(a) The grantee shall provide insurance as specified in the franchise agreement.
(b) With respect to the initial construction of the cable system, or any significant project to rebuild more than fifty percent of the cable system, the grantee shall provide to the grantor a construction performance and construction completion bond (herein referred to as the construction completion bond), with a surety reasonably approved by the grantor's Law Director, in an amount equal to ten percent of the applicable estimated construction cost. Such amount, however, shall not exceed fifty thousand dollars ($50,000). With respect to the initial construction of the cable system or rebuild project, when regular subscriber service is available to seventy-five percent of occupied dwelling units, the amount of the bond shall be reduced by fifty percent of the original amount. On the one-year anniversary of the initial construction of the cable system or the rebuild project, as the case may be, the bond may be canceled.
(c) Unless otherwise provided in the franchise agreements within sixty days of the passage of the ordinance adopting the franchise agreement, the grantee shall deposit with the grantor a surety bond or letter of credit in the amount of fifty thousand dollars ($50,000) in a form reasonably acceptable to the Law Director of the grantor (hereinafter referred to as the performance bond). The performance bond shall be available to insure the faithful performance by the grantee of provisions of this chapter and the franchise agreement, other than with respect to construction, upgrading or rebuilding projects covered herein, but including the obligation to remove the above-ground portion of the cable system upon revocation or termination of the franchise as set forth herein. The performance bond shall be maintained at fifty thousand dollars ($50,000) during the entire term of the franchise agreement, regardless of withdrawals which may be made under this section. In the event of a default by the grantee in any of its obligations under the agreement, other than completion of construction, which default is not cured within thirty days after notice by the grantor to the grantee of such default (or such longer time as is necessary to cure, so long as the grantee commences to cure within thirty days and diligently pursues cure), the grantor may levy on the performance bond upon notifying the grantee of the amount of such charge. The rights reserved to the grantor with respect to the performance bond are in addition to all other rights of the grantor, at law or in equity.
(Ord. 29-99. Passed 6-29-99.)