(A) Except as noted in this chapter, each applicant, before being issued a permit, shall provide the City Manager with an acceptable security (hereinafter the "bond") in the form of either a cash bond or secure letter of credit or other financial protection acceptable to the City Attorney.
(B) Public utilities franchised or authorized by separate agreement with the city shall not be required to file a security if such requirement is expressly waived in the franchise documents or other acceptable right-of-way use agreement or license, or if such bond(s) has been provided with the franchise grant or other acceptable right-of-way use agreement or license.
(C) All other contractors shall, at a minimum, provide security in the sum of $2,000. The city shall hold this deposit or guarantee for a period of 24 months as surety against any defects or workmanship.
(D) The amount of the bond required may be increased at discretion of the City Engineer based on the amount and cost of the work to be performed and the limits and types of disturbances.
(E) The bond required by this section shall be conditioned as follows:
(1) The permittee shall fully comply with the requirements of the city ordinances and regulations, specifications, and standards promulgated by the city relative to work in the public way, and respond to the city in damages for failure to conform therewith;
(2) After work is commenced, the permittee shall proceed with diligence and expedition, and shall promptly complete such work and restore the public way to construction specifications so as not to obstruct the public place or travel thereon more than is reasonably necessary;
(3) Upon acceptance of restoration by the City Engineer, the city shall notify the permittee of the start date of the warranty assurance for a period of one year from completion of such work, with reasonable wear and tear excepted; and
(4) Upon completion of the warranty period, the permittee shall notify the City Engineer in writing that the work is ready for final inspection. If the work is found to be in satisfactory condition, the City Manager shall authorize release of the bond or refund the cash escrow deposit within 60 days of the written notification.
(F) The security may be forfeited in whole or in part as follows:
(1) The work is deemed a failure and there is no response within five business days from the date the permittee is provided written notice to cure; or
(2) An emergency or unsafe condition arises as a result of the failed work in that notification to the permittee would further jeopardize public safety, in which case the city may use all or part of the surety or deposit to correct the unsatisfactory work; or
(3) The permittee fails to request a final inspection and 90 days lapse after the warranty period, in which case the city shall consider the permit abandoned and the surety or deposit forfeited to the city in full.
(G) The warranty period does not exempt the permittee from the responsibility to respond and cure any defects in restoration at any time after being notified by the city.
(H) If the permittee fails to respond to or cure any defects in restoration, the city may undertake or take cause to undertake necessary work to ensure public safety and all direct and indirect costs incurred shall be recovered from the warranty surety.
(Ord. 06-2024, passed 3-6-2024)