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SEC. 62.111.  CLASS “B” PERMITS – PLANS – BONDS – INSURANCE.
   (Amended by Ord. No. 113,689, Eff. 7/4/59.)
 
   (a)   Plans – When Required.  Upon the issuance of a Class “B” permit, special plans shall be prepared therefor and thereafter approved by the City Engineer, if in the opinion of the City Engineer such plans are necessary.
 
   (b)   Class “B” Permits – Bond Required.
 
   (1)   (Amended by Ord. No. 135,199, Eff. 9/15/67.)  No class “B” permit shall be issued unless the applicant shall first file with the City Engineer a good and sufficient bond, approved by the Board or its duly authorized representative. The bond shall be in an amount equal to the cost of the proposed work as estimated by the City Engineer. The bond shall contain a condition requiring the faithful performance and completion of the work for which the permit is issued, in accordance with the permit and the plans and specifications prepared therefor, as well as a condition requiring the performance of any work required to be performed pursuant to the provisions of Section 61.02 of this Code. The bond also shall require the payment of all costs referred to in Section 62.110 which may be incurred or expanded by the City in causing such required work to be done. Said bond shall also guarantee payment to the City of all engineering inspection and administrative costs and fees incurred by the city as a result of issuance of the Class “B” permit. The bond shall be either a cash bond or a bond executed by a company authorized to act as surety in this State.
 
   EXCEPTION:  No such bond shall be required for the issuance of a Class “B” permit for design or checking only, or where the requirement has been waived pursuant to the authority of Section 62.105(b)
 
   (2)   Where any sewage works which include the installation of machinery or equipment to be operated by the City, are to be constructed, no Class “B” permit shall be issued therefor unless the applicant, in addition to the above mentioned bond, shall first file with the City Engineer a good and sufficient performance bond, approved by the Board, or its duly authorized representative. The bond shall be in an amount equal to one-half of the cost of the purchase and installation of such machinery or equipment, as estimated by the City Engineer, and shall be conditioned upon the repair, adjustment or replacement of any defective equipment or parts thereof, the correction of any faulty installation, upon the payment of all necessary costs and expenses which may be incurred or expended by the City, other than ordinary maintenance and operation expenses, to obtain satisfactory performance thereof during a period of one year from the date of acceptance of such sewage works by the Board. The bond shall be either a cash bond or a bond executed by a company authorized to act as surety in this State. (Amended by Ord. No. 112,719, Eff. 2/28/59.)
 
   (c)   Cash Bond – Reimbursement to Be Made Therefrom.
 
   (1)   Whenever the applicant elects to post a cash bond, the Board is hereby empowered, in the event of any default on the part of the permittee in the performance of any work or improvement for which the permit was granted or in the payment of any charges due the City arising out of the issuance of such permit, to deduct therefrom on behalf of the City an amount sufficient to reimburse and to indemnify the City for any and all damages sustained by the City by reason of faulty or defective work, or by reason of carelessness or negligence of the permittee, or by reason of any failure on the part of the permittee faithfully and properly to perform and complete the work in accordance with the plans and specifications. In the event of any such default on the part of the permittee, the Board may, at its option, cause all the required work to be done and may expend therefor the whole amount of such cash bond or any part thereof. (Amended by Ord. No. 92,478, Eff. 12/21/47).
 
   (2)   Whenever the applicant elects to post a cash bond under (b)(2) above, the Board is hereby empowered in the event that adjustment or replacement of any defective equipment or parts from the date of completion and acceptance by the Board of said work, and for a period of one year thereafter, to deduct from the cash bond deposited the amount or amounts of money necessary to correct any faulty installation, replacement of defective equipment or parts, and payment or payments for all necessary costs and expenses which may be incurred by the City other than ordinary maintenance and operation expense, to obtain satisfactory performance thereof during said period of one year from the date of completion and acceptance of such sewage works by the Board.  (Amended by Ord. No. 92,478, Eff. 12/21/47).
 
   (d)   Surety Bond – Collection and Enforcement.
 
