Each licensee shall file with the commission and, at all times thereafter until the determination by the commission after request by a licensee that the licensee has fully completed construction and made service available to each dwelling unit within the license area, maintain in full force and effect, an acceptable corporate surety bond issued by a surety licensed therefor by the State of California in an amount equal to the greater of:
A. The licensee's estimate of the total cost of construction of the cable television system within the license area; or
B. The sum of (i) the product of the number of miles of aerial plant (to the nearest one-tenth of a mile) in the license area and eighteen thousand dollars ($18,000.00) and (ii) the product of the number of miles of underground plant (to the nearest one-tenth) of a mile) in the license area and thirty-two thousand dollars ($32,000.00), effective for the entire term of the license, and conditioned that in the event the licensee shall fail to comply with any one or more of the provisions of the license documents, whether or not the license is terminated, then there shall be recoverable jointly and severally from the principal and surety of such bond, any damages suffered by the county, cities or cable television commission as a result thereof, including but not limited to, the full amount of any liquidated damages, delinquent license fees, compensation and costs of repairing or completing the cable television system, and compensation, and cost of removal or abandonment of property and repair of streets and other public or private improvements, up to the full amount of the bond; said condition to be a continuing obligation for the duration of the license and thereafter until the licensee has satisfied all of its obligations which may have arisen from the acceptance of the license or from its exercise of any privileges thereunder.
Upon the determination by the commission after request by a licensee, that the licensee has fully completed construction and made service available to each dwelling unit within the license area, the amount of the aforesaid corporate surety bond shall be reduced to an amount equal to fifty dollars ($50.00) for each dwelling unit located within the license area upon the date of the notice of final completion and maintained at such an amount at all times thereafter during the operation of the cable television system.
Neither the provisions of this section, any bond accepted pursuant thereto, nor any damages recovered thereunder shall be construed to excuse faithful performance by the licensee or to limit the liability of the licensee under the license or for damages, either to the full amount of the bond or otherwise. The bond shall contain a provision which prohibits cancellation by the surety during the term of the license, whether for failure to pay a premium or otherwise, without thirty (30) calendar days advance written notice mailed by the surety to the clerk of the board of directors of the cable television commission. The form of the bond and surety shall be subject to the approval by the cable television commission.
The performance bond for any license area (including an alternate performance bond comporting with the provisions of Section 5.28.2530 of this chapter) shall be deposited with the commission prior to the construction of any portion of a cable television system within, upon, or above the streets, provided that conduit and attendant vaults, without other appurtenances of a cable television system, may be installed, at the same time other utilities are so installed, in joint utility trenches in new residential subdivisions prior to the posting of the performance bond. (Prior code § 20.17.1600)