Faithful Performance Bonds
San Diego Municipal Code § 66.0123
in effect§66.0123 Faithful Performance Bonds
(a) Each Franchisee, concurrently with the filing of and acceptance of the award of the Franchise and any and all renewals of the Franchise Agreements, shall file with the City and at all times thereafter maintain in full force and effect throughout the term of the Franchise and all extensions thereof, at the Franchisee’s sole expense, a corporate surety bond, payable to the City, executed by a corporation authorized to transact surety insurance in the State of California. The principal sum of the bond will be established by the City Manager. The bond shall be renewed annually, and conditioned upon the faithful performance of the Franchisee, and upon the further condition that in the event the Franchisee shall fail to comply with any one or more of the provisions of the Franchise Agreement, waste delivery agreement, AB 939 provisions, late fees, penalties, or fines, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the Franchisee, plus a reasonable allowance for attorney’s fees and costs, up to the full amount of the bond, such condition to be a continuing obligation for the duration of the Franchise and thereafter until the Franchisee has liquidated all of its obligations with the City which may have arisen from the acceptance of the Franchise by the Franchisee or from its exercise of any privilege granted by this Chapter 6, Article 6. The bond shall provide that thirty days’ prior written notice of intention not to renew, cancellation, or material change shall be given to the City.
(b) In lieu of the corporate surety bond described in Section 66.0123(a), and at the City Manager’s sole discretion, the Franchisee may deposit an irrevocable letter of credit in favor of the City issued by a financial institution authorized to do business in the State of California, open a certificate of deposit in the name of the City at a financial institution authorized to do business in the State of California, or deposit cash with the City Treasurer in an amount to be determined by the City Manager. The first two above described alternatives to the corporate surety bond shall be made through a financial institution and be in a form approved by the City Manager.
(“Performance Bonds” retitled to “Faithful Performance Bonds” and amended 5-20–2003 by O–19179 N.S.)
Source: City of San Diego Office of the City Clerk, San Diego Municipal Code and City Charter (docs.sandiego.gov PDFs)URL: https://docs.sandiego.gov/municode/MuniCodeChapter06/Ch06Art06Division01.pdf#page=25Fetched: 10/28/2026