Security Deposits. The following provisions apply to security in the form of a security deposit. When a security deposit is made under the provisions of this section, a written agreement shall be made and signed by the administrative official on behalf of the city. Security deposits shall be made directly to the administrative official and such funds shall be kept in an identifiable trust account. The applicant may designate the location and type of account, and any interest earned thereon shall accrue to and remain in such account. The cost of the account shall be provided for by the applicant or may be deducted from the security deposit.
If the improvements or performances secured by the deposit are not timely completed, the administrative official shall notify the applicant in writing, stating:
1.
The nature of the noncompliance and the action necessary to correct the same; and
2.
The amount of time in which the applicant has to take corrective action; and
3.
That if corrective action is not completed within the time specified the city will apply the funds in the security deposit in order to effect compliance.
If the corrective action is not taken by the applicant or permit holder within the time specified in the notice given by the administrative official, the city shall, through its representatives, take whatever action that the city deems necessary. In addition, the city shall perform or complete the items covered by the security deposit and shall apply funds held therein to the cost of such completion or performance. Any excess or surplus funds shall be refunded to the applicant.