A. Cash or Letter of Credit Required. Where the Permit includes use of City roads for hauling or transportation of excavated material or fill, the City may require that the Permit holder post either a cash deposit or an Irrevocable Letter of Credit with the City Treasurer to guarantee to the City that any damage to a City road will be repaired at the expense of the Permit holder and to guarantee reimbursement to the City for periodic road inspections by the City Engineer.
B. Amount. The required amount of cash or of the letter of credit shall be based upon the written recommendation of the City Engineer and shall be an amount which is deemed sufficient to guarantee the Permit holder's compliance with the road repair requirement stated in A., above.
C. Duration of Deposit. The cash guarantee shall remain on deposit with the City Treasurer until the Permit has expired. The alternative letter of credit shall be valid through the expiration date of the Permit and shall remain on deposit until the permit has expired.
D. Form of Letter of Credit. The letter of credit, if used, shall be in an approved form of the Irrevocable Letter of Credit. Each letter of credit shall not be accepted until reviewed and approved by the City Attorney.
E. Determination of Damage. "Damage" to a city road as a result of issuance of a permit for Excavation, Grading, or Filling is defined as any condition of the road or right-of-way which, in the opinion of the City Engineer (based upon pre-excavation and post-excavation inspections and upon city road maintenance records), (1) is beyond normal wear and tear for that road, and (2) was caused by trucks, vehicles or equipment traveling to and from the permitted site.
F. Repairs Required. Road damage resulting from permitted activities shall be repaired by the City and billed to the Permit holder. The Permit holder shall reimburse the City within fifteen (15) days from the date of the billing for road repairs and engineering fees. If the Permit holder does not pay the bill within the fifteen (15) day period, the City shall reimburse itself by making a draw against either the cash deposit or the letter of credit.
G. Suspension of Permit for Draws Against Deposits. If the City makes a draw against either a cash deposit or a letter of credit as described above, all permitted activities under the Permit shall then be immediately ceased and the Permit shall be suspended. The City Administrator shall have the authority to issue the suspension order to the Permit holder. The suspension shall continue until:
1. The Permit holder restores either the cash deposit or the letter of credit to the original amount as stated on the Permit, or,
2. Action of the City Council.
Such suspension shall cause the permit to be reviewed and adjudicated according to the procedures of Chapter 10 of this City Code. Review proceedings may result in reinstatement, modification, continued suspension, or revocation of the Permit.
[CHAPTER 9, Article I, Section 105 (now § 9-104) amended by Ord. No. 86-3, effective February 21, 1986, [Section 9-104 amended by Ord. No. 89-13, effective December 8, 1989, amended by Ord. No. 94-5, effective January 12, 1996, amended by Ord. No. 07-02, effective March 1, 2007, amended by Ord. No. 09-04, effective March 19, 2009, as amended by Ord. No. 16-12, effective December 22, 2016.]