(1) Performance bond. Within thirty (30) days after written notification of the award of a license by the city, the licensee shall file with the city a performance bond for the benefit of the city in the amount of one million dollars ($1,000,000.00) to be effective upon the execution of the license agreement and conditioned that in the event that the licensee fails to comply with any provision of this chapter, the license agreement or other law applicable to the license, then there shall be recoverable jointly and severally from the principals and surety any and all damages or costs suffered or incurred by the city, including but not limited to attorney's fees and costs of any action or proceeding, and including the full amount of any compensation, indemnification, cost of removal or abandonment of any property or other costs due and owing the city up to the full principal amount of such bond. The performance bond shall be maintained in full as a continuing obligation during the entire term of the license agreement and thereafter until the licensee shall have satisfied in full any and all obligations to the city which arise out of or pertain to the license agreement. The performance bond shall be issued by a surety company authorized to do business in the state and shall be in a form approved by the city attorney.
(a) The performance bond shall contain the following endorsement:
It is hereby understood and agreed that this bond may not be canceled by the surety nor the intention not to renew be stated by the surety until sixty (60) days after receipt by the City of Tucson, by registered mail, of written notice of such intent to cancel or not to renew.
(b) None of the provisions of this section or section 7A-33 ("Security Fund"), nor any damages recovered by the city thereunder, shall be construed to excuse the faithful performance by or limit the liability of the licensee.
(c) Upon application to the city, the licensee shall be entitled to the return of the performance bond at the expiration of the license agreement, or any renewal thereof provided there is then no outstanding default or moneys due the city by the licensee; provided that, nothing herein shall be read to excuse a licensee from its obligation to have a performance bond during the renewal term.
(Ord. No. 8937, § 2, 9-2-97)