(a) Every applicant shall, upon approval of the registration application, furnish and file with the Building Commissioner a contractors Surety Bond in the amount of ten thousand dollars ($10,000), the form of both to be approved by the Director of Law, guaranteeing full and faithful compliance by the applicant with all the provisions of the Building Code and with pertinent rules and regulations promulgated by the authority of the Building Code, and binding the surety thereon to correct or abate any violations of this Building Code or of pertinent rules or regulations promulgated by authority of this Building Code whenever the applicant named as the principal on such bond refuses, neglects or fails to correct or abate such violations within a reasonable time limit set by the Building Commissioner.
(b) The Building Commissioner shall notify the registered contractor that the violation requires immediate correction and that the surety bond will be in jeopardy. Such a notice shall be in writing and delivered in person or by registered mail to the address shown in the contractor’s registration.
(c) When the Building Commissioner determines that, after delivering the notice a registered contractor has either failed to take significant action to correct the violation in accordance with the time limits established by the Building Commissioner or has failed, in good faith, to pursue the corrections diligently to completion, he or she may notify the registered contractor that he or she intends to take action against the surety bond. Such a notice 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, 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 such a request is made in writing, the Building Commissioner shall hold such a hearing within five business days.
(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 proper action to correct it, the City may then proceed to make the corrections itself by its own labor or by the 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 City shall have the right to refuse a bond from any Surety Company after demonstrating just cause. Prior failure to unreasonably pay on demand in the sole discretion of the City shall be considered just cause. (Ord. 68-2004. Passed 11-8-04.)