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(A) Unless otherwise set forth in the franchise, within 30 days after the award of an initial franchise, the grantee shall file with the city a performance bond in the amount of not less than 50% of costs to install the system contained in the new application in favor of the city. This bond shall be maintained throughout the construction period and until such time as determined by the city.
(B) If the grantee fails to comply with any law, ordinance or resolution governing the franchise, or fails to well and truly observe, fulfill and perform each term and condition of the franchise as it relates to the conditions relative to the construction of the cable system, there shall be recoverable jointly and severally, from the principal and surety of the bond, any damages or loss suffered by the city 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 attorney’s fees, including the city’s legal staff and costs, up to the full amount of the bond. This section shall be an additional remedy to those outlined in § 114.13.
(C) The city may, upon completion of construction of the cable system, waive or reduce the requirement of the grantee to maintain the bond. However, the city may require a performance bond to be posted by the grantee for any construction subsequent to the completion of the initial cable system, in a reasonable amount and upon such terms as determined by the city.
(D) The bond shall be non-cancelable, except upon 30 days prior written notice to the city. If an existing bond is to be canceled, grantee shall provide evidence of a replacement bond to the city 15 days prior to the cancellation date. Failure to provide evidence of a replacement bond shall be construed as default granting the city the right to call in the bond.
(E) The city at any time during the term of the franchise may waive a grantee’s requirement to maintain a performance bond. The invitation to waive the requirement can be initiated by the city or grantee.
(Ord. 1846, passed 12-7-98)