(A) (1) Within 30 days after the award of this franchise, the grantee shall obtain and maintain at its cost and expense and file with the Town a corporate surety bond in a company authorized to do business in the state and found acceptable by the Town Attorney in the amount of $185,000 to guarantee the timely construction and full activation of the CATV system. Said performance bond shall also include a labor and material payment bond.
(2) The bond shall provide, but not be limited to, the following condition: there shall be recoverable by the Town, jointly and severally, from the principal and surety any and all damages, loss or costs suffered by the Town resulting from the failure of the grantee to satisfactorily complete and fully activate the CATV system throughout the franchise area pursuant to the terms and conditions of this chapter.
(B) Any extension to the prescribed time limit must be authorized by the Town Council. Such extension shall be authorized only when the Town Council finds that such extension is necessary and appropriate due to causes beyond the control of the grantee.
(C) The performance bond shall be terminated only after the Town Council finds that the grantee has satisfactorily completed the initial construction and activation of the CATV system pursuant to the terms and conditions of this chapter.
(D) The rights reserved to the Town with respect to the performance bond are in addition to all other rights of the Town whether reserved by this chapter or authorized by law and no action, proceeding or exercise of a right with respect to such performance bond shall affect any other rights the Town may have.
(E) The performance bond shall contain the following endorsement:
“It is hereby understood and agreed that this bond may not be cancelled by the surety nor the intention not to renew be stated by the surety until sixty (60) days after receipt by the Town by registered mail of written notice of such intent to cancel or not to renew.”
(2005 Code, § 95.14)