Prior to commencement of construction, the grantee shall furnish a bond to the city equal to 125% of the construction costs; the bond shall be reduced to 25% of the construction costs after system turn-on, to remain in full force for the term of the franchise with acceptable surety conditioned upon the faithful performance by the grantee according to the terms of the franchise and upon the further condition that, in the event the grantee shall fail to comply with any law, ordinance, code provision, or regulation governing the franchise, there shall be recoverable jointly and severally from the grantee and surety of the bond any damages or loss suffered by the city, 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 to the city which arise by reason of the construction, operation, or maintenance of the system. The rights reserved by the city with respect to the bond are in addition to all other rights the city may have under the franchise or any other law. The city may, from year to year and at its sole discretion, reduce the amount of the performance bond.
(Ord. 51, passed 4-12-83; Am. Ord. 54, passed 9-13-83)