(a) Before any Permit shall be issued to an applicant, the applicant shall file with the Director a bond or letter of credit in favor of the City in an amount equal to the total cost of construction, including labor and materials, or five thousand dollars ($5,000.00), whichever is greater. The bond or letter of credit shall be executed by the applicant as principal and by at least one surety upon whom service of process may be had in the state. The bond or letter of credit shall be conditioned upon the applicant fully complying with all provision of City ordinances, rules and regulations, and upon payment of all judgments and costs rendered against the applicant for any material violation of City ordinances or state statutes that may be recovered against the applicant by any person for damages arising out of any negligent or wrongful acts of the applicant in the performance of work done pursuant to the Permit. The City may waive the requirements of any such bond or letter of credit or may permit the applicant to post a bond without surety thereon upon finding that the applicant has financial stability and assets located in the state to satisfy any claims intended to be protected against the security required by this section.
(b) The performance bond or letter of credit shall remain in force and effect for a minimum of eighteen (18) months after completion and acceptance of construction.
(Ord. 01-19. Passed 6-11-01.)