CC Resolution 1996-027192731
RESOLUTION 96-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA ESTABLISHING ALLOWABLE
FORMS OF SECURITY FOR SUBDIVISION IMPROVEMENTS
AND REPEALING RESOLUTION NUMBER 95-78
WHEREAS, the City Council of the City of La Quinta did adopt Ordinance No.
272 revising Chapter 13 of the La Quinta Municipal Code relating to subdivision
regulations; and,
WHEREAS, said Ordinance No. 272 requires that the La Quinta City Council
specify, by resolution, the forms of and acceptance standards for subdivision
improvement security; and
WHEREAS, it is expedient that the City establish evidence of the stability and
reliability of financial institutions and sureties providing security for subdivision
improvements; and
. WHEREAS, the establishment of such evidence and the administration of
certain forms of security require the expenditure of time, the acquisition of
documentary evidence, and/or the consultation of legal advice or assistance, each of
which result in significant cost to the City; and
WHEREAS, the costs of administration of the subdivision of property are rightly
borne by the entity subdividing the property;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the
City Council of the City of La Quinta, in regular session assembled on the 7th day of
May, 1996, as follows:
SECTION 1: Improvement security for subdivisions within the City of La Quinta
shall conform with Section 66499 of the California Government Code and the
following:
(A) A cash deposit with the City or a responsible escrow agent or trust
company, at the City's option.
(B) Surety bonds, of the form specified in Section 66499.2 of the California
Government Code, issued by sureties listed in the U.S. Department of
Treasury Circular 570 (latest version) listing of institutions authorized to
issue bonds in the State of California and the bonding limitations of
those institutions.
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Resolution No. 96-27
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(C) Certificates of deposit, in the City's name, from one or more financial
institutions subject to regulation by the state or federal government and
having a financial quality rating of "A" or better and a commitment
reliability rating of "R-2" or better on the Investment Data Exchange (of
the Los Angeles County Treasurer's office).
(D) Irrevocable letters of credit, issued by one or more financial institutions
meeting the requirements of Paragraph (C), pledging that the funds
necessary to carry out the completion of the improvements are on
deposit, guaranteed for payment, and constitute a trust fund which is
not subject to levy or attachment by any creditor of the depositor until
released by the City. Letters of credit shall guarantee that all or any
portion of the funds available pursuant to the letters of credit will be
paid upon the written demand of the City and that such written demand
need not present documentation of any type as a condition of payment,
including proof of loss. The duration of any such letter of credit shall be
for a period of not less than one year from the execution of the
agreement with which it is provided and shall state, on its face, that the
letter of credit will be automatically renewed until such time that the
City authorizes its expiration or until sixty (60) days after the City
receives notice from the financial institution of intent to allow the
expiration of the letter of credit.
(E) A lien upon the subdivided property, if the City finds that it would not
be in the public interest to require the installation of the improvements
sooner that two (2) years after recordation of the final map or parcel
map for which the improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the
improvements secured thereby and shall include the power of sale of the
real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and
appurtenances thereunto belonging, or in any wise appertaining, and the
reservations, remainders, rents, issues, and profits thereof. The
collateral value of the property shall be established at the subdivider's
expense through an appraisal approved by the City.
(F) When any agency of the state, federal, or local government provides at
least twenty percent (20%) of the financing for the improvements to be
completed, security may be an instrument of credit from an agency of
the state, federal or local government.
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Resolution 96-27
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(G) When the subdivider is a non-profit organization, security may be
negotiable bonds, of the kind approved for securing deposits of public
moneys with the City or in favor of the City, as specified in Section
16430 of the California Government Code, deposited, at the City's
option, with the City or a responsible escrow agent or trust company.
SECTION 2: The administrative fee shall be applicable to the subdivision
(final map, parcel map or waiver of parcel map) rather than to individual security
instruments. The fee shall be paid separately for each different form and/or source
(surety or financial institution) of security initially submitted and for substitution of
securities or substitution of real property serving as collateral for lein agreements, but
shall not be required for submittal of warranty security if the warranty security is of
the same form and from the same source as the performance security it replaces.
The fees, to be paid at time of submittal of security, shall be as follows:
(A) For certificates of deposit and letters of credit as described in
Paragraphs (C) and (D) of SECTION 1, for which establishment of
evidence of reliability of the financial institution requires the City's
membership in the Investment Data Exchange, the subdivider shall pay
an administrative fee of one hundred fifty dollars ($150.00).
(B) For liens on real property as described in Paragraph (E) of SECTION 1,
for which the City will prepare lien agreements and subordination
agreements, administer valuation of the real property and administer the
agreements over the life of the lien, all of which require legal assistance
and financial advice, the subdivider shall pay to the City an
administration fee of one half of one percent (0.5%) of the estimated
cost of the improvements secured but not less than five hundred dollars
($500.00) nor more than five thousand dollars ($5,000.00).
SECTION 3: Resolution Number 95-78 is hereby repealed.
SECTION 4: The City Clerk is hereby authorized and directed to record
a certified copy of this Resolution in the office of the County Recorder of Riverside
County, California.
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Resolution No. 96-27
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the La
Quinta City Council held on this 7th Day of May, 1996, by the following vote, to wit:
AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor
Holt
NOES: None
ABSENT: None
ABSTAIN: None
GLENDA L. HOLT, Mayor
City of La Quinta, California
City of La Quinta, uamornia
APPROVED AS TO FORM:
J
DAWN HONEYWELL, City Attorney
City of La Quinta, California
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192731
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss.
CITY OF LA QUINTA )
I, SAUNDRA L. JUHOLA, City Clerk of the City of La Quinta, California, do hereby certify
the foregoing to be a full, true and correct copy of RESOLUTION NO. 96-27 adopted by the
La Quinta City Council in a regular meeting on May 7, 1996 and has not been repealed or
amended.
SAUNDRA L. JUHOLA, City Clerk
City of La Quinta, California