   (1)   (Amended by Ord. No. 135,199, Eff. 9/15/67.) Whenever a surety bond has been filed in compliance with this section, the Board is hereby empowered, in the event of any default on the part of the principal, to enforce collection, under such bond of all sums due and unpaid to the City as charges arising out of the issuance of the permit, and for any and all damages sustained by the City by reason of faulty or defective work, or by reason of the carelessness and negligence of the permittee in the performance of the work, or by reason of any failure on the part of the permittee to faithfully and properly to perform, in accordance with the permit and the plans and specifications, the work or improvement for which the permit was issued, or by reason of any failure on the part of the permittee to faithfully and properly perform any work required to be performed pursuant to the provisions of Section 61.02. In the event of any such default on the part of the permittee, the Board may, at its option, cause all the required work to be done and surety upon the bond shall be firmly bound for the payment of all necessary costs thereof.
 
   (2)   Whenever a surety bond has been filed in the compliance with (b)(2) of this section, the Board is hereby empowered in the event that adjustment or replacement of any defective equipment or parts from the date of completion and acceptance by the Board of said work, and for a period of one year thereafter, to enforce collection under such bond, of all sums necessary to correct any faulty installations, replacement of defective equipment or parts, and payment or payments for all necessary costs and expenses which may be incurred by the City, other than ordinary maintenance and operation expense, to obtain satisfactory performance thereof during said period of one year from the date of completion and acceptance of such sewage works by the Board.  (Amended by Ord. No. 92,478, Eff. 12/21/47.)
 
   (e)   Termination of Bond.
 
   (1)   The term of each bond filed or posted pursuant to this section, shall begin upon the date of the filing or posting thereof and shall end upon the date of the completion, to the satisfaction of the City Engineer, of all the improvements covered by the permit. The fact of such completion shall be evidenced by a statement thereof signed by the City Engineer, a copy of which shall be furnished to any surety upon request. In any case where a cash bond has been posted there shall be returned, on demand, to the permittee or to his successors or assigns, upon or after the date of the issuance of said certificate, the amount of such cash bond less the amount, if any, expended by the Board to complete the work or otherwise taken or deducted by the Board to reimburse or to indemnify the City for any loss or damage incurred prior to the date of such acceptance as a result of any default covered by the cash bond.  (Amended by Ord. No. 92,478, Eff. 12/21/47.)
 
   (2)   The term of each bond filed or posted pursuant to (b)(2) of this section shall begin upon the date of filing and posting thereof and shall end one year from the date of the completion and acceptance of such sewage work by the Board. Where a cash bond has been posted, there shall be returned, on demand, to the permittee or to his successors or assigns, upon or after the lapse of one year from the date of the completion and acceptance by the Board of the sewage works, the amount of such cash bond less the amount, if any, expended by the Board for the adjustment or replacement of any defective equipment or parts, or to correct any faulty installations, or payments for all necessary costs and expenses which may be incurred by the City, other than ordinary maintenance and operation expense, to obtain satisfactory performance thereof during said period of one year from the date of completion and acceptance of such sewage works by the Board. (Amended by Ord. No. 92,478, Eff. 12/21/47.)
 
   (f)   Duplication of Security – Not Required.  If the applicant has already on file with the City Engineer, and in full force and effect, a surety bond or a deposit posted pursuant to the provisions of the Subdivision Map Ordinance (Ordinance No. 79,310, approved March 1,1938) assuring the completion of the work for which the permit is requested, and adequate in amount to meet the requirements of this section, no other bond shall be required to be posted by him in order to comply with this section.
 
   (g)   Class “B” Permits – Issuance Required:  (Amended by Ord. No. 153,469, Eff. 6/1/80.)  A Class “B” permit for any work for which such permit is required, shall not be issued until the applicant has filed with the City Engineer a protective liability policy of insurance in which the City has been named as insured or as co-insured with the permittee. The policy of insurance shall insure the City and its officers and employees, while acting within the scope of their duties, against all claims arising out of, or in connection with, the operations of the permittee or any contractor or subcontractor of the permittee pursuant to the permit. The policy of insurance shall provide coverage as follows:
 
   Bodily Injury      $250,000 each person
$500,000 each occurrence
$500,000 aggregate products and completed operations
 
   Property Damage    $100,000 each occurrence
$250,000 aggregate
 
   A combined single limit policy with aggregate limits in the amount of $1 million will be considered equivalent to the required minimum limits.