(A) Within 30 days after the effective date of the franchise agreement, the franchise holder shall obtain and maintain at its cost and expense, and file with the City Attorney, a corporate surety bond issued by a company licensed to do surety business in the State of Indiana and in an amount required by the franchise agreement to guarantee the timely construction and full activation of the system, considering the nature and extent of the system and the estimated costs of construction. The bond shall include, but not be limited to, the following conditions: there shall be recoverable by the City of Lawrence, jointly and severally, from the principal and surety, any and all damages, cost or expense suffered by the City resulting from failure of the franchise holder to satisfactorily complete and fully activate the system within the construction schedule described in the franchise application and approved in the franchise agreement.
(B) Any extension to the prescribed construction schedule must be authorized by the Mayor. The extension shall be authorized only when the Mayor finds that the extension is necessary and appropriate due to causes beyond the control of the franchise holder.
(C) Upon satisfactory completion of construction required by the franchise agreement, the construction bond shall be reduced by the Mayor to a reasonable amount, considering the nature and extent of any anticipated construction during the remaining term of the franchise. The rights reserved to the City of Lawrence with respect to the construction bond are in addition to all other rights of the City, whether reserved by the franchise agreement or authorized by law, and no action, proceeding, exercise or failure to exercise any right with respect to the construction bond shall affect any other right the City may have.
(D) The City of Lawrence may require the operator to obtain new construction bonds throughout the franchise term as necessary for construction of system extensions or upgrades.