(a) Before any Permit required by this chapter shall be issued to an applicant, the applicant shall file with the Service Director a bond or letter of credit in favor of the City in an amount equal to the total estimated cost of construction, including labor and materials, or five thousand dollars, whichever is greater. The applicant shall provide the City with an estimate for acceptance prior to the execution of the bond or letter of credit. The bond or letter of credit shall be executed by the applicant as principal and by at least one surety upon whom service of process may be had in the state. The bond or letter of credit shall be conditioned upon the applicant fully complying with all provisions of City ordinances, rules and regulations, upon properly completing, repairing and restoring all areas within the Right-of-Ways which has been disturbed by Permittee, and upon payment of all judgments and costs rendered against the applicant for any material violation of City ordinances or state statutes that may be recovered against the applicant by any person for damages arising out of any negligent or wrongful acts of the applicant in the performance of Work done pursuant to the Permit. The City may bring an action on the bond or letter of credit or other security or assets of Permittee on its own behalf or on behalf of any person so aggrieved as beneficiary. The bond or letter of credit must be approved by the City’s legal counsel as to form and as to the responsibility of the surety thereon prior to the issuance of the Permit.
(b) The bond or letter of credit shall remain in force and effect for a minimum of three years after completion and probationary acceptance of the work. City may accept alternative forms of security if the City determines that the alternative is substantially equivalent or better than the bond, letter of credit or letter of responsibility.
(c) Permittee shall warrant its work and provide the security provided above for that purpose. City may draw upon such security to reimburse any costs it incurs as a result of Permittee’s failure to make repairs or take other actions required herein.
(1) The Permittee, by acceptance of the Permit, expressly warrants and guarantees complete performance of the Work in a manner acceptable to the City and warrants and guarantees all Work done for a period of three (3) years after the date of probationary acceptance, and agrees upon demand to maintain and to make all necessary repairs during the three (3) year period. This warranty shall include all repairs and actions needed as a result of:
A. Defects in Workmanship.
B. Settling of fills or excavations.
C. Any unauthorized deviations from the approved plans and specifications.
D. Failure to barricade.
E. Failure to clean up during and after performance of the Work.
F. Any other violation of this chapter or the ordinances of the City.
(2) The three (3) year warranty period shall run from the date of the City’s final acceptance of the Work. If repairs are required during the three (3) year warranty period, those repairs need only be warranted until the end of the initial three (3) year period starting with the date of probationary acceptance. It is not necessary that a new three (3) year warranty be provided for subsequent repairs which are approved and accepted by the City after probationary acceptance.
(3) At any time prior to completion of the three (3) year warranty period, the City may notify the Permittee in writing of any needed repairs. Such repairs shall be completed within twenty-four (24) hours if the defects are determined by the City to be an imminent danger to the public health, safety and welfare. Non-emergency repairs shall be completed within thirty (30) calendar days after notice. If the Permittee does not complete the repairs within the required time period, the City or its designee shall complete the repairs at the cost of the Permittee.
(Ord. 14-2002. Passed 1-8-02.)
(Ord. 14-2002. Passed 1-8-02.)