A. An MCS provider shall furnish to the Council/franchising authority, in an amount totaling at least one hundred thousand dollars ($100,000.00), a performance bond or security bond executed by a surety licensed to do business in this State. The purpose of the performance bond is to ensure performance of any requirements imposed by this ordinance on an MCS provider. Further, the purpose is to guarantee that should the MCS provider not fulfill any obligations imposed by this ordinance (or where applicable a franchise agreement), then the surety will make whole (to the extent of the policy) any monetary losses incurred by the City.
B. An MCS provider shall furnish to the Council/franchising authority, a construction/completion bond prior to the time it commences a construction, upgrade, rebuild, or repair/maintenance project that has a capital construction cost or outlay exceeding fifty thousand dollars ($50,000.00) in value. The amount of the bond shall equal at least ninety percent (90%) of the projected capital construction cost or outlay. The construction/completion bond shall remain in force at all times, unless relief is granted or a reduction schedule is detailed in an agreement between the Council/franchising authority, and the MCS provider.
C. The construction/completion bond or security bond shall specifically guarantee that an MCS provider will timely abide by its construction, upgrade, rebuild, or repair/maintenance schedule for the multi-channel system and/or any timetable for technical and service improvements or additions to the multi-channel system as may be committed to, or agreed upon, from time to time by the Council/franchising authority and MCS provider.
D. If the City draws on a performance or completion bond, or cash deposit, or letter of credit as a result of an MCS provider's failure to timely discharge its obligations, or failure to construct and activate the multi-channel system, or failure to complete a multi-channel system upgrade or rebuild or repair/maintenance, then the MCS provider shall be required, within thirty (30) days to replenish the completion and performance bond or security bond to the minimal level required by the Council/franchising authority.
E. Based upon such reasons as the Council/franchising authority might feel are necessary to protect the public interest, and welfare, the Council/franchising authority may raise the minimal amount of the performance bond.
F. The performance bond or security bond, shall be in force at all times unless relief is granted or a reduction schedule is detailed in an agreement, between the MCS provider and the Council/franchising authority.
G. In lieu of a performance bond, and construction/completion bond, the Council/franchising authority may accept a written guarantee of an MCS provider pledging the full faith and credit of the affected MCS provider should there be a breach in a material franchise term, or failure to meet any construction schedule.