(A) (1) Within 30 days after the award of a license requiring construction or reconstruction of the cable system, a licensee shall obtain and maintain throughout the period of system construction and/or reconstruction, at its cost and expense, and file with the Town Manager/Clerk, a corporate surety bond issued by a company authorized to do business in the state, and found acceptable by the Town Attorney, in the amount of $20,000 solely for the purpose of guaranteeing the timely construction and/or reconstruction of the cable system and the safeguarding of private property during construction and/or reconstruction. After one-half of the cable system is constructed or reconstructed, the licensee may reduce the construction bond to $10,000 until construction or reconstruction of the cable system is complete. Upon completion of the construction or reconstruction of the cable system, a construction bond shall no longer be required.
(2) The bond shall provide, but not be limited to, the following condition. There shall be recoverable by the town, jointly and severally from the principal and surety, any and all damages, losses, or costs suffered by the town resulting from the failure of a licensee to satisfactorily complete any required construction and/or reconstruction of its cable system throughout the license area pursuant to the terms and conditions of this chapter and such licensee’s license.
(B) Any extension of the prescribed construction or reconstruction time limit must be authorized by the town. The construction bond shall be available throughout any such extension period.
(C) The construction bond shall be terminated only after the Town Council finds that a licensee has satisfactorily completed initial construction and activation or reconstruction of its cable system pursuant to the terms and conditions of this chapter and such licensee’s license.
(D) The rights reserved to the town with respect to the construction bond are in addition to all other rights of the town, whether reserved by this chapter or authorized by law, and no action, proceeding, or exercise of a right with respect to such construction bond shall affect any other rights the town may have.
(E) The construction 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 60 days after receipt by the town, by registered mail, or written notice of such intent to cancel or not to renew.
(Ord. 2003-07, passed 9-25-2003)