§ 30-37. Bonding requirements.

(a)

Construction bond.

(1)

Simultaneously with the execution of the franchise agreement, the franchisee shall post with the county either a construction bond or an irrevocable letter of credit issued by a state bank or a federally insured lending institution in an amount equal to 110 percent of the projected cost of construction and installation of the system. Existing franchisees shall post such a bond or irrevocable letter of credit with the county and as required by the county administrator at the same time as and in conjunction with submission of a construction plan or reconstruction plan as required by section 30-42(a) of this article, and in any event at least 30 days prior to the start of construction or reconstruction. Said bond or letter of credit will be returned at the end of six years to the franchisee or at such prior time as the system has been completed and approved by the county, provided:

a.

That the franchisee has met or exceeded the construction schedule required by section 30-30 and section 30-42; and

b.

That the franchisee has in good faith complied with all terms and conditions of the franchise agreement and all provisions of this article as well as the rules and regulations herein required and permitted.

(2)

If the franchisee submits a cable system construction or reconstruction map and schedule pursuant to section 30-42(a) of this article which provides for construction of the system in progressive stages to provide service to specified and definitive sections of his franchise area, the franchisee may submit a construction bond or irrevocable letter of credit equal only to 110 percent of the projected cost of construction and installation of each specified and definitive section of the system in lieu of the bond or letter of credit required by subsection (a)(1) of this section; provided, however, that the franchisee must complete construction of the specified section to which the construction bond applies prior to the initiation of construction of a subsequent section.

(3)

If the franchisee shall fail to perform the obligations heretofore set out in this section, the franchisee shall forfeit in total to the county the hereinabove referenced construction bond.

(4)

Said construction bond shall not be in lieu of any other guarantee or indemnification required by this article and shall be in addition to the performance bond or irrevocable letter of credit required in subsection (b)(1) of this section.

(b)

Permanent performance and payment bond.

(1)

Simultaneously with the execution of the franchise agreement or assignment of franchise in the case of a transfer, the franchise shall, furnish to the county a performance bond or an irrevocable letter of credit issued by a state bank or a federally insured lending institution in the amount of $100,000.00. The performance bond or letter of credit shall be used to guarantee the compliance with performance requirements and payment of all sums which may become due to the county under this article and/or under any franchise agreement entered into by the county and the franchisee. The performance bond or letter of credit shall be maintained in the full amount specified herein throughout the term of the franchise and for one year after the franchise expires or is terminated, without reduction or allowances for any amounts which are withdrawn or paid pursuant to this article.

(2)

All CATV operators in the unincorporated areas of the county who possess a valid, current franchise, that is in good standing, to operate a CATV operation as of the effective date of this article [November 23, 1988] shall not be required to furnish a performance bond until such time as current franchise expiration, transfer or renewal. Current franchisees may negotiate accelerated franchise renewals pursuant to section 30-28(g).

(3)

The rights reserved to the county with respect to the bond or the letter of credit are in addition to all other rights of the county.

(Ord. No. 88-90, § 12; Ord. No. 96-15, § 3, 3-26-96)