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A. Within thirty (30) days after the award of an initial franchise, the grantee shall file with the Village a construction bond in the amount of not less than fifty percent (50%) of the costs to install the system contained in the application in favor of the Village. This bond shall be maintained throughout the construction period and until such time as determined by the Village, unless specified in the franchise agreement. The bonding company shall be approved by the Village prior to the issuance of the bond.
B. Within thirty (30) days after the award of a renewal franchise, the grantee shall file with the Village a construction bond in the amount of one hundred thousand dollars ($100,000.00). This bond shall be maintained throughout the construction period and until such time as determined by the Village, unless specified in the franchise agreement. The bonding company shall be approved by the Village prior to the issuance of the bond.
C. If the grantee fails to comply with any law, ordinance or resolution as it relates to the conditions relative to the construction, operation or maintenance of the system, including the franchise agreement that is incorporated herein by reference, there shall be recoverable jointly and severally, from the principal and surety of the bond, any damages or loss suffered by the Village as a result, 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, including the Village's legal staff, and costs, up to the full amount of the bond in accordance with the procedures set forth in subsection 11-1-3E of this Chapter. This Section shall be an additional remedy for any and all violations outlined in Section 11-1-13 of this Chapter.
D. The Village may, upon completion of construction of the service area or the upgrade, waive or reduce the requirement of the grantee to maintain the bond. However, the Village may require a performance bond to be posted by the grantee for any construction subsequent to the completion of the initial service areas, in a reasonable amount and upon such terms as determined by the Village.
E. The bond shall contain the following endorsement: "It is hereby understood and agreed that this bond may not be canceled by the surety nor the intention not to renew be stated by the surety until thirty (30) days after receipt by the Village, by registered mail, a written notice of such intent to cancel and not to renew."
F. Upon receipt of a thirty (30) day notice, this shall be construed as default granting the Village the right to demand payment on the bond.
G. The Village, at any time during the term of this Chapter, may waive grantee's requirement to maintain a performance bond. The waiver of the requirement can be initiated by the Village or the grantee. (Ord. 98-2054, 9-28-1998)