A. No building permit for construction requiring public improvements pursuant to this chapter shall be issued and no public improvements shall be undertaken until designed and engineered improvement plans and any necessary construction and/or permanent easements have been submitted to and approved by the city, an acceptable performance guarantee has been approved by the City Attorney, and an off-site improvement permit has been issued. The following steps shall be completed prior to issuance of a building permit:
1. Preliminary public improvements plans. Preliminary improvements plans shall be included on preliminary site plans submitted to the Community Services Department consistent with the City Code requirements, prior to site plan review.
2. Final public improvements plans. Final public improvements plans and necessary easement documents shall be included with final site plans submitted to the Community Services Department and approved by the City.
3. Performance guarantee. To assure his or her full and faithful performance in the construction of the required improvements according to the approved construction plans, the developer shall file security acceptable to the city in an amount equal to 100% of the approved estimate of the cost of the improvements. Security may be provided in one of the following forms:
i. Personal bond. A personal bond cosigned by at least 1 additional person. The developer and cosigners shall submit evidence of financial responsibility and the financial resources of those signing the bond shall provide a reasonable assurance of the ability of the developer to proceed in accordance with the approved improvement plans.
ii. Surety bond. A surety bond executed by a surety company authorized to transact business in the State of Arizona.
iii. Irrevocable letter of credit. An irrevocable letter of credit authorizing the city to draw on the applicant's account upon failure of the applicant to install required improvements.
iv. Performance guarantee deposit. The assurances of full and faithful performance shall be for a sum approved by the Community Services Department as sufficient to cover the cost of improvements. Performance guarantee deposits may be in the form of certificates of deposit that can be cashed by either the developer or city, checks in the name of Lake Havasu City, or credit card transactions. Upon acceptance of the required improvements, the performance guarantee deposit shall be released to the developer; however, no refunds will be processed within 15 business days of initial payment or deposit. If the deposit is made in the form of a joint certificate of deposit, any interest accruing on the certificate shall also be released to the developer. Checks and credit card transactions shall be deposited to the city's accounts upon receipt and a city check shall be issued to the developer in the amount of the performance guarantee. No interest shall accrue to the developer from checks presented pursuant to this section. The required improvements must be installed, inspected, and approved by the Community Services Department at least 30 days prior to the expiration of the bond or letter of credit or extension thereof. In the event the developer fails to install all required improvements prior to occupancy, the city shall call on the bond or performance guarantee deposit to complete the improvements. If insufficient funds exist to complete the improvements, the city may expend sufficient funds to complete the improvements and developer shall be billed for the additional expenditures.
4. Improvements construction permit. Upon approval of the improvements plans by the Community Services Department, the developer shall obtain an improvements construction permit.
(Prior Code, § 14-1-4(A)) (Ord. 13-1096, § 1, passed 7-9-2013; Ord. 93-412, passed - -1992)