§ 25-3-304. PAYMENT AND PERFORMANCE BOND.

(a)

Required.

(1)

Before a franchise becomes effective, a franchisee shall post with the Director of Budget and Finance a cash security deposit of at least $50,000 but not more than $500,000 to be used as a payment and performance bond to ensure:

(i)

Faithful performance of all applicable laws, the franchise agreement, and all orders, permits, and directions of the county; and

(ii)

Payment of any claims, liens, or taxes due the county as a result of construction, operation or maintenance of the franchisee's cable system.

(2)

The exact amount of the payment and performance bond shall be specified in the franchise agreement.

(b)

Use of bond by county.

(1)

The county or the County Council may immediately make a withdrawal from the payment and performance bond if the franchisee:

(i)

Fails to pay to the county any fees, penalties, or taxes due and unpaid;

(ii)

Fails to repay to the county within 30 days any damages or expenses that the county is compelled to pay by reason of any act or default of the franchisee in connection with this article; or

(iii)

After 15 days notice by the county or the County Council, fails to comply with any provision of this article, if the county or the County Council reasonably determines that the failure can be remedied by an expenditure of the payment and performance bond.

(2)

The county or County Council may withdraw from the payment and performance bond the amount due to the county under paragraph (1) of this subsection plus interest and penalties.

(3)

After withdrawal from the payment and performance bond, the county or the County Council shall notify the franchisee of the amount and date of the withdrawal.

(c)

Maintaining the bond amount. Within 30 days after receiving notice under subsection (b)(3) of this section, the franchisee shall pay to or deposit with the Director of Budget and Finance a sum of money sufficient to restore the payment and performance bond to the original amount specified in the franchise agreement.

(d)

Ownership of bond upon revocation and termination.

(1)

The payment and performance bond shall become the property of the county if a franchise is revoked.

(2)

A franchisee is entitled to the return of the payment and performance bond following expiration of the franchise, less any unpaid amounts owed by the franchisee to the county.

(e)

County rights not limited by bond.

(1)

The rights reserved to the county with respect to the payment and performance bond are in addition to all other rights of the county, whether reserved by this article or authorized by other law.

(2)

No action, proceeding, or exercise of a right with respect to the payment and performance bond shall affect any other right of the county.

(1988 Code, § 8-13) (Bill No. 134-97, §§ 1, 2, 12-5-1997; Bill No. 31-03, § 2, 7-1-2004)