A. Within 30 days after the award of a franchise, but in no event sooner than the final reading of the franchise ordinance, the company shall submit to the city attorney, which shall be filed with the city finance director, a performance bond (or equivalent acceptable to the city) in the amount of $250,000 in favor of the city. This bond shall be approved by the city attorney and shall be maintained throughout the construction of the entire system or until such time as the city council may require.

B. In the event the company fails to comply with any law, ordinance or regulation governing the franchise, or fails to well and truly observe, fulfill and perform each term and condition of the franchise, including the company’s proposal which is incorporated into the franchise, there shall be recoverable, jointly and severally, from the principal and surety of the bond, any damages or loss suffered by the city and the citizens of the city by virtue of the unavailability of cable TV service within the city, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the company, plus a reasonable allowance for attorney’s fees, up to the full amount of the bond. This section shall be an additional remedy for any and all violations outlined in BMC 6.17.130.

C. The city council may, upon completion of construction of the full cable system, waive or reduce the requirement of the company to maintain said bond. However, the council may require a performance bond to be posted by the company for any construction subsequent to the completion of the initial construction, in a reasonable amount and upon such terms as determined by it.

D. The bond shall contain the following endorsement:

It is hereby understood and agreed that this bond shall not be canceled by the surety nor the intention not to renew be stated by the surety until 30 days after receipt by the City Attorney, by registered mail, of a written notice of such intent to cancel or not to renew.