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Section 13.03. If an inspection results in a finding by the City of a violation of this Agreement or a deficiency in an Attachment of the Licensee, the Licensee will correct the deficiency within 30 days of receipt of notice from the City, unless a shorter period for correction is stated in the notice or is necessary in the event of any of the following: disruption of electrical services, issues endangering public health and safety, interference with the performance of San Marcos Electric Utility's service obligations or an immediate threat to the physical integrity of San Marcos Electric_ Utility Facilities. Section 13.04. The making of periodic inspections by the City, or the failure to do so, will not operate to impose upon the City any liability of any kind whatsoever, or relieve the Licensee of its sole and complete responsibility for the Licensee's Facilities. ARTICLE 14. UNAUTHORIZED OCCUPANCY OR ACCESS Section 14.01. If any Attachment of the Licensee, including overlashing by a third -party, is found on any Pole and does not have a current valid Permit, the City will be authorized to exercise any or all of the following: 1. Assessment of an unauthorized attachment fee as specified in Appendix A. 2. Removal of the unauthorized Attachment and charging all of the removal costs to the Licensee. 3. Termination of this Agreement. Section 14.02. No act or failure to act by the City with regard to unauthorized attachments will be deemed as a ratification of the unauthorized use, and if any Permit for the facilities is subsequently issued, the Permit will not operate retroactively or constitute a waiver by City of any of its rights under this Agreement or otherwise. The Licensee will be subject to all liabilities, obligations and responsibilities with regard to unauthorized attachments from the time of their installation. ARTICLE 15. BOND REQUIREMENTS Section 15.01. The Licensee agrees to submit to the City, and keep in full force and effect, a surety bond in the greater of the following amounts: 1) $25,000; or 2) the total amount of all Attachment Fees due under this Agreement as of the date of the bond times 1.2. The initial bond must be submitted to the City within 30 days of the Effective Date. The bond must be renewed and submitted annually to City on or before 30 days before each anniversary date of the Effective Date. The term of each bond must be for a period of one year. The form of the bond and the identity of the surety are subject to approval by the City. The bond must guarantee payment of all sums that may become due to the City under this Agreement, including, but not limited to, the cost of removal of the Licensee's Facilities under all circumstances in which the City may charge that cost to the Licensee. The Licensee agrees to maintain the surety bond in full force and effect during the entire term of this Agreement and until the City is reimbursed for all amounts due from the Licensee to the City under this Agreement. The amount of the bond will not limit the obligations of the Licensee under this Agreement. 14 CADocuments and Settings \tamara.slade \Local Settings \Temporary Internet Files \Content.Outlook \F3JWG5DH \San Marcos PAA FINAL CLEAN 10 17 201 I.docx