A. Except as provided in the Streets and Highways Code Section 1468, before an excavation/encroachment permit is issued, a deposit in an amount of the estimated construction cost, as determined by the Director of Development Services, shall be paid to the City for damages and as indemnity for any.damages, which may be caused by the permitted excavation or obstruction; or in lieu of such deposit, post security in a form approved by the City Attorney.
Security shall indemnify the City for any damages and shall be further conditioned upon the compliance by the applicant with all provisions of this Chapter. Such deposit or security shall be for 100 percent of the estimated construction cost, as determined by the Director of Development Services, to guarantee faithful performance of all work, in a manner satisfactory to the City, and that all materials and workmanship will be free from original or developed defects. The deposit or security will remain in effect until the end of all warranty periods set forth in this Chapter. Changes in the work or extensions of time, shall in no way release the applicant or surety from its obligations.
B. Applicant shall furnish to the City a policy or certificate of liability insurance in which the City is the named insured or is named as an additional insured with the applicant. Franchised utilities doing work with their own forces shall not be required to submit insurance certifications or policies. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement, the City shall be the insured or as an additional insured covering the work whether liability is attributable to the applicant or the City.
The policy shall ensure the City, its officers, employees, and agents, while acting within the scope of their duties on the permit, against all claims arising out of or in connection with the work. Coverage shall be in accordance with the current edition of the Standard Specifications for Public Works Construction (Green Book) Section 7-3. The applicant shall indemnify, defend, and hold harmless the City, its officers and agents from all damages, costs or expenses in law or equity that may at any time arise or be set up because of damages to property, or of personal injury received by reason or in the course of performing work, which may be caused by any willful or negligent act or omission by the applicant, or any of the applicant's employees or contractors. The City will not be liable for any accident, loss or damage to the work prior to its completion and acceptance.
All liability insurance policies shall bear an endorsement or shall have attached a rider whereby it is provided that, in the event of expiration or proposed cancellation of such policies for any reason whatsoever, the City shall be notified by registered mail, return receipt requested, giving a sufficient time before the date thereof to comply with any applicable law or statute, but in no event less than 30 days before expiration or cancellation is effective.
The applicant shall be required, on the permit, to affirm that they have a certificate of consent to self-insure, or a certificate of Worker's Compensation Insurance, or a certified copy thereof. (Sec 3800, Labor Code) or sign a certificate of exemption from Worker's Compensation Insurance (work over $100 valuation). Said certification shall certify the applicant shall not employ any person in any manner so as to become subject to the Worker's Compensation Laws of California in the performance of the work. After making such certification, should the applicant become subject to Worker's Compensation provisions of the Labor Code, applicant must forthwith comply with same or the permit shall be deemed revoked.
C. Owner occupants or owner builders shall not be required to provide said insurance certificates for work with a value under $5,000.00. Owner occupants or Owner builders shall however be bound by the provisions of Paragraph B as it relates to indemnification and defense of the City and liability for accident, loss or damage to property or for personal injury. The Owner occupant's or the Owner builder's signature on the application will attest to their understanding and acceptance of the liability exposure for work done by owner occupants or owner builders. Owners or builders shall declare that they are exempt from the Contractor's License Law and as the owner of the property that they or their employees, with wages as their sole compensation, will do the work and it is not intended or offered for sale. Contractor's License Law does not apply to an owner of property who builds or improves thereon and who does such work themselves or through their own employees, provided that such improvements are not intended or offered for sale. If however, the improvement is sold within one year of completion, the owner or builder will have the burden of proving that they did not build or improve for the purpose of sale.
D. Notwithstanding any provision in this Chapter to the contrary, a contractor who has been awarded a competitive bid by the City for a public project involving street excavation or cutting shall not be required to file a bond or special deposit under Section 12.03.110 to cover the cost of repairing or replacement of street surface excavated or damaged, provided that the contractor's bid documents or contract require that they perform such street repair or replacement as a part of the awarded project and that they so perform in a manner satisfactory to the Director of Development Services and in accordance with all provisions of this Section.
E. An agreement between the Redevelopment Agency and the City in a form satisfactory to the City Attorney unconditionally providing and guaranteeing that the agency provide and pay for those excavations/encroachments and other costs required pursuant to the provisions of this Section may be filed with the Director of Development Services as security in lieu of the bond, cash or certificate of deposit whenever the excavations/encroachments are located in a redevelopment project area and the agreement recites that the excavations/encroachments are in compliance with the redevelopment plan for the area and in furtherance of the public interest in promoting public or private development.
(Ord. MC-1027, 9-09-98; Ord. MC-1004, 10-21-97)