§ 17.38.030. Security requirements and conditions.

A.

To assure satisfactory completion of the improvements, performance of any agreement entered into shall be guaranteed by one or more of the following forms of security. No final or parcel map shall be approved until all required security has been received and approved:

1.

A bond or bonds by one or more duly authorized corporate sureties;

2.

A deposit with the treasurer of cash or negotiable bonds of the kind approved for securing deposits of public moneys;

3.

An instrument of credit, in a form acceptable to the county counsel, from an agency of the state, federal or local government, when any such agency provides at least twenty percent of the financing for the portion of the act or agreement requiring security, or from one or more financial institutions subject to regulation by the state or federal government pledging that the funds necessary to carry out the agreements are on deposit and guaranteed for payment;

4.

A letter of credit, in a form acceptable to the county counsel, issued by a financial institution subject to regulation by the state or federal government, guaranteeing that all or any portion of the funds available pursuant to the letter of credit will be paid upon the written demand of the director of planning, and that such written demand need not present documentation of any type as a condition of payment, including proof of loss;

5.

A lien upon the property to be divided created by contract between the owner and the county.

B.

The securities identified in subsections (A)(1) through (A)(4) of this section shall constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by the county, and any document evidencing such security shall so provide.

C.

Security to guarantee any such agreement shall be in the following amounts:

1.

An amount equal to one hundred percent of the total estimated cost of the improvements, as determined by the subdivision engineer and accepted by the director of planning, to guarantee the faithful completion of the work, except that where the security is provided in the form set forth in subsection (A)(2) of this section, the amount need only be equal to fifty percent of the total estimated cost of the improvements, in consequence of lower costs associated with enforcement of security in that form; and

2.

An additional amount equal to one hundred percent of the total estimated cost of the improvements, as determined by the subdivision engineer and accepted by the director of planning, to guarantee payment to the contractor, subcontractors and persons furnishing materials, equipment or labor to them in connection with the subdivision improvements, except that where the security is provided in the form set forth in subsection (A)(2) of this section, the amount need only be equal to fifty percent of the total estimated cost of the improvements, in consequence of lower costs associated with enforcement of security in that form; and

3.

a.

For "guarantee, warranty, and maintenance of work," the amount of ten percent of the cost of improvements, as determined by the subdivision engineer and accepted by the director of planning, to guarantee and warrant the work for a period of twelve months following the completion and acceptance thereof by the board against any defective work or labor done or defective materials furnished, and to maintain such work to the satisfaction of the director of planning for such period. The security required under this subsection need not be furnished until the improvements have been accepted by the director of public works.

b.

In the event the subdivider fails to maintain, repair, replace or reconstruct the work to the satisfaction of the director of public works, the security shall be obligated for the payment of all necessary costs and expenses that may be incurred or expended by the county in causing any or all repair, replacement, reconstruction or maintenance of the work which is discovered or may become necessary during the twelve-month period.

4.

In addition to the face amount of the security required by subsection (B) of this section, there shall be included costs and reasonable expenses and fees, including reasonable attorney and expert witness fees incurred by the county in enforcing the obligation secured, all to be taxed as costs and included in any judgment.

D.

The estimate of construction or installation costs shall be as approved by the director of planning, and shall provide for:

1.

Not less than five percent nor more than ten percent of the total construction cost of contingencies;

2.

Increase for project inflation computed to the estimated midpoint of construction.

E.

Whenever an entity is required to furnish security in the manner set forth in subsection (C) of this section and is a California nonprofit corporation funded by the United States of America or one of its agencies, the entity shall not be required to comply with subsection (C)(1) or (C)(2) if the conditions set forth in Government Code Section 66499.3(c) are met.

F.

If a tentative and final or parcel map is required when a mobilehome park is converted to a tenant-owned condominium following petition of at least two-thirds of the tenants expressing their intent to purchase the mobilehome park for that purpose, and if the advisory agency imposes on-site or off-site design or improvement requirements on the subdivider to mitigate a health or safety condition, the subdivider shall enter into an improvement agreement with the county for the satisfaction of any of the requirements not satisfied prior to recordation of the final or parcel map. The subdivider or the successors in interest of the subdivider shall have a period of one year from the date of the agreement to complete the remaining improvements and/or satisfy the design requirements. No bonds or other security devices shall be required to secure the performance of the agreement during this period. If the design or improvement requirements are not completed by the end of the year, the county may sue to enforce the agreement by filing an action for specific performance against the subdivider or the successor in interest of the subdivider in the Superior Court of the county, or the agreement may be extended by mutual consent of the county and the subdivider or successor in interest of the subdivider, subject to the posting of such security in the manner and amounts prescribed by subsections (A) through (E) of this section.

(Ord. 981 § 36, 1991; Ord. 915 § 3, 1989: Ord. 887 § 33, 1988: Ord. 854 § 2 (part), 1987: prior code § 11691.2)

(Ord. No. 1379, § 125, 1-29-2013)