A cable operator shall comply with the following bonding requirements.
(A) (1) A construction/completion bond shall be furnished prior to the time that a cable operator commences a construction, upgrade, rebuild, or repair/maintenance project that has a capital construction cost or outlay exceeding $50,000 in value where the construction takes place in one or more easements or in the public way; provided, however, the following shall not be considered in determining whether a project exceeds $50,000:
(a) The cost attributable to any portion of the construction that utilizes aerial facilities consisting of existing poles owned by the cable operator or other utilities; or
(b) Construction within a new subdivision where the construction of facilities is coordinated with the developer of the subdivision.
(2) The amount of the bond shall equal at least 90% of the projected capital construction cost or outlay, but shall not exceed $250,000. The construction/completion bond shall remain in force at all times until one year after completion of construction as determined by the city, unless relief is granted, or a reduction schedule is detailed in an agreement between the city and the cable operator.
(B) Any construction/completion bond shall specifically guarantee that a cable operator will timely abide by its construction, upgrade, rebuild, or repair/maintenance schedule for the cable system and/or any time table for technical and service improvements or additions to the cable system as may be committed to, or agreed upon, from time to time by the city and the cable operator.
(C) If the city draws on a bond as a result of a cable operator’s failure to timely discharge its obligations, or failure to construct and activate the cable system, or failure to complete a cable system upgrade or rebuild or repair/maintenance project, then the cable operator shall replenish the bond within 30 days to the level required in this section.
(D) The Council may authorize a cable operator to substitute a cash deposit, letter of credit, or a guaranty of another person or entity for any of the bonds provided for in this section; provided, however, the person or entity providing a letter of credit or guaranty, and the form of the letter of credit or guaranty, shall be subject to the approval of the City Council in its sole discretion.
(Ord. 2085, passed - -2019)