(A) Before any permit required by this chapter shall be issued to an applicant, the applicant shall file with the Director a bond or letter of credit in favor of the town in an amount equal to the total cost of construction, including labor and materials, or $5,000, 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 provisions of town codes, ordinances, rules and regulations, and upon payment of all judgments and costs rendered against the applicant for any material violation of town codes, 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 town may bring an action on the bond or letter of credit on its own behalf or on behalf of any person so aggrieved as beneficiary. The bond or letter of credit must be approved by the Town Manager as to form and as to the responsibility of the surety thereon prior to the issuance of the permit. However, the town 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) A letter of responsibility will be accepted in lieu of a performance bond or letter of credit from all public utilities, and all franchised entities operating within the town.
(C) The performance bond, letter of credit or letter of responsibility shall remain in force and effect for a minimum of three years after completion and acceptance of the street cut, excavation or lane closure.
(Prior Code, § 165.8) (Ord. 503, passed 7-7-2005; Ord. 577, passed 11-6-2014)