(A) Prior to any construction, upgrade, rebuild or other significant work in the public rights-of-way, a franchisee shall establish in the city's favor a construction bond in an amount specified in the franchise agreement, permit, or other authorization as necessary to ensure the franchisee's faithful performance of the construction, upgrade, rebuild, or other work. The amount of the construction bond shall be based on the nature of the construction to be performed.
(B) In the event a franchisee subject to such a construction bond fails to complete the construction in a safe, timely, and competent manner in accord with the provisions of the franchise agreement, permit, or other requirement of the city, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the city as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchisee, or the cost of completing or repairing the construction, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The city may also recover against the bond any amount recoverable against the security fund pursuant to § 112.23, where such amount exceeds that available under the security fund.
(C) The franchise agreement, permit, or other authorization from the city may specify that upon completion of the system construction, upgrade, rebuild, or other work in the streets and payment of all construction obligations of the cable system to the satisfaction of the city, the city may eliminate the bond or reduce its amount. However, the city may subsequently require an increase in the bond amount for any subsequent construction, upgrade, or other work.
(D) The construction bond shall be issued by a surety having a minimum rating of A-1 in “Best's Key Rating Guide, Property/Casualty Edition”; shall be subject to the approval of the City Attorney; and shall provide that:
"This bond may not be canceled, or allowed to lapse, until 60 days after receipt by the city, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew."
(E) The rights reserved by the city with respect to any construction bond established pursuant to this section are in addition to all other rights and remedies the city may have under this subchapter, the franchise agreement, or at law or equity.
(Ord. 1406, passed 5-15-02)