(a) Establishment of Performance Bond. Prior to any cable system construction, upgrade, or other work in the streets, a franchisee shall establish in the Borough's favor a performance bond in an amount specified in the franchise agreement or other authorization as necessary to ensure the franchisee's faithful performance of the construction, upgrade, or other work. The amount of such performance bond shall not exceed one hundred thousand dollars ($100,000.00).
(b) Recovery Under Performance Bond. In the event a franchisee subject to such a performance bond fails to complete the cable system construction, upgrade, or other work in the streets in a safe, timely, and competent manner in accord with the material provisions of the franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the Borough 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 system construction, upgrade, or other work in the streets, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The Borough may also recover against the bond any amount recoverable against the security fund or surety bond where such amount exceeds that available under the security fund or surety bond.
(c) The Borough shall provide to the franchisee reasonable notice and opportunity to cure.
(d) Changes to Amount of Performance Bond. The franchise agreement shall specify that upon completion of the system construction, upgrade, or other work in the streets and payment of all construction obligations of the cable system to the satisfaction of the Borough, the Borough shall eliminate the bond or reduce its amount after a time appropriate to determine whether the work performed was satisfactory, which time shall be established considering the nature of the work performed. The Borough may subsequently require a new bond or an increase in the bond amount for any subsequent construction, upgrade, or other work in the streets. In any event, the total amount of the bond shall equal 10% of the cost of the work, but shall not exceed one hundred thousand dollars ($100,000.00).
(e) Qualifications of Sureties. The performance bond shall be issued by a surety with an A-1 or better rating of insurance in Best's Key Rating Guide, Property/Casualty Edition, shall be subject to the approval of the Borough, and shall contain the following endorsement:
"This bond may not be canceled or allowed to lapse until 60 days after receipt by the Borough, by certified mail, return receipt requested, of written notice from the issuer of the bond of intent to cancel or not to renew."
(f) Performance Bond in Addition to all Other Borough Rights. The rights reserved by the Borough with respect to any performance bond established pursuant to this chapter are in addition to all other rights and remedies the Borough may have under this chapter, the franchise agreement, or at law or equity.
(Ord. 920. Passed 7-14-97; Ord. 938. Passed 7-12-99.)