<?xml version='1.0' encoding='utf-8'?>
<baltimore-city-law heading="Part 4 – Warranty; Performance Security; Indemnification">
  <section prefix="§" num="15-29" heading="Scope.">
    <text>This Part 4 does not apply to excavation work performed by a governmental entity.</text>
    <annotation type="History">Ord. 06-245</annotation>
  </section>
  <section prefix="§" num="15-30" heading="Warranty; Correction of defects.">
    <para num="(a)" heading="1-year warranty.">By accepting a street-cut permit, the permitee warrants all work done under the permit against all defects in workmanship and materials for a period of 1 year after the work has been completed, inspected, and approved.</para>
    <para num="(b)" heading="Correction of defect.">On written notice from the Department of any defect in workmanship or materials during the warranty period, the permittee must make the necessary repairs within the period specified in the notice.</para>
    <para num="(c)" heading="Abatement by City.">
      <para num="(1)">If the permitte fails to correct the defects within the time specified in the notice, the City may make the repairs at the permittee’s expense.</para>
      <para num="(2)">The permittee:<para num="(i)">is responsible for all expenses incurred by the City, including any related administrative expenses; and</para>
        <para num="(ii)">shall pay those expenses to the City within 30 days following notice of the amount owed.</para>
      </para>
    </para>
    <para num="(d)" heading="Extension of warranty.">Any repair during the warranty period automatically extends the warranty period to run for 1 additional year beyond the original warranty period.</para>
    <annotation type="History">Ord. 06-245</annotation>
  </section>
  <section prefix="§" num="15-31" heading="Performance security.">
    <para num="(a)" heading="“Performance security” defined.">In this section, “performance security” means any one or a combination of:<para num="(1)">a performance bond;</para>
      <para num="(2)">an irrevocable letter of credit; or</para>
      <para num="(3)">a cash deposit.</para>
    </para>
    <para num="(b)" heading="Required.">No street-cut permit may be issued to any person unless that person submits performance security as required by this section.</para>
    <para num="(c)" heading="Form and tenor.">
      <para num="(1)">The performance security must be approved:<para num="(i)">as to form and legal sufficiency by the City Solicitor; and</para>
        <para num="(ii)">as to amount by the Director.</para>
      </para>
      <para num="(2)">The performance security must serve to save the City harmless from:<para num="(i)">any cost, liability, expense, claim, or suit for damages in any manner arising out of or resulting from the work done under the permit; and</para>
        <para num="(ii)">any loss or cost by reason of the restoring or failure to restore the public way to required conditions and standards.</para>
      </para>
    </para>
    <para num="(d)" heading="Multi-permit security.">
      <para num="(1)">The performance security may be made to cover all street-cut permits issued from time to time to any one person.</para>
      <para num="(2)">In that case, the Director may require from time to time that the amount of the security be increased to an amount sufficient in the Director’s judgment to protect the City, based on the volume of work undertaken by the person or the number of permits issued to the person.</para>
    </para>
    <para num="(e)" heading="Release of security.">The Department shall release the performance security, in whole or in part, after completion of the warranty period and the correction of any defects or violations identified during that period.</para>
    <annotation type="History">Ord. 06-245</annotation>
  </section>
  <section prefix="§" num="15-32" heading="Indemnification.">
    <para num="(a)" heading="In general.">By accepting a street-cut permit, the permittee agrees, for and on behalf of itself and, if different, the owner and operator of the facilities, and their respective successors and assigns, to indemnify, defend, protect, and hold harmless the City, its officers, agents, and employees, from and against all claims, actions, costs, damages, demands, expenses, fines, injuries, judgments, liabilities, losses, penalties, suits, fees, and attorneys’ fees allegedly arising directly or indirectly from any act, omission, or negligence of the permitee, owner, or operator, their subcontractors, or the officers, agents, or employees of any of them relating to the permit or the activities authorized by the permit.</para>
    <para num="(b)" heading="Obligation to defend.">Each permittee, owner, and operator has an immediate and independent obligation to defend the City from any claims that actually or potentially fall within this indemnity obligation, even if the allegations are groundless, false, or fraudulent.</para>
    <para num="(c)" heading="Action by City.">The City has a cause of action for indemnity against each permittee, owner, and operator for any costs the City may incur with respect to the permit, except for claims resulting directly from the negligence or willful misconduct of the City.</para>
    <para num="(d)" heading="Indemnity survives permit, etc.">This indemnity obligation survives expiration of the permit and completion of the work authorized by it.</para>
    <annotation type="History">Ord. 06-245</annotation>
  </section>
  <section prefix="§§" num="15-33 to 15-35" reserved="true" />
</baltimore-city-law>
