A.   At the time the franchise becomes effective and at all times thereafter until the system upgrade has been completed, the grantee shall furnish a bond to city in the amount of fifty thousand dollars ($50,000.00) in a form and with such sureties as reasonably acceptable to city. This bond will be conditioned upon the faithful performance by the grantee of its system upgrade obligations and upon the further condition that in the event the grantee shall fail to comply with any law, ordinance or regulation governing the franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by city 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 and costs, up to the full amount of the bond, and further guaranteeing payment by the grantee of claims, liens and taxes, due city which arise by reason of the construction, operation, or maintenance of the system. The rights reserved by city with respect to the bond are in addition to all other rights city may have under the franchise or any other law.
   B.   The time for grantee to correct any violation or liability, shall be extended by city if the necessary action to correct such violation or liability is, in the sole determination of city, of such a nature or character as to require more than thirty (30) days within which to perform, provided grantee provides written notice that it requires more than thirty (30) days to correct such violations or liability, commences the corrective action within the thirty (30) day period and thereafter uses reasonable diligence to correct the violation or liability.
   C.   In the event this franchise is revoked by reason of default of grantee, city shall be entitled to collect from the performance bond that amount which is attributable to any damages sustained by city as a result of said default or revocation.
   D.   Grantee shall be entitled to the return of the performance bond, or portion thereof, as remains sixty (60) days after completion of system construction provided city has not notified grantee of any actual or potential damages incurred as a result of grantee's operations pursuant to the franchise or as a result of said default.
   E.   The rights reserved to city with respect to the performance bond are in addition to all other rights of city whether reserved by this franchise or authorized by law, and no action, proceeding or exercise of a right with respect to the performance bond shall affect any other right city may have. (Ord. 827, 8-5-2002, eff. 8-26-2002)