298 W. Washington
Stephenville, Texas 76401
254-918-1220 Ph.
254-918-1207 Fax
Page 4 of 6
4. Applicant shall obtain and maintain, at is sole cost and expense, and file with the Planning and
Building Services Department, a corporate surety bond in the amount $1,000,000 both to
guarantee timely construction and faithful adherence to all requirements of this ordinance. The
bond amount may be reduced to $50,000 after a period of two (2) years provided applicant has
complied with all terms and conditions herein. The bond shall contain the following
endorsement: "It is hereby understood and agreed that this bond may not be cancelled by the
surety nor any intention not to renew be exercised by the surety until thirty (30) days after receipt
by the city of such written notice of such intent." The bond shall provide, but not be limited to,
the following condition: There shall be recoverable by the city, jointly and severally from the
principal and the surety, any and all damages, loss or costs suffered by the city resulting from
the failure of the applicant to satisfactorily construct facilities and adherence to all the
requirements of this ordinance. The rights reserved to the city with respect to the bond are in
addition to all other rights of the city, whether reserved by this ordinance, or authorized by law;
and no action, proceeding or exercise of right with respect to such bond shall affect any other
rights of the city.
5. The City Administrator or his/her designee may waive or reduce the above requirements, taking
into consideration both that the applicant has furnished the city with reasonable documentation
to evidence adequate financial resources substantially greater than the insurance and bonding
requirements, and has demonstrated in prior rights-of-way construction activity, prompt
resolution of any claims and substantial compliance with all required applicable codes and
ordinances.
6. The city reserves the right to review the insurance requirements during the effective period of
any franchise or municipal consent agreement, and to reasonably adjust insurance coverage and
limits when the City Administrator determines that changes in statutory law, court decisions, or
the claims history of the industry or the provider require adjustment of the coverage. For
purposes of this section, the city will accept certificates of self-insurance issued by the State of
Texas or letters written by the applicant in those instances where the State does not issue such
letters, which provide the same coverage required herein. However, for the city to accept such
letters, the applicant must demonstrate by written information that it has adequate financial
resources to be a self-insured entity as reasonable determined by the city, based on financial
information requested by and furnished to the city.
7. The financial and insurance requirements may be met by applicants with a current franchise or
license and applicants governed by Chapter 283 of the Texas Local Government Code if the
current franchise, license or statutory indemnity adequately provides for insurance or bonds or
provides an indemnity in favor of the city.