A.
Not later than 45 days after the effective date of a franchise, the grantee shall obtain and maintain during the entire term of the franchise and any extensions and renewals thereof, at its cost and expense, and file with the County, a corporate surety bond in an amount specified in the franchise to guarantee the faithful performance of the grantee of all its obligations provided under this chapter and the franchise. Failure to timely obtain, file and maintain said bond shall constitute a substantial violation within the meaning of this section.
B.
The performance bond shall provide the following conditions:
(1)
There shall be recoverable by the County, jointly and severally from the principal and surety, any and all fines and liquidated damages due to the County and any and all damages, losses, costs, and expenses suffered or incurred by the County resulting from the failure of the grantee to faithfully comply with the provisions of this chapter and the franchise; comply with all orders, permits and directives of any county agency or body having jurisdiction over its acts or defaults; pay fees due to the County; or pay any claims, liens or taxes due the County which arise by reason of the construction, operation, maintenance or repair of the cable system. Such losses, costs and expenses shall include but not be limited to attorneys' fees and other associated expenses.
(2)
The total amount of the bond shall be forfeited in favor of the County in the event that the grantee abandons the cable system at any time during the term of the franchise or any extension thereto; or the grantee assigns the franchise without the express written consent of the County.
C.
Upon written application by the grantee, the County may, at its sole option, permit the amount of the bond to be reduced or waive the requirements for a performance bond subject to the conditions set forth below. Reductions granted or denied upon application by the grantee shall be without prejudice to the grantee's subsequent applications or to the County's right to require the full bond at any time thereafter. However, no application shall be made by the grantee within one year of any prior application.
D.
Prior to drawing upon the performance bond for the purposes described in this section, the County shall notify the grantee, in writing, that payment is due, and the grantee shall have 20 days from the receipt of such written notice to make a full and complete payment. Said notice shall specifically reference the pending withdrawal from the performance bond. If the grantee does not make the payment within 20 days or request a hearing as authorized in Subsection E of this section, the County may withdraw the amount thereof, with interest and penalties, from the performance bond.
E.
Upon the written request of the grantee transmitted to the County within 10 days after the grantee's receipt of the foregoing notice from the County, the County shall conduct a hearing upon the matters set forth in the respective notice transmitted by the County. The hearing shall afford the grantee full rights to be heard, to present testimony and evidence and to cross-examine witnesses. It shall be concluded by a written decision of the County, including a findings of fact. If the final written decision of the County shall be that the grantee has committed and failed to cure the subject breach(es) of its franchise and that the County has suffered or incurred the subject damages, costs and expenses, then the County shall be authorized to make the subject withdrawal from the performance bond at any date after 10 days shall have elapsed from and after the date on which a certified copy of such decision shall have been delivered to the grantee. If the final written decision of the County shall be that the grantee has not committed, or has not failed to cure, the subject breach(es) of its franchise or that the County has not suffered or incurred the subject damages, costs and expenses, then the County shall not be authorized to make the subject withdrawal from the performance bond.
F.
Within five days of a withdrawal from the performance bond, the County shall send to the grantee, by certified mail, return receipt requested, written notification of the amount, date and purpose of such withdrawal.
G.
Not later than 30 days after mailing to the grantee by certified mail notification of a withdrawal pursuant to Subsection E above, the grantee shall replenish the performance bond in an amount equal to the amount so withdrawn. Failure to make timely replenishment of such amount to the performance bond shall constitute a substantial violation of this chapter.
H.
The performance bond required herein shall be in a form satisfactory to the County and shall require 30 days' written notice of any nonrenewal, alteration or cancellation to both the County and the grantee. The grantee shall, in the event of any such cancellation notice, obtain, pay all premiums for, and file with the County written evidence of the issuance of a replacement bond within 30 days following receipt by the County or the grantee of any notice of cancellation.
I.
To offset the effects of inflation, the amount of the performance bond provided for herein is subject to reasonable increases at the end of every three-year period of the franchise, applicable to the next three-year period.