§ 70-176. Bonds.

Grantee shall exercise none of the rights granted by this chapter until evidence of compliance with the following bonding and preceding insurance requirements has been filed with the city. Should the grantee fail to comply with said requirements, it shall acquire no rights, privileges or authority under the franchise whatsoever.

(1)

Bond. Every operator of a telecommunications facility may be required to obtain performance bonds and, if necessary, payment bonds to ensure the faithful performance of its responsibilities under this chapter and any franchise agreement for an initial build, any substantial rebuild, upgrade or extension of its facility, or when construction plans show that there would be more than 1,000 feet of open trenching in the right-of-way at any given time. The amount of performance and payment bonds shall be set by the city manager in light of the nature of the work to be performed, and is not in lieu of any additional bonds that may be required through the permitting process. The bond shall be in a form acceptable to the city attorney. The city may from time to time increase the amount of the required performance bond to reflect increased risks to the city and to the public.

(2)

Notice. The performance bonds required pursuant to this section shall require 30 days' prior written notice to the city and the grantee of an intention of nonrenewal, alteration or cancellation. The grantee shall, in the event of any such intended cancellation notice, obtain, pay all premiums for, and file replacement bonds or policies within 30 days following receipt by the city or the grantee of any notice of intended cancellation.

(Ord. No. 99-46, § 1, 8-12-99)