HomeMy WebLinkAboutOrdinance 6287113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6287
File Number: 2020-0110
AMEND § 158.02 CASH BOND:
AN ORDINANCE TO AMEND § 158.02 CASH BOND OF THE FAYETTEVILLE UNIFIED
DEVELOPMENT CODE TO ALLOW CONTRACTORS WORKING WITHIN THE PUBLIC RIGHTS
OF WAY TO POST ADDITIONAL FORMS OF BONDS
WHEREAS, Section 158.02 of the Fayetteville Unified Development Code, which requires bonds for
working within the public rights of way, is the only portion of the City Code that does not allow
contractors to post alternative forms of bonds, such as surety bonds and letters of credit, and staff
recommends that we provide this additional option which is more consistent with the practices of peer
cities throughout the region and state.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals §158.02 of the
Fayetteville Unified Development Code and enacts a new §158.02, for the purpose of allowing more
flexibility in the types of bonds that will be accepted and to establish guidelines for persons performing
work within the public rights of way, as follows:
"158.02 - Excavation in Public Rights -Of -Way; Cash or Surety Bond Required
(A) No person or contractor shall make any excavation in a public right-of-way unless a bond is first
deposited with the city for the purpose of guaranteeing repair and replacement of city infrastructure in
the public right-of-way. Said bond shall be in an amount equivalent to the estimated cost of properly
repairing and replacing city infrastructure in the public right-of-way, as determined by the Mayor, or his
Page 1 Printed on 2/19/20
File Number: 2020-0110
Ordinance 6287
duly authorized representative. To satisfy this requirement, the person or contractor may provide a cash
bond, surety bond, or irrevocable letter of credit. Permanent bonds or letters of credit held by the city
under the terms of an existing franchise agreement shall be considered sufficient to fulfill the surety
requirements for any person or contractor acting as an agent for the franchise holder. The franchise holder
shall submit a letter or other document verifying that the person or contractor is the franchisee's agent
and is covered by the franchise holder's standing bond or letter of credit.
(B) A person or contractor in the business of performing utility construction and/or maintenance that
requires excavation in the public right-of-way or is engaged in a contract to perform work that includes
excavation in the public right-of-way may provide a standing bond sufficient to cover the scope of the
expected number of permits applicable to each and every site upon which to work is scheduled to take
place and where a permit will be required. The standing bond will remain in place until the completion
of all permitted work and all permitted work is fully inspected by the City and deemed to be
satisfactory.
(C) The bond shall be forfeited, all or in part thereof, if within sixty (60) days after written notice, the
person or contractor fails to reimburse the city for documented expenses incurred for its failure to comply
with the rules of public safety, failure to close the opening within 24 hours after the work has been
completed, failure to complete the backfill and repair in accordance with specifications, failure to
complete the necessary cleanup, or repair of damage to public property including but not limited to the
street subgrade, asphalt surface, concrete surface, curb and gutter, sidewalk, and/or all infrastructure located
within the public right-of-way or causing damage to vehicular or other traffic.
(D) Bond release: Upon completion of work within the public right-of-way, the person or contractor who
obtained the permit shall contact the City to schedule an inspection. The City will inspect the work
within 5 business days to determine if work is complete and if any damages were caused.
(1) If damage to the public right -of way has occurred due to permitted work, the City will
provide the person or contractor a list of required repairs. All repairs must then be completed
within 30 days.
(a) Once repairs are completed, the City shall be notified for a follow up inspection.
Once repairs have been confirmed, the bond will be released.
(b) If repairs are not completed within 30 days and the person or contractor has failed to
compensate the city for the city's expenses incurred in making such repairs within
sixty (60) days after written notice, the bond will be forfeited.
(2) If no damages were caused, the bond will be released."
