18.26.030 Subdivision agreement and performance—Payment—Warrantee bond for improvements required.

(A) Prior to city council consideration of the final map, the subdivider shall execute a subdivision agreement between himself and the city. The agreement shall provide for installation of all improvements as shown on the approved plans and specifications for the project, and specify the period of time within which he or his agent or contractor shall complete all improvement work to the satisfaction of the city engineer. In the event the subdivider fails to complete such work within said period, the agreement shall include provisions for the city to complete all improvements and recover the full cost and expense thereof from the subdivider. Such agreement may also provide the following:

(1) For the construction of the improvements in phases, if applicable and approved by the city council;

(2) For an extension of time under conditions therein specified;

(3) For the termination of the agreement upon the completion of proceedings under an assessment district act 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.

(B) The subdivider shall also file with the aforesaid agreement, to assure his full and faithful-performance, a financial security for such sum as is deemed sufficient by the city engineer to cover the cost of said improvements and incidental expenses and to cover replacement and repair of existing streets, other improvements damaged in the development of the subdivision, and to cover fees. A labor and materials bond and a separate warrantee bond in amounts satisfactory to the city engineer are also required. Such bonds shall be executed by a surety company authorized to transact a surety business in the state of California and must be satisfactory to and approved by the city attorney as to form and by the city engineer as to sufficiency. In lieu of said bond, the subdivider may deposit with the city treasurer cash in an amount fixed by the city engineer.

(C) In the event the subdivider fails to complete all improvement work in accordance with the provisions of this title, and the city completes it, or if the subdivider fails to reimburse the city for the cost of inspection, engineering and incidental expenses for the work performed, and to cover the cost of replacement and repair of existing streets or other improvements damaged in the development of the subdivision, the city shall call on the surety for reimbursement, or shall appropriate from any cash deposit funds for reimbursement. If the amount of the surety bond or cash deposit is less than all costs and expenses incurred by the city, the subdivider shall be liable to the city for such difference and applicable attorney's fees.

(D) No extension of time, progress payments from cash deposits, or releases of surety bond or cash deposit shall be made except upon certification by the city engineer that work covered thereby has been satisfactorily completed, and upon approval of the city council.