923.21 CONSTRUCTION AND REMOVAL BONDS.

   (a)   Construction Bond. Prior to the commencement of any Construction, a Construction Permittee, excluding the County or City shall deposit with the Safety-Service 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 Safety-Service 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 Safety-Service Director shall serve the Construction Permittee with notice detailing any Construction default, problem, or deficiency. If the Safety-Service Director 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 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 Safety-Service Director.

   (b)   Removal Bond. Upon issuance of a Certificate of Registration, and continuously thereafter until one hundred twenty (120) days after a Provider's Facilities have been removed from the Rights of Way, (unless the Safety-Service Director notifies the Provider that a reasonably longer period shall apply), a Provider shall deposit with the Safety-Service 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 fifty thousand dollars ($50,000.00). The Safety-Service Director shall make all reasonable efforts to allow Provider a period of five (5) business days after serving notification to correct or repair any default, problem or deficiency prior to Safety-Service 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 Safety-Service Director.

   (c)   Blanket Bond. In lieu of the Construction Fond required by Section 923.21 (a) and the Removal Bond required by Section 923.21 (b), the Provider may deposit with the Safety-Service Director, in a form acceptable to the Director of Law, 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 Safety-Service Director shall make all reasonable efforts to allow Permittee a period of five (5) 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 Safety-Service Director's attachment of letter of credit or surety bond. Upon attachment, written notice shall be provided to the Provider by the Safety-Service Director.

   (d)   Self Bonding. In lieu of the Construction Bond required by Section 923.21 (a), the Removal Bond required by Section 923.21 (b) and the Blanket Bond required by Section 923.21 (c), those Providers maintaining a book value in excess of twenty million dollars ($20,000,000) may submit a statement to the Safety-Service 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 Safety-Service Director.

   (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 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."

   (g)   Abandonment of Facilities. Any provider that intends to discontinue use of any facilities within the public rights of way shall notify the Safety Service Director in writing of its intent to discontinue use. The notice shall provide at least 30 days notice before determination and shall describe the method of removal of the facilities and the restoration of the right of way. The permittee shall not remove or disable such facilities without written approval of the Safety Service Director. After approval, the permittee shall remove the facilities and complete the restoration within the maximum time of six months, unless additional time is requested from and approved by the Safety Service Director. In the event that the permittee requests permission to abandon its facilities, or if the Safety Service Director determines, by reasonable available evidence, that the permittee has in fact abandoned its facilities, the City shall receive full title and ownership of such abandoned facilities if the Safety Service Director elects to receive such ownership. The permittee remains responsible for all obligations as owner of the facilities until the conveyance to the City is completed. In the event that the City accepts title to abandoned facility, the City does not assume any responsibility for prior service or maintenance agreements with customers or other service providers of the permittee. (Ord. 21-2012. Passed 9-17-12.)