Agda Pkt 2024.08.26 Regular Meeting

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REV: 02-23-24 SK within the corporate limits of the City, Company shall notify the City in writing, as soon as practicable, and comply with the City’s local ordinances, including any fee, franchise and/or permit requirements. Company acknowledges that any expansion or change in the character and nature of the services in general may increase the City’s regulatory authority over such service and/or product, and this may, at the City’s election, require Company to enter into a new Agreement consistent with the requirements of an existing or hereinafter-enacted the City ordinance regulating such services, if all or any part of such services fall under the regulation, jurisdiction and authority of the City. 3.6 This Agreement shall be for the non-exclusive use of the Public Rights-Of-Way. By executing this Agreement, the City does not agree to restrict the use of the Public Rights-Of-Way in all or any part of the the City by any person in the same business, a related business, or a competing business as Company. 3.7 Company is not authorized to use any City property located outside of the Public Rights-Of-Way, nor any City-owned infrastructure located within the Public Rights-Of-Way, without the prior express written agreement of the City. ARTICLE 4 REQUIRED CASH DEPOSIT OR BOND 4.1 Security. Company will furnish and deliver to the City, the following security, which must be issued by a surety company duly and regularly authorized to do general surety business in the State of California, or such other surety as may be acceptable to the City Engineer: (a) Performance Security. Company shall furnish and deliver a performance security (the “Durable Performance Security”) in the amount of two hundred thousand dollars ($200,000), concurrently with the execution of this Agreement, which security must be acceptable to the City Engineer and shall be in substantially the form attached hereto as Exhibit A. The Durable Performance Security shall be conditioned upon the faithful performance of this Agreement and any work performed thereunder and shall be released by the City one-year following the termination of this Agreement. This one (1) year period is to guarantee that any work is of good quality and free from any defective or faulty materials or workmanship. The City may draw on the Durable Performance Security in the event of a default by Company or in the event that Company fails to fulfill any of its obligations under this Agreement. The City may also draw on the Durable Performance Security to cover any reimbursements owed to the City by Company. If the City draws on the Durable Performance Security, it will notify Company of the amount drawn, and Company will promptly restore the Durable Performance Security to the full amount of Two Hundred Thousand Dollars ($200,000). In the event that a bond issued pursuant to this Section of this Agreement is canceled by the surety, after proper notice and pursuant to the terms of said bond, Company shall, prior to the expiration of said bond, procure a replacement bond that complies with the terms of this Section of this Agreement (b) Payment Security. Company shall furnish and deliver a labor and materials security (the “Durable Payment Security”) in the amount of two hundred thousand dollars ($200,000), concurrently with the execution of this Agreement, which security must be acceptable to the City Engineer and shall be in substantially the form attached hereto as Exhibit B. The Durable Payment Security shall secure payment to the contractor(s) and subcontractor(s) performing any work subject to this Agreement and to all persons furnishing labor, materials or equipment to them (each a potential “Claimant”). If the City draws on the Durable Payment Security to pay any claimant, it will notify Company of the amount drawn, and Company will promptly restore the ATTY/AGR.2024.018/Astound Broadband, LLC (Fiber Agreement) (Page 5 of 20) 6.E. - Page 8 of 23 177