A. Security given for faithful performance of any act or agreement shall be released upon the final completion and acceptance of the act or work subject to the provisions of subsection B of this section.

B. The city council may release a portion of the security in conjunction with the acceptance of the performance of the act or work as it progresses upon application therefor by the subdivider. No such release shall be for an amount less than twenty-five percent of the total improvement security given for faithful performance of the act or work. Security shall not be reduced to an amount less than fifty percent of the total improvement security given for faithful performance until final completion and acceptance of the act or work. In no event shall the city council authorize a release of the improvement security which would reduce the security to an amount below that required to guarantee the completion of the act or work and any other obligation imposed by this title, the Subdivision Map Act or the improvement agreement.

C. Security given to secure payment to the contractor, his subcontractors and to persons furnishing labor, materials or equipment may, six months after the completion and acceptance of the act or work, be reduced to an amount equal to the amount of all claims therefore filed and of which notice has been given to the city council, plus an amount reasonably determined by the city engineer to be required to assure the performance of any other obligations secured thereby. The balance of the security shall be released upon the settlement of all such claims and obligations for which the security was given.

D. No security given for the guarantee or warranty of work shall be released until the expiration of the period thereof. (Ord. 90-1 (part), 1990)