Glasgow Performance Guarantees and Remedies; Penalties ordinance (§ 515.040)

A. Performance Bond.

1. Prior to any facilities work in the public rights-of-way, an applicant shall establish in the City's favor a performance bond in an amount determined by non-discriminatory regulations promulgated by the Superintendent of Public Works as necessary to ensure the applicant's faithful performance of the facilities work. Differences in bond requirements, including provisions for self-insurance or provisions for a single continuing bond where facilities work is conducted by the same applicant under numerous permits, may be established by regulation based on the extent or nature of the facilities work, the past performance of the applicant and not based on the characteristics of the applicant. In lieu of a performance bond, Applicant may provide an acceptable substitute with the approval of the Superintendent of Public Works and the City Clerk.

2. In the event an applicant fails to complete the facilities work in a safe, timely and competent manner, there shall be recoverable, jointly and severally from the principal and surety at the bond, any damages or loss suffered by the City as a result, plus a reasonable allowance for attorneys fees, up to the full amount of the bond.

3. Upon completion of the facilities work to the satisfaction of the Superintendent of Public Works, the Superintendent of Public Works shall eliminate the bond or reduce its amount after a time appropriate to determine whether the work performed was satisfactory, which time shall be established by the Superintendent of Public Works considering the nature of the work performed.

4. A performance bond shall be issued by a surety acceptable to the City, and shall contain the following endorsement: "This bond may not be canceled, or allowed to lapse until sixty (60) days after receipt by the City, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew."

5. Applicant shall, at its sole cost and expense, indemnify, hold harmless, and defend the City, its officials, boards, board members, commissions, commissioners, agents, and employees, against any and all claims, suits, causes of action or proceedings, and judgments for damages or equitable relief which are caused by the acts, errors and omissions of applicant arising out of the construction and maintenance of its facilities.

6. Recovery by the City of any amounts under the performance bond or otherwise does not limit an applicant's duty to indemnify the City in any way, nor shall such recovery relieve an

applicant of its obligations under a permit or reduce the amounts owed to the City other than by the amounts recovered by the City under the performance bond, or in any respect prevent the City from exercising any other right or remedy it may have.

B. Penalties. For each violation of provisions of this Chapter or a permit granted pursuant to this Chapter as to which the City has given notice to applicant as provided in this Chapter, penalties may be chargeable to the applicant at a rate set out in Section 100.220 of this Code.