12-3 SECURITY DEPOSITS [1]

1 Editor’s Note: For the statutory provisions authorizing the Town to require a bond in such amount as deemed sufficient, see Streets and Highways Code, §1467.

Unless this section is waived in the permit and before a permit is effective, an applicant shall deposit with the City Engineer or an agent authorized by resolution of the Town Council cash or a certified or cashier’s check in a sum to be fixed by the City Engineer as sufficient to reimburse the Town for costs of restoring the right-of-way to its former condition, based on the schedules, if any, adopted by resolution of the Town Council; but an applicant may file a cash deposit on an annual basis in a sum estimated by the City Engineer as sufficient to cover his activities during any twelve (12) month period.

Instead of the cash deposit prescribed by subsection 12-3.1, the applicant, on approval by the City Engineer, may file a cash deposit in the minimum sum established by the schedules, if any, adopted for that purpose by the Council and in effect at the time of application for a permit. The balance of the sum fixed by the City Engineer as sufficient to reimburse the Town for expenses incurred in restoring the right-of-way to its former condition may be filed in the form of an approved surety bond issued by a company authorized to do a general surety business in the State.

Instead of a cash deposit, the applicant, on approval by the City Engineer, may annually file with the City Engineer an approved surety bond issued by a company authorized to do a general surety business in the State, in a sum fixed by the City Engineer as sufficient to reimburse the Town for expenses to be incurred in restoring the right-of-way to its former condition, subject to the schedules, if any, adopted by resolution of the Town Council.

The City Engineer may require an additional bond or cash deposit at any time that evidence indicates that the amount of the bond or cash deposit previously made is insufficient to cover the cost of restoring the right-of-way to its former condition, subject to the schedules, if any, adopted by resolution of the Town Council.

12-3.5 Condition of Bond or Cash Deposit.

The condition of any bond or cash deposit made under this chapter shall be that the permittee comply diligently and in good faith with this chapter and the terms and conditions of the permit.

Any bond or cash deposit required by the City Engineer under this chapter shall be payable to the Town of Danville and shall be filed with the City Engineer, who shall release it ninety (90) days after satisfactory completion of all work authorized in the permit and fulfillment of all conditions of the permit.

The Engineering Department may waive the provisions of this chapter relating to cash deposit or surety bond for permits required under subsection 12-2.4 except where permits are also required under Chapter X, Building and Housing, Section 10-20, House Moving, upon satisfactory proof by certificate of insurance that the permittee is adequately insured to assure reimbursement to the Town for repair of any damage caused to Town property.

In addition to the other requirements of this chapter, the City Engineer may require satisfactory proof by certificate of insurance that the permittee has in force a valid public liability insurance policy which includes the Town, its officers, employees and agents as additional insureds. When so required, the insurance coverage shall be in an amount the City Engineer deems sufficient to adequately protect the additional insureds from liability for damages to person(s) or property(s) arising from the activities related to the permit.