(a) Right-of-way bond. Prior to beginning construction, a permittee shall deposit with the city an irrevocable, unconditional letter of credit and/or surety bond equal to 100% of the anticipated costs or those other lesser amount established by the city.
(b) Purposes. The right-of-way bond shall serve as security for:
(1) The faithful performance by the permittee or registrant of the requirements of this Code, including restoration of the right-of-way;
(2) Any expenditure, damage or loss incurred by the city occasioned by the permittee’s or registrant’s violation of this Code or its failure to comply with all rules, regulations, orders, permits and other directives of the city issued pursuant to this Code;
(3) The payment of all compensation due to the city, including permit fees;
(4) The payment of premiums for the required liability insurance;
(5) The payment to the city of any amounts for which the permittee or registrant is liable that are not paid by its insurance; and
(6) The payment of any other amounts which become due to the city pursuant to law.
(c) Form. The right-of-way bond shall contain the following endorsement:
It is hereby understood and agreed that this bond may not be canceled or not renewed by the surety nor the intention to cancel or not to renew be stated by the surety until 30 days after completion of construction of the facilities and, notwithstanding the foregoing, shall in no case be canceled or not renewed by the surety until at least 30 days written notice to the city of surety’s intention to cancel or not renew this bond.
(1992 Code, § 35.5-7) (Ord. 55-99, passed 5-17-1999)