Sec. 21-13-3. Release of improvement security.

The security furnished by the subdivider may be reduced in whole or in part in the following manner:
(1) Security given for faithful performance of any act or agreement may be released upon the performance of the act or final completion and acceptance of the required work. The city engineer may earlier authorize partial release of the security upon the corresponding partial performance of the act or the acceptance of the work as it progresses, consistent with the provisions of Section 66499.7 of the Subdivision Map Act.
(2) After passage of the time within which claims of lien are required to be recorded pursuant to Civil Code Section 3114 et seq., security securing payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall 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 council. If no claims have been recorded, the security shall be released in full. Such release shall not apply to any required guarantee and warrant 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, as set forth in the Section 21-13-2. (Ord. No. 1500, § 3 (part).)