12.20.090 Performance bond – Type – Amount – Filing – Cancellation notices.
A. The performance bond may be for a specific private contract or an annual and continuing bond may be filed with the City covering the costs of several private contracts. The amount of the bond covering a specific job shall be based on the amount of the estimate submitted by the person doing the work and approved by the Director of Public Works and in accordance with the schedule in subsection (B) of this section. An annual and continuing bond may be in an amount of $1,000, $2,000, $3,000, $4,000, $5,000 and $10,000, or any larger amount in multiples of $5,000. This bond shall qualify the contractor to do work for which the aggregate total of bond amounts as determined from the schedule in subsection (B) of this section and approved cost estimates of work in progress shall not exceed the amount of the bond. Annual and continuing bonds shall have a noncancellation without notice clause.
B. The bond or cash deposit amount shall be based on an estimate of the cost of the work approved by the Director of Public Works and in accordance with the following schedule:
1. Public improvements – 110 percent of cost estimate;
2. Encroachments – 110 percent of cost estimate.
C. Bonds shall be filed with the City.
E. In lieu of said surety bond, a cash deposit in the amounts indicated may be deposited with the City. (Ord. 1205 § 2, 1969; prior code § 27.403).