(A) Purpose. This section establishes requirements for agreements between the city and a subdivider related to incomplete improvements, deferred improvements, and reimbursement for installed improvements.
(B) Incomplete improvements.
(1) Agreement required. When all improvements and conditions of approval required by this chapter and the California Subdivision Map Act ("Map Act") are not completed before the approval of the final subdivision map or parcel map, the subdivider shall enter into an agreement with the city to complete all of the required improvements and conditions within a specified time period.
(2) Preparation and approval. The agreement shall be prepared by the City Engineer, approved by the City Attorney, and executed by the subdivider.
(3) Agreement contents. The agreement shall be in a form acceptable to the City Attorney and City Council and subject to a deposit as established by the City Engineer. It shall include the following:
(a) A list of the improvements, dedications, and in-lieu fees, indicating those improvements that have not been constructed.
(b) A schedule for completing the improvements.
(c) Estimated cost of improvements.
(d) Types of security for faithful performance, labor and material, payment and maintenance.
(e) A requirement that the improvements be completed at the subdivider's expense.
(f) A subordination agreement signed by any person or entity that has any interest in the subdivision that may arise to a fee interest in the future.
(4) Repair and maintenance. The agreement shall provide the following information on repair and maintenance on improvements:
(a) A statement asserting that the subdivider shall repair any damage to a public street or any other public property or improvement, which results from or is incidental to, the construction of improvements by the subdivider in the subdivision for 12 months following approval of the agreement.
(b) A maintenance security or bond sufficient to insure maintenance and repairs of all improvements within the subdivision for a period of one year after acceptance of the improvements by the City Council.
(5) Recordance required. The executed improvement agreement shall be recorded in the office of the County Recorder and shall bind the subdivider's successors-in-interest.
(6) Development agreement. A development agreement may be used in lieu of, or in addition to, an improvement agreement, provided that it contains the provisions described in division (B) above at a minimum. Where public improvements are required, improvement plans, engineering calculations, and cost estimates shall be submitted and approved by the City Engineer prior to acceptance of a final subdivision map or parcel map for filing.
(C) Deferred improvement agreements. To the extent authorized by the Map Act, the city may allow subdivision improvements to be deferred until a later date. When deferment is allowed, the subdivider shall enter a deferred improvement agreement in a form acceptable to the City Engineer and City Attorney for installment of all deferred improvements at a specified later time. Deferred improvement agreements shall comply with the following requirements:
(1) The subdivider shall begin construction of improvements within 90 days of the receipt of the notice to proceed from the city, or as mutually agreed upon in writing.
(2) In the event of a default by the subdivider, the city is authorized to have construction done and charge the entire cost and expense to the subdivider, including interest from the date of notice of the cost and expense until paid. The interest rate shall be consistent with the requirements of Article 15, Section 1 of the California State Constitution.
(3) The city shall record the agreement with the County Recorder and shall constitute notice to all successors and assignees of title to the real property of the obligations specified in the agreement.
(4) The obligations under the agreement shall constitute a lien in a sufficient amount necessary to fully reimburse the city, including interest, subject to foreclosure in the event of a default in payment. The obligations under the agreement shall run with the property and constitute a lien against it.
(5) In the event of litigation caused by default of the subdivider, the subdivider agrees to pay all costs involved, including reasonable attorneys' fees. Those costs shall become a part of the lien against the real property.
(6) The construction of deferred improvements shall conform to this chapter and all applicable provisions of the Zoning Ordinance in effect at the time of construction.
(D) Reimbursement agreements. Any reimbursement agreement shall be prepared as described in Chapter 8.60 (Benefit Districts) and Chapter 8.64 (Oversized Construction Reimbursement). The subdivider may request reimbursements for installed improvements when the following conditions are met:
(1) Improvements are greater than minimum size required.
(2) Improvements contain supplemental capacity, length, number, or size for the benefit of property not within the subdivision.
(3) Improvements are to be dedicated to the public.
(Ord. 15-12, passed 12-15-2015)