§ 16-42. Performance bond.

(a)

Each franchise holder shall provide the county with an irrevocable performance bond to guarantee the performance of the franchise holder's obligations under this article. The franchise holder shall furnish the performance bond to the director within ten (10) business days after the effective date of the franchise. Failure to submit the required performance bond in a timely manner, and failure to maintain the performance bond in effect at all times, shall be grounds for revocation of a franchise.

(b)

The performance bond shall be in an amount that is equal to the estimated disposal fees and franchise fees, if any, that the franchise holder will pay to the county during the next calendar quarter. The form and content of the performance bond shall be subject to the approval of the county. The performance bond shall be issued by a surety company that is acceptable to the county. At a minimum, the surety company shall be rated "A+" or better as to management and "FSC XV" or better as to strength by Best's Insurance Guide or Surety, and shall be listed on the U.S. Treasury Department's list of acceptable sureties for federal bonds. The surety shall have been in business and have a record of successful and continuous operation for at least five (5) years. The performance bond shall: (1) contain any applicable provisions required by section 255.05, Florida Statutes; (2) guarantee the payment of any disposal fees and franchise fees to the county; and (3) not be canceled or altered without at least thirty (30) calendar days' prior notice to the county.

(c)

The amount of the performance bond shall be increased or decreased, as appropriate, each year to equal the amount of the franchise fees and disposal fees that were due from the franchise holder to the county during the prior calendar quarter. A new performance bond shall be delivered to the director within thirty (30) calendar days after each anniversary of the franchise's effective date, throughout the term of the franchise.

(d)

A letter of credit or other proof of financial responsibility may be used in lieu of a performance bond, subject to the director's prior approval.

(Ord. No. 07-35, § 1 (§ 16-34), 12-12-2007)