§ 24.30.050. Bond or indemnity deposit—Generally.

A.

If the director of development services determines that there is a possibility of injury, damage or expense to the municipality arising from an applicant's proposed use of any public place, the applicant for a permit under this chapter shall furnish to the municipality a surety bond, cash or certified check, payable to the municipality, to be in an amount of not less than $500.00. The deposit shall be in an amount determined by the director of development services at the time of approving the application and shall be used to pay the cost plus overhead charges as specified in section 24.30.110 of additional inspectors, surveys or other services performed by the municipality above those included within the permit fee, of restoring the street and removing any earth or other debris from the street, of the replacement of any utility interrupted or damaged, and of the completion of any work left unfinished, and any other expense the municipality may sustain in conjunction with the permitted work. In the case of a cash indemnity deposit, the balance, if any, after the deductions listed in this subsection, shall be returned to the applicant. If the deposit is insufficient the applicant will be liable for the deficiency.

B.

If a surety bond is filed, the bond shall assume all the requirements provided in subsection A of this section in relation to a cash indemnity deposit, shall run for the full period of the permit, and shall be conditioned that such applicant shall faithfully comply with all the terms of the permit and all the provisions of this title, and all other ordinances of the municipality, and indemnify and save the municipality free and harmless from any and all claims, actions or damages of every kind and description which may accrue to, or be suffered by, any person by reason of the use of any public place, as provided for in the application. The bond shall be approved as to form by the risk manager.

C.

The municipality reserves the right to determine the circumstances and length of duration of a bond, cash or certified assurance required to cover possible damage and repairs which may result from the permittee's construction. If the application shall be to construct, reconstruct, repair, maintain or remove any sidewalk, pavement, grading or underground installations of any kind, or any other work which may affect the integrity of the street or other public place, the applicant shall file a surety bond approved as to form by the risk manager, which bond shall run for the full period of the permit plus one year after the acceptance of the permitted work by the director of development services. The amount of the bond shall be in an amount fixed by the director of development services and conditioned that the applicant shall faithfully complete all portions of the work according to the standard construction specifications and standard details of the municipality, and the special plans and other data approved or specified by the director of development services.

D.

In addition to the other requirements stated in this section, the director may require that a cash deposit of not more than $2,500.00 accompany an application for a permit based on the following criteria:

1.

The scope of the work to be performed under the permit.

2.

The permit applicant's record for satisfactory completion of work authorized by other permits issued under this title.

E.

A cash deposit received by the director under subsection D of this section shall be treated in the following manner:

1.

Following a determination by the director that the work authorized by the permit has been satisfactorily completed, the cash shall be returned to the permittee unless the permittee first requests that the deposit be held by the director so that it can be applied to another permit application by that permittee.

2.

If the work is not completed in accordance with the permit, the director shall notify the permittee, in writing, of the remedial steps to be taken. If the permittee fails to complete such remedial work within seven days after receipt of that notice, the director may arrange for that work to be performed. The permittee shall be personally responsible for direct payment of all costs, including overhead expenses, related to work performed by the director, and shall pay such costs no later than 30 days following receipt of an invoice therefor.

3.

A person shall be ineligible to apply for a permit under this title until he has discharged his obligations under this section.

4.

The director shall place a cash deposit in an interest-bearing account so that interest shall accrue within 24 hours following such placement. All accrued interest shall be credited to the permittee's account.

(CAC 10.32.030; AO No. 87-66; AO No. 2003-68, § 9, 9-30-03)