§ 30-41. Bond.

(a)

On all work for which a permit is required by the provisions of this division which is estimated to cost less than five hundred dollars ($500.00), each applicant shall deposit an amount in cash or a surety bond equal to fifteen (15) percent of the total cost of construction with the community development department prior to issuance of the permit.

(b)

On all such work estimated to cost over five hundred dollars ($500.00), each applicant shall deposit an amount in cash or a surety bond equal to the total coast of construction with the community development department prior to issuance of the permit. The estimated total cost of construction and the sufficiency of the bond shall be determined by the department.

(c)

Surety bonds shall be executed by the applicant as principal with a corporation duly authorized to transact surety business in this state. Surety bonds shall be payable to the city, shall be continuous in form, and shall be conditioned that the total aggregate liability of the surety for all claims shall be limited to the face amount of the bond irrespective of the number of years the bond is in force. Upon satisfactory performance and acceptance of the work, the surety bond shall be released by the city, or such bond may be cancelled upon deposit of other security by the applicant which is satisfactory to the city which will cover any obligations that remain.

(d)

Upon the determination by the community development department that the construction has been properly completed and accepted by and for the city, the cash or surety bond deposited with the city shall be returned to the permittee.

(e)

In the event an applicant is issued a number of small permits throughout the year, he may, at the discretion of the department, post a continuing bond to cover work on more than one (1) permit. The continuing bond shall be of a value sufficient to cover any and all work under construction by the permittee at any one time. A continuing bond, however, is not acceptable for new subdivision work.

(f)

The bond is subject to cancellation or may be terminated after all obligations are fulfilled which were under permit prior to receipt of cancellation notice from surety by the city.

(g)

This section shall not be construed to include work by the owner of any residential property where the work to be performed shall be accomplished by such owner, or work within a subdivision where in the subdivider has furnished other satisfactory assurances.

(Code 1963, § 26-5, 26-10)