Prior to any construction, rebuild or upgrade of the cable system requiring
work in the public rights-of-way, other than installation of aerial facilities
and utility poles, a grantee shall establish in the Town's favor an irrevocable
performance bond in an amount specified in the franchise agreement or otherwise
determined as reasonable by municipal officers as necessary to ensure the
grantee's faithful performance of the construction, upgrade, or other work.
The amount of such performance bond shall not exceed the lesser of 10% of
the total cost of the work being done in the public right-of-way, other than
installation of aerial facilities and utility poles, or $50,000.
In the event that a grantee subject to such a performance bond fails to complete the cable system construction, upgrade, or other work in the public rights-of-way in a safe, timely (subject to the force majeure provision of § 46-85) and competent manner in accordance with the provisions of a franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the Town as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee, or the cost of completing or repairing the system construction, upgrade, or other work in the public rights-of-way, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The Town may also recover against the bond any amount recoverable against the security fund required under Article VI of this chapter, where such amount exceeds that available under the security fund.
Any performance bond shall remain in place for one full year after completion
to the satisfaction of the Town of the work in the public rights-of-way.
The Town may subsequently require a new bond for any subsequent construction or other work in the public rights-of-way, other than installation of aerial facilities and utility poles, whose cost exceeds an amount specified in a franchise agreement. In the event a grantee fails to complete the work secured by such a new performance bond in a safe, timely and competent manner, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the Town as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee, or the cost of completing or repairing the system construction, upgrade, or other work in the public rights-of-way, plus a reasonable allowance for attorneys' fees, up to the full amount of the bond. The Town may also recover against the bond any amount recoverable against the security fund required under Article VI of this chapter, where such amount exceeds that available under the security fund. In any event, the total amount of the bond shall not exceed the lesser 10% of the cost of the work being done in the public rights-of-way or $50,000.
Any performance bond shall be issued by a surety qualified to do business
in the State of Maine and have an A-1 or better rating of insurance in Best's
Key Rating Guide, Property/Casualty Edition; shall be subject to the approval
of the Town; and shall contain the following endorsement: "This bond may not
be canceled, or allowed to lapse, until 60 days after notice to the Town,
by certified mail, return receipt requested, of a written notice from the
issuer of the bond of intent to cancel or not to renew."
The total amount of any outstanding bond shall be forfeited in favor
of the Town in the event that:
