Borough of Chambersburg, PA Telecommunications Services

With a direct or indirect ownership interest in the subject entity of 5% or more or who or which controls such interest, including forms of ownership such as general, limited, or other partnership interests, direct ownership interests, limited liability companies and other forms of business organizations and entities but not including corporations;

With a stock interest in the subject entity where the subject entity is a corporation and such stockholder or its nominee is an officer or director of the grantee or who or which directly or indirectly owns or controls 5% or more of the outstanding stock, whether voting or nonvoting; or

FRANCHISE AUTHORITY OR FRANCHISING AUTHORITY

Who or which controls the grantee and/or is controlled by, or is under common control with, such person or entity.

ATTACHMENT

Any wire, optical fiber or other cable, and any related device, apparatus or auxiliary equipment, for the purpose of voice, video, or data transmission.

COMMUNICATIONS ACT

The Communications Act of 1934, as now or hereafter amended.

CONDUIT FACILITY

Any structure, or section thereof, containing one or more ducts, conduits, manholes, handholes or other such facilities in the grantee's telecommunications system.

DUCT

A single enclosed raceway for conductors, optical fiber, wire or other cable.

FACILITY

Any tangible component of the telecommunications system.

FCC

The Federal Communications Commission or successor governmental entity thereto.

FRANCHISE

The nonexclusive right and privilege granted to the grantee under this chapter.

The Borough of Chambersburg, Franklin County, Commonwealth of Pennsylvania, or the lawful successor, transferee, or assignee thereof.

GRANTEE

A person in continuous compliance with this chapter.

LICENSEE

Any person franchised, licensed, permitted or otherwise lawfully occupying space in the public way.

PERSON

Any individual, sole proprietorship, partnership, association, limited liability company, corporation or other form of organization authorized to do business in the Commonwealth of Pennsylvania, and includes any natural person.

PUBLIC WAY

The surface of, and the space above and below, any public street, highway, turnpike, bridge, land path, alley, court, boulevard, sidewalk, parkway, way, lane, public way, drive, circle, or other public right-of-way, including public utility easements, dedicated utility strips, or rights-of-way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the franchise authority in the service area which shall entitle the franchise authority and the grantee to the use thereof for the purpose of constructing, leasing, operating and maintaining the telecommunications system. "Public way" shall also mean any easement now or hereafter held by the franchise authority within the service area for the purpose of public travel and/or for utility and/or public service use dedicated for compatible uses, and shall include other easements and/or rights-of-way as shall within their proper use and meaning entitle the franchise authority and the grantee to use thereof for the purposes of constructing, leasing, operating, or maintaining the grantee's telecommunications system over poles, wires, cables, conductors, ducts, conduits, pedestals, vaults, manholes, amplifiers, appliances, attachments, and other property as may be ordinarily necessary and pertinent to the telecommunications system.

SERVICE AREA

The present municipal boundaries of the franchising authority, and shall include any additions thereto by annexation or other legal means.

SURPLUS DUCTS OR CONDUITS

Conduit facilities other than those occupied by the grantee or any prior licensee and unoccupied duct(s) held by the grantee as an emergency or use spare.

TELECOMMUNICATIONS SERVICES

Any transmission of communications or information in electrical, electronic, or optical form or by any means, whether now known or hereafter to become known, including but not limited to voice, video, or data, whether or not the content of the transmission or the medium of the transmission is owned by the grantee itself, unless the licensee is able to demonstrate to the franchise authority by a preponderance of the evidence that such transmission is excluded from the definition of "telecommunications services" under Subsection (2).

TELECOMMUNICATIONS SYSTEM

Telecommunications services do not include the following:

(a)

Over-the-air broadcasts.

(b)

A specific telecommunications service regulated by the Commonwealth of Pennsylvania Public Utility Commission as a public utility for which a certificate of public convenience has been obtained and a tariff therefor has been filed.

All wires, cables, ducts, conduits, vaults, poles and other necessary facilities owned and/or used by the grantee for the purpose of providing telecommunications services and located in, under and above a public way.

YEAR, ANNUAL or ANNUALLY

The period consisting of a full calendar year, beginning January 1 and ending December 31, unless otherwise provided in this franchise.

§ 268-2 Written agreement required.

