(A) In general. Whenever the city requires or obtains from any person a cash deposit, security, bond, financial guarantee or other cash payment (a “deposit”) in connection with an approval, permit, license or other authorization pursuant to any zoning or subdivision approval, this chapter or § 31.152 of this city code, such deposit shall be governed by the terms and provisions of this section, whether or not this section is referenced in the authorization or any code provision relating to the authorization. Notwithstanding the foregoing, any surety bond, letter of credit or other security instrument (“security instrument”) other than cash, check, money order or other cash-equivalent shall be governed by the terms and conditions of such security instrument.
(B) Time for performance. All activities to be performed pursuant to an authorization shall be completed within the time period set forth in the authorization or the code provision governing the performance of such work. In the absence of a specified time period in the authorization or in the applicable code provision, such activities shall be completed within one year after the date of the authorization.
(C) Pre-conditions for return of deposit. No deposit shall be returned to any person unless all activities required to be performed pursuant to the authorization or any applicable code provision has been completed in a timely fashion, inspected, and approved by the Director of Community Development, City Engineer or their designees. In addition, no deposit shall be returned to any person if there are any violations, penalties or fines outstanding with respect to the subject premises receiving the authorization; provided, however, that, to the extent the violation, penalty or fine can be corrected or satisfied by the payment of funds to the city, then the person receiving the authorization may agree to the application of such portion of the deposit as is necessary to satisfy such outstanding violation, penalty or fine.
(D) Return of deposit. Upon satisfaction of the pre-conditions set forth in division (C) above, the city shall return the deposit the person who provided the deposit, unless otherwise directed in writing by the person who provided the deposit. To the extent that funds have been drawn against the deposit pursuant the terms of the authorization or division (E) below the city shall return only the remaining balance of the deposit.
(E) Untimely completion of authorization activities. In addition to any violation, penalties or fines that may apply in the event that a person fails to complete the activities under an authorization in a timely fashion, the city shall retain the greater of an amount as set by the Council or 5% of any deposit for each month or fraction thereof after the date that the activities were to be completed pursuant to an authorization; provided further that, upon the latter of one year after the date that activities were to be completed under an authorization or December 1, 2003. The balance of any such deposit for which the pre-conditions for return have not been satisfied shall be relinquished to the city and transferred into the city’s General Fund.
(Ord. 03-60, passed 11-20-2003)