When conditions of permit approval require the applicant to construct certain improvements, the City may allow the applicant to submit a financial guarantee in lieu of actual construction of the improvement. Financial guarantees are covered by this Section.
A. Form Of Guarantees: Guarantees shall be in a form approved by the City Attorney, and may include an irrevocable standby letter of credit issued by a recognized lending institution to the benefit of the City, a certified check, dedicated bank account, or allocation of a construction loan held in reserve by the lending institution for the benefit of the City. The guarantee shall be filed with the City Administrator.
B. Amount Of Guarantee: The amount of the performance guarantee shall be equal to at least one hundred ten percent (110%) of that estimated cost of constructing the improvement in question. The amount of the performance guarantee may be larger than one hundred ten percent (110%) if deemed necessary by the City Administrator. The cost estimate substantiating the amount of the guarantee must be provided by the applicant and supported by either an engineer's or architect's estimate or written estimates by three (3) contractors with their names and addresses. The estimates shall separately itemize all materials, labor, and other costs.
C. Duration Of The Guarantee: The guarantee shall remain in effect until the improvement is actually constructed and accepted by the City. Once the City has inspected and accepted the improvement, the City shall release the guarantee to the applicant. If the improvement is not completed to the City's satisfaction within the time limits specified in the permit approval or the guarantee, the City Administrator may, at his discretion, draw upon the guarantee and use the proceeds to construct or complete construction of the improvement and for any related administrative and legal costs incurred by the City. Once constructed and approved by the City, any remaining funds shall be refunded to the applicant.
D. Deferral: The City may allow an applicant to defer construction of improvements, if the applicant provides a financial guarantee. The applicant shall agree to construct those improvements upon written notification by the City, or at some other mutually agreed-to time. If the applicant fails to commence construction of the required improvements within six (6) months of being instructed to do so, the City may, without further notice, undertake the construction of the improvements and draw upon the applicant's performance guarantee to pay those costs as provided in subsection C of this Section. (Ord. 688, 6-15-1999)