HomeMy WebLinkAboutOrd 1995-2625 ORDINANCE NO. 2625
AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
CHAPTER 18.16 OF THE CHULA VISTA MUNICIPAL CODE IN
ORDER TO ALLOW FOR THE POSTING BY DEVELOPERS OF
ALTERNATIVE FORMS OF SECURITY FOR PUBLIC OR PRIVATE
IMPROVEMENTS REQUIRING COMPLETION GUARANTIES IN
FAVOR OF THE CITY AND MAKING MINOR TECHNICAL
CORRECTIONS
WHEREAS, the City Council has determined that accepting alternative forms of security
for the completion of public and private improvements within the City, under certain limited
circumstances, is in the best interest of the City by reducing development costs for private
developers; and,
WHEREAS, the City desires to amend Chapter 18.16 of the Chula Vista Municipal Code
in order (1) to provide for the acceptance of such security, (2) to establish the terms and
conditions for such acceptance, and (3) to make other minor technical corrections thereto;
NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows:
SECTION h Sections 18.16.150 and 18.16.220 of Chapter 18.16 of the Chula Vista
Municipal Code are hereby amended to read as follows:
Sec. 18.]6.150 ~ty council determination authority-Requirements to be met.
A. In the event that all improvements required or conditions imposed as conditions of approval under
the provisions of this chapter or by law are not completed before the filing of the f'mal map, the
council shall enter into an agreement for the installation of improvements with the subdivider. In
such case, when the agreement and bond, deposit, instrument of credit or alternative form of
security have been approved by the city attorney as to form and by the director of public works as
to sufficiency, the council may consider the final map. All signatures except those of the city clerk,
city attorney, title company, clerk of the board of supervisors and the county recorder shall be
affixed to the title sheet at least eight days prior to council consideration of the final map. The
abstract of title certificate may be executed at any time prior to council consideration of the final
map. The bond and agreement provided for in the preceding section shall be filed with the city
clerk within sixty days from date of approval and acceptance of the final map. If compliance is not
so had, then the council approval shall be automatically void and a f'mal map must be resubmitted
to the city eoundl.
B. The coundl shall approve said map if it is determined to be in conformity with the requirements
of this chapter and the conditions of approval ofthe tentative map. If it is not in conformity, it shall
be disapproved, and the coundl shall advise the subdivider of its disapproval and the reason or
reasons therefor. The city coundl shall take action as provided herein within ten days or at its next
meeting following the submittal of the report by the director of public works unless the time for
taking action shall have been extended by mutual consent of the city eoundl and the subdivider.
Ordinance No. 2625
Page 2
See 18.16.220 Cons~ction l~requisites--Securiry arrangements--Generally.
The subdivider shah f'de surety to guarantee completion of improvements with the improvement
agreement as follows:
A. Bonds. All bonds shall be executed by a surety company authorized to transact a surety business
in California, and shah be approved as to form by the City Attorney, and shah include:
1. A faithful performance bond in an mount deemed sufficient by the Director of Public
Works to cover up to fifty percent (50%) of the total cost of all required on-site and
adjacent off-site improvements including twenty-five percent (25%) of grading and slope
planting expenses as applicable.
2. A labor and material bond in a like mount.
3. A monumentation bond in an mount stipulated by the subdivider's engineer to cover the
cost of placing lot comers and other related monuments.
B. Cash Deposits. In lieu of the faithful performance and labor and material bonds, the subdivider may
submit cash deposits under the conditions hereinafter described. Total cash deposit surety shah
contain:
1. A faithful performance cash deposit in an mount deemed sufficient by the Director of
Public Works to cover fifty percent (50%) of the total cost of all required on-site and
adjacent off-site improvements including twenty-five percent (25%) of grading and slope
planting expenses as applicable.
2. A labor and material cash deposit in a like mount.
3. A momtmentation cash deposit in an mount stipulated by the subdividers engineer to
cover the cost of placing lot comers and other related monuments. Upon approval by the
City Engineer of the required monument setting work, and upon subdivideis request, such
cash deposit may be released as payment directly to the engineer or surveyor performing
such work
Disbursements from cash deposits shall be made in accordance with separate agreement between
the subdivider and the city. The Required Bookkeeping Fee(s) shah be submitred with each such
bond. Disbursements from a cash deposit fried with an approved escrow agency shah be made in
accordance with separate agreement between the subdivider and the City. Disbursements from a
cash deposit in any instance shah not be permitted unless and until authorized in writing by both
the subdivider and the Director of Public Works.
