A. Prior to exercising any of the rights granted under a franchise or undertaking any of the work, installation, improvements, construction, repair, relocation or maintenance authorized by a franchise, the franchisee shall furnish a performance bond reasonably acceptable to the city in an aggregate amount sufficient to assure the franchisee’s performance of all covenants, terms, conditions and obligations under the franchise. The performance bond shall be issued by a corporate surety authorized to do surety business in the state of Washington. The performance bond shall be maintained during the term of the franchise (including any extension thereof) and for a one-year period thereafter. The amount of the performance bond shall be established based upon the legal, financial, and technical qualifications of the franchisee; provided, however, that the city may from time to time review the amount of surety and determine an appropriate level based upon the franchisee’s performance of the covenants, terms, conditions and obligations under the franchise. In the event that the city elects to raise the amount of surety required, written notice shall be provided to the franchisee setting forth the reasons for doing so.

B. The performance bond shall contain the following endorsement:

It is hereby understood and agreed that this bond shall not be canceled by the surety, nor the intention not to renew be stated by the surety, until 60 days after receipt by the city, by registered mail, of a written notice of such intent to cancel or not to renew.

C. The performance bond required by this section shall be in addition to any other bonds which may be required by specific provisions of the Bothell Municipal Code, including, but not limited to, construction bonds for work or construction activities within public rights-of-way; provided, however, that a franchisee shall not be required to obtain said additional bonds if the performance bond required by this section is sufficient in its scope and amount to satisfy the requirements of the specific provision of the Bothell Municipal Code requiring said additional bond. (Ord. 1708 § 1, 1997).