(a) Construction Bond. Prior to the commencement of any construction, a construction permittee, excluding the City and the county, shall deposit with the Director of Service an irrevocable, unconditional letter of credit and/or surety bond in an amount determined by the Director of Service to be appropriate based upon fair and reasonable criteria. Unless a construction default, problem or deficiency involves an emergency or endangers the safety of the general public, the Director of Service shall serve written notice to the construction permittee detailing the construction default, problem or deficiency. If the Director of Service determines that correction or repair of the construction default, problem or deficiency has not occurred or has not been substantially initiated within ten (10) calendar days after the date following service and notification and detailing the construction default, problem or deficiency, then the City may attach the letter of credit or surety bond. Upon attachment, written notice shall be served on the construction permittee by the Director of Service.
(b) Removal Bond. Upon issuance of a certificate of registration and continuously thereafter, and until 120 days after a provider's facilities have been removed from the rights-of-way, (unless the Director of Service notifies the provider that a reasonably longer period shall apply), a provider shall deposit with the Director of Service and maintain an irrevocable, unconditional letter of credit or surety bond in an amount equal to or greater than fifty thousand dollars ($50,000.00), the Director of Service shall make all reasonable efforts to allow provider a period of five (5) calendar days after serving notification in writing to correct or repair any default, problem or deficiency prior to the Director of Service attachment of the letter of credit or surety bond regarding the removal of facilities. Upon attachment, written notice shall be provided to the provider by the Director of Service.
(c) Blanket Bond. In lieu of the construction bond required, and the removal bond required provider may deposit with the Director of Service an irrevocable, unconditional letter of credit and/or surety bond in the amount of five million dollars ($5,000,000.00). Unless a construction default, problem or deficiency involves an emergency or endangers the safety of the general public, the Director of Service shall make all reasonable effort to allow permittee a period of five (5) calendar days after sending notification in writing to correct or repair any default, problem or deficiency prior to Director of Service' attachment of the letter of credit or surety bond.
(d) Self Bonding. In lieu of the construction bond required), the removal bond required) and the blanket bond required, those providers maintaining a book value in excess of twenty million dollars ($20,000,000.00) may submit a statement to the Director of Service requesting to self-bond. If approval to self-bond is granted, a provider shall assure the City that such self-bonding shall provide the City with no less protection and security than would have been afforded to the City by a third-party surety providing provider with the types and amounts of bonds detailed in the above-named sections. This statement shall include:
(1) Audited financial statements for the previous year; and
(2) A description of the applicant's self-bonding program; and
(3) Other applicable and pertinent information as reasonably requested by the Director of Service.
(e) Purposes.
(1) The bonds required by this section, and any self-bonding to the extent it has been permitted, shall serve as security for:
B. Any expenditure, damage, or loss incurred by the City occasioned by the permittee or provider's violation of Sections 1180.01 through 1180.21 of this Code or its failure to comply with all rules, regulations, orders, permits and other directives of the City issued pursuant to Sections 1180.01 through 1180.21; and
C. The payment of all compensation due to the City, including permit fees; and
F. The payment to the City of any amounts for which the permittee or provider is liable that are not paid by its insurance or other surety; and
(f) Form. The bond documents required by this section and any replacement bond documents shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be canceled or not renewed by the surety nor the intention to cancel or not to renew be stated by the surety until ninety (90) days after completion of construction of the facilities and, notwithstanding the foregoing, shall in no case be canceled or not renewed by the surety until at least ninety (90) days' written notice to City of surety's intention to cancel or not renew this bond."
(Ord. 051-2022. Passed 12-5-22.)