Every operator of a cable system shall obtain and maintain a performance bond to ensure the faithful performance of its responsibilities under this article and any franchise. In the case of any franchise that requires the grantee to initially build, or to upgrade a system, the amount of the construction bond shall be in an amount sufficient to ensure that the required construction is satisfactorily completed. The amount of the bond shall be reduced upon successful completion of portions of the required construction. The amount of the performance bonds shall be set in a franchise in light of the nature of the work to be performed pursuant to or under the franchise, but initially shall be 10% of the estimated cost of constructing or (in the case of existing systems) upgrading the cable system. Performance bonds will be set out in the franchise, and will be project specific in an amount equal to the cost of construction stamped as approved by a professional engineer and approved by the city. The bond is not in lieu of any additional bonds that may be required in connection with any permitting process. The bond shall be in a form reasonably acceptable to the City Attorney, and with a surety reasonably acceptable to the city. Bonds must be obtained prior to the effective date of any franchise, transfer or franchise renewal, unless a franchise specifically provides otherwise.
(Ord. 24-2002)