§ 19-28. Performance bond and insurance.

(a)

Each applicant for a franchise shall furnish to the county manager, not less than ten (10) days prior to the date on which the board will consider its application, a payment and performance bond, in a form approved by the county manager, conditioned upon the faithful performance of its franchise and all its obligations arising thereunder in the amount of ten (10) percent of its gross revenues (as defined in section 19-26 above) for franchisee's previous accounting year, not to exceed one hundred thousand dollars ($100,000.00). In the event an applicant has no prior operating experience in the county and, therefore, no "gross revenues," as defined in section 19-26 above, the bond shall be in the amount of fifty thousand dollars ($50,000.00). Said bond shall be executed by a surety company approved by the county manager and licensed to do business in Florida. Failure to maintain such bond in full force and effect shall cause automatic termination of the franchise until compliance is attained. In the event compliance is not attained with ten (10) working days, the franchise shall be terminated and franchise must reapply. Municipalities shall be exempt from the requirements to provide a payment and performance bond.

(b)

In lieu of the performance bond required by the foregoing subsection (a), the franchisee may furnish a letter of credit meeting the requirements of this subsection (b).

(1)

The letter of credit shall be issued by banks or savings associations which must:

a.

Be organized and existing under the laws of this state; or

b.

Be organized under the laws of the United States and have its principal place of business in this state; or

c.

Have a branch office which is authorized under the laws of this state or of the United States to receive deposits in this state; and

d.

Have and maintain an average financial condition ranking of thirty-five (35) or more from two (2) nationally recognized financial rating services, compiled quarterly by the Florida Department of Financial Services, Division of Treasury.

In the event the required average financial condition set forth in subparagraph (b)(1)d. is not maintained, the franchisee shall immediately notify the county and provide a substitute letter of credit issued by a bank or savings association meeting the requirements of this subsection within thirty (30) days of such notice.

(2)

Letters of credit shall be issued solely for the benefit of the county. Letter of credit language must be approved by the county attorney and include the following:

a.

The expiration date of the letter of credit shall be automatically extended without amendment, for one (1) year from the expiration date unless otherwise authorized in writing by the county, provided that letters of credit shall not be required to be extended beyond the term of the franchise. If the letter of credit is not automatically extended for such additional one-year period then at least thirty (30) days prior to the expiration date then in effect, the bank or savings association shall notify the county by registered or certified U.S. Mail or courier, postage prepaid, return receipt requested. This notification shall be sent to the Osceola County Solid Waste Office, 750 S. Bass Road, Kissimmee Florida, 34741, or to any other address specified in writing by the county solid waste director.

b.

If notice is given that the letter of credit will not be automatically extended and if the purpose for which the letter of credit was issued still exists, the county shall draw down any remaining balance on the letter of credit unless a substitute letter of credit meeting the requirements of this subsection is provided at least fourteen (14) days prior to the expiration date of the letter of credit for which the substitute letter of credit is being provided.

c.

If the franchisee does not notify the county that the average financial condition ranking of a bank or savings association is less than thirty-five (35), the county may notify the bank or savings association and the franchisee by registered mail that if a substitute letter of credit is not received within thirty (30) days of notification, the county will draw down any remaining balance on the letter of credit if the purpose for which the letter of credit was issued still exists.

d.

The letter of credit must provide for draws to be made on a bank or savings association located in the State of Florida and additionally must provide for draws by electronic presentation of a draft via facsimile transmission or electronic mail, or both.

(c)

Franchisee shall carry public liability insurance to at least the extent of one million dollars ($1,000,000.00) for personal death or injury and property damage insurance to the extent of one million dollars ($1,000,000.00) combined single limit upon each of the trucks or other vehicles used in carrying out the work called for in its franchise, such insurance expressly to cover both the county and the franchisee. A certificate showing that the franchisee has in force and effect the aforesaid insurance shall be filed with the county manager with ten (10) days of the grant of franchise and yearly thereafter at least thirty (30) days prior to the date of the expiration of the policies of insurance for each year of the franchise. The aforesaid insurance certificate shall be of such form and written by such companies as are approved by the county manager a standard insurance industry statement prohibiting cancellation, termination, or modification of the policy or reduction of coverage without prior written notice to the county of such proposed action. Said policies of insurance shall name the county as an additional insured. Failure to provide and maintain such insurance shall cause automatic termination of the franchise until compliance is attained. In the even compliance is not attained within ten (10) working days, the franchise shall be terminated and franchisee must reapply.

(d)

The franchisee shall carry worker's compensation insurance, as required by law, on all its employees and shall show proof of insurance and payment of premiums thereon to the county manager as requested. A certificate showing that the franchisee has in force and effect the aforesaid insurance shall be filed with the county manager within ten (10) days of the grant of franchise and yearly thereafter at least thirty (30) days prior to the date of the expiration of the policies of insurance for each year of the franchise. The aforesaid insurance certificate shall be of such form and written by such companies as are approved by the county manager and also shall contain a standard insurance industry statement prohibiting cancellation, termination, or modification of the policy or reduction of coverage without prior written notice to the county of such proposed action. Failure to provide and maintain such insurance shall cause automatic termination of the franchise until compliance is attained. In the event compliance is not attained within ten (10) working days, the franchise shall be terminated and franchisee must reapply.

(Ord. No. 05-29, § 1, 8-1-05; Ord. No. 06-19, § 2, 6-5-06; Ord. No. 08-26, § 7, 9-8-08; Ord. No. 09-01, § 1, 1-12-09; Ord. No. 10-43, § 5, 12-6-10; Ord. No. 12-26, § 2, 8-6-12; Ord. No. 13-17, § 3, 4-1-13)