15.08.130 Construction by water department—Agreement between applicant and manager.
The actual construction of water main extensions will be done by the water department. The manager may permit the applicant to construct the main extension subject first to executing an agreement, as a condition precedent to the city’s acceptance of the main, which agreement shall provide, among other things, the following:
A. Agreement Contents. The applicant shall execute and file an agreement between himself and the city agreeing to complete all improvement work as required by the manager and this chapter, to the satisfaction of the manager, within the period specified by the manager, and providing that if he shall fail to complete such work within such period, the city may complete the same and recover the full cost and expense thereof from the applicant. Such agreement shall also provide for inspection of all improvements by the manager and reimbursement to the city for the cost of such inspection by the applicant. Such agreement may also provide:
1. For the construction of the improvements in units,
2. For an extension of time under conditions therein specified,
3. For the termination of the agreement upon the completion of proceedings under an assessment district act for the construction of improvements deemed by the manager to be at least the equivalent of the improvements specified in the agreement and required to be constructed by the applicant, and
4. For progress payments to the applicant, or his order, from any deposit money which the applicant may have made in lieu of providing a surety bond, as provided by the following section; provided, however, that no such progress payment shall be made for more than ninety percent of the value of any installment of work; and provided, that each such installment of work shall be completed to the satisfaction of the manager.
B. Performance Bond or Cash Deposit. Every applicant shall also file with the agreement required by subsection (A) of this section to assure his full and faithful performance thereof a bond for such sum as the manager may deem sufficient to cover the cost of improvements required under this chapter and inspection thereof. Such bond shall be executed by a surety company authorized to transact a surety business in the state, and shall be satisfactory to and be approved by the city attorney as to form and the manager as to sufficiency. In lieu of such bond the applicant may deposit with the city treasurer cash in an amount fixed as aforesaid by the manager. In the event any applicant fails to complete all improvement work in accordance with the terms of the agreement or fails to reimburse the city for the cost of inspection thereof, the city shall have the right to require the applicant or his bondsmen to complete such work and improvement as required by such agreement; upon failure so to do within thirty days after notice in writing of such default, the city shall have the right to complete such improvement work, and the applicant and his bondsmen shall be jointly and severally liable to the city for the cost of completing such improvement work or such inspection. In any case, if the amount of surety bond or cash deposit shall be less than the cost and expense incurred by the city, the applicant shall be liable to the city for the difference. No refunds, progress payments from cash deposits or releases of surety bond or cash deposit posted shall be made except upon certification by the manager that work covered thereby has been satisfactorily completed.
(Ord. 675 NCS §3; Ord. 589 NCS §1; Ord. 544 NCS §11; prior code §27.17(1).)