March 28, 2006

SUBJECT: Ordinance Amending Section 18.20.260 of the Sunnyvale Municipal Code (SMC), a section of the City’s subdivision ordinance relating to Final or Parcel Map – Improvement Security, to conform with recently enacted state law.

REPORT IN BRIEF

The Legislature has amended a section of the Subdivision Map Act to change the way that the City releases security for subdivision improvements. The proposed amendment to SMC section 18.20.260 conforms the City’s subdivision ordinance to the amended statute.

BACKGROUND

In 2005, the Legislature passed AB 1460 to amend Government Code section 66499.7.  The amendment establishes a procedure that will remain in effect until January 1, 2011. The amendment requires a city to approve a partial release of security when a subdivider has constructed 80% or more of required improvements in an approved subdivision.

EXISTING POLICY

SMC section 18.20.260, as currently written, does not conform with the requirements of Government Code section 66499.7, as amended.

DISCUSSION

When the City approves a subdivision, it requires the subdivider to deposit security to cover the cost of improvements that the subdivider is required to install as a condition of the map.  In that way, if the subdivider does not build the street, sidewalk, storm drain, water, sewer, undergrounding or other required improvements, the City can exercise its rights under the bond or other security to complete the improvements.  This particular statute sets forth a specific procedure for partial release of security after a subdivider has completed 80% of the improvements.  This statute is unlikely to have a significant impact in Sunnyvale because there are no large subdivisions that require extensive infrastructure.  In this community, the developer would probably be able to completely finish the subdivision improvements during the time required to apply for and obtain a partial release of security.  Nevertheless, Sunnyvale is required to update its ordinance to conform with statutory amendments and this amendment makes the required changes.

FISCAL IMPACT

No identifiable impact.

PUBLIC CONTACT

Public Contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web site, and the availability of the report in the Library and City Clerk’s office.

ALTERNATIVES

1. Introduce and waive reading of text of ordinance amending Sunnyvale Municipal Code section 18.20.260.

2. Decline to approve the proposed amendment to Sunnyvale Municipal Code section 18.20.260.

RECOMMENDATION

Approve the proposed amendment and adopt the ordinance amending Sunnyvale Municipal Code section 18.20.260.

Reviewed by:

David E. Kahn, City Attorney

City Attorney’s Office

Prepared by:  Natalie E. West, Sr. Assistant City Attorney

Attachments

1. Ordinance Amending Sunnyvale Municipal Code section 18.20.260.