(A) At the time of and concurrently with the filing of written acceptance of the franchise, the grantee shall file with the Town Clerk a performance bond in the amount of $200,000 in favor of the town, indemnifying the town from any and all losses that occur as a result of the failure of the grantee to fully abide by all the terms of this chapter and the franchise granted. These bonds shall be maintained throughout the term of any franchise granted pursuant to this chapter or until such time as determined by the town.
(B) In the event the grantee fails to comply with any law, ordinance, or regulation governing the franchise, or fails to well and truly observe, fulfill, and perform each term and condition of the franchise, including the company's proposal which is incorporated herein by reference, there shall be recoverable, jointly and severally from the principle surety of the bond, any damages or loss suffered by the town as a result including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee, plus a reasonable allowance for consultant's or attorney's fees, including the town's legal staff, and costs, up to the full amount of the bond.
(C) Upon satisfactory completion of construction in the service area as approved by the town, the town shall reduce the amount of the performance bond posted by the grantee from the initial $200,000 to $25,000 which shall remain in effect for the remainder of the franchise. However, the town may require a performance bond to be posted by the grantee for any construction subsequent to the completion of the service area, in a reasonable amount and upon those terms as determined by the Town Council.
(D) The bond shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be canceled by the surety nor the intention not to renew be stated by the surety until 30 days after receipt by the town, by registered mail, of a written notice of such intent to cancel or not to renew."
(Ord. passed 7-21-86)