PASSED and APPROVED on 2/18/2020
Page 2 Printed on 2119120
File Number. 2020-0110
Ordinance 6287
Attest:
Kara Paxton, City Clerk Treasurer
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Page 3 Printed on 209120
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Text File
File Number: 2020-0110
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Agenda Date: 2/18/2020 Version: 1
In Control: City Council Meeting
Agenda Number: C. 8
AMEND § 158.02 CASH BOND:
AN ORDINANCE TO AMEND § 158.02 CASH BOND OF
DEVELOPMENT CODE TO ALLOW CONTRACTORS WORKING
OF WAY TO POST ADDITIONAL FORMS OF BONDS
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Status: Passed
File Type: Ordinance
THE FAYETTEVILLE UNIFIED
WITHIN THE PUBLIC RIGHTS
WHEREAS, Section 158.02 of the Fayetteville Unified Development Code, which requires bonds for working
within the public rights of way, is the only portion of the City Code that does not allow contractors to post
alternative forms of bonds, such as surety bonds and letters of credit, and staff recommends that we provide
this additional option which is more consistent with the practices of peer cities throughout the region and state.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals §158.02 of the
Fayetteville Unified Development Code and enacts a new §158.02, for the purpose of allowing more flexibility
in the types of bonds that will be accepted and to establish guidelines for persons performing work within the
public rights of way, as follows:
"158.02 - Excavation in Public Rights -Of -Way; Cash or Surety Bond Required
(A) No person or contractor shall make any excavation in a public right-of-way unless a bond is first deposited
with the city for the purpose of guaranteeing repair and replacement of city infrastructure in the public
right-of-way. Said bond shall be in an amount equivalent to the estimated cost of properly repairing and
replacing city infrastructure in the public right-of-way, as determined by the Mayor, or his duly authorized
representative. To satisfy this requirement, the person or contractor may provide a cash bond, surety bond, or
irrevocable letter of credit. Permanent bonds or letters of credit held by the city under the terms of an existing
franchise agreement shall be considered sufficient to fulfill the surety requirements for any person or contractor
acting as an agent for the franchise holder. The franchise holder shall submit a letter or other document verifying
that the person or contractor is the franchisee's agent and is covered by the franchise holder's standing bond or
letter of credit.
(B) A person or contractor in the business of performing utility construction and/or maintenance that requires
City of Fayetteville, Arkansas Paye 1 Printed on 211912020
File Number.' 2020-0110
excavation in the public right-of-way or is engaged in a contract to perform work that includes excavation in the
public right-of-way may provide a standing bond sufficient to cover the scope of the expected number of
permits applicable to each and every site upon which to work is scheduled to take place and where a permit
will be required. The standing bond will remain in place until the completion of all permitted work and all
permitted work is fully inspected by the City and deemed to be satisfactory.
(C) The bond shall be forfeited, all or in part thereof, if within sixty (60) days after written notice, the person or
contractor fails to reimburse the city for documented expenses incurred for its failure to comply with the rules of
public safety, failure to close the opening within 24 hours after the work has been completed, failure to
complete the backfill and repair in accordance with specifications, failure to complete the necessary cleanup, or
repair of damage to public property including but not limited to the street subgrade, asphalt surface, concrete
surface, curb and gutter, sidewalk, and/or all infrastructure located within the public right-of-way or causing
damage to vehicular or other traffic.
(D) Bond release: Upon completion of work within the public right-of-way, the person or contractor who
obtained the permit shall contact the City to schedule an inspection. The City will inspect the work within 5
business days to determine if work is complete and if any damages were caused.
(1) If damage to the public right -of way has occurred due to permitted work, the City will
provide the person or contractor a list of required repairs. All repairs must then be completed
within 30 days.
(a) Once repairs are completed, the City shall be notified for a follow up inspection.
Once repairs have been confirmed, the bond will be released.
(b) If repairs are not completed within 30 days and the person or contractor has failed to
compensate the city for the city's expenses incurred in making such repairs within sixty (60)
days after written notice, the bond will be forfeited.
(2) If no damages were caused, the bond will be released."
City of Fayetteville, Arkansas Page 2 Printed on 2119/2020
City of Fayetteville Staff Review Form
2020-0110
Legistar File ID
2/18/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Jonathan Ely 1/31/2020 ENGINEERING (621)
Submitted By Submitted Date Division / Department
Action Recommendation:
AN ORDINANCE TO AMEND CHAPTER 158.02 EXCAVATION IN PUBLIC RIGHT OF WAY OF THEY UNIFIED
DEVELOPMENT CODE TO ALLOW ADDITIONAL FORMS OF BONDING, AND ESTABLISH GUIDELINES FOR PERSONS
PERFORMING WORK IN THE RIGHT OF WAY.
Account Number
Project Number
Budgeted Item? NA
Does item have a cost? No
Budget Adjustment Attached? NA
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
z
I$
$ -
V20180321
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number:
Original Contract Number:
Comments:
Approval Date:
CITY OF
-J FAYETTEVILLE
ARKANSAS
MEETING OF FEBRUARY 18, 2020
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
Garner Stoll, Development Services Director
Chris Brown, City Engineer
CITY COUNCIL MEMO
FROM: Jonathan Ely, Development and Construction Manager
DATE: January 31, 2020
SUBJECT: Ordinance to amend UDC Chapter 158.02 Excavation in Public Right of Way
RECOMMENDATION:
Staff recommends approval of an amendment to the Unified Development Code, Chapter
158.02 Excavation in Public Right of Way to allow surety bonds, and letters of credit in
addition to cash bonds, and establish guidelines for persons performing work within the right
of way.
