(A) Before any permit required by this chapter shall be issued to an applicant, the applicant shall file with the Deputy City Manager either 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. 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 provisions 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 bring an action on the bond or letter of credit or other security or assets of permittee on its own behalf or on behalf of any persons so aggrieved as beneficiary. The bond or letter of credit must be approved by the city's legal counsel as to form and as to the responsibility of the surety thereon prior to the issuance of the permit. However, 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 to satisfy any claims intended to be protected against the security required by this section.
(B) A letter of responsibility will be accepted in lieu of a bond or letter of credit from any public utility having substantial pre-existing facilities in the rights- of-way which precedes the effective date of this chapter.
(C) The bond, letter of credit or letter of responsibility shall remain in force and effect for a minimum of three years after completion and probationary acceptance of the work. The city may accept alternative forms of security if the City determines that the alternative is substantially equivalent to or better than the bond, letter of credit or letter of responsibility.
(Ord. 9351, passed 7-11-06) Penalty, see § 909.99