Grant. Subject to state or federal law, it shall be unlawful for any person to construct, lease, maintain or operate a telecommunications system in the public ways unless first having entered into a written agreement with the borough, and then only under and pursuant to the terms of any such agreement, or alternatively in compliance with this chapter. Continuous compliance with this chapter grants to the grantee a nonexclusive right and privilege which authorizes the grantee to construct, lease, maintain and operate a telecommunications system in, along, among, upon, across, above, over, under, or in any manner connected with public ways within the service area and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain, and/or retain in, on, over, under, upon, across, and/or along any public way and all extensions thereof and additions thereto such poles, wires, cables, fiber-optic cable, conductors, ducts, conduits, vaults, manholes, pedestals, amplifiers, appliances, attachments, and/or other related property or equipment as may be necessary or appurtenant to the telecommunications system.

[Amended 10-25-2000 by Ord. No. 2000-12]

Nonexclusive grant. The right to use and occupy said public ways, as defined above, for the purpose herein set forth shall not be exclusive in the grantee. This chapter shall not apply to use of the public ways by a governmental entity or quasi-governmental entity.

Not a cable system. This franchise does not authorize the grantee to operate a cable television system, nor shall it apply to "cable service," as defined by Section 602 of the Communications Act (47 U.S.C.A. § 522).

Not a pole attachment agreement. This franchise does not authorize the grantee to attach to any poles or to occupy any conduit facility owned by the borough or jointly owned by the borough or the poles or conduit facility rented or obtained by other arrangements by the borough from another owner, any wire, optical fiber or cable, or related device, apparatus or auxiliary equipment.

§ 268-3 Standards of service.

Conditions of street occupancy. All transmission and distribution structures, poles, other lines, and equipment installed or erected by the grantee pursuant to the terms hereof shall be located so as to cause a minimum of interference with the proper use of public ways and with the rights and reasonable convenience of property owners who own property that adjoins any of said public ways.

Restoration of public ways. If during the course of the grantee's construction, operation, and/or maintenance of the telecommunications system there occurs a disturbance of any public way by the grantee, the grantee shall, at its expense, replace and restore such public way to a condition which existed immediately prior to such disturbance and in a manner approved by the franchising authority. If the grantee excavates the surface of any public way, the grantee shall be responsible for restoration of the public way and its surface within the area affected by the excavation. The borough may, after providing notice to the grantee, refill and/or repave any opening made by the grantee in the public way, and the expense thereof shall be paid by the grantee. The borough reserves the right, after providing notice to the grantee, to remove and/or repair any work done by the grantee which, in the sole determination of the Borough Engineer, is inadequate. The cost thereof, including the cost of inspection and supervision, shall be paid by the grantee. All excavations made by the grantee in the public way shall be properly safeguarded for the prevention of accidents. All of the grantee's work shall be done in strict compliance with all applicable rules, regulations and ordinances of the borough.

Relocation at request of franchising authority.

Upon its receipt of reasonable advance notice, except under exigent circumstances, the grantee shall, at its own expense, locate, protect, support, temporarily disconnect, relocate in the public way, and/or remove from the public way or other property owned by the franchising authority any property of the grantee when lawfully required by the franchising authority by reason of traffic conditions, public safety, street abandonment, freeway and street construction, change or establishment of street grade, installation of sewers, drains, gas or water pipes, electrical conduits or any other type of structures or improvements by the franchising authority; provided, however, that the grantee in all such cases shall share proportionately with utility companies in any federal, state, or county funds awarded to the franchising authority specifically for any of the purposes enumerated above. Nothing in this section shall be construed to require the franchising authority to make application for or seek a grant for any funds.

Upon the failure of the grantee to commence, pursue, or complete any work required by law (or by the provisions of the grantee's franchise, or any other applicable federal, state or local law, ordinance, rule or regulation) to be done in any public way or other public place within the time prescribed, and to the satisfaction of the franchising authority, the franchising authority, at its option, may cause such work to be done, and the grantee shall pay to the franchising authority the cost thereof in the itemized amounts reported by the franchising authority to the grantee within 30 days after receipt of such itemized report. But the grantee, upon prior approval of the franchising authority, may elect to abandon any or all of the telecommunications system rather than relocate it.

