§ 16.12.050. Release of security.*

The improvement security required hereunder shall be released in the following manner:

A.

Security given for faithful performance of any act or agreement shall be released by the director of public works only upon the final completion and acceptance of the act or work by the city. No partial release of the security as the work progresses shall be permitted.

B.

Security securing the payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, after passage of the time within which claims of lien are required to be recorded pursuant to Article 3 (commencing with Section 3114) of Chapter 2 of Title 15 of Part 4 of Division 3 of the Civil Code and after acceptance of the work, be reduced to an amount equal to the total claimed by all claimants for whom claims of lien have been recorded and notice thereof given in writing to the city, and if no such claims have been recorded, the security shall be released in full.

Such release shall not apply to any required guarantee and warranty period nor to the amount of the security deemed necessary by the city for such guarantee and warranty period nor to costs and reasonable expenses and fees, including reasonable attorneys' fees. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.

C.

Security given for the guarantee or warranty of work shall be released upon the expiration of the period for which it is given.

(Ord. 519, 1987)

*  For state law concerning release of security, see Government Code Section 66499.7. For the time periods governing filing of lien claims, see Civil Code Section 3114 et seq.