Covina Municipal Code Art. III Deposits and Security

A. As a condition to issuance of a permit, every permittee, unless exempt by this chapter or other applicable law, shall be required to provide a cash deposit or other adequate security, as determined by the director, to guarantee payment of all fees and charges due under this chapter. The amount of the deposit or security shall be sufficient to recover all costs of any nature which the director estimates will be incurred if the permittee does not fulfill its permit requirements.

B. A cash deposit or other adequate security is not required in the case of construction under contract with the city where a faithful performance bond is posted or other surety is deposited and assigned to the city which guarantees to the city the repair of the highway, including construction financed in whole or in part by special assessments.

(Ord. 10-1987 § 2, 2010)

A cash deposit may be in the form of a special deposit for each permit, or in the form of a general deposit to be maintained as security for all the permits issued to a permittee, including for blanket permits. If a permittee maintains a general cash deposit, it shall be with the understanding that the permittee will pay all bills sent by the director for work covered by this chapter.

(Ord. 10-1987 § 2, 2010)

In lieu of a general cash deposit, the director may accept from a permittee other types of security as specified below:

A. Surety Bond. The director may accept a surety bond on a form supplied by the director and executed by an "admitted surety insurer" authorized to make, guarantee or become a surety upon bonds by the state of California. The bond shall guarantee the payment of all fees and other charges required by this chapter which may become due because of any permits issued during the life of the said surety bond.

B. Insurance. As security on overload moving permits only, the director may accept a certificate of insurance and endorsement on the standard forms provided by the director. Such certificate and endorsement shall show that an insurance policy of not less than $2,000,000 has been issued to the applicant and is in full force and effect, and in which policy the insurer directly agrees to reimburse the city for all sums due it from the permittee for damage to highway facilities.

C. Additional Securities. The director may require additional security to be filed with the city in the event that he reasonably determines the original security filed with the city has become insufficient to pay all fees and other charges required by this chapter.

(Ord. 10-1987 § 2, 2010)

A. The remainder of any deposit, if there is any remainder, shall be refunded to the permittee making such deposit once the director is satisfied that all work pursuant to a permit has been satisfactorily completed and that the permittee is not liable for any further fees, costs or charges with regard to said work.

B. Any deposit made for highway inspection fees or any other unit fees may be refunded if it was erroneously collected or if the work was not constructed by the permittee.

(Ord. 10-1987 § 2, 2010)