Pursuant to the Map Act, if any public improvement required as part of the approval of the subdivision will not be completed and accepted in accordance with § 7.80.060 (Completion of Improvements) prior to approval of the final map, the subdivider, at his or her expense, shall be required to enter into a subdivision improvement agreement with the city to complete such public improvements in accordance with § 7.80.060 (Completion of Improvements). Performance of the agreement shall be guaranteed by the security specified in this section.
(A) The form and content of subdivision improvement agreements shall be approved by the City Attorney. The agreement shall include, but not be limited to, the following minimum terms and conditions:
(1) Construction of all improvements as set forth in the approved plans and specifications.
(2) The maximum period within which all improvements shall be completed to the satisfaction of the City Engineer.
(3) Provisions for inspection of all improvements by the City Engineer and payment of fees by the subdivider for the cost of such inspection and all other incidental costs incurred by the city in enforcing the agreement.
(4) A provision that if the subdivider fails to complete the work within the specified period of time, or any extended period of time that may have lawfully been granted to the subdivider, the city may, at its option, complete the required improvement work and the subdivider and his or her surety shall be firmly bound, under a continuing obligation, for payment of the full cost and expense incurred or expended by the city in completing such work, including interest from the date of notice of the cost and expense until paid.
(5) A provision that, in the event of litigation occasioned by a default of the owner or subdivider, his or her successors or assignees, the owner or subdivider, his or her successors or assignees will pay all costs involved, including reasonable attorneys’ fees, and that the same may be recovered as part of a lien against the real property.
(6) Additional terms or provisions, as may be necessary, pertaining to the forfeiture, collection, and disposition of improvement security upon the failure of the contracting party to comply with the terms and provisions thereof or with the terms and provisions of this title.
(B) Subdivision improvement agreements shall be valid for a period specified in the agreement, but not to exceed two years from the effective date of the agreement. The City Engineer may, in his or her discretion, extend the term of the subdivision improvement agreement. The agreement shall not only bind the present subdivider, but also his or her heirs, successors, executors, administrators, and assignees, so that the obligation runs with the real property. All agreements shall be executed by all those parties executing the final map or parcel map, with all signatures acknowledged before a notary public, and shall be transmitted by the City Clerk to the Riverside County Recorder concurrently with the final map or parcel map. The agreement shall be recorded upon the title of said real property, in the Office of the County Recorder, at the expense of the subdivider.
(C) Improvement securities shall be required to be posted as a guarantee of the performance of any act, improvement, or obligation required as a condition of approval of any final tract map, parcel map waiver, lot line adjustment, or lot merger. Unless otherwise provided herein, all such improvement securities shall be provided in one of the following forms, subject to the approval of the City Engineer and the City Attorney:
(1) A bond or bonds by one or more duly authorized corporate sureties substantially in the form prescribed in the Map Act and subject to the approval and acceptance of the City Attorney and City Council.
(2) A deposit with the city of either immediately negotiable bonds or a letter of credit.
(3) Any other form of security, including a lien or other security interest in real property, which the City Engineer and the City Attorney may, in their discretion, allow, provided they determine that it is equivalent to the foregoing forms of security in terms of security and liquidity.
(4) Any written contract or document creating security interest established pursuant to division (C)(3) of this section shall be recorded in the Office of the County Recorder. From the time of recordation, a lien shall attach to the real property described therein, which lien shall have the priority of a judgment lien in the amounts specified.
(D) The subdivider shall provide as security to the city:
(1) For performance and guarantee: an amount determined by the City Engineer equal to 100% of the total estimated cost of the improvement to be performed, including grading monumentation. The estimated cost of improvement shall include a 10% contingency and a 10% increase for projected inflation computed to the estimated mid-point of construction.
(2) For payment: an amount determined by the City Engineer equal to 50% of the total estimated cost of the improvement to be performed, excluding grading and monumentation.
(E) Improvement security may be released in whole or in part upon the completion and acceptance of all or part of the act or work by the City Council or the authorized official; provided, however, such release shall not apply to the amount of security deemed necessary by the City Engineer for the guarantee and warranty period, nor to costs and reasonable expense fees, including reasonable attorneys’ fees, incurred by the city in enforcing any improvement agreement. The subdivider shall not be entitled to any reduction in security until all improvements have been completed to the satisfaction of the City Engineer.
(Ord. 2019-286, passed 11-20-2019; Am. Ord. 2019-291, passed 12-18-2019)