BACKGROUND:
Currently, Chapter 158.02 requires cash bonds only in an amount to be determined by the
Mayor or his representative, which in this case is the City Engineer. Recent enforcement of
this ordinance has stirred some discussions for change to allow other acceptable bonding
forms from franchise utility companies, their contractors, and other persons requesting to
perform excavation in City Right of Way.
DISCUSSION:
Over the past several years, there has been a significant increase in the amount of work being
performed in City Right of Way. As technology changes, infrastructure ages, and the city
continues to grow, many franchise utility companies have been upgrading their services. As a
result, there has also been a significant increase in the number of permits being processed for
excavation in public right of way to accommodate these changes.
As a part of the Right of Way Excavation Permit, applicants are currently required to provide a
cash bond to ensure completion and repairs of work in the right of way. In the instance City
Infrastructure is damaged and not repaired, the City would then use this bond to complete
repairs.
This amendment is proposed to allow more flexibility in the types of bonds that would be
accepted, and to establish a frame work for how the bonds should be accepted, used and/or
released. A performance surety, as well as a letter of credit is proposed to be allowed, which
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
corresponds to bonding types allowed throughout the UDC, and is more consistent with peer
cities throughout the region and state.
Members of city staff and the attorney's office have meet with representatives from the
franchise utility companies, and the proposed amendment is the result of a combined effort to
allow more flexibility, while still maintaining protection for city infrastructure.
BUDGET/STAFF IMPACT:
None
Attachments:
Current and Proposed Amended Language
2
Current Language
158.02 - Cash Bond. No person shall make any excavation of a street or public right-of-way unless a cash
bond is first deposited with the city for the purpose of guaranteeing repair and replacement of said street
or public right-of-way. Said cash bond shall be in an amount equivalent to the estimated cost of properly
repairing and replacing said street or public right-of-way, as determined by the Mayor, or his duly
authorized representative.
Proposed Amended Language
158.02 - Excavation In Public Rights -Of -Way; Cash or Surety Bond Required
(a) No person or contractor shall make any excavation in a public right-of-way unless a bond is first
deposited with the city for the purpose of guaranteeing repair and replacement of city
infrastructure in the public right-of-way. Said bond shall be in an amount equivalent to the
estimated cost of properly repairing and replacing city infrastructure in the public right-of-way, as
determined by the Mayor, or his duly authorized representative. To satisfy this requirement, the
person or contractor may provide a cash bond, surety bond, or irrevocable letter of credit.
Permanent bonds or letters of credit held by the city under the terms of an existing franchise
agreement shall be considered sufficient to fulfill the surety requirements for any person or
contractor acting as an agent for the franchise holder. The franchise holder shall submit a letter or
other document verifying that the person or contractor is the franchisee's agent and is covered by
the franchise holder's standing bond or letter of credit.
(b) A person or contractor in the business of performing utility construction and/or maintenance that
requires excavation in the public right-of-way or is engaged in a contract to perform work that
includes excavation in the public right-of-way may provide a standing bond sufficient to cover the
scope of the expected number of permits applicable to each and every site upon which to work is
scheduled to take place and where a permit will be required. The standing bond will remain in
place until the completion of all permitted work and all permitted work is fully inspected by the City
and deemed to be satisfactory.
(c) The bond shall be forfeited, all or in part thereof, if within sixty (60) days after written notice, the
person or contractor fails to reimburse the city for documented expenses incurred for its failure to
comply with the rules of public safety, failure to close the opening within 24 hours after the work
has been completed, failure to complete the backfill and repair in accordance with specifications,
failure to complete the necessary cleanup, or repair of damage to public property including but
not limited to the street subgrade, asphalt surface, concrete surface, curb and gutter, sidewalk,
and/or all infrastructure located within the public right-of-way or causing damage to vehicular or
other traffic.
(d) Bond release: Upon completion of work within the public right-of-way, the person or contractor
who obtained the permit shall contact the City to schedule an inspection. The City will inspect the
work within 5 business days to determine if work is complete and if any damages were caused.
a. If damage to the public right -of way has occurred due to permitted work, the City will
provide the person or contractor a list of required repairs. All repairs must then be
completed within 30 days.
i. Once repairs are completed, the City shall be notified for a follow up inspection.
Once repairs have been confirmed, the bond will be released.
ii. If repairs are not completed within 30 days and the person or contractor has
failed to compensate the city for the city's expenses incurred in making such
repairs within sixty (60) days after written notice, the bond will be forfeited.
b. If no damages were caused, the bond will be released.
NORTHWEST ARKANSAS
Democrat90fautte
AFFIDAVIT OF PUBLICATION
RECEIVED
MAR 0 4 2020
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
I Cathy Staggs, do solemnly swear that I am the Accounting Manager for the Northwest
Arkansas Democrat- Gazette, printed and published in Washington and Benton
County, Arkansas, and of bona fide circulation in said county, that from my own personal
knowledge and reference to the files of said publication, the advertisement of:
CITY OF FAYETTEVILLE
Ord 6287
Was inserted in the Regular Edition on:
February 27, 2020
Publication Charges $ 262.60
621�Shel-
Cathy to gsQW
Subscrib and sworn to before me
This day of pJ 2020.
