(A) The licensee shall, prior to the issuance of any permit for construction in the public rights-of-way, deliver to the city a performance bond (or other form of security acceptable to the city) in the amount of 100% of the total estimated cost of all work to be performed under such permit, as determined by the Director of Public Works. The bond shall be provided on a form acceptable to 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 of Public Works, whereupon the amount of the bond shall be reduced to 25% of the actual cost of the work and shall be maintained by the licensee 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 Code of Civil Procedure § 995.120, authorized to do business in the State of California. Return of the bond shall be conditioned upon the licensee’s faithful performance of all work in the public rights-of-way specified in the applicable permit. In the event the licensee fails to comply with any provision of this chapter related to the work, or any provision of any applicable right-of-way agreement, permit or other approval related to the work, there shall be recoverable from the bond any damages or loss suffered by the city as a result thereof, including the full amount of any compensation, indemnification, cost of removal or abandonment of any property of the licensee, plus a reasonable allowance for attorneys’ fees and costs up to the full amount of the bond.
(B) Neither the provisions of this section nor any damage recovered by the city hereunder shall be construed to excuse the licensee’s faithful performance of any right-of-way agreement or limit the liability or damages of the licensee under this chapter, either to the full amount of the bond or otherwise.
(`78 Code, § 12.32.120.) (Ord. 2458 § 2, 2000; Ord. 2418 § 1, 1999.)