C. Instruments of Credit. In lieu of the faithful performance and labor and material bonds or cash
deposits, the subdivider may submit instruments of credit under the conditions hereinafter
described. Such instruments of credit shall be issued by a financial institution subject to regulation
by the state or federal government in a form and content as approved by the City Attorney, and
shah pledge that the funds necessary to meet the performance are on deposit and guaranteed for
payment and agree that the funds designated by the instniment shall become trust funds for the
purposes set forth in the instrument. An instrument of credit shah be accompanied by a current
statement of assets and a resolution of the Board of Directors of the responsible organization
authorizing the issuance and the amount of the letter. An instrument of credit shall be accompanied
Ordinance No. 2625
Page 3
by a statement setting forth the date upon which the responsible organization was estabhshed.
Instruments of credit shah provide surety as follows:
1. A faithful performance instrument of credit in an amount deemed suffleient by the Director
of Public Works to eover fifty pereent (S0%) of the total cost of all required on-site and
adjacent off-site improvements including twenty-five percent (2S%) of grading and slope
planting expenses as applieable,
2, A labor and material insU-ument of credit in a like amount.
3. A monumentalion instrument of credit in an amount stipulated by the subdivider's engineer
to cover the cost of placing lot comers and other related monuments.
D. Other. Subject to the prior approval of City Council, in its sole discretion, in lieu of a surety bond,
cash deposit or instrument of credit, alternative forms of security may be acceptable provided that:
(1) in the determination of the City Engineer, the costs of completing the improvements being
secured for a project do not exceed $5,000,000; (23 in the determination of the Finance Director,
the proposed security is backed by a guaranty and/or pledged assets with a net value equal to at
least S0 times the estimated cost of the improvements being secured; and (3) in the determination
of the City Attorney, there exists adequate remedies to access such security in the event that the
party obligated to construct such improvements defaults on such obligation. The form of such
security and the terms and conditions upon which such security may be accepted are subject to the
approval of the City Attorney and the City Engineer. Such conditions shah include, at a minimum
Ca) the right of the City to require that conventional replacement security be submitted for any
uncompleted secured improvements at the time a certificate of occupancy is issued for the project;
and (b) developees agreement to pay the City's attorneys fees and costs if the City must enforce its
remedies under the alternative security arrangement.
E. Endorsement of Certificates. The City Clerk and City Attorney shah not endorse or sign their
respective certificates contained on the final map unless and until improvement security as
hereinabove specified has been posted.
F. Applicability to Parcel Maps. The improvement security requirements stipulated above are
applicable to any parcel map for which the installation of any public improvements or grading is
a condition of approval.
SECTION II: Sections18.16.230, 18.16.240and 18.16.250of Chapter 18.16of the
Chula Vista Municipal Code are hereby deleted in their entirety:
SECTION I Ih Section 18.16,340 is hereby added to Chapter 18.16 of the Chula Vista
Municipal Code to read as follows:
See 18.16.340 Improvement Security Required By Reason of Otherthan Subdivision of Land-Applicability
of this Clmpter.
To the extent consistent with other applicable provisions of this Code, and all other applicable laws
or regulations, the standards for performance, security obligations, and other requirements set fo~ah in this
Chapter with respect to subdivision improvements shah also apply, under circumstances approved by the
Ordinance No. 2625
Page 4
City Attorney and the City Engineer, to any and all other work or improvements conswucted within the City
requiting completion guaranties in favor of the City.
SECTION IV: This ordinance shall take effect and be in full force and effect thirty (30)
days after its second reading and adoption.
Presented by Approved as t~/~~~,
Chris Salomone Bruce M. Boogaard
Community Development Director City Attorney
Ordinance No. 2625
Page 5
PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista,
California, this 14th day of February, 1995, by the following vote:
AYES: Councilmembers: Fox, Moot, Padilia, Rindone, Horton
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Shirley !,H'0rton, Mayor
ATTEST:
Beverly ~. Authelet, City Cler~
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Ordinance No. 2625 had its first reading on February 7, 1995, and its second
reading and adoption at a regular meeting of said City Council on the 14th day of February,
1995.
Executed this 14th day of February, 1995.
I~verlyA. Authelet, City (~lerk