(A) Indemnification. No encroachment permit shall be issued until the permittee has executed and filed with the City an indemnity agreement satisfactory to the City Attorney. The permittee shall be responsible for and indemnify the City from all claims, demands, expenses or liability including but not limited to personal injury and property damage arising out of or related to work performed by the permittee under the permit, arising out of the failure on the permittee’s part to perform work under the permit, arising from or caused by the structures or encroachments placed in, on or under the City’s right-of-way. If any claim of such liability is made against the City, its officers or employees, permittee shall defend, indemnify and hold the City harmless from such claim, including claims alleging the negligence of the City, its officers and employees.

(B) Insurance. No encroachment permit shall be issued until and unless the applicant has filed and maintained on file with the City evidence of self insurance satisfactory to the City or a certificate of insurance demonstrating sufficient public liability and property damage insurance coverage issued by an insurance carrier authorized to do business in the state, insuring the applicant and the City and its agents, against loss by reason of injuries to, or death of persons, or damages to property arising out of or related to work performed by the applicant, its agents or employees while performing any work under the permit. Such insurance shall be primary and provide coverage for all liability assumed by the applicant under subsection (A) of this section and shall be provided by the permittee in minimum amounts as required by the City’s Risk Manager.

(C) Performance Bonds or Other Financial Security. The Department may require, as a condition of issuing any encroachment permit, applicant to post performance bonds or other approved financial security to ensure satisfactory completion of any work to be performed in, on or under any public place, highway, or right-of-way and to insure adequate maintenance of encroachments.

(D) Commencement of Work. The permittee shall begin the work or use authorized by a permit issued pursuant to this chapter within 180 days from date of issuance, unless a different period is stated in the permit. If the work or use is not so begun, then the permit shall become void. The permittee shall complete the work or use authorized by the permit within the time specified in the permit. Where an encroachment involves a permanent installation or obstruction, conditions so specified in the permit, license or other agreement with the City shall remain in effect until the construction or obstruction is removed.

(E) Term. All permits shall specify the time, not longer than one year, within which work or construction in the highway must be completed. Permits for continued use of the highway shall be issued for a specified period of time. All permits may be renewed or extended upon such terms as are consistent with the provisions of this chapter.

(F) Relocation. Any encroachment including but not limited to pipes, conduit, wire, cable, appurtenances or other structures or facilities installed or maintained in, on or under any public place, right-of-way or highway shall be relocated, at the sole expense of the permittee, as may be necessary to facilitate a public purpose or any City project. Such relocations shall be under the same terms and conditions as the initial installation allowed pursuant to permit. The Department will not exercise the right to require such relocation in an unreasonable or arbitrary manner.

(G) Assignment. Encroachment permits shall be applied for by and issued to the person or company who will make use of the permit and not to the contractor who has been employed to construct the improvements; provided, however, all contractors and subcontractors who will be performing work in the highway shall be named and identified in the encroachment permit application. The rights granted by the permit shall not be assignable without the express prior written consent of the Department.

(H) Supplemental. The Department may require additional conditions for the issuance of a permit as are applicable and necessary to meet specific situations, for public safety and to insure compliance with this chapter and all other City, state or federal regulations.

(I) Acceptance. Acceptance of any permit granted under the provisions of this chapter shall not become effective until written acceptance thereof shall have been filed by the permittee with the Department. By accepting this permit, the permittee covenants and agrees to perform and be bound by each and all of the terms and conditions imposed by the City of San Luis and the permit.

(J) In the event there is a conflict between the provisions of this chapter and the provisions contained in a franchise or license granted by the City to an applicant, the provisions of the franchise or license shall prevail. (Res. 597 § 1 (11-3-2.6), passed 4-13-2005.)