A. Performance Security. The performance security shall be released only upon completion or fulfillment of all terms and conditions of the improvement agreement and acceptance by the director of public works. Such acceptance shall occur when the certificate of completion is signed by the director of public works. If a warranty security is not submitted, performance security shall be released 12 months after acceptance of improvements and correction of all warranty deficiencies.
B. Payment Security. Security given to secure payment to the contractor, subcontractors and to persons furnishing labor, materials or equipment may, six months after the completion and acceptance of the improvements by the director of public works, be reduced to an amount equal to the amount of all claims therefor filed and of which notice has been given to the city. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given.
C. Warranty Security. The warranty security shall be released upon satisfactory completion of the warranty period, provided that all warranty deficiencies have been corrected.
Pursuant to California Government Code sections 66499.7 and 66499.9, the release of improvement security as set forth above shall not apply to any costs, reasonable expenses or fees, including reasonable attorneys' fees. (Ord. 2017-0009 § 29)