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($5,000) each week, commencing July 5, 2013, until the full One Hundred Thousand Dollars ($100,000)deposit is lodged with the City. While held by the City, the Reddys' deposit shall earn simple interest at the Local Agency Investment Fund rate (seehtto://www.treasurer.ca.aov/amia-laif/laif- orogram.asp)and shall be credited for such interest earned. b) If the final design review decision modifies the items listed in Exhibit B, the Reddys and the City shall review the list to determine if: (i) more items need to be added and addition cash deposit made; or(ii) items may be removed and the cash deposit reduced accordingly. The amount needed for the cash deposit shall be determined in the reasonable discretion of the Director of Community Development or his or her designee. c) The Reddys grant permission to the City to withdraw funds from this cash deposit to pay for any modifications to the as-built condition of their residence to comply with the final design review decision, as well as encroachment and drainage issues impacting adjacent property, if the Reddys fail to commence or diligently pursue such modifications themselves within twenty(20) business days of the design review decision becoming final. After such failure, City shall provide the Reddys with five (5) business days' notice of the City's intent to draw down the cash deposit and commence the required modifications. The City shall maintain and make available for inspection by the Reddys copies of any receipts for work undertaken by the City or its agents pursuant to this provision. d) In the event that: 1)the Reddys fail to pursue or complete modifications tothe as-built condition of their residence to comply with the final design review decision, 2)City is compelled to cause such modifications to be made, and 3) the cash deposit is not sufficient to cover the costs of such modifications, then the Reddys shall within thirty(30)days of invoicing reimburse the City for such additional costs. In the event the Reddys do not timely pay such sum owing for such additional costs, the Reddys by entering into this Agreement specifically consent to City: 1)assessing an additional thirty percent late penalty and submitting collection of the entire sum due, i.e. additional costs of modifications plus the thirty percent penalty, to a collections agency to pursue collection; 2)collecting the sum owed through a lien on the property tax rolls; or 3) pursuing any and all equitable and legal remedies available to it. (The Reddys agree to recordation of this Agreement in the chain of title for the Property in order to ensure that item 2 above can be implemented should circumstances so warrant.) 6