(A) Before a listing is issued to any person, partnership or corporation, the Director shall require the applicant to file a surety bond in the amount of $20,000. The bond shall be maintained and in full force and effect for a period of not less than one year.
(B) The bond shall set forth the name, phone number and address of the agent representing the bonding company and shall be:
(1) Issued by a surety authorized to do business in the state;
(2) Payable to the county or an unknown third party as oblige;
(3) Conditioned upon:
(a) Compliance with requirements set forth in this chapter which must be met to retain listing;
(b) Prompt payment of all fees owed to the county as set forth in this chapter;
(c) Prompt payment to the county for any loss or expense for damages to property of the county caused by any action of the contractor, his or her agents, employees, principals, subcontractors, materialmen or suppliers in violation of requirements of state stature, county regulations or this code, which requirement must be met to properly carry out construction activity, a land alteration, while engaged in any construction activity, land alteration, sewer work or excavation work; and
(d) Prompt payment to a person, partnership or corporation which is an unknown third party obligee for any:
1. Losses arising out of violation;
2. Expenses necessary to correct violations; and
3. Court costs and attorney fees allowed by the court incurred in connection with the commencement and prosecution of a court action to recover such losses and expenses for violation of regulation of this code, which requirements must be met to properly carry out construction activity, a land alteration, sewer work or excavation work on property of the unknown third party obligee, caused by any action of the contractor, his or her agents employees, principals, subcontractors, materialmen or suppliers while engaged in any construction activity, land alteration or sewer work. However the surety is not responsible under the bond for losses or expenses arising out of negligent conduct or improper workmanship unless such conduct or improper workmanship violates requirements of the state statute, county regulation or this code, which requirement must be met to properly carry out construction activity, land alteration, sewer work or excavation work.
(C) The Director may accept in lieu of the surety bond a properly conditioned irrevocable letter of credit in the amount of $20,000 if the Commissioners approve the obligor financial institution as being financially responsible and if the corporation counsel approves the letter of credit as affording the same protection to the county and an unknown third party as the protection afforded by a surety bond.
(D) The obligation of the surety and financial institution relative to this bond or letter of credit is limited to $20,000. A surety or financial institution may pay on the bond or disburse, from the letter of credit to pay a claim in full at any time when that claim and pending claims (reflected by written notice to the surety or financial institution) together do not exceed the unpaid penalty of the bond or the undisbursed balance of the letter of credit or if a written notice is received of which claims exceed the unpaid penalty of the bond or undisbursed balance of the letter of credit. The surety or financial institution shall pro-rate payment according to the amount of such claims.
(Ord. 1999-4-5-2, passed 4-5-1999)