(a) Every registered contractor shall, as a condition of his or her registration, file with the Building Commissioner a surety bond in the amount as set forth in the fee structure in Chapter 214
of the Administrative Code using the form designated as Appendix I to Chapter 1444 as follows: the surety bond shall guarantee full and faithful compliance by the registered contractor with all pertinent laws and regulations of the State of Ohio and the City, and shall bind the surety thereon to correct or abate any violation of said laws or regulations whenever the registered contractor named as the principal on such bond refuses, neglects, or fails to correct or abate such violation within a reasonable time limit set by the Building Commissioner. The bond shall be required for all work to be performed by the registered contractor involving residential or non-residential structures.
(b) Whenever a registered contractor has been cited by the Building Commissioner or his or her agent for a violation of the laws and regulations of the State of Ohio or the City, the Building Commissioner shall notify the registered contractor that the violation requires immediate correction and that the surety bond will be in jeopardy absent such correction. Notice of violation shall be in writing and delivered in person or by registered mail to the address shown in the contractor's registration.
(c) If the Building Commissioner determines that, after delivering a notice under subsection (b) hereof, a registered contractor has failed to take action to correct the violation in accordance with the time limits established by the Building Commissioner, the Building Commissioner may notify the registered contractor that he or she intends to pursue attachment of the contractor’s surety bond. Notice of attachment shall be in writing and delivered in person or by mail to the address shown in the contractor's registration.
(d) Within three business days of delivery of the notice of attachment, the registered contractor may request a hearing before the Building Commissioner for the purpose of disputing either that a violation exists or that proper action has not been taken to correct the violation. If a request for a hearing is made in writing, the Building Commissioner shall hold a hearing within five business days of receiving such request.
(e) If no request has been timely received for a hearing under subsection (d) hereof, or if, following such a hearing, the Building Commissioner finds that a violation does exist and that the registered contractor has not taken action to correct it, the City may then proceed to make the corrections itself by its own labor or by contracting out for such corrections. All costs incurred by the City in making such corrections may be paid from the bond in the name of the registered contractor. If, after making such deductions, there remains a balance due to the City, the City shall be free to pursue other legal recourse available to obtain full reimbursement.
(f) The Building Commissioner may relinquish the City's rights under the performance bond and assign those rights to any person, firm, or corporations with whom the contractor has contracted, provided that the Building Commissioner determines that no municipal action or expenditure is required to correct the violation.
(g) Any property owner holding an open permit with the contractor shall be notified of the City's relinquishment of its right to claim under the bond. Any such person, firm, or corporation may proceed to seek their proportional damages under the performance bond.
(Ord. 05-26. Passed 3-15-05; Ord. 14-126. Passed 11-5-14.)