(A) Construction bond. Prior to the commencement of any construction, a construction permittee, excluding the county or city shall deposit with the Public Works Director, in a form acceptable to the Director of Law, an irrevocable, unconditional letter of credit and/or surety bond in an amount determined by the Public Works Director 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 Public Works Director shall serve the construction permittee with notice detailing any construction default, problem, or deficiency. If the Public Works Director determines that correction or repair of the construction default, problem or deficiency has not occurred or has not been substantially initiated within ten calendar days after the date following service of 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 Public Works Director.
(B) Removal bond. Upon issuance of a certificate of registration, and continuously thereafter until 120 days after a provider's facilities have been removed from the rights-of-way, (unless the Public Works Director notifies the provider that a reasonably longer period shall apply), a provider shall deposit with the Public Works Director and maintain, in a form acceptable to the Director of Law, an irrevocable, unconditional letter of credit or a surety bond in an amount equal to or greater than $50,000. The Public Works Director shall make all reasonable efforts to allow provider a period of five business days after serving notification to correct or repair any default, problem or deficiency prior to Public Works Director's attachment of letter of credit or surety bond regarding the removal of facilities. Upon attachment, written notice shall be provided to the provider by the Public Works Director.
(C) Blanket bond. In lieu of the construction bond required by § 51.21(A) and the removal bond required by § 51.21(B), provider may deposit with the Public Works Director, in a form acceptable to the Director of Law, an irrevocable, unconditional letter of credit and/or surety bond in the amount of $5,000,000. Unless a construction default, problem or deficiency involves an emergency or endangers the safety of the general public, the Public Works Director shall make all reasonable efforts to allow permittee a period of five business days after sending notification in writing to the last known business address to correct or repair any construction default, problem or deficiency prior to Public Works Director's attachment of letter of credit or surety bond. Upon attachment, written notice shall be provided to the provider by the Public Works Director.
(D) Self bonding. In lieu of the construction bond required by § 51.21(A), the removal bond required by § 51.21(B) and the blanket bond required by § 51.21(C), those providers maintaining a book value in excess of $20,000,000 may submit a statement to the Public Works Director 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 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 Public Works Director and/or Director of Law.
(E) Purposes. The bonds required by this section, and any self bonding to the extent it has been permitted, shall serve as security for:
(1) The faithful performance by the permittee or provider of all terms, conditions and obligations of this chapter;
(2) Any expenditure, damage, or loss incurred by the city occasioned by the permittee or provider's violation of this chapter or its failure to comply with all rules, regulations, orders, permits and other directives of the city issued pursuant to this chapter;
(3) The payment of all compensation due to the city, including permit fees;
(4) The payment of premiums for the liability insurance required pursuant to this chapter;
(5) The removal of facilities from the rights-of-way pursuant to this chapter;
(6) The payment to the city of any amounts for which the permittee or provider is liable that are not paid by insurance or other surety; and
(7) The payment of any other amounts which become due to the city pursuant to this chapter or other law.
(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 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 90 days' written notice to city of surety's intention to cancel or not renew this bond."
(Ord. 10-2001, passed 9-5-01) Penalty, see § 51.99