A. The subdivider shall file with the agreement a bond or security for such sum as the city engineer deems sufficient to cover the cost of the improvements and to assure the faithful performance of such improvements.
B. Such security shall be in the manner, form and kind provided by the Subdivision Map Act and acceptable to the city attorney. The security shall be in the amount of one hundred (100) percent of the estimated cost of the improvements, conditioned upon the faithful performance of this agreement by the subdivider, and in the additional amount of fifty (50) percent of such sum securing the payment by the subdivider to his contractor, his subcontractors, and to persons renting equipment or furnishing labor or materials to them for improvements.
C. The security provided shall guarantee maintenance and/or repair of all defects in required public improvements for a period of one year following acceptance of said improvements by the city.
D. In lieu of a one hundred (100) percent performance bond and fifty (50) percent labor and materials bond, surety may be assured by the filing of an instrument of credit, a passbook account, or deposit of negotiable bonds, which creates a trust fund in an amount equal to one hundred fifty (150) percent of the cost of the work estimated by the city engineer. Said trust fund shall be maintained in a financial institution subject to regulation by the state and federal government with the trust fund limited to the following conditions:
1. Fifty (50) percent of the cost, representing a labor and materials deposit, to be retained for thirty-five (35) days after the recording date of the notice of completion;
2. Funds may be discharged from the balance of the faithful performance surety account from time to time as work is completed, up to ninety (90) percent of value of work completed, with authorization of the city engineer, until all work is completed and the notice of completion is filed;
3. Prior to final acceptance by the city of improvements, the subdivider shall provide the city with a one-year maintenance bond or other accepted surety in the amount of ten percent of the estimated cost of improvements.
4. The form of the instrument of credit, passbook account or deposit of negotiable bonds shall be acceptable to the city attorney.
E. Completion of Work by City. In the event the subdivider shall fail to complete all improvement work in accordance with the provisions of this chapter and the city shall have completed the same, or if the subdivider shall fail to reimburse the city for the cost of incidental expenses or to cover the cost or replacement and the repair of existing streets or other improvements damaged in the development of the subdivision or requiring repair or replacement during the one-year guarantee period, the city shall demand performance of the agreement by the bonding company, or use the cash or other security deposit placed with the city by the subdivider to do such work and reimburse itself for the cost of work agreed to be performed by the subdivider. If the amount of the surety bond or cash deposit exceeds all costs and expenses incurred by the city, the city shall release the remainder of such bond or certification less the cost and expense incurred by the city. The subdivider shall be liable to the city for any costs additional to those secured, in an action to be brought therefore by the city.
F. Cash Payments. In addition to the required securities the subdivider shall file with the agreement required by the provisions of Section 16.24.060 a cash payment in an amount deemed sufficient by the city engineer to pay all city improvement costs, or city fees required by this chapter and/or other city ordinances and resulting from or required with the approval and/or construction of the subdivision.
G. Assessment Act Financing of Improvements--Subdivision Improvement Security. Upon approval by the director of public works and upon the furnishing by the contractor of the faithful performance and labor and material bonds required as part of any special assessment proceedings, the improvement security required to be provided in connection with a subdivision may be reduced by an amount corresponding to the amount of such bonds so furnished by the contractor constructing/installing the improvements. (Ord. 2017-01 (part), 2017: prior code § 9185)