(a) If a permittee is not the owner of real property adjacent to the street encroachment permit, the permit is not recorded against the real property adjacent to the street encroachment permit, or both, then the permittee shall pay the Department a maintenance endowment to ensure adequate funds are available for ongoing and future maintenance of the street encroachment permit area and any future modification or restoration of the permit area to a condition satisfactory to the Public Works Director if the permittee abandons or terminates the permit or the Director revokes the permit.
(b) The Department shall deposit all funds collected for the maintenance endowment into the Public Works Encroachment Maintenance Fund as established under Administrative Code Section 10.100-229.
(c) The permittee shall pay the maintenance endowment in annual installments that are the equivalent each year of 20% of the estimated annual maintenance cost. The permittee shall pay the annual maintenance endowment installment for 10 years with the first payment due at the time of permit issuance. As part of the permit application, the permittee shall include an estimate of the annual maintenance cost and the City Engineer shall verify said cost for purposes of the maintenance endowment required under this Section 786.8.
(d) If the Board of Supervisors authorizes or approves the transfer or assignment of a street encroachment permit to an individual or entity that is not the owner of real property adjacent to the street encroachment permit area, then the transferee or assignee shall pay the annual maintenance endowment installment under the terms specified in subsection (c) during the time they are the permittee. The transferee’s or assignee’s first installment payment is due on or before the effective date of the transfer or assignment. If there are multiple transfers or assignments, the Department shall not charge an amount that would exceed the total remaining payments it would collect for the subject street encroachment permit under the 10-year term for the Maintenance Endowment Fund specified in Section 786.8(c).
(e) If the Department or any other City agency, department, or commission, including the City Attorney’s Office, incurs costs in performing the permittee’s maintenance obligation or abating a violation, including any City required modification or restoration, and the permittee has paid the maintenance endowment required under this Section 786.8 in full, then the permittee shall reimburse the Department for all such City costs. If the permittee still is paying the maintenance endowment required under this Section 786.8, then the permittee shall: (1) reimburse the Department for all such City costs and (2) continue to make the required payments into the Public Works Maintenance Endowment Fund.
(f) In accordance with the reimbursement process of Section 786.8(e), the Director, in his or her discretion, may arrange for a reimbursement plan for the City maintenance and abatement with the permittee that takes into account the permittee’s history of past permit compliance and other factors the Director deems appropriate, including but not limited to, the permittee’s budget and number of employees. If the Department is reimbursed for the City’s incurred costs, then the Department shall send the affected departments their share of the reimbursement.
(g) This Section 786.8 shall not apply to a street encroachment permit: (1) where the Board of Supervisors authorizes or approves the transfer or assignment of the permit from the original permittee to an individual or entity that is the successor owner(s) of real property adjacent to the street encroachment permit and the permit is recorded against the successor owner(s) real property, or (2) that the Board issues in accordance with the terms of Section 786(b) for a master encroachment permit, or (3) that the Board issues for a street plaza in accordance with Section 792 where the street plaza permittee is a different individual or entity than the holder of the underlying street encroachment permit or Public Works retains responsibility for the underlying public right-of-way, or (4) that the Director issues to a City agency, department, or commission, a State agency, or the federal government, or (5) that comprises a People Place permit associated with the Places for People Program established under Administrative Code Chapter 94A.
(h) If a street encroachment permit subject to the maintenance endowment as specified in this Section 786.8 has a construction cost of $1 million or greater, the Board of Supervisors shall require a bond, other form of security, or payment into the Maintenance Endowment Fund in an amount required to restore the public right-of-way to a condition satisfactory to the Public Works Director based on a cost that the City Engineer determines. If the Board requires posting of a bond or other security, the permittee shall provide evidence to the Department that the bond or other security is operative on an annual basis. If the Board authorizes the Director to allow a transfer or assignment of a permit that is or will be subject to the maintenance endowment as specified in this Section 786.8 and said permit has or had a construction cost of $1 million or greater, then the Director shall impose the same requirements as set forth in this subsection (h) as a condition of transfer or assignment. Departmental expenditures related to restoration shall be consistent with the terms of Administrative Code Section 10.100-229 or any successor law.
(Added by Ord. 35-18, File No. 170761, App. 3/8/2018, Eff. 4/8/2018, Oper. 6/1/2017)