951.21 CONSTRUCTION AND REMOVAL BONDS.

   (a)   Construction Bond. Upon issuance of a Certificate of Registration, and prior to the commencement of any Construction, and continuously thereafter, a Provider shall deposit with the Director of Public Service and maintain an irrevocable, unconditional letter of credit or surety bond in an amount determined by the Director of Public Service to be appropriate based upon fair and reasonable criteria. The full amount of the letter of credit or surety bond shall remain in full force and effect throughout the terms and conditions of this chapter and/or until any necessary site restoration is completed to restore the site to a condition comparable or better to that which existed prior to the issuance of Certificate of Registration. Unless a Construction default, problem or deficiency involves an Emergency or endangers the safety of the general public, the Director of Public Service shall serve written notice to the Construction Permittee detailing the Construction default, problem or deficiency. If the Director of Public Service determines that correction or repair of the Construction default, problem or deficiency has not occurred or has not been substantially initiated within ten (10) calendar days after the date following service and notification and detailing the Construction default, problem or deficiency, then the City may attach the letter of credit or surety bond. Upon attachment, written notice shall be served on the Construction Permittee by the Director of Public Service.

   (b)   Removal Bond. Upon issuance of a Certificate of Registration and continuously thereafter, and until one hundred twenty (120) days after a Provider's Facilities have been removed from the Rights-of-Way (unless the Director of Public Service notifies the Provider that a reasonably longer period shall apply), a Provider shall deposit with the Finance Director and maintain an irrevocable, unconditional letter of credit or surety bond in an amount equal to or greater than one hundred thousand dollars ($100,000). The Director of Public Service shall make all reasonable efforts to allow Provider a period of five (5) calendar days after serving notification in writing to correct or repair any default, problem or deficiency prior to the Director of Public Service attachment of the letter of credit or surety bond regarding the removal of Facilities. Upon attachment, written notice shall be provided to the Provider by the Director of Public Service.

   (c)   Blanket Bond. In lieu of the Construction Bond and the Removal Bond required by this Section 951.21 , Provider may deposit with the Finance Director an irrevocable, unconditional letter of credit and/or surety bond in the amount of five million dollars ($5,000,000). Unless a Construction default, problem, or deficiency involves an Emergency or endangers the safety of the general public, the Director of Public Service shall make all reasonable efforts to allow a Provider a period of five (5) calendar days after sending notification in writing to correct or repair any default, problem or deficiency prior to Director of Public Service' attachment of the letter of credit or surety bond. Upon attachment, written notice shall be provided to the Provider by the Director of Public Service.

   (d)    Self-Bonding. In lieu of the Construction Bond, Removal Bond, and Blanket Bond required by this Section 951.21 , those Providers maintaining a book value in excess of fifty million dollars ($50,000,000) may submit a statement to the Finance Director requesting to self-bond. If approval to self-bond is granted, a Provider shall assure the City that such self-bonding shall provide the City with no less protection and security than would have been afforded to the City by a third party surety providing Provider with the types and amounts of bonds detailed in the above sections of this Section 951.21 . This statement shall include:

      (1)   Audited financial statements for the previous year;

      (2)   A description of the Applicant's self-bonding program; and

      (3)   Other information as reasonably requested by the Director of Public Service.

   (e)   Purposes.

      (1)   The letter of credit or surety bond required by this section shall serve as security for:

         A.   The faithful performance by the Permittee or Provider of all terms, conditions and obligations of this chapter; and

         B.   Any expenditure, damage, or loss incurred by the City occasioned by the Permittee or Provider's violation of this chapter or its failure to comply with all rules, regulations, orders, Permits and other directives of the City issued pursuant to this chapter; and

         C.   The payment of all compensation due to the City, including Permit Fees; and

         D.   The removal of Facilities from the Rights-of-Way pursuant to this chapter; and

         E.   The payment to the City of any amounts for which the Permittee or Provider is liable that are not paid by its insurance or other surety; and

         F.   The payment of any other amounts which become due to the City pursuant to this chapter or Law.

            (Ord. 30-2019. Passed 4-22-19.)