All bonds required hereunder shall be in a form and executed by a corporate surety acceptable to the County and licensed to transact business as a surety within the State of California.
(a) Performance Bond. Within 30 days of the granting of the license required under § 42.0507, the licensee shall file with the Treasurer/Tax Collector a bond payable to the County, which shall be calculated as five percent of the annual projected gross revenue of the licensee or $10,000.00 whichever is greater. Such bond shall be maintained in full force and effect at all times during the term of the license. Said bond shall ensure the faithful performance of the licensee of the terms and conditions of the license and shall provide that, in the case of any breach of a condition of the license, the bond amount shall be applied to the County’s damages and shall be payable to the County by the principals and sureties of the bonding company. Other security may be approved by the License Review Board in lieu of or in combination with the performance bond.
(b) Other Security in Lieu of Bond. Licensee may request of the License Review Board that in addition to, and/or in lieu of, the performance bond as set forth under § 42.0528(a), above, licensee provide other security to the County in an amount not to exceed the bond amount as determined under § 42.0528(a) above. Such other security must be in a form acceptable to the License Review Board, and at the License Review Board’s sole discretion, may consist of cash, assignment of savings and loan certificates, certificates of deposits, irrevocable letters of credit, or U.S. Government securities. All such other security shall be made payable to the County and shall be deposited with the Treasurer/Tax Collector. The licensee, however, shall be entitled to the return of such other security, less any accrued interest of any cash deposit held by County, or such portion thereof which remains on deposit, not later than one year after the expiration of the term of the license, provided there is at that time no outstanding default on the part of licensee.
(c) Review and Adjustment. The amounts of the performance bond and/or other security shall be subject to review and adjustment by the License Review Board, and the License Review Board, for reasonable cause, may adjust the amount at any time during the term of the license. In the event of such an adjustment, the licensee shall renew said bond, within 30 days after written notice to do so.
(d) Continuance of Performance Bond and/or Other Security Upon Transfer of License. Said performance bond shall continue to exist until replaced by a new performance bond or other security satisfactory to the County, or for one year following the Board of Supervisors’ approval of any sale, transfer, assignment, or other change of ownership of the license, or the expiration or termination of the license, whichever is sooner, for the purpose of assuring licensee’s faithful performance under the terms and conditions of the license prior to the date of approval of such change of ownership and/or of expiration or termination. The Treasurer/Tax Collector may release said bond prior to the end of such one year period upon authorization of the Department and satisfaction by the licensee of all said obligations under the license.
(e) No Limitation of Licensee’s Liability. In no event, shall the amount of any performance bond posted by licensee be construed to limit the liability to the County of said licensee or limit licensee’s obligation to faithfully perform the terms of the license.
(f) Other Bonds. Nothing in this Section shall prohibit or preclude any other County agency from requiring licensee to post a bond or other undertaking in connection with operations under its license.
(Ord. 1281, passed - -1966; Am. Ord. 2053, passed - -1976; Am. Ord. 2667, passed - -1982; Am. Ord. 3440, passed - -1991)