§ 78-293. Construction bond.

(a)

Prior to any cable system construction, upgrade, or other work in the street, a franchisee shall establish in the city's favor a construction 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, but the amount of such construction bond shall not be less than $50,000.00 and shall not exceed $500,000.00.

(b)

In the event a franchisee subject to such a construction bond fails to complete the cable system construction, upgrade or other work in the streets in a safe, timely and competent manner in accordance with the provisions of the franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or losses suffered by the city 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 cable 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 city may also recover against the bond any amount recoverable against the security fund pursuant to section 78-292 hereof where such amount exceeds that available under the security fund.

(c)

Upon completion of the cable system construction, upgrade or other work in the streets and payment of all construction obligations of the cable system to the satisfaction of the city, the city may eliminate the bond or reduce its amount by returning the bond or executing a release as required. However, the city may subsequently require an increase in the bond amount for any subsequent construction. In any event, the total amount of the bond shall not exceed the amount specified in subsection (a) of this section.

(d)

The construction bond shall be issued by a surety having a minimum rating that is subject to the reasonable satisfaction of the city, and shall contain a provision that the bond may not be canceled, or allowed to lapse, until 60 days after receipt by the city, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew.

(e)

The rights reserved by the city with respect to any construction bond established pursuant to this section are in addition to all other rights and remedies the city may have under this article, the franchise agreement, or at law or equity.

(Ord. No. 3806-04, § I, 10-25-2004)