HomeMy WebLinkAbout2009/07/21 Item 2
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ORDINANCE OF TIlE CITY O~'C.~~A VISTA
A.\1E"NTIlliG CHAPTER 15.04, SECTION 15.D4.225,
A.1\ilJ CHAPTER 18.16, SECTION 18.16.310, OF THE
CHULA VISTA MUNICIPAL CODE
ORDINANCE NO.
WHEREAS, the Chula Vista Mlli'1icipaI Code requires L':1at the Ciiy reiain sureiy
bonds associated with land development projects until all work has been completed and a
notice of completion is filed; and
\VHEREAS, the recent dov.n turn in economic activiiy has created a climate
where builders are trying to lower costs to remain competitive; and
WHEREAS, several builders have requested that the City authorize the partial
reduction in the bond amounts to correspond with t':1e estimated costs of remaining
improvement work; and
\VHEREAS, many of the City's major developments in the eastern territories
require very large bonds securing millions of dollars of public improvements, grading
and landscaping; and
WHEREAS, the retention of the full bond amount costs developers additional
bond premiums for work that has already been completed; and
WHEREAS, the added costs of maintaining bonds at the full amount has
contributed to several projects being placed on hold.
NOW, THEREFORE, that the Ciiy Council of the Ciiy Of Chula Vista does, hereby,
ordain as follows:
SECTION 1. That Chula Vista Municipal Code Chapter 15.04, Section 15.04.225 be.
amended to read as follows:
15.04.225 Release of bonds/security.
A. Landscaping, Irrigation, Grading, and Drainage Bonds and other security for these
purposes shall be released upon the latter of the following:
1. 35 days after filing a "notice of completion" with the couniy recorder (recorded
copy to city engineer) for improvements accepted by this city.
2. The acceptance of completed Form PW-E-106 ("request forrelease of bonds")
submitted by the permittee.
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B. Notwithstanding the foregoing Section 15.04.225(A), the Director of Public Works
may approve the partial release of the faithful performance security after the completion
of all improvements per approved plans, as determined by the City Inspector, in his sole
discretion, in an amOlmt not to exceed seventy-five percent of the original security
required pursuantto Chapter 15, Section 15.04 of the CVMC, provided the remaining
balance of the security for faithful performance equals or exceeds the estimated cost, as
determined by the Director of Public Works, in his sole discretion, to complete the
outstanding work.
C. Prior to the release of security for faithful performance for landscaping bonds, a
maintenance bond in the amount of fifteen percent of the original security shall be
provided to cover the one-year maintenance period. Such bond shall not be released until
the end of the maintenance period. In lieu of a providing a maintenance bond, the faithful
performance security may be reduced to .fifteen percent of the original security amount
An addendum to the bond in the form ofarider or equivalent document containing
language requiring the maintenance of improvements as an obligation to be fulfilled
under the bond shall be required and provided to the City .
SECTION II. That Chula Vista Municipal Code Chapter 18.16, Section 18. ]6.310, be
amended to read as follows:
18.16.310 Security arrangements - Release of surety.
A. Improvement security given for faithful performance of the agreement shall be
released upon the performance of the act secured or [mal completion and
acceptance of the required work.
Notwithstanding the foregoing, the Director of Public Works may approve the
partial release of the faithful performance security after the completion of all
improvements in accordance with approved plans, to the satisfaction of the City
Inspector in an amount not to exceed seventy-five percent of the dollar amount of
the original security for faithful performance, provided the remaining balance of
such security for faithful performance equals or exceeds the estimated cost, as
determined by the Director of Public Works, in his sole discretion, to complete
the outstanding work required under the Subdivision Improvement Agreement
and/or any Supplemental Subdivision Improvement Agreement.
B. The 50 percent labor and material bond shall be retained to secure payment to the
contractor, his subcontractors and to persons renting equipment or furnishing labor or
SECTION III. EFFECTIVE DATE.
Richard A. Hopkins
Director of Public Warks
This ordinance ",ill take effect and be in force thirty days after final passa e.
Presented by
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