04f - Securities / Bond – General Requirements

WHEN IS A SECURITY REQUIRED

In order to guarantee the construction of proposed public works improvements or the protection or replacement of existing public works improvements, the owners or developers must provide security.  This security is commonly referred to as the bond. The bond also serves the following purposes:

1. Work will be performed according to City Engineer standards.
2. Work will be completed in a specified time and at no cost to the City.
3. Contracted labor and materials for subdivision improvements will be paid.
4. Any "B" Permit fee deficits will be paid.
5. Any improvement conditions, as set forth by the Advisory Agency, Planning Commission, Council, etc., will be met.

AUTHORITY FOR THE REQUIREMENTS OF SECURITIES

State of California:  The Subdivision Map Act, and the Streets and Highways Code are the underlying authorities for the posting of bonds for the construction of improvements in connection with tract maps, condominiums, parcel maps, reversions to acreage and vacations of public right of way.

City of Los Angeles:  The Los Angeles Municipal Code provides for the posting of bonds in conjunction with zone changes, conditional uses, R3 Ordinance (Highway Dedication and Improvement Ordinance), oak tree preservation, voluntary improvements, private streets, and the import-export of earth.

PERMITS THAT REQUIRE A SECURITY

The following are a list of items that require a security.  Specific procedures on how to process the specific bonds can be found under “Bond Processing Procedures by Bond Type”.

1. A Permits (LAMC 62.109):  Generally, at the discretion of the District office but always required when there is a street tree installation.
2. B Permits (LAMC 62.110):  All “B” Permits require the applicant to post a bond.  B Permit work requires formal plans that must be approved by the City Engineer.
3. E Permits (LAMC 62.02):  An "E" Permit is required where excavation is to take place adjacent to or within the public right of way. This permit may require lateral support to protect the public right of way.  This permit will not be issued until the applicant has made a special cash deposit. Whenever a cash deposit exceeds $1,000, the applicant may post a surety bond in an amount equal to or in excess of the cash deposit.

PROJECTS THAT REQUIRE A SECURITY

The City requires securities for the following types of projects.

1. Subdivisions, Tract Maps and Parcel Maps:  All Subdivisions, Tract Maps and Parcel Maps require the applicant to post a security.  Before a subdivision can be recorded (one that requires public improvements), the following three documents are mandatory.
   1. Improvement agreement and contract
   2. Performance bond
   3. Labor and material bond.

Additionally, a survey monument bond and/or an oak tree bond may be required.

2. General Improvements:  General improvements are public improvements which are required in conjunction with the following:
   1. Planning actions (other than subdivisions, e.g. zone changes, variances, conditional uses, etc.)
   2. Voluntary improvements
   3. Street and alley vacations
   4. Private streets
   5. Parcel map exemptions

The acceptable types of security for general improvement projects are:

• • Surety bond
  • Cash
• R3 Improvements (Highway and Collector Street Dedication and Improvement – LAMC 12.37):  An R3 improvement is any improvement required under LAMC 12.37, Highway and Collector Street Dedication and Improvements.  The acceptable types of security for R3 Improvement projects are:
  • Surety bond
  • Cash
• Import / Export (Haul Route) - LAMC 62.202:  As a condition of a permittees Grading Permit, an import/export security shall be required from a permittee where the import or export of more than 100 cubic yards of earth materials is within a hillside area.
  
  The security shall be sufficient to cover the cost of repair of any damage to the public streets and any public facilities therein and the cost of removal of any earth materials or other debris deposited therein, reasonably expected to result from the permittee’s operations.
  
  The acceptable types of security for Import / Export projects are:
  • Surety bond
  • Cash
• Excavation - Lateral Support:  Any excavation made in the public right of way or on private property abutting thereto where the Lateral support of the public right of way is imperiled shall require an excavation - lateral support bond.
  
  The acceptable types of security for Excavation - Lateral Support projects are
  • Surety bond
  • Cash