(a) A grantee shall, within thirty days of the execution of the franchise, file with the City Clerk an irrevocable bank letter of credit, from a bank approved by the City, in the amount of one hundred thousand dollars ($100,000), and the grantee shall also obtain and maintain, at its cost and expense, a corporate surety bond with a company authorized to do business in the State of Michigan and acceptable to the City, in an amount equal to the estimated cost of the project. The purpose of the irrevocable bank letter of credit and the corporate surety bond is to guarantee the timely construction and full activation of the CATV system. The letter of credit and the corporate surety bond shall be for the purpose of allowing recovery by the City of any and all damages, losses or costs suffered by the City resulting from the failure of the grantee to satisfactorily complete and fully activate the CATV system throughout the City.
(b) When the CATV system is completed to the satisfaction of Council, the corporate surety bond may be reduced to ten thousand dollars ($10,000) and maintained for the duration of the franchise to secure the grantee's obligations under the franchise.
(c) 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 exercised by the surety until sixty days after receipt by the City of Howell, by registered mail, of a written notice of such intent to cancel or not to renew."
(Ord. 615. Passed 9-5-95.)