(A) In order to guarantee completion of all public off-site and private on-site improvements, including but not limited to: earthwork, erosion control, site utilities, curb, gutter, walks, paving, striping, landscaping, irrigation, sign monuments and site lighting, as shown on the approved site plan or conditions imposed as part of any application granted under this chapter, applicants must provide a financial guarantee and a development contract before the issuance of a building permit.
(B) The development contract must be prepared by the city. The agreement shall define the required work, reflect the terms and guarantee the performance of the work by the applicant.
(C) Any financial guarantee required by the Development Contract guarantees conformance and compliance with the conditions of the application approval and the ordinances of the city. If the conditions are not met, the financial guarantees may be forfeited to the city to cure the default or reimburse the city the cost of enforcement measures.
(D) The amount of the financial guarantee must be established by the city, based upon an itemized estimate of the cost of all required work as documented by the applicant.
(1) An irrevocable letter of credit or similar financial security as approved by the City Attorney, must be posted with the city in the amount of 95% of the approved estimated cost. This financial security must be automatically renewed and shall not expire until released by the city.
(2) The remaining 5% of the approved estimated costs must be posted with the city in cash to be held in a non-interest bearing city account.
(E) An engineering/administrative escrow must be paid and held in a non-interest bearing city escrow account, to be used to cover costs of city services, expenses and materials provided in reviewing and processing the application. This includes, but is not limited to staff time, legal expenses incurred in the application approval, office and field checking, and similar expenses.
(1) For projects that include public off-site improvements, the engineering/administrative escrow must be 6½% of the estimated costs of the project, but not less than $1,000. For projects with only on-site private improvements, the cash escrow account shall be 3% of the estimated project cost but not less than $1,000.
(2) If at any time the balance of the engineering/administrative escrow account is depleted to less than 5% of the originally required cash escrow amount, the applicant must deposit additional funds in the account sufficient to cover all costs to be incurred by the city.
(F) Upon completion and city acceptance of the project, any remaining financial securities must be returned to the depositor by the Finance Department after all claims and charges have been paid and following approval by City Council.
(1) If part of a project has been completed, inspected and accepted by the city, the financial securities posted may be reduced by the city and partial payment be returned to the applicant.
(2) Landscaping improvements may not be deemed complete until the city has verified survivability of all required plantings through two winter seasons, which is defined for the purpose of this chapter as October 31 through May 31.
(G) The city may hold the financial guarantee until the project is completed and approved by the city.
(1) The financial guarantee can only be released by the City Council.
(2) Periodically, the amount of the financial guarantee may be reduced by the City Council based on the projects progress, as determined by the city.
(3) Reduction and release actions will only be initiated after proper request from the applicant.
(H) Failure to comply with the conditions of the application approval, the development contract, or a city ordinance may result in forfeiture of the financial guarantee to the extent necessary to achieve the project’s total compliance with the approved site plan.
(Ord. 2000-936; Am. Ord. 2008-1092, passed 8-25-08)