CC Resolution 1995-078^!I RESOLUTION95- 78
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA ESTABLISHING ALLOWABLE FORMS
OF SECURITY FOR SUBDIVISION IMPROVEMENTS
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 speci*, by
resolution, the forms of and acceptance standards for subdivision imp rovernent security; and
WHEREAS, it is expedient that the City establish evidence of the stability and rel* ability 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, DEThRMINED, AND ORDERED by the City
Council of the City of La Quinta, in regular session assembled on the 17 th day of
October 1995, 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
*jtyt5 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.
C) Certificates of deposit, in the City*s name, trom 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 uR*2* or better on the
Los Angeles County Treasurer's office Investment Data Exchange *indlay GFI Bank
Ratings).
D) Irrevocable letters of credit, issued by one or more financial institutions meeting the
requirements of Paragraph C), pledging that the fbnds necessary to carry out the
completion of the improvements are on deposit, guaranteed for payment, and
constitute a trust fluid 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 fluids available pursuant to the letters of credit will be paid upon the
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the completion of the improvements are on deposit, guaranteed for payment, and
constitute a trust flind which is not subject to levy or attachrnent by any creditor
of the depositor until released by the City. Letters of credit shall guarantee that
all or any portion of the ftinds 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.
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 than 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 St ate, federal or
local government.
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, deposited, at the City's option, with the City or a
responsible escrow agent or trust company.
SE*ON 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 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).
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^!I Reso 95-78
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
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta City Council held
on this 17th Day of October, 1995, by the following vote, to wit:
AYES: Council Members Bangerter, Cathcart, Perkin8, Sniff,
Mayor Pena
NOES: None
ABSENT None
ABSTAIN None
ATTEST
*. JUH6 LA, City Clerk
APPROVED AS TO FORM
DAWN HONEYWELL, ity Attorney
4-
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