A. Performance Bond: Within thirty (30) days after the award of the franchise (excluding renewed franchises), the grantee shall file with the village a performance bond in the amount of not less than fifty percent (50%) of the costs to install the system contained in the application in favor of the village. This bond shall be maintained throughout the construction period and until such time as determined by the village, unless specified in the franchise agreement.
B. Failure To Comply: If the grantee fails to comply with any law, ordinance or resolution governing the franchise, or fails to fulfill and perform each term and condition of the franchise as it relates to the conditions relative to the construction of the system, including the franchise agreement that is incorporated herein by reference, there shall be recoverable jointly and severally, from the principal and surety of the bond, any damages or loss suffered by the village as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee, plus a reasonable allowance for attorney fees, including the village's legal staff, and costs, up to the full amount of the bond. This section shall be an additional remedy for any and all violations outlined in section 7-3-13 of this chapter.
C. Requirements Waived: The village shall, upon completion of construction of the service area, waive the requirement of the grantee to maintain the bond. However, the village may require a construction bond to be posted by the grantee for any construction subsequent to the completion of the initial service areas where the estimated cost of the project exceeds forty thousand dollars ($40,000.00).
D. Bond Endorsement: 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 Village, by registered mail, a written notice of such intent to cancel and not to renew.
E. Right To Demand Payment: Upon receipt of a thirty (30) day notice, this shall be construed as default granting the village the right to demand payment on the bond except to the extent another bond is provided.
F. Waiver Of Requirement: The village, at any time during the term of this chapter, may waive in writing grantee's requirement to maintain a performance bond. The waiver of the requirement can be initiated by the village or the grantee. (Ord. 1021, 8-12-1998)