(A) At or prior to the time a registrant receives its first permit to place or maintain a communications facility in rights-of-way after the effective date of this chapter, the registrant may be required to file with the town, for the town’s approval, an annual bond, cash deposit or irrevocable letter of credit in the sum of $25,000 having as a surety a company qualified to do business in the state, and acceptable to the Mayor or designee, which shall be referred to as the “Security fund.” The Security Fund shall be maintained from such time through the earlier of:
(1) Transfer, sale, assignment or removal of all communications facilities in rights-of-way; or
(2) Twelve months after the termination or cancellation of any registration.
(B) The Security Fund shall be conditioned on the full and faithful performance by the registrant of all requirements, duties and obligations imposed upon registrant by the provisions of this chapter. The Security Fund shall be furnished annually or as frequently as necessary to provide a continuing guarantee of the registrant’s full and faithful performance at all times. In the event a registrant fails to perform its duties and obligations imposed upon the registrant by the provisions of this chapter, there shall be recoverable, jointly and severally from the principal and surety of the Security Fund, any damages or loss suffered by the town as a result, including the full amount of any compensation, indemnification or cost of removal, relocation or abandonment of any facilities of the registrant in rights-of-way, plus a reasonable allowance for attorneys’ fees, up to the full amount of the security fund. Notwithstanding the foregoing, the town may in its discretion not require a Security Fund or may accept a corporate guarantee of the registrant or its parent company.
(Ord. 2010-01, passed 1-26-2010)