(A) The Planning Commission, or City Council when applicable, may require an applicant to deposit a performance guarantee as set forth herein to ensure compliance and completion of improvements with this chapter. Improvements include, but not limited to, streets, parking, lighting, utilities, sidewalks, drainage, fences, screens, walls, and landscaping.
(B) A performance guarantee, as used herein, shall mean a cash deposit, certified check, irrevocable bank letter of credit or corporate surety bond in the amount of the estimated cost of the improvements to be made as determined by the city in consultation with the applicant. The city is authorized to review cost estimates and conduct periodic inspections of the progress of improvements.
(C) A performance guarantee shall be deposited with the city prior to the issuance of a building permit for the development and use of the land. Upon the deposit of the performance guarantee the city shall issue the appropriate building permit.
(D) The Planning Commission, or City Council when applicable, shall set the period of time completion of improvements in relation to the required performance guarantee. The period will begin from the date of the issuance of the building permit.
(E) The Community Development Director, upon the written request of the applicant, shall rebate portions of the performance guarantee upon determination that the improvements for which the rebate has been requested have been satisfactorily completed. The portion of the performance guarantee to be rebated shall be in the same amount as stated in the itemized cost estimate for the applicable improvement.
(F) The city shall return to the applicant the performance guarantee deposited and any interest earned thereon upon the satisfactory completion of the improvement, as determined by the city, for which the performance guarantee was required. However, the city is not required to deposit the performance guarantee in an interest-bearing account.
(G) In the event the applicant defaults in making the improvements for which the performance guarantee was required within the time period established by the city, the city shall have the right to use the deposited performance guarantee and any interest earned to complete the improvements through contract or otherwise, including specifically, the right to enter upon the subject property to make the improvements.
(H) If the performance guarantee is not sufficient to allow the city to complete the improvements, the applicant shall be required to pay the city any additional costs incurred in completing the improvements. Should the city use the performance guarantee, or a portion thereof, to complete the required improvements, any amounts remaining after said completion shall first be applied to the city’s administrative costs including, without limitation, attorney fees, planning consultant fees, and engineering consultant fees in completing the improvement with any balance remaining being refunded to the applicant.
(I) If the applicant has been required to post a performance guarantee or bond with another governmental agency other than the city to ensure completion of an improvement, the applicant shall not be required to deposit with the city a performance guarantee for that specific improvement. At the time the performance guarantee is deposited with the city and prior to the issuance of a building permit, the applicant shall enter an agreement incorporating the provisions hereof with the city regarding the performance guarantee.
(Ord. 792, passed 12-3-01)