Chapter 24.64
IMPROVEMENT SECURITY
Sections:
24.64.010 Statutory authority.
24.64.010 Statutory authority.
Any improvement agreement, contract, or act required or authorized by the Subdivision Map Act, for which security is required, shall be secured in the manner provided for in Section 66499 of the Subdivision Map Act. [Ord. 09-005 § 37, 2009; Ord. 879 N.S. § 4, 1976. Formerly 24.16.010].
24.64.020 Generally.
The improvement security shall be in the amount set forth or authorized in Section 66499.3 of the Subdivision Map Act. If the improvement security is other than a bond or bonds furnished by duly authorized corporate surety, an additional amount shall be included as determined by the city council as necessary to cover the cost and reasonable expenses and fees, including reasonable attorneys’ fees, which may be incurred by the city in successfully enforcing the obligation secured.
The improvement security shall also secure the faithful performance of any changes or alterations in the work to the extent that such changes or alterations do not exceed 10 percent of the original estimated cost of the improvement. [Ord. 09-005 § 37, 2009; Ord. 879 N.S. § 4, 1976. Formerly 24.16.020].
24.64.030 Manner of release.
The improvement security required hereunder shall be released in the following manner:
(a) Security given for faithful performance of any act or agreement shall be released upon the final completion and acceptance of the act or work subject to the provisions of subsection (b) of this section.
(b) The city engineer may release a portion of the security in conjunction with the acceptance of the performance of the act or work as it progresses upon application therefor by the subdivider; provided, however, that no such release shall be for an amount less than 10 percent of the total improvement security given for faithful performance of the act or work and that the security shall not be reduced to an amount less than 20 percent of the total improvement security given for faithful performance until final completion and acceptance of the act or work. In no event shall the city engineer authorize a release of the improvement security which would reduce such security to an amount below that required to guarantee the completion of the act or work and any other obligation imposed by this title, the Subdivision Map Act, or the improvement agreement.
(c) Security given to secure payment to the contractor, his or her subcontractors, and to persons furnishing labor, materials, or equipment may, six months after the completion and acceptance of the act or work, be reduced to an amount equal to the amount of all claims therefor filed and of which notice has been given to the legislative body, plus an amount reasonably determined by the city engineer to be required to assure the performance of any other obligations secured thereby. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.
(d) No security given for the guarantee or warranty of work shall be released until the expiration of the period thereof. [Ord. 09-005 § 37, 2009; Ord. 879 N.S. § 4, 1976. Formerly 24.16.030].