(A) Within thirty (30) days after the award of this franchise, the grantee shall file with the government a performance bond in the amount of one million five hundred thousand ($1,500,000) dollars in favor of the government.
(B) In the event the grantee fails to fulfill and perform its obligation to upgrade the cable system in accordance with the terms and conditions of the franchise, there shall be recoverable, jointly or severally, from the principle and surety of the bond, any damages or loss suffered by the government as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee, plus attorneys fees and costs, up to the full amount of the bond.
(C) The City Council will, upon completion of construction of the 750 MHz fiber optic system, waive the requirement of the grantee to maintain said bond. However, the City Council shall require a letter of credit to be posted by the grantee for any construction subsequent to the completion of the 750 MHz fiber optic system, in an amount and upon such terms as determined by the City Council.
(D) The 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 thirty (30) days after receipt by the government, via registered mail, a written notice of such intent to cancel or not to renew."
(Ord. 1999-13, passed 11-8-99)