(A) By acceptance of the franchise granted by the city, grantee understands and agrees that failure to timely comply with any performance requirements as stipulated in this chapter and the franchise agreement deemed material by the city will result in damage to the city, and that it is and will be impractical to determine the actual amount of such damage in the event of delay or nonperformance; the franchise agreement shall include provisions for liquidated damages to be paid by grantee, in amounts set forth in the franchise agreement and chargeable to any security, including without limitation a construction bond, performance bond or letter of credit, for any breach of the franchise, including but not limited to any of the grounds for material breach referred to in § 4.04.324 of this chapter.
(B) If the City Manager, following prior reasonable notice to grantee to cure any problem that might result in liquidated damages, concludes that grantee is in fact liable for liquidated damages, he or she shall cause to be issued to grantee by certified mail a Notice of Intent to Assess Liquidated Damages. The notice shall set forth the basis of the assessment, and shall inform grantee that liquidated damages will be assessed from the date of the notice unless the assessment notice is appealed for hearing before the City Council, and the City Council rules that (l) there was no violation, (2) the violation has