12.16.150 Workmanship and performance warranty fee.
A. All permits issued under the requirements of this chapter will include the payment of a nonrefundable workmanship and performance warranty fee to city. This workmanship and performance warranty fee shall be imposed as follows:
1. Where the workmanship and performance of the permittee is limited to the statutory one year period; cuts are allowed with payment of a workmanship and performance warranty fee as established by resolution.
2. Utilities operating under a franchise granted by the city that clearly includes an explicit obligation to repair (warranty) any restoration quality defects are exempt from payment of the workmanship and performance warranty fee. Utilities operating under a franchise that does not have explicit obligation to warranty and repair may enter into an agreement with city that provides a warranty and security satisfactory to city and thereby, during the term of the agreement, be exempt from payment of the warranty fee. The agreement must comply with the warranty and security requirements of this chapter.
3. Where permission to excavate in newly renovated streets has been granted pursuant to Section 12.16.110, payment of the workmanship and performance warranty fee will be required under subsections (A)(1) through (A)(2) of this section.
B. In all cases where cuts are allowed, the permittee is required to patch their cuts to city standards. All warranties shall include adequate security for the warranty period. All pavement warranty fees received under the requirements of this section shall be expended solely for the purpose of maintaining the workmanship and performance of city streets.
C. Each fiscal year, the director shall present to the city council a proposed workmanship and performance warranty fee as defined in subsections A and B of this section. The fee shall be adjusted annually by the ENR Annual Construction Cost Index (Los Angeles) as published by Engineering News Record, McGraw-Hill Companies. Also, the fee may annually be adjusted to account for changes in cost estimates for recent city resurfacing projects, and any other items which would change or add to the component items in the fee. This fee shall be adopted by a resolution of the city council following a noticed public hearing. (Ord. 4631 § 1, 2010; Ord. 4367 § 1, 2006; Ord. 3801 § 1, 1997)