A.
Within 15 days after the award of a franchise, a grantee
shall deposit with the County an irrevocable letter of credit from
a financial institution, a security deposit, or a surety bond, in
form and amounts as set forth in the franchise agreement. The County
Attorney shall approve the form and content of such letter of credit,
security deposit, or surety bond. These instruments shall be used
to insure the faithful performance of a grantee of all provisions
of this chapter and the franchise, and compliance with all orders,
permits and directions of any agency, commission, board, department,
division, or office of the County having jurisdiction over its acts
or defaults under this chapter and the franchise, and the payment
by a grantee of any claims, liens, and taxes due the County which
arise by reason of the construction, operation or maintenance of a
cable system.
B.
The letter of credit, security deposit, or surety
bond shall be maintained at the amount set forth in the franchise
agreement for the entire term of a franchise, even if amounts have
to be withdrawn pursuant to this chapter or the franchise agreement.
C.
If a grantee fails to pay to the County any compensation
within the time fixed under this chapter or in the franchise agreement;
or fails to repay the County within 30 days any damages, costs or
expenses which the County is compelled to pay by reason of any act
or default of the grantee in connection with this chapter or a franchise,
or fails, after 30 days' notice of such failure by the County to comply
with any material provision of this chapter or the franchise which
the County reasonably determines can be remedied by demand on the
letter of credit, security deposit, or surety bond, the County may
immediately request payment of the amount thereof, with interest and
any penalties, from the letter of credit, surety bond or security
deposit. Upon such request for payment, the County shall notify the
grantee of the amount and date thereof.
D.
The rights reserved to the County with respect to
the letter of credit, security deposit or surety bond are in addition
to all other rights of the County, whether reserved by this chapter
or authorized by law, and no action, proceeding or exercise of a right
with respect to such letter of credit, surety bond or security deposit
shall affect any other right the County may have.
E.
A letter of credit shall contain the following endorsement:
"It is hereby understood and agreed that this letter of credit, security
deposit or surety bond may not be canceled by the surety, nor the
intention not to renew be stated by the surety, until 30 days after
receipt by the County Commissioners of Queen Anne's County, by registered
mail, of a written notice of such intention to cancel or not to renew."
Upon receipt of the thirty-day notice, this shall be construed as
a default granting the County the right to call on the surety for
either the security deposit, letter of credit or surety bond, unless
a grantee obtains a substitute letter of credit, security deposit
or surety bond.
F.
The County may at any time during the term of the
franchise, waive its requirement that the grantee maintain a letter
of credit, surety bond or security deposit. The invitation to waive
the requirement can be initiated by the County or a grantee.
A.
Within 30 days after the award of a franchise to an
initial grantee, such grantee shall file with the County a performance
bond in the amount of not less than 50% of costs to install the system
contained in the new application in favor of the County. This bond
shall be maintained throughout the construction period and until such
time as determined by the County, unless otherwise specified in a
franchise agreement.
B.
If a grantee fails to comply with any law, ordinance
or resolution governing a franchise, or fails to well and truly observe,
fulfill and perform each term and condition of the franchise, as it
relates to the conditions relative to the construction or upgrade
of a cable system, there shall be recoverable jointly and severally,
from the principal and surety of the bond, any damages or loss suffered
by the County as a result, including the full amount of any compensation,
indemnification, or cost of removal or abandonment of any property
of the grantee plus a reasonable allowance for attorneys' fees, including
the County's legal staff, and costs, up to the full amount of the
bond.
C.
The County shall, upon completion of construction
of the initial service area, waive or reduce the requirement of a
grantee to maintain the bond. However, the County may require a performance
bond to be posted by the grantee for any construction subsequent to
the completion of the initial service areas, in a reasonable amount
and upon such terms as determined jointly by the County and grantee.
D.
The bond shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be canceled
by the surety, nor the intention not to renew be stated by the surety,
until 30 days after receipt by the County Commissioners of Queen Anne's
County, by registered mail, of a written notice of such intent to
cancel and not to renew." Upon receipt of a thirty-day notice, this
shall be construed as default granting the County the right to call
in the bond.
E.
The County may, at any time during the term of a franchise,
waive the requirement that the grantee maintain a performance bond.
The invitation to waive the requirement can be initiated by the County
or grantee.
A grantee shall carry insurance in such forms
and in such companies as specified in the franchise agreement.
A.
The County shall not at any time be liable for injury
or damage occurring to any person or property from any cause whatsoever
arising out of the construction, maintenance, repair, use, operation,
condition or dismantling of a grantee's cable system or due, in whole
or in part, to the act or omission of any person other than the County
or those persons for which the County is legally liable as a matter
of law.
B.
The grantee, under any franchise operated pursuant
to this chapter, shall agree to indemnify, hold harmless, release
and defend the County, its officers, boards, commissions, agents and
employees from and against any and all lawsuits, claims, causes of
action, actions, liability, demands, damages, disability, losses,
expenses, including reasonable attorneys' fees and costs or liabilities
of any nature that may be asserted by any person resulting or in any
manner arising from the action or inaction of the grantee in constructing,
operating, maintaining, repairing or removing the cable system, in
carrying on the grantee's business or operations in the County or
in exercising or failing to exercise any right or privilege granted
by the franchise. This indemnity shall apply, without limitation,
to any action or cause of action for invasion of privacy, defamation,
antitrust, errors and omissions, theft, fire, violation or infringement
of any copyright, trademark, trade names, service mark or patent,
or any other right of any person, firm or corporation, whether or
not any act or omission complained of is authorized, allowed or prohibited
by this chapter or any franchise agreement, but shall not include
any claim or action arising, in whole or in part, out of the actions
or omissions of County officers, employees or agents or related to
any County programming or other access programming for which the grantee
is not legally responsible.
C.
The County shall promptly notify the grantee of any
claims subject to indemnification by the grantee and shall cooperate
with all reasonable requests by the grantee for information, documents,
testimony or other assistance appropriate to a resolution of such
claims. The grantee shall have full responsibility for and control
of any action or undertaking directed at the resolution of such claims.