(�a A
Notary Public
My Commission Expires: Z/Za/702�
t CATHY WILES
Arkansas - Benton County
i Notary Public - Comm,,= 12397118
My Commission Expires Feb 70, 2024
**NOTE** Please do not pay from Affidavit
Invoice will be sent.
Ordinance: 6287
File Number: 2020-0110
AMEND § 158.02 CASH BOND:
AN ORDINANCE TO AMEND §
158.02 CASH BOND OF THE
FAYETTEVILLE UNIFIED
DEVELOPMENT CODE TO
ALLOW CONTRACTORS
WORKING WITHIN THE PUBLIC
RIGHTS OF WAY TO POST
ADDITIONAL FORMS OF BONDS
WHEREAS, Section 158.02 of the
Fayetteville Unified Development
Code, which requires bonds for
working within the public rights of
way, is the only portion of the City
Code that does not allow contractors
to post alternative forms of bonds,
such as surety bonds and letters of
credit, and staff recommends that we
provide this additional option which
is more consistent with the practices
of peer cities throughout the region
and state.
NOW, THEREFORE, BE IT
ORDAINED BY THE CITY
COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of
the City of Fayetteville, Arkansas
hereby repeals § 158.02 of the
Fayetteville Unified Development
Code and enacts a new § 158.02, for
the purpose of allowing more
flexibility in the types of bonds that
will be accepted and to establish
guidelines for persons performing
work within the public rights of way,
as follows:
"158.02 - Excavation in Public
Rights -Of -Way; Cash or Surety Bond
(A) No person or contractor
shall make any excavation in a public
right-of-way unless a bond is first
deposited with the city for the
purpose of guaranteeing repair and
replacement of city infrastructure in
the public right-of-way. Said bond
shall be in an amount equivalent to
the estimated cost of properly
repairing and replacing city
infrastructure in the public right-of-
way, as determined by the Mayor, or
Ordinance 6287
duly authorized representative. To
satisfy this requirement, the person or
contractor may provide a cash bond,
surety bond, or irrevocable letter of
credit. Permanent bonds or letters of
credit held by the city under the terms
of an existing franchise agreement
shall be considered sufficient to fulfill
the surety requirements for any
person or contractor acting as an
agent for the franchise holder. The
franchise holder shall submit a letter
or other document verifying that
the person or contractor is the
franchisee's agent and is covered by
the franchise holder's standing
bond or letter of credit.
(B) A person or contractor
in the business of performing utility
construction and/or maintenance
that requires excavation in the
public right-of-way or is engaged
in a contract to perform work that
includes excavation in the public
right-of-way may provide a
standing bond sufficient to cover
the scope of the expected number
of permits applicable to each and
every site upon which to work is
scheduled to take place and where a
permit will be required. The
standing bond will remain in place
until the completion of all
permitted work and all permitted
work is fully inspected by the City
and deemed to be satisfactory.
(C) The bond shall be
forfeited, all or in part thereof, if
within sixty (60) days after written
notice, the person or contractor
fails to reimburse the city for
documented expenses incurred for
its failure to comply with the rules
of public safety, failure to close the
opening within 24 hours after the
work has been completed, failure to
complete the backfill and repair in
accordance with specifications,
failure to complete the necessary
cleanup, or repair of damage to
public property including but not
limited to the street subgrade,
asphalt surface, concrete surface,
curb and gutter, sidewalk, and/or
all infrastructure located within the
public right-of-way or causing
damage to vehicular or other
(D) Bond release: Upon
completion of work within the
public right-of-way, the person or
contractor who obtained the permit
shall contact the City to schedule
an inspection. The City will inspect
the work within 5 business days to
determine if work is complete and
if any damages were caused.
(1) If damage to the
public right -of way has occurred
due to permitted work, the City will
provide the person or contractor a
list of required repairs. All repairs
must then be completed within 30
days.
(a) Once repairs are
completed, the City shall be
notified for a follow up inspection.
Once repairs have been confirmed,
the bond will be released.
(b) If repairs are not
completed within 30 days and the
person or contractor has failed to
compensate the city for the city's
expenses incurred in making such
repairs within sixty (60) days after
written notice, the bond will be
forfeited.
(2) If no damages were
caused, the bond will be released."
PASSED and APPROVED on
2/18/2020
Ordinance 6287
Approved:
Lioneld Jordan, Mayor
Attest:
Kara Paxton, City Clerk Treasurer
7523521102/27/2020
