§ 58-35. Performance and maintenance bond.

Prior to issuance of a right-of-way construction permit, the applicant shall deposit a cash bond with the city to ensure that the right-of-way is restored to an acceptable condition as provided in this article. If the applicant does not complete the restoration as specified on the permit, the city shall have the right to restore the right-of-way as specified on the permit and as provided in this article. The cash bond shall be retained by the city for a period of 12 months from the date of completion and may be used to repair any defects in the restoration work during such period. The bond shall be refunded to the applicant after 12 months, less any amount necessary for restoration or repair of the right-of-way as provided above, including actual costs plus 25 percent of such costs for administrative expenses. The bond shall be calculated as follows:

(1)

The cash bond shall be a sum based on 110 percent of the estimated costs of restoration of the right-of-way, with a minimum deposit of $1,500.00. The cash bond may be waived by the city manager or his designee for any permit that would calculate to less than the minimum deposit, based on the location and complexity of the proposed work.

(2)

Any person intending to apply for multiple permits may maintain with the city a general cash bond in an amount to be determined by the city manager or his designee, based on the average work to be undertaken during the six-month period after posting the general cash bond. The city manager or his designee may require an additional bond for larger projects that exceed the amount of the general cash bond.

(3)

Any franchised utility shall not be required to post a cash bond for work performed by employees of such utility.

(4)

Any contractor performing work for a franchised utility shall obtain a right-of-way construction permit and post a cash bond with the city. The bond shall be calculated as provided in subsection (1) of this section, or shall be a sum equal to ten percent of the value of the construction contract between the contractor and the franchised utility for the specific project permitted. Alternatively, the construction contract may require a performance and maintenance bond naming both the franchised utility and the city, or may provide that the franchised utility is responsible to the city for all performance and maintenance requirements of this article. A copy of the construction contract between the franchised utility and the contractor containing such requirements or provision shall be submitted with the permit application.

(Ord. No. 1992-27, § 6, 8-25-92; Ord. No. 2018-13 , § 2, 8-7-2018)