(A) Thirty days prior to commencing any construction, whether such construction consists of improvements to the existing system or construction of a new system, a company shall file with the Town a performance bond and payment bond in the amount of not less than 50% of the costs necessary to perform such construction. This bond(s) shall be maintained throughout the construction period and thereafter until such time as determined by the Town. The form and content of such bond(s) shall be approved by the Town.
(B) If a company fails to comply with any law, ordinance or resolution governing its franchise or fails to well and truly observe, fulfill and perform each term and condition of its franchise, as it relates to the conditions relative the construction of the system, there shall be recoverable jointly and severally, from the principal and surety of the bond, any damages or loss suffered by the Town as a result, including the full amount of any compensation, indemnification or costs of removal or abandonment of any property of the company, plus a reasonable allowance for attorney’s fees, including the Town’s legal staff and costs up to the full amount of the bond. This section shall be an additional remedy for any and all violations outlined in § 118.28.
(C) The Town will, upon completion of construction, waive further maintenance of the bond(s). However, the Town may require a like bond to be posted by a company for any construction subsequent to the completion of any improvements or construction of a new system.
(D) Notwithstanding the foregoing provisions of this section, in the event a company makes application to the Town to be relieved from furnishing a performance and payment bond relative to construction of a system or improvements thereto, the Town Administrator may waive the requirement for such bond or reduce the required amount thereof if the Town Administrator determines:
(1) That such company has a net worth of not less than $50 million as reflected by its most current audited financial statement; and
(2) That the performance of such company of its obligations generally, whether financial or otherwise, has been satisfactory with respect to the Town and with respect to other parties with which such company has had obligations of construction or improvements to cable systems.
(`83 Code, § 13-514)