(a) Construction Bond. Prior to the commencement of any construction, a construction permittee, excluding the City and the county, shall deposit with the Public Works Director an irrevocable, unconditional letter of credit and/or surety bond or cash payment in an amount determined by the Public Works Director to be appropriate based upon fair and reasonable criteria. Unless a construction default, problem or deficiency involves an emergency or endangers the safety of the general public, the Public Works Director shall serve written notice to the construction permittee detailing the construction default, problem or deficiency. If the Public Works Director determines that correction or repair of the construction default, problem or deficiency has not occurred or has not been substantially initiated within ten calendar days after the date following service and notification and detailing the construction default, problem or deficiency, then the City may attach the letter of credit or surety bond or the cash deposit which will be made whole again by the permitee within five working days of notice. Upon attachment, written notice shall be served on the construction permittee by the Public Works Director.
(b) Blanket Bond. In lieu of the construction bond required by division (a) of this section, provider may deposit with the Public Works Director an irrevocable, unconditional letter of credit and/or surety bond or cash in the amount of fifty thousand dollars ($50,000), or such greater amount deemed appropriate in the sole discretion of the Public Works Director. Unless a construction default, problem or deficiency involves an emergency or endangers the safety of the general public, the Public Works Director shall make all reasonable effort to allow permittee a period of ten calendar days after sending notification in writing to correct or repair any default, problem or deficiency prior to Public Works Director's attachment of the letter of credit or surety bond.
(c) Self Bonding. In lieu of the construction bond required by division (a) of this section and the blanket bond required by division (b) of this section, those providers maintaining a book value in excess of fifty million dollars ($50,000,000) may submit a statement to the City Manager requesting to self-bond. If approval to self-bond is granted, a provider shall assure the City that such self-bonding shall provide the City with no less protection and security than would have been afforded to the City by a third party surety providing provider with the types and amounts of bonds detailed in the above named divisions. This statement shall include:
(1) Audited financial statements for the previous year;
(2) A description of the applicant's self-bonding program.
(3) The City Manager may modify or waive these requirements if they are not necessary in determining the sufficiency of the self-bonding. The City Manager may request applicable and pertinent additional information if it is necessary in determining the sufficiency of the self-bonding.
(d) Purposes.
(1) The bonds required by this section, and any self-bonding to the extent it has been permitted, shall serve as security for:
A. The faithful performance by the permittee or provider of all terms, conditions and obligations of this chapter;
B. Any expenditure, damage, or loss incurred by the City occasioned by the permittee or provider's violation of this chapter or its failure to comply with all rules, regulations, orders, permits and other directives of the City issued pursuant to this chapter;
C. The payment of all compensation due to the City, including permit fees;
D. The payment of premiums (if any) for the liability insurance required pursuant to this chapter;
E. The removal of facilities from the rights-of-way pursuant to this chapter;
F. The payment to the City of any amounts for which the permittee or provider is liable that are not paid by its insurance or other surety; and
G. The payment of any other amounts which become due to the City pursuant to this chapter or the law.
(e) Form. The bond documents required by this section and any replacement bond documents shall contain the following endorsement: "It is hereby understood and agreed that this bond may not be canceled or not renewed by the surety nor the intention to cancel or not to renew be stated by the surety until ninety (90) days after completion of construction of the Facilities and, notwithstanding the foregoing, shall in no case be canceled or not renewed by the surety until at least ninety (90) days' written notice to City of surety's intention to cancel or not renew this bond."
(Ord. A-2853. Passed 4-11-16; Ord. A-2963. Passed 4-22-19.)