(a) General. As an express precondition to being granted a permit to perform construction within a public right-of-way, the permittee shall furnish the director a performance bond, letter of credit, or cash deposit, complying with this section, for any project that involves pavement excavation or boring for the installation of a new facility or for a significant facility relocation other than an excavation or boring for a localized new service line installation or facility repair. Without exception, the city’s forms must be used, and exclusive venue for any lawsuit is specified as Dallas County. A performance bond will automatically be increased by the amount of any change order, which increases the contract price with or without notice to the surety, but in no event may a change, which reduced the contract amount, reduce the penal sum of the bond.
(b) Amount. A good and sufficient bond, letter of credit, or cash deposit must be in an amount not less than 100 percent of the total cost, as determined by the director, of those items of work associated with the temporary and permanent repair of the city’s infrastructure, including, but not limited to backfill, pavement base, street pavement, curb and gutter, drive approaches, sidewalk, sod, irrigation, landscape, traffic control devices, signs, and pavement markings, thereby guaranteeing the full and faithful execution of the work and performance of the contract in accordance with the plans, specifications, and contract documents, including any extensions thereof, for the protection of the city. The bond, letter of credit, or cash deposit agreement must provide for the repair and/or replacement of all defects due to faulty materials and workmanship that appear within a period of one year from the date of completion and acceptance of the work by the city. The permittee may choose to have the amount determined on a per project basis or an aggregate basis. If on an aggregate basis, the amount of a single bond, letter of credit, or cash deposit must be sufficient to cover all of permittee’s projects outstanding at any one time. If the amount of the permittee’s outstanding projects exceeds an existing bond, letter of credit, or cash deposit, the permittee shall immediately increase it or post a new bond, letter of credit, or cash deposit to cover the project that has caused the deficiency.
(c) Sureties. No surety may be accepted by the city who is in default or delinquent on any bonds or who is interested in any litigation against the city. All bonds must be made on the forms furnished by the city and must be executed by not less than one corporate surety authorized to do business in the State of Texas and acceptable to the city. Each surety must be listed in the most current Federal Register Treasury List. The permittee and the surety shall execute each bond. The surety shall designate a resident agent in the city of Dallas acceptable to the city to whom any requisite notices may be delivered and on whom service of process may be had in matters arising out of such suretyship. The city reserves the right to reject any and all sureties.
(d) Additional or substitute bonds. If at any time the city is or becomes dissatisfied with any surety on a performance bond, the permittee shall, within five days after notice from the city to do so, substitute an acceptable bond, or provide an additional bond, in such form and sum signed by such other surety as may be satisfactory to the city. The premiums on the bonds must be paid by the permittee without recourse to the city.
(e) Letter of credit. In lieu of a performance bond, a permittee may provide an irrevocable letter of credit. Each letter of credit must be made on a form furnished by the city.
(f) Cash deposit. In lieu of a performance bond, a permittee may make a cash deposit, for the benefit of the city, pursuant to an agreement in a form acceptable to the city attorney. (Ord. Nos. 25409; 25693; 26263)