Relocation at request of third party or grantee. The grantee shall, on the request of any person holding a requisite lawful permit issued by the franchising authority, temporarily raise or lower its wires to permit the moving of any equipment, building, material or otherwise, provided that the expense of such temporary raising or lowering of wires is paid by said person, including, if required by the grantee, making such payment in advance and that the grantee is given not less than 10 days' advance written notice to arrange for such temporary wire changes. The grantee may request the franchising authority to temporarily raise or lower its wires or to make other changes in its plant and equipment to accommodate the grantee's construction, which request shall be promptly considered by the franchising authority.

Trees and shrubbery. The grantee shall notify the franchising authority and all affected property owners regarding the grantee's need to trim trees or other natural growth upon and overhanging public ways so as to prevent the branches of such trees from coming in contact with the telecommunications system of the grantee; at the option of the franchising authority, such trimming may be done by the franchising authority at the reasonable expense of the grantee, or by the grantee under the franchising authority's supervision and direction at the expense of the grantee. Trimming shall be limited to the area required for clear telecommunications system passage and shall not include major structural branches which materially alter the appearance and natural growth habits of the tree. All trimming shall meet the requirements of the Chambersburg Shade Tree Commission. The grantee shall give the franchising authority and all affected property owners five business days' prior notice of the grantee's intent to trim trees or other natural growth pursuant to this section.

Use of grantee's equipment by franchising authority. Except as already set forth in this chapter and subject to any applicable state or federal regulations or tariffs, the franchising authority shall have the right to make additional use, for any public purpose, of any poles or conduits controlled or maintained exclusively by or for the grantee in any public way, provided that:

Such use by the franchising authority does not interfere with use by the grantee;

The franchising authority holds the grantee harmless from and against any and all claims, demands, costs, and/or liabilities of every kind and nature whatsoever arising out of such use of said poles or conduits, including but not limited to reasonable attorney fees and costs; provided, however, that the franchising authority shall not hold harmless from claims and damages arising out of the willful or negligent acts caused by the grantee; and

At the grantee's sole discretion, the franchising authority may be required either to pay a reasonable rental fee or otherwise reasonably compensate the grantee for the use of such poles, conduits or equipment.

Safety requirements. Construction, installation, and maintenance of the telecommunications system shall be performed in an orderly and workmanlike manner. All cable, wires, conductors and other components, elements and parts of the telecommunications system shall be installed, where possible, parallel with and in the same manner as electric and telephone lines.

All such work shall be performed in accordance with applicable safety code or technical requirements, including but not limited to the National Electrical Safety Code (National Bureau of Standards); National Electrical Code (National Bureau of Fire Underwriters); Bell System Code of Pole Line Construction; and applicable FCC and/or other federal and state regulations. Multiple cable wires, lines, fiber-optic cable, wave guides and/or other similar facility configurations shall be arranged in parallel and bundled with due respect for engineering considerations.

The telecommunications system shall not endanger and/or interfere with the safety of persons or property in the service area. In particular, the grantee shall comply with all federal laws and/or regulations which govern plant signal leakage and/or interference with communications media. Any antenna structure used in the telecommunications system shall comply with all construction, marking, and lighting of antenna structure requirements of the United States Department of Transportation (Federal Aviation Administration), the FCC and the borough's zoning requirements. If, at any time, it is determined by the franchising authority and/or any other agency or authority of competent jurisdiction that any part of the telecommunications system, including, without limitation, any means used to distribute telecommunications service, is harmful to the health and safety of any person, then the grantee shall, at its own cost and expense, promptly correct all such conditions.

Maps. Prior to beginning any construction, the grantee shall provide the borough with an initial construction schedule and plans for work in the public ways and the estimated total cost of such work. When the grantee's construction in the public ways is completed, the grantee shall provide the borough with a map showing the location of its installed telecommunications system in the public ways, as built. Such as-built maps shall be in an electronic format for placement on the borough's GIS system and in a form acceptable to the Borough Engineer. Annually thereafter, the grantee shall provide a map to the borough showing the location of the grantee's facilities in the public ways on a scale of 100 feet per inch or whatever standard scale the borough adopts for general use.

