amount equal to ten percent of the total estimated cost for the purpose of securing payment to the City for construction, contingencies, and its costs for overhead, administration and other costs and expenses pertaining to the subdivision, division or project.
C. Improvement Securities for Land Divisions. Improvement securities posted as a guarantee of the performance of an agreement or act made a condition of the approval of land division or reversion requiring a parcel map or tract map, shall be in the following amounts for the following purposes:
1. An amount determined by the City Engineer, equal to one hundred percent of the total estimated cost of all of the required public and private improvements within the land division or reversion conditioned upon the faithful performance of the agreement, act or contract;
2. An additional amount determined by the City Engineer, not less than fifty percent of the total estimated cost of all the required public and private improvements within the land division or reversion securing payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment to them for the improvement or the performance of the required act.
D. Improvement Securities for Use Permits, Building Permits, Lot Consolidations and Other Permits. Improvement securities posted as a guarantee of the performance of any agreement, act or contract made a condition of the approval or issuance of a use permit, building permit or lot consolidation or other permit, shall be in an amount equal to one hundred percent of the total estimated cost of all of the required public and private improvements. Surety bonds therefor shall be in the form as prescribed by the City Attorney and the City Engineer.
E. Release and Reduction of Improvement Securities. The securities posted in conformance with subsections C and D of this section may be released in whole or in part, as specified in Section 66499.7 of the State Government Code, upon receipt of a written request from the principal. The City Engineer shall determine the validity of the request, and if all of the work has been satisfactorily completed, and all of the requirements imposed have been met, and all cash fees, charges, and assessments have been paid in full, and all required departmental releases have been granted, then the improvement securities may be released in the manner specified by law and the improvements and work accepted by filing of a written instrument with the City Clerk, signed by the City official so designated and empowered to do so by the City Council. If only a portion of the work has been completed, the City Engineer may recommend the reduction of the face amount of the security held for faithful performance to an amount equal to the estimated total cost of the improvements remaining. Such reduction shall be approved upon the filing of a written instrument with the City Clerk, signed by the City official so designated and empowered to do so by the City Council.
No reduction in the amount of improvement securities held shall be authorized or approved for an amount less than twenty percent of the total estimated cost of the remaining improvements, and the total amount of securities held shall not be reduced to an amount less than twenty percent of the total securities until final completion and acceptance of the work. In no event shall a reduction or release of improvement security be approved which would reduce such security to an amount below that required to guarantee completion of the act or other obligation imposed by this title, the improvement agreement or the Subdivision Map Act. No reduction in the amount of any improvement security shall be construed as City acceptance of any or all of the improvements constructed at the time of the reduction. It shall only be construed as an acknowledgment of the completion of a portion of the required work:
F. Additional Amounts of Security Required. All improvement securities shall also secure the faithful performance of any changes or alterations in the work to the extent that the changes or alterations do not exceed ten percent of the total estimated cost of the required improvements.
G. Exceptions. Under special circumstances, as determined by the City Engineer, the requirement for improvement securities required for the guarantee of an act, obligation or agreement made a condition of a building or use permit, lot consolidation or other act or process not involving a subdivision tract map or parcel map may be waived, provided a suitable agreement guaranteeing completion of the required act or obligation is executed. Such circumstances may include or be related to the size of the proposed building, structure, or addition, its permit valuation, the estimated value or cost of the required improvements, the condition and makeup of the surrounding or adjacent areas, the likelihood of other improvements in the area, the status of other public improvements in the area, and the demonstrated financial responsibility of the developer or applicant involved.
H. In the event a tentative map is filed over the same, or any portion of, property being conditionally developed pursuant to any other provision of this code, the improvement security provisions regarding subdivision by tract map or parcel map shall prevail. Upon posting the securities required as a condition of approval of the final tract map or final parcel map, the developer may request, and the City Engineer may approve, release of securities previously posted pursuant to any other provisions of this code.
(Ord. 2722 (part), 1990).