(A) Generally. In authorizing any zoning permit, special land use permit, condominium subdivision, planned unit development or variance, the body or official which administers the respective request, as designated by this chapter, may require that a performance guarantee or bond be furnished to insure compliance with the requirements, specifications and conditions imposed with the grant of the approval, permit or variance; to insure the discontinuance of a temporary use by a stipulated time; and to provide sufficient resources for the city to complete required improvements or conditions in the event the permit holder does not.
(B) Improvements covered. Improvements that shall be covered by the performance guarantee or bond include, but are not necessarily limited to streets and other roadways, utilities, fencing, screening, landscaping, common open space improvements, lighting, drainage and sidewalks. The performance guarantee shall meet the following requirements.
(1) Form. The performance guarantee shall be in the form of cash, certified check, irrevocable bank letter of credit, surety bond, or similar instrument acceptable to the City Clerk, which names the property owner as the obligor and the city as the obligee.
(2) Time when required. The performance guarantee or bond shall be submitted at the time of issuance of the permit authorizing the activity of the project. If appropriate, based on the type of performance guarantee submitted, the city shall deposit the funds in an interest bearing account in a financial institution with which the city regularly conducts business.
(3) Amount. The amount of the performance guarantee or bond should be sufficient to cover the estimated cost of the improvements or conditions. Additional guidelines for establishing the amount of a performance guarantee or bond may be prescribed in the schedule of fees. If none are specified or applicable to the particular use or development, the City Council may by resolution establish a guideline which it deems adequate to deal with the particular problem while ensuring the protection of the city and its inhabitants.
(C) Return of performance guarantee or bond. The Zoning Administrator, upon the written request of the obligor, shall rebate portions of the performance guarantee, with earned interest, 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 or condition.
(D) Withholding and partial withholding of performance bond. When all of the required improvements have been completed, the obligor shall send written notice to the City Clerk of completion of the improvements. Thereupon, the Zoning Administrator shall inspect all of the improvements and shall transmit recommendation to the Planning Commission and City Council indicating either approval, partial approval, or rejection of the improvements or conditions with a statement of the reasons for any rejections. If partial approval is indicated, the cost of the improvement or condition rejected shall be set forth.
(1) The Planning Commission, or on a PUD, the City Council, shall either approve, partially approve or reject the improvements or conditions with the recommendation of the Zoning Administrator’s written statement and shall notify the obligor in writing of the action of the Planning Commission or the City Council within 30 days after receipt of the notice from the obligor of the completion of the improvements. Where partial approval is granted, the obliger shall be released from liability pursuant to relevant portions of the performance guarantee or bond, except for that portion adequately sufficient to secure provision of the improvements not yet approved.
(2) Should installation of improvements begin and fail to meet full completion based on the approved site plan, or if the project area is reduced in size and improvements are only partially completed or conditions only partially met, the city may complete the necessary improvements or conditions itself or by contract to an independent developer, and assess all costs of completing the improvements or conditions against the performance guarantee or bond. Any balance remaining would be returned to the applicant.
(E) Performance bond for razing of building.
(1) The Zoning Administrator may require a bond prior to the razing or demolition of principal structures and accessory structures having more than 144 square feet of floor area. The bond shall be determined by the City Council.
(2) A bond shall be conditioned on the applicant completing the razing within such reasonable period as shall be prescribed in the permit and complying with such regulations as to health and safety as the Zoning Administrator, Fire Inspector or the City Council may from time to time prescribe, including filling of excavations and proper termination of utility connections.
(F) Record. A record of authorized performance guarantees shall be maintained by the Zoning Administrator.
(Ord. passed 6-24-1996; Am. Ord. 02-02, passed 2-11-2002)