A. Permit and bond. A permit for construction of a water main, stub or connection shall be issued only upon application by a person who has furnished a bond either to the Clerk/Treasurer or to the Secretary of State under Minn. Stat. § 326B.46. The bond shall be in the amount specified in the fee schedule (See Appendix A. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer. ) and conditioned to secure compliance by the principal with the provisions of this chapter and to secure the person's performance of all work undertaken within the City.

B. Liability insurance. Before undertaking the construction work authorized by the permit, the person shall secure and maintain a policy of insurance against damages to property or injury or death to individuals. The policy shall indemnify and hold harmless the City and its personnel against any claim, damages or cause of action arising out of the work and from any expenses of defending the action. The property damages insurance coverage shall be in the amount of at least $500,000 per occurrence with $1,000,000 annual aggregate or $1,000,000 per occurrence with $2,000,000 annual aggregate. Proof of insurance shall be filed with the City prior to construction work. The policy shall provide that the City shall be notified immediately of any termination or modification of such insurance. If the insurance coverage is inadequate, the person shall indemnify and save harmless the City and its personnel in like manner.

C. Indemnification by owner. The owner shall bear the costs and expenses incurred by the installation and connection of the extension of water service to private property. The owner shall indemnify the City for any loss or damage directly or indirectly caused by its installation. The Clerk/Treasurer shall establish rules and regulations for the proper implementation of these requirements which, when approved by the Council by resolution or motion, shall govern the installation and connections.