A person considering any construction activity, installation of facilities, excavation, cutting, boring, digging or demolition activity in, over, under, through, along or across the streets or rights-of-way within the city, and who is not under a written contract, franchise, license or other express written agreement with the city, shall post a bond, make a cash deposit with the city, or provide other suitable forms of financial security as determined by the Building Inspector in an amount that approximates the projected costs of inspection, observation, labor, equipment, materials, and overhead associated with the permit work, and the restoration, reconstruction and repair of the cut, work or excavation in compliance with the standards and requirements set forth in Appendix A at the end of this chapter. The security shall be posted prior to the issuance of a permit and the start of construction.
(A) Bond required. A good and sufficient bond shall be filed with the application for the permit required by this subchapter, executed by a bonding company, which bond shall be approved by the Building Inspector as to form and sufficiency and shall be in the sum of not less than $2,000. The bond shall be conditioned, among other things, that the contractor shall faithfully, at his or her own expense, furnish all proper materials, tools and appliances, and perform, execute, construct and complete all such work undertaken by the contractor, and observe and comply with the specifications, requirements and provisions of this subchapter. The bond shall be and remain in effect at all times in which the excavation or construction activities are commenced or in progress.
(B) Maintenance provisions in bond.
(1) Every permittee issued a permit under this subchapter shall be bound and obligated to construct all work, and use the materials in the construction thereof, so that the same shall be in as good or better condition that prior to the work, and will remain in such as good or better condition for and during a period of not less than one year from and after the date of completion of the work, free from all cracks, breaks, disintegration, undue wear, scaling or departures from true line or grade, or other defects which might impair the permanence or usefulness of the work or construction activity or surrounding facilities, streets or rights-of-way; however, such cracks as may appear in expansion joints, or cuts between blocks, shall not be deemed to be defects unless, in the opinion of the Building Inspector, the cracks are excessive in opening or deflecting of surface.
(2) Each bond issued pursuant to this subchapter shall continue in effect for and during the maintenance period of one year following the completion of the work, construction activity or repair.
(3) Each bond issuer shall promptly adjust, pay and settle all legitimate claims for damages or injuries that may result by reason of carelessness or negligence in the manner of performing the work, construction activity or excavation, or by reason of any defects therein caused or arising from careless, negligent or imperfect construction or repair thereof.
(4) Each permittee and bond issuer shall hold the city free and harmless from liability on all claims for damages that are based upon, that arise from, or that are related to, the work or construction, or the condition thereof during the maintenance period, or that arise by reason of carelessness or negligence of the permittee, owner or contractor, in the manner of performing the work, construction activity or excavation, or by reason of any defects therein caused or arising from careless, negligent or imperfect construction or repair thereof, or otherwise by reason of the work or construction.
(C) Withdrawal of surety on bond. On written notice to the Building Inspector and the contractor, any surety on a bond issued pursuant to this subchapter may withdraw from all liability thereon on account of any and all future work undertaken by the contractor and for which excavation or construction activity was not begun before the delivery of the notice. After receipt of such, the contractor shall not begin any new work unless and until the contractor shall provide and procure the approval of a new bond in the same manner as required for the first bond. No bond or surety may be withdrawn after the permitted work is commenced.
(D) Emergency conditions. In the event emergency conditions warrant immediate response by an affected person, the Building Inspector may waive and/or modify normal standard procedures outlined herein to promulgate standards or requirements to expeditiously address the resolution of the emergency conditions; provided that, in any such event, the contractor shall obtain a permit for the work on the first business day of the city following performance of the work.
(E) Decision binding on contractor and sureties. The decision of the Building Inspector shall be binding and conclusive on the contractor and the sureties on all bonds as to when any work or construction was actually commenced.
(F) Liability of the contractor and sureties for defective work. A contractor whose work, construction activities or excavations are completed, or caused to by completed, by the city shall, on completion of the work and receipt of a certified bill of the cost thereof approved by the City Administrator, pay to the city, on its order, the cost of the work. The sureties on the contractor's bond shall be liable for all items and amounts listed in the certified bill of costs submitted to the contractor by the city. In the event the contractor, or the surety on any bond, shall fail and refuse to timely pay any certified bill to the city, the contractor and such surety shall be and become liable to the city for its attorney fees and costs of collection.
(G) Liability of contractor and sureties for maintenance and repair work. If any defect in the work or construction develops during the one-year guaranty period established by this subchapter, which, in the opinion of the Building Inspector, is due in any measure to defects of workmanship or material, the contractor shall remedy, repair and reconstruct the work, and/or any part thereof, as may be required by the Building Inspector, and the work shall be known as maintenance and repair work, and the surety on the contractor's bond shall be fully liable for any default of the contractor under this section.
(Ord. 2006-003, passed 3-22-2006)