HomeMy WebLinkAboutOrd 2009-3132ORDINANCE NO. 3132
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
CHAPTER 15.04, SECTION 15.04.225, AND CHAPTER 18.16,
SECTION 18.16.310, OF THE CHULA VISTA MUNICIPAL
CODE
WHEREAS, the Chula Vista Municipal Code requires that the City retain surety bonds
associated with land development projects until all work has been completed and a notice of
completion is filed; and
WHEREAS, the recent down turn in economic activity 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 the estimated costs of remaining improvement work; and
WHEREAS, 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, BE IT ORDAINED that the City Council of the City of Chula
Vista does as follows:
SECTION I. 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 county recorder (recorded copy to
city engineer) for improvements accepted by this city.
2. The acceptance of completed Form PW-E-106 ("request for release of bonds")
submitted by the permittee.
Ordinance No. 3132
Page 2
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 amount not to exceed seventy-five percent of the original security required pursuant to
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-
yeaz 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
of a rider 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 IL That Chula Vista Municipal Code Chapter 18.16, Section 18.16.310, be amended
to read as follows:
18.16310 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 final 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 dollaz 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 material for 35 days
after completion and acceptance of the work. Following such 35-day period, this labor and
material security may be reduced to an amount not less than the total of all claims on which an
action has been filed and notice thereof given in writing to the city.
SECTION III. EFFECTIVE DATE.
This ordinance will take effect and be in force thirty days after final passage.
Ordinance No. 3132
Page 3
Presented by
Director of Public
Approved as to form by
B C. Miesfel
City Attorne
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 2 ] st day of July 2009, by the following vote:
AYES: Councilmembers: Bensoussan, Ramirez, and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: Castaneda and McCann
Cheryl Cox, yo
ATTEST:
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onna R. Noms CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Noms, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 3132 had its first reading at a regulaz meeting held on the 14th day of July 2009
and its second reading and adoption at a regular meeting of said City Council held on the 21st
day of July 2009; and was duly published in summary form in accordance with the requirements
of state law and the City Charter.
Executed this 21st day of July 2009.
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Donna R. Norris, M ,City Clerk