§ 93.13. CONSTRUCTION BOND.

(a)

A franchise agreement shall provide that, prior to any cable system construction, upgrade, rebuild or other significant work in the Public Rights-of-Way, a franchisee shall establish in the City's favor a construction bond in an amount specified in the franchise agreement or other authorization as determined by the City to ensure the franchisee's faithful performance of construction of the cable system, upgrade, rebuild or other work in the Public Rights-of-Way.

(b)

The form and conditions of the bonds and the surety shall be acceptable and satisfactory to the City and surety shall be a nationally recognized surety company acceptable to the City, listed on the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and Acceptable Reinsuring Companies" as published in circular 570 (amended) by the Audit Staff, Bureau of Government Financial Operations, U.S. Treasury Department, all bonds shall be placed with sureties with a Best Rating of no less than A-VII. Bonds shall be executed and issued by a resident agent, licensed and having an office in Palm Beach, Dade, Broward or Martin Counties, Florida, representing such corporate sureties. If the franchisee is a partnership, the bond should be signed by each of the individuals who are partners; if a corporation, the bond should be signed in the correct corporate name by duly authorized officer, agent or attorney-in-fact. There should be executed an appropriate number of counterparts of the bond corresponding to the number of counterparts in the franchise.

(c)

If the surety on any bond furnished by franchisee is declared bankrupt or becomes insolvent or its right to do business is terminated in the State of Florida or it ceases to meet the requirements of paragraph B, franchisee shall within ten (10) days thereafter substitute another bond, surety, or cash deposit which must be in conformance with paragraph (b).

(d)

In the event a franchisee subject to such a construction bond fails to complete the cable system construction, upgrade, rebuild or other work in the Public Rights-of-Way in a safe, timely and competent manner in accordance with the provisions of the franchise agreement, then there shall be recoverable jointly and severally from the principal or 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 franchisee, 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 93.13 where such amount exceeds that available under the security fund.

(e)

The franchise agreement may specify that sixty (60) days after completion of the cable system construction, upgrade, rebuild or other work in the Public Rights-of-Way and payment of all construction obligations of the cable system, the franchisee may eliminate the bond or reduce its amount unless the City has made a demand against the deposit or notified franchisee of a potential claim and requested maintenance of the security. However, the City may subsequently require the reestablishment of or an increase in the bond amount for any subsequent construction, upgrade, rebuild or other work in the Public Rights-of-Way.

(f)

The construction bond shall be subject to the approval of the City's Risk Manager and the City Attorney, and shall provide that:

"This bond may not be canceled, or allowed to lapse, until ninety (90) 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."

(g)

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 franchise agreement, or at law or equity, and no action, proceeding or exercise of a right with respect to such bond shall effect any other right or remedy of the City.

(Ord. No. 10-05, § 1, passed 3/1/05)