As a condition of obtaining a permit the applicant may be required to file with the city a cash construction bond in an amount of at least $1,000 or five percent, whichever is greater, as established by the city based on the applicant’s estimated cost of the project, including labor, materials and overhead, which may be utilized to pay all valid claims for damages resulting from activity within the public right-of-way. The applicant may post a blanket bond of $5,000 covering all new construction up to $100,000 per year. The estimated cost of the project shall be consistent with the installed cost of the project as reported for state and local tax purposes. The cash bond shall be conditioned to pay all damages to the public right-of-way of the city and to hold the city harmless of every damage of every other nature whether to persons or property for which the city may be held liable by reason of or which is occasioned by the doing of a thing or the exercise of the privilege for which the permit upon which the case bond was based was granted. The applicant must execute an agreement to defend, indemnify and hold the city harmless in the event a claim arises out of an activity conducted by the applicant within the right-of-way.
(Ord. 99-8, passed 11-18-1999)