§ 138-20. Performance and construction/completion bonds.

A. 

An MCS provider shall furnish to the Town Board a performance bond or security bond executed by a surety licensed to do business in this state in an amount totaling at least $25,000. The purpose of the performance bond is to ensure performance of any requirements required by and under this chapter on an MCS provider, or imposed on an MCS provider by virtue of its franchise, other agreement, license or permit. Further, the purpose is to guarantee that should the MCS provider not fulfill any obligations imposed by this chapter, or where applicable, a franchise, other agreement, license or permit, then the surety will make whole, to the extent of the policy, any monetary losses or damages incurred by the Town. If the Town draws on a performance bond or cash deposit as a result of an MCS provider's failure to timely discharge its obligations, then the MCS provider shall be required to replenish the performance bond or security to the minimal level required by the Town Board within 30 days.

B. 

In addition to the performance bond referenced in Subsection A of this section, an MCS provider shall furnish to the Town a construction/completion bond prior to the time it commences any construction, upgrade, rebuild, or repair/maintenance project that has a capital construction cost or outlay exceeding $100,000 in value. The amount of the bond shall equal at least 75% of the projected capital construction cost or outlay.

C. 

The construction/completion bond or security bond shall specifically guarantee that an MCS provider will timely abide by its construction, upgrade, rebuild, or repair/maintenance schedule for the multichannel system and/or any timetable for technical and service improvements or additions to the multichannel system as may be committed to, or agreed upon, from time to time, by the Town Board and MCS provider.

D. 

If the Town Board draws on a performance or completion bond or cash deposit as a result of an MCS provider's failure to timely discharge its obligations, or failure to construct and activate the multichannel system, or failure to complete a multichannel system upgrade or rebuild or repair or maintain the system as required, then the MCS provider shall be required to replenish the completion and performance bond or security bond to the minimal level required by the Town Board within 30 days.

E. 

The performance bond or security bond shall be in force at all times, unless relief is granted or a reduction schedule is detailed in an separate agreement, executed between the MCS provider and the Town Board.

F. 

In lieu of a performance bond and/or a construction/completion bond, the Town Board may accept a written guarantee of an MCS provider pledging the full faith and credit of the affected MCS provider should there be a breach in a material franchise, other agreement, license or permit term, or failure to meet any construction schedule.