16.20.070 Improvement agreement and bond.
A. Agreement and Bond for Improvements. Prior to approval by the city council of the final map, the subdivider shall execute and file an agreement between himself and the town, specifying that he or his agent or contractor shall complete all improvement work to the satisfaction of the city engineer within one year from city council approval; and providing that if he shall fail to complete such work within said period, the town may complete the same and recover the full cost and expense thereof from the subdivider. The agreement shall also provide for the inspection of all improvements by the city engineer, and reimbursement of the town by the subdivider for the cost of such inspection. Such agreement may also provide the following:
1. For the construction of the improvements in units;
2. For an extension of the time to perform specified improvements, with appropriate conditions on such extension;
3. For the termination of the agreement upon the completion of proceedings under an assessment district for the construction of improvements deemed by the city engineer to be at least the equivalent of the improvements specified in said agreement and required to be constructed by the subdivider; and
4. For progress payment.
B. Improvement Bond. The subdivider shall also file with said agreement, to assure his full and faithful performance, a bond for such sum as the city engineer recommends and city council approves to cover the cost of said improvements, engineering, inspection, and incidental expenses, to cover replacement and repair of existing streets, other improvements damaged in the development of the subdivision, and to cover costs and reasonable expenses and fees, including attorney’s fees, to guarantee the work for two years following completion against defective work and/or materials. Such bond shall be executed by a surety company authorized to transact a surety business in the state, and must be satisfactory to and be approved by the city attorney as to form and recommended by the city engineer as to sufficiency; the form of such bond shall be as prescribed by Government Code Section 66499.1. In lieu of said bond the subdivider may deposit with the city treasurer, cash in an amount fixed by the city council. Letters of credit are not acceptable.
C. Liability of Subdivider. In the event the subdivider shall fail to complete all improvement work in accordance with the provisions of this title and the town completes it, or if the subdivider fails to reimburse the town for the cost of inspection, engineering and incidental expenses, or to cover cost or replacement and repair of existing streets or other improvements damaged in the development of the subdivision, the Town shall call upon the surety for reimbursement. If the amount of surety bond or cash deposit exceeds all costs and expense incurred by the town, it shall release the remainder of such bond or cash deposit. If the amount of the surety bond, cash deposit or certification is less than the cost and expense incurred by the town, the subdivider shall be liable to the town for such difference.
D. Requirement for Final Release of Funds. No extension of time, progress payments from cash deposits, or releases of surety bond, cash deposit, or certification shall be made except upon a written statement by the city engineer that work covered thereby has been satisfactorily completed, and upon approval of the city manager. (Ord. 441 § 1 (part), 1988)