927.24 INSURANCE; CONSTRUCTION COMPLETION BOND; PERFORMANCE BOND.

   (a)    Grantee shall provide insurance as specified in the Franchise Agreement.

   (b)    With respect to the initial construction of the Cable System, or any significant project to upgrade or rebuild more than fifty percent (50%) of the Cable System, Grantee shall provide to Grantor a construction performance and construction completion bond (herein referred to as the “Construction Completion Bond”) with a surety reasonably approved by the Grantor’s Law Director, in an amount equal to ten percent (10%) of the applicable estimated construction cost. Such amount, however, shall not exceed two hundred thousand dollars ($200,000.00). With respect to initial construction of the Cable System or the upgrade or rebuild project, when regular subscriber service is available to seventy-five percent (75%) of occupied dwelling units, amount of the bond shall be reduced by fifty percent (50%) of the original amount. On the one-year anniversary of the initial construction of the Cable System or the upgrade or rebuild project, as the case may be, the bond may be canceled.

   (c)    Within sixty (60) days of the ordinance adopting the Franchise Agreement, Grantee shall deposit with Grantor a surety bond or letter of credit in the amount of fifty thousand dollars ($50,000) in a form reasonably acceptable to the Law Director of Grantor (hereinafter referred to as the "Performance Bond"). The Performance Bond shall be available to insure the faithful performance by Grantee of provisions of this chapter and the Franchise Agreement, other than with respect to construction, upgrading, of rebuilding projects covered herein, but including the obligation to remove the above ground portion of the Cable System upon revocation or termination of the Franchise as set forth herein. The Performance Bond shall be maintained at $50,000 during the entire term of the Franchise Agreement, regardless of withdrawals which may be made under this section. In the event of a default by Grantee in any of its obligations under this Agreement, other than completion of construction, which default is not cured within thirty (30) days after Notice by Grantor to Grantee of such default (or such longer time as is necessary to cure, so long as Grantee commences to cure within thirty (30) days and diligently pursues cure), Grantor may levy on the Performance Bond upon notifying Grantee of the amount of such charge. Grantor may also levy upon the Performance Bond for sums due for penalties under Sections 927.18(e) and 927.25(g) herein. The rights reserved to the Grantor with respect to the Performance Bond are in addition to all other rights of Grantor, at law or in equity.
(Ord. 4-1997. Passed 11-11-97.)