Construction bond

(a)

The city shall require in a license agreement that, prior to any cable system construction, upgrade, rebuild or other significant work in the streets a licensee shall establish in the favor of the city a construction bond in an amount specified in the license agreement or other authorization as necessary to ensure the faithful performance of the licensee of the construction, upgrade, rebuild or other work, but in no event shall the amount of the bond be less than $500,000.00. Licensee shall at all times comply with chapter 54 of this Code.

(b)

In the event a licensee 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 accord with the provisions of the license agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss 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 licensee, 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 city may also recover against the bond any amount recoverable against the security fund pursuant to section 11-11 hereof where such amount exceeds that available under the security fund.

(c)

The license agreement may specify that upon completion of the cable system construction, upgrade, rebuild 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. However, the city may subsequently require an increase in the bond amount for any subsequent construction, upgrade, rebuild or other work in the streets.

(d)

The construction bond shall be issued by a surety having a minimum rating of A-1 in Best's Key Rating Guide, Property/Casualty Edition, or an equivalent rating acceptable to the city; shall be subject to the approval of the city attorney; and shall provide that this bond may not be canceled, or allowed to lapse, until 60 calendar 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 chapter, the license agreement, or at law or equity.

(Ord. No. 11936, § 3, 6-8-00)