A. Permittee shall, prior to the issuance of any permit for construction in the public rights of way, deliver to the city a performance bond in the amount of one hundred percent (100%) of the total estimated cost of all work to be performed under such permit, as determined by the director. The bond shall be provided on the form required by the city and maintained in full force and effect until the permitted work in the public rights of way is completed to the satisfaction of the director, at which time the amount of the bond shall be reduced to ten percent (10%) of the actual cost of the work. The reduced bond shall be maintained by permittee for a period of one year as a guarantee the work is of good quality and free from any defective or faulty material or workmanship. The surety supplying the bond must be an "admitted surety insurer", as defined in section 995.120 of the Code of Civil Procedure, authorized to do business in the state of California. Return of the bond shall be conditioned upon permittee's faithful performance of all work in the public rights of way specified in the applicable permit. In the event permittee fails to comply with any provisions of this chapter related to such work, or any provision of any applicable right of way use permit, or other approval related to such work, any damages or loss suffered by the city as a result thereof shall be recoverable from the bond, including the full amount of any compensation, indemnification, cost of removal, or abandonment of any property of permittee, plus a reasonable allowance for attorney fees and costs up to the full amount of the bond.
B. Neither the provisions of this section nor any damages recovered by the city hereunder shall be construed to excuse permittee's faithful performance of any right of way use permit or limit the liability or damages of permittee under this chapter, either to the full amount of the bond or otherwise. In addition to its rights to take action under the bond, the city may pursue any other remedy provided by law. (Ord. 05-O-2462, eff. 3-18-2005)