(A) Performance bond. Not later than 45 days after the effective date of the franchise, the grantee shall obtain and maintain during the entire term of the franchise and any extensions and renewals thereof, at its cost and expense, and file with the county a corporate surety bond or letter of credit, in an amount specified in the franchise agreement, to guarantee the faithful performance of the grantee of all its obligations provided under this chapter and the franchise. Failure to timely obtain, file and maintain said bond shall constitute a substantial violation of this chapter.
(B) Conditions. The performance bond shall provide the following conditions:
(1) There shall be recovered by the county, jointly and severally from the principal and surety, any and all fines and penalties due to the county and any and all damages, losses, costs and expenses suffered or incurred by the county resulting from the failure of the grantee to: faithfully comply with the provisions of this chapter and the franchise applicable orders, permits and directives of any county agency or body having jurisdiction over its acts or defaults; pay any claims, liens or taxes due the county which arise by reason of the construction, operation, maintenance or repair of the cable system.
(2) The total amount of the bond shall be forfeited in favor of the county in the event:
(a) The grantee abandons the cable system at any time during the term of the franchise or any extension thereto;
(b) The grantee assigns the franchise without the express written consent of the county.
(C) Reduction of bond. Upon written application by the grantee, the county may, at its sole option, permit the amount of the bond to be reduced or waive the requirements for a performance bond subject to the conditions set forth below. Reductions granted or denied upon application by the grantee shall be without prejudice to the grantee's subsequent applications or to the county's right to require the full bond at any time thereafter. However, no application shall be made by the grantee within 90 days of any prior application.
(D) Use of performance bond. Prior to making any demand against the performance bond for the purposes described in this section, the county shall notify the grantee in writing that payment is due, and the grantee shall have ten days from the receipt of such written notice to make a full and complete payment of undisputed amounts. If the grantee does not make the payment within ten days the county may proceed against the performance bond.
(E) Notification. Within three days of a payment to it of the performance bond, the county shall send to the grantee, by certified mail, return receipt requested, written notification of the amount, date and purpose of such payment.
(F) Replenishment of performance bond. No later than 30 days after receipt by the grantee of certified mail notification of a payment pursuant to subsection (E) above, the grantee shall take necessary action to restore the performance bond in an amount equal to the amount paid. Failure to make timely restoration of the performance bond shall constitute a substantial violation of this chapter.
(G) Non-renewal, alteration or cancellation of performance bond. The performance bond required herein shall be in a form satisfactory to the county and shall require 30 days written notice of any non-renewal, alteration or cancellation to both the county and the grantee. The grantee shall, in the event of any such cancellation notice, obtain, pay all premium for, and file with the county, written evidence of the issuance of a replacement bond within 30 days following receipt by the county or the grantee of any notice of cancellation.
(Ord. 3502, passed 10-7-02)