Clearlake Municipal Code § 12-19 Protection of City and Enforcement -- Performance Bond

Within ninety (90) days of the effective date of a franchise or at a time specified in a franchise, a grantee shall establish in the City’s favor a performance bond in an amount not less than ten (10%) percent of the estimated cost of constructing, upgrading, or rebuilding the cable system required by the franchise agreement or one hundred fifty thousand ($150,000.00) dollars whichever is greater. (Ord. #80-97, S19)

In the event a grantee subject to such a performance bond fails to complete the cable system construction, upgrade, or other work in the public rights-of-way in a safe, timely, and competent manner in accord with the provisions of a franchise 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 grantee, or the cost of completing or repairing the cable system construction, upgrade, or other work in the public rights-of-way, 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 where such amount exceeds that available under the security fund. (Ord. #80-97, S19)

Upon completion of the cable system construction, upgrade, or other work in the public rights-of-way and payment of all construction obligations of the cable system to the satisfaction of the City, the City shall eliminate the bond or reduce its amount after a time appropriate to determine whether the work performed was satisfactory, which time shall be established considering the nature of the work performed. The City may subsequently require a new bond or an increase in the bond amount for any subsequent construction, upgrade, or other work in the public rights-of-way. (Ord. #80-97, S19)

The performance bond shall be issued by a surety with an A-1 or better rating of insurance in Best’s Key Rating Guide, Property/Casualty Edition; shall be subject to the approval of the City; and shall contain the following endorsement: “This bond may not be canceled, or allowed to lapse, until sixty (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.” (Ord. #80-97, S19)