1. When the city is lead agency for a proposal requiring an EIS and the responsible official determines that the EIS must be prepared by employees of the city, the city may charge and collect a reasonable fee from any applicant to cover costs incurred by the city in preparing the EIS. The responsible official must advise the applicant(s) of the projected costs for the EIS prior to actual preparation; the applicant must post bond or otherwise ensure payment of such costs.

2. The responsible official may determine that the city will contract directly with a consultant for preparation of an EIS, or a portion of the EIS, for activities initiated by some persons or entity other than the city and may bill such costs and expenses directly to the applicant. The city may require the applicant to post bond or otherwise ensure payment of such costs. Such consultants must be selected by mutual agreement of the city and applicant after an informal call for proposals.

3. If a proposal is modified so that an EIS is no longer required, the responsible official must refund any fees collected under subsection (B)(1) or (B)(2) of this section which remain after incurred costs are paid.