A. The signator of such agreement shall deposit with the Director of Finance a bond issued by a corporation licensed to transact business in the State, which shall guarantee the faithful performance of the agreement mentioned in subsections 7-5-4A, B and C of this Chapter.
B. In lieu of such bond, the signator of such agreement may deposit with the Director of Finance cash to secure the faithful performance of the agreement mentioned in subsections 7-5-4A, B and C of this Chapter and the City shall be entitled to deduct from such deposit the expense of the City of completion of the work or repair of such damage by the City if the signator fails to so perform the same. (Ord. 500 N.S., 10-5-1992)
C. The amount of such bond or deposit shall be such reasonable sum as the Building Inspector or City Engineer shall determine to be the probable expense to the City of completion of the work if the signator fails to fully perform the work and repair of any probable damage, in accordance with the terms of the agreement and permit. (Ord. 500 N.S., 10-5-1992; 1996 Code)
D. Such bond or deposit shall not be deemed to be in the nature of a labor and material bond.
E. On expiration of one year from the date of completion of the work, the bondsman may apply to the Director of Public Works for release or exoneration of the bond, or any depositor of such fund or such depositor's assigns may apply to the Director of Public Works for release of deposit, subject however, to the claims of the City for failure to faithfully perform said agreement; provided further, that in the case of cash deposits, that upon completion of the work to the satisfaction of the Building Inspector and certification of such fact to the Director of Public Works and the amount required in his/her opinion to protect the City against any faulty or improper workmanship or materials or damage to any adjacent public works that may be discovered within one year after completion, the Director of Public Works shall withhold such amount and release the balance of the deposit to the depositor thereof or his/her assigns.
F. Persons who frequently undertake activities which are the subject of this Chapter and who find it convenient to do so, may enter into a general agreement with the City in the form required by Section 7-5-4 of this Chapter which applies to all such activities which are the subject of this Chapter carried on by the signator of such agreement while such agreement is in effect, and who shall furnish the City and deposit with the Director of Finance a bond deposit which guarantees the faithful performance of the agreement mentioned in subsections 7-5-4A, B and C of this Chapter with respect to all such activities undertaken while such agreement remains in effect. The amount of such bond or deposit shall be such reasonable sum as the Building Inspector determines to be the probable expense to the City on completion of any work which the signator may fail to fully perform and the repair of any probable damage to any adjacent public work and to protect the City against any faulty or improper workmanship or materials or damage to any adjacent public works that may be discovered within one year after completion and from time to time, the Building Inspector may require additional bonds or deposits if he determines that the extent or nature of the work carried on by such person reasonably requires increased protection for any of the foregoing purposes. No further permits shall be issued under such general agreement and bond until the additional bond or deposit is furnished to the Director of Finance. Such bond or deposit is subject to release or exoneration as provided in subsection E above.
G. For work which does not exceed one thousand dollars ($1,000.00), the Director of Public Works, within his/her sole discretion, may, in lieu of the abovementioned bond or cash deposit, enter into a written agreement without security with the permittee. Said agreement, which shall be in addition to the agreement mentioned in subsections 7-5-4A, B and C of this Chapter, shall provide that permittee undertake improvements upon the encroached property after written notification from the City. The agreement shall further provide that the work must be completed within ninety (90) days of such other date specified by the Director of Public Works, or the City may cause the work to be done and the cost assessed as a lien against the property.
H. For work in excess of one thousand dollars ($1,000.00) and for good cause shown, the Public Works Director may, at his/her sole discretion, enter into an agreement without security as provided in subsection G above. (Ord. 500 N.S., 10-5-1992)