Aerial and underground construction. In those areas of the service area where all of the transmission or distribution facilities in the form of cables, wires, lines, fiber-optic cable, wave guides and/or other similar facilities of the respective public utilities providing telephone communications and electric services are underground, the grantee likewise shall construct, operate, and maintain all of its transmission and distribution facilities underground. In those areas of the service area where the transmission and/or distribution facilities of the respective public utilities providing telephone communications and electric services are both aerial and underground, the grantee shall have the sole discretion to construct, operate, and maintain all of its transmission and distribution facilities, or any part thereof, aerially or underground. If at any time the franchising authority determines that existing wires, cables or other like facilities of public utilities anywhere in the service area shall be changed from an overhead to an underground installation, the grantee shall also, at no expense to the franchising authority, convert its telecommunications system to an underground installation. Nothing in this subsection shall be construed to require the franchising authority to request any such utility relocation. The grantee's design and engineering specifications shall take into account the existing landscaping of the property.

Excavations. The grantee may make excavations in public ways for any facility needed for the maintenance or extension of the grantee's telecommunications system subject to obtaining excavation permits from the borough. Prior to doing such work, the grantee must apply for, and obtain, appropriate permits from the borough and give appropriate notices to any other franchisees, licensees and/or permittees of the borough and/or other units of government owning or maintaining facilities which may be affected by the proposed excavation.

Installation of service. All installation of telecommunications systems shall be performed in a workmanlike manner, using materials of good and durable quality with due regard to the preservation and protection of existing structures. All work to be performed in, on, or about the dwelling or structure of a customer or potential customer shall be performed under the reasonable direction or with the consent of such customer or potential customer.

Maintenance of facilities. The grantee shall provide and put in use all telecommunications system facilities necessary to control and carry the grantee's telecommunications services so as to prevent injury to the borough's property or property belonging to any person within the borough. The grantee, solely at its own expense, shall repair, renew, change and improve said facilities from time to time as may be necessary to accomplish this purpose. The grantee shall not construct its telecommunications system in a manner that requires any customer, except the borough, to install cables, ducts, conduits, or other facilities in, under or over the borough's public ways.

Emergency usage. The grantee shall comply with emergency or disaster notification requirements of the Federal Communications Commission and all state and all local emergency and/or disaster agencies.

Technical performance and standards. All performance and technical standards governing construction, reconstruction, installation, operation, testing, maintenance and dismantling of the telecommunications system provided herein shall be in accordance with all FCC and other applicable federal, state and local laws, ordinances and regulations.

Reservation of borough public ways. Nothing in this franchise shall be construed to prevent the borough from constructing sewers, grading, paving, repairing and/or altering any street and/or laying down, repairing and/or removing water mains and/or constructing and/or establishing any other public work or improvement. If any of the grantee's telecommunications system interferes with the construction or repair of any street or public improvement, including construction, repair or removal of a sewer or water main, the grantee's telecommunications system shall be removed or replaced in the manner the borough shall direct; provided, however, that the borough will cooperate with the grantee to identify alternate locations within the public ways. Any and all such removal or replacement shall be at the expense of the grantee. Should the grantee fail to remove, adjust or relocate its facilities by the date established by the Borough Engineer's written notice to the grantee, the borough may cause and/or effect such removal, adjustment or relocation, and the expense thereof shall be paid by the grantee, including all costs and expenses incurred by the borough due to the grantee's delay.

Common users. The grantee acknowledges that the public ways have a finite capacity for containing conduits. Therefore, the grantee agrees that whenever the Borough Engineer determines it is impracticable to permit construction of an underground conduit system by any person which may at the time have authority from the borough to construct or maintain conduits or ducts in the public ways, the Borough Engineer may require the grantee to afford to such other person the right to use the grantee's surplus ducts or conduits in common with the grantee, pursuant to the terms and conditions of an agreement for use of surplus conduits and ducts being entered into by the grantee and the licensee.

Advance notice. The grantee shall give a licensee and the borough 120 days' advance notice of the grantee's need to occupy a licensed conduit and shall propose that the licensee take the first feasible action listed:

Pay conduit rent to the grantee designed to recover the cost of retrofitting the conduit with multiplexing, optical fibers, or other space-saving technology sufficient to meet the licensee's space needs;

Pay conduit rent to the grantee based on the cost of new conduit constructed to meet the licensee's space needs;

Vacate ducts that are no longer needed; or

(4)

Construct and maintain sufficient new conduits to meet the licensee's space needs.

