04g - Tract/Parcel Map Improvement Bond Processing

Revised on 06-18-2020

A Tract/Parcel Map Improvement Bond is used as a guarantee that a subdivider/owner shall, among other things, agree to construct and install the improvements at the subdivider/owner’s expense; shall warrant all work performed against any defective work or labor done, or defective materials furnished for a period of one year following acceptance by the City Engineer of all improvements; and shall agree to reimburse the City for all costs and reasonable expenses and fees incurred by the City in enforcing the terms of the agreement including reasonable attorney’s fees.  The term of the Improvement Security shall begin on the day it is approved by the City Council and shall continue until the work is accepted by the City Engineer.

The subdivider/owner will be required provide improvement securities in one of the following ways:

  1. A surety bond or bonds payable to the City, executed by the subdivider/owner as principal and one or more corporate sureties authorized to act as surety under the laws of the State of California and having a certificate of authority as acceptable surety on Federal bonds; or
  2. A deposit of cash; or
  3. A deposit of negotiable United States Treasury bonds or notes, for which the faith and credit of the United States are pledged for the payment of principal and interest, payable to the bearer; or
  4. A deposit of fully insured certificates of deposit issued by a financial institution whose deposits are insured by an instrumentality of the Federal Government, together with a nonrevocable assignment to the City that pledges that the funds are on deposit and guaranteed for the performance of the Improvement Agreement. Such certificates of deposit may provide that interest shall be paid to the depositor. The assignment shall allow the City to withdraw the principal amount, or any portion thereof, upon declaration of default by the Board of Public Works without the necessity of any further consent by the depositor. The Improvement Security shall be on a form prepared by the City Engineer, shall be a joint and several obligation, and shall be in an amount estimated by the City Engineer to be reasonably necessary to complete the construction and installation of all of the improvements required to be done pursuant to the Improvement Agreement and to warrant the work against defective work or labor done, or defective materials furnished in the performance of the work.

The Improvement Security shall contain the further conditions that in addition to the face amount, all parties executing the security shall be firmly bound under a continuing obligation for payment of all reasonable costs, expenses and fees, including reasonable attorney’s fees incurred by the City in enforcing the obligation secured thereby; that all parties agree to any extensions of time within which to construct and install the improvements; and that all parties further agree to such alterations of or additions to the work as may be deemed necessary by the City Engineer provided the cost increase does not exceed 10 percent of the value of the Improvement Security.

Governing Code(s)
Processing Procedures

Before a subdivision map that requires public improvements can be recorded, the following documents are mandatory:

  1. Applicant should complete the Application for Bond Preparation
  2. An Improvement Agreement and Contract (LAMC 17.08(G)(2)(a)
  3. A performance bond
  4. A labor and material bond
  5. Possible survey monument bond (cash only) and/or an oak tree bond may be required.

    Screen shot of a Bond Processing Application