§ 17-180. Construction bond.

(a)

Within thirty (30) days after the award of any new or renewed license pursuant to this article and by which substantial system construction or reconstruction is required, a grantee shall obtain and maintain at its cost and expense, and file with the clerk, a corporate surety bond in a company authorized to do business in the State of Florida, in the amount of fifty thousand dollars ($50,000.00) to guarantee the timely construction and full activation of the CATV system, the safeguarding of damage to private property and restoration of damages incurred with utilities.

The bond shall provide, but not be limited to, the following condition: There shall be recoverable by the city, jointly and severally from the principal and surety, any and all damages, loss or costs suffered by the city resulting from the failure of a grantee to satisfactorily complete and fully activate the CATV system throughout the license territory, pursuant to the terms and conditions of this article and the license agreement.

(b)

Any extension to the prescribed construction time limit must be authorized by the council members. Such extension shall be authorized only when the council members find that such extension is necessary and appropriate due to cause beyond the control of a grantee.

(c)

The construction bond shall be terminated only after the council members find that a grantee has satisfactorily completed initial construction or reconstruction and activation of the CATV system, pursuant to the terms and conditions of this article and the license agreement.

(d)

The rights reserved to the city with respect to the construction bond are in addition to all other rights of the city, whether reserved by this article or authorized by law; and no action, proceeding or exercise of a right with respect to such construction bond shall affect any other rights the city may have.

(e)

The construction bond shall contain the following endorsement:

It is hereby understood and agreed that this bond may not be cancelled by the surety nor the intention not to renew be stated by the surety until sixty (60) days after receipt by the City of Crystal River, by registered mail, of written notice of such intent to cancel or not to renew.

(Ord. No. 87-0-23, § 1, 10-13-87; Ord. No. 94-0-3, § 1, 1-24-94)