Two licensees. When two or more licensees occupy a section of conduit facility, the last licensee to occupy the conduit facility shall be the first to vacate or construct a new conduit. When conduit rent is revised because of retrofitting of space-saving technology and/or construction of new conduit, all licensees shall bear the revised cost.

Attachment requirements. All attachments shall meet local, state, and federal clearance and other safety requirements, be properly grounded and anchored, and meet the provisions of contracts executed between the grantee and the licensee. The grantee may, at its option, correct any attachment deficiencies and charge the licensee for its costs. Each licensee shall pay the grantee for any fines, fees, damages, or other reasonable costs the licensee's attachments cause the grantee to incur.

Removal of equipment. Upon its failure to comply with this chapter, the franchising authority shall have the right to require the grantee to remove, at its own expense, all portions of the telecommunications system from all public ways. The grantee shall, within six months after having been given written notice, remove from the public ways all such property of such system other than any which the franchising authority may permit to be abandoned in place. In the event of such removal, the grantee shall promptly restore the public way or other area from which such property has been removed to a condition as good as that prior to such work.

Any property of the grantee remaining in place six months after the grantee is given notice pursuant to this Subsection T may at the option of the franchising authority be considered permanently abandoned. The franchising authority may extend such time not to exceed an additional 90 days.

Any property of the grantee which the franchising authority permits to be abandoned in place shall be abandoned in such manner as the franchising authority shall prescribe. Subject to the provisions of any utility joint use attachment agreement, upon permanent abandonment of the property of the grantee in place the property shall become that of the franchising authority, and the grantee shall submit to the franchising authority an instrument in writing, to be approved by the franchising authority, transferring to the franchising authority the ownership of such property.

§ 268-4 Franchise fee.

Unless waived by the franchising authority or otherwise agreed by the franchising authority and the grantee, the grantee shall pay to the franchising authority a franchise fee in an amount determined by the borough. The franchise fee shall be determined so as to fully reimburse the borough for all costs incidental to and incurred by the borough as a result of the grantee's construction, leasing, maintenance and operation of its telecommunications system and the disruption to the public and disturbance of the public ways or other public property relating to such construction, leasing, maintenance or operation. Such costs shall include, but not be limited to, the following:

The costs incurred by the borough for managing the public ways, including but not limited to costs associated with implementing and administering this chapter to the grantee, review and investigation of documentation and other information concerning the grantee, inspecting job sites, and creating and updating managing systems; engineering services; determining the adequacy of public way restoration; budget analysis; recordkeeping; legal assistance; and systems analysis.

Any costs incurred in returning the public way to its original condition, if done or caused to be done by the borough.

Any costs to the borough for police, fire or EMS services.

(4)

Accelerated deterioration of the public way caused by the grantee's construction, installation, excavation or other work related to any part of a telecommunications system or disturbance of the public way, resulting in the need to reconstruct the public way earlier than would be required if such construction, installation, excavation or other work did not occur.

(5)

The decreased value of the public way should the same not be returnable to its original condition.

The franchise fee shall be assessed on an annual basis and shall be payable to the franchising authority no later than 30 days after the grantee's receipt of a statement from the borough setting forth the franchise fee for which payment is due. Upon request by the franchising authority, the grantee shall provide such additional information as may be reasonably required.

In the event that any franchise fee or other payment is not made or the requisite documentation is not provided on or before the applicable dates heretofore specified, interest shall be compounded daily and set at the one-year United States Treasury Bill rate existent on the date payment was due, plus three percentage points. Any amount recomputed to reflect correct payment due shall bear interest as described from the date such payment was originally due.

§ 268-5 Testing for compliance.

From time to time, upon request of the franchising authority, a licensee shall furnish to the franchising authority, at no cost or expense to the franchising authority, a complete inventory of the features and services offered and/or being carried over its telecommunications system and a copy of all technical tests performed on the telecommunications system by it or on its behalf.

The franchising authority may perform technical tests of the telecommunications system during reasonable times and in a manner which does not unreasonably interfere with the normal business operations of the grantee or the telecommunications system in order to determine whether or not the grantee is in compliance with the terms hereof and all applicable laws, ordinances, rules and regulations. Except in emergency circumstances, such tests may be undertaken only after giving the grantee reasonable notice thereof, not to be less than five days, and providing a representative of the grantee an opportunity to be present during such tests. In the event that such testing demonstrates that the grantee has failed to comply with this chapter, the reasonable costs of such tests shall be borne by the grantee and paid to the franchising authority within 30 days. In the event that such testing demonstrates that the grantee has complied therewith, the cost of such testing shall be borne by the franchising authority.

§ 268-6 Insurance, indemnification and bonds or other surety.

The grantee shall save the borough, its agents and employees harmless from and against all claims, damages, losses and expenses, including reasonable attorney fees, sustained by the borough on account of any suit, judgment, execution, claim or demand whatsoever arising out of the construction, leasing, operation or maintenance of the telecommunications system authorized herein, whether or not any act or omission complained of is authorized, allowed and/or prohibited by the franchise and the rights granted thereunder.

Insurance.

The grantee shall obtain and maintain in full force and effect throughout the term of this franchise insurance with an insurance company licensed to do business and doing business in the Commonwealth of Pennsylvania and acceptable to the franchising authority. All companies will be required to be rated A-VII or better by A.M. Best or A or better by Standard and Poors. The grantee shall provide the franchising authority with proof of such insurance so required at the effective date. The franchising authority reserves the right to review these insurance requirements during the franchise and, upon reasonable advance notice to the grantee, to reasonably adjust insurance coverage and its limits when deemed necessary and prudent by the franchising authority, based upon changes in statutory law, court decisions, and/or the claims history of the industry and/or the grantee.

Subject to the grantee's right to maintain reasonable deductibles in such amounts as are approved by the franchising authority, the grantee shall obtain and maintain in full force and effect for the duration of this franchise, at the grantee's sole expense, insurance coverage in the following types and minimum amounts:

Type		Amount
Workers' compensation and statutory employers' liability		$100,000/$500,000/ $100,000
Commercial general (public) liability to include coverage for the following where the exposure exists:
	Premises operations	Combined single
	Independent contractors	limit for bodily
	Products/completed operations	injury and property
	Personal injury	damage $5,000,000
	Contractual liability	per occurrence
	Explosion, collapse and underground property damage	or its equivalent
Comprehensive automobile insurance coverage for loading and unloading hazards, for:
	Owned/leased automobiles	Combined single
	Non-owned automobiles	limit for bodily
	Hired automobiles	injury and property
		damage $1,000,000
		per occurrence
		or its equivalent

The franchising authority shall receive without expense copies of certificates of insurance evidencing coverage stated above. The franchising authority may make reasonable requests for deletion, revision or modification of particular policy terms, conditions, limitations or exclusions, except where policy provisions are established by law or regulation binding upon either the franchising authority or the grantee or upon the underwriter for any of such policies. Upon request for deletion, revision or modification by the franchising authority, the grantee shall exercise its best reasonable efforts to accomplish the changes and shall pay the cost thereof.

(4)

The grantee agrees that with respect to the above-required insurance, all insurance certificates will contain the following required provisions:

(a)

Name the franchising authority and its officers, employees, board members and elected representatives as additional insured parties (as the interests of each insured may appear) as to all applicable coverage (except workers' compensation).

(b)

Provide for 30 days' written notice to the franchising authority for cancellation, nonrenewal, or material change.

(c)

Provide that all provisions of this franchise concerning liability, duty, and standard of care, including the indemnity provisions, shall be underwritten by contractual coverage sufficient to include such obligations within applicable policies, subject to policy terms and conditions.

(5)

Companies issuing the insurance policies shall have no recourse against the franchising authority for payment of any premiums or assessments which all are set at the sole risk of the grantee. Insurance policies obtained by the grantee shall provide that the issuing company waives all right of recovery by way of subrogation against the franchising authority in connection with any damage covered by these policies.

The grantee shall obtain and maintain, at its sole cost and expense, and file with the franchising authority a corporate surety bond with a surety company authorized to do business in the Commonwealth of Pennsylvania and found acceptable by the franchising authority, in the amount extant on the day prior to the effective date or in the amount of $750,000, to secure the grantee's performance of its obligations and faithful adherence to all requirements of this franchise.

The rights reserved to the franchising authority with respect to the bond are in addition to all other rights of the franchising authority, whether reserved by this franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such bond shall affect the franchising authority's rights to demand full and faithful performance under this franchise or limit the grantee's liability for damages.