2010-74 Security for Improv agr ORDINANCE NO. 2010-74
AN ORDINANCE OF THE CITY OF MENIFEE AMENDING RIVERSIDE COUNTY
ORDINANCE NO. 460, "SUBDIVISIONS" ARTICLE XVII ADDING A FORM OF SECURITY
FOR IMPROVEMENT AGREEMENTS
The City Council of the City of Menifee does ordain as follows:
Section 1. Findings. The City Council finds as follows:
a. Upon incorporation, the City adopted Riverside County Ordinance No. 460, which,
among other things, implements the Subdivision Map Act; and
b. Article XVII of that ordinance provides the forms of improvement security which will be
accepted for improvements.
c. Because of the economy, it has become difficult, if not impossible, for builders and
developers to obtain security bonds, which also can be at risk if the bonding company
goes out of business; and
d. Article XVII, Section 17.1 presently does not allow the City to accept a lien on real
property as security for improvement son that or on other property; and
e. Govt. Code Section 66499 allows the City to accept a lien on real property as security for
the improvements.
f. After due diligence, the City has determined that, as set out below, after due diligence it
is acceptable to consider a lien on real property as such security.
Section 17.1 (A) is amended to add subsections (5) and (6) to read as follows:
5. A lien upon the property to be divided or other property within the City owned by the
applicant or developer, created by contract or other recorded instrument between the owner and
the local agency, where the public agency finds that the value of the property, including any and
all prior lines, is at least 1.5 times the security amount. Any such contract or document shall be
recorded and thereafter shall be a lien on the real property which has the priority of a judgment
lien in the amount necessary to complete the improvements plus 15% of the City inspection,
testing and contract management. Notwithstanding anything in this Article to the contrary, all or
a portion of the lien may be released or subordinated by the City only when it determines that
there is alternate acceptable security for the improvements or if to do so will not compromise the
completion of the agreed-upon improvements.
Section 3. Effective Date. This ordinance shall be effective 30 days from the date of its
adoption.
PASSED, APPROVED AND ADOPTED THIS 16`h day of March, 2010.
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City of Menifee
Ordinance No. 2010-74 Form of Security for Improvement Agreements
La&L-- ao
Wallace W. Edgerton, Mayor
ATTEST:
Kathy Bennett, City Clerk
Approved as to form:
Elizabeth Martyn, City Attorney
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NIS
Wallace W.Edgerton
Mayor.
Fred Twyman
Mayor Pro.Tem
John V.Denver
Councilmember
Darcy Kuenzi STATE OF CALIFORNIA )
Councilmember COUNTY OF RIVERSIDE ) ss
Scott A.Mann CITY OF MENIFEE )
Councilmember I, Kathy Bennett, City.Clerk of the City of Menifee, do hereby certify that the
foregoing Ordinance No. 2010-74 was duly introduced and placed upon its first
reading at a meeting of the City Council of the City of Menifee on the 2nd day of
March, 2010, and that thereafter, said Ordinance was duly adopted by the City
Council of the City of Menifee at a meeting thereof held on the 161h day of March,
2010 by the following vote:
Ayes: Denver, Kuenzi, Mann
Noes: Edgerton, Twyman
Absent: None
Abstain: None
Kathy Bennett, City Clerk
29714 Haun Road
Menifee,CA 92586
Phone 951.672.6777
Fax 951.679.3843 '..
www.dtyofinenifee.us