(A) The city engineer, or the Mayor's designee, may, as a condition precedent to granting an encroachment permit under this chapter, require the submission of a performance guaranty, in the form of cash, cashier's check, performance bond, unconditional irrevocable letter of credit, or similar instrument, acceptable to the city, which shall serve as a guarantee that all restoration or reconstruction work will be completed by the encroachment permit holder in accordance with the terms and provisions of this chapter. The amount of the performance guaranty shall be based on a cost estimate provided by the encroachment permit holder, approved by the city, for the cost to complete the restoration and/or reconstruction, plus a ten percent (10%) contingency fee. After a period of one year from the date of the submittal, the city may require that a revised estimate and bond be submitted by the permit holder that reflects updated unit prices if the unit prices have increased. Unit prices used in the cost estimate shall be based on R.S. Means Construction Cost Data, latest edition.
(B) Upon the completion of permanent restoration or reconstruction of a street opening, the city engineer, or the Mayor's designee, shall inspect all finished work to ensure conformance with applicable city specifications. If restoration or reconstruction work is accepted by the city, the performance guaranty shall be promptly released and returned to the encroachment permit holder. If the restoration or reconstruction work is determined to be noncompliant with city specifications, the city engineer, or Mayor's designee shall notify the permit holder, in writing, of the specific deficiency in the restoration or reconstruction work. A second inspection shall be performed in thirty (30) days by a city representative to determine if the reported deficiency has been corrected. If a deficiency still exists, the city engineer or the Mayor's designee shall issue a final written notice to the encroachment permit holder, advising that if restoration or reconstruction work compliance is not completed within ten (10) days, the city shall order the work completed at the cost of the encroachment permit holder through application of the performance guaranty, and the encroachment permit holder shall forfeit any and all rights to the performance guaranty or portion of the performance guaranty if an annual guaranty has been posted. Any dispute or disagreement regarding compliance with the terms and provisions of this chapter may be submitted to the city engineer or the Mayor's designee, in writing, for review and consideration.
(Ord. 2016-2, passed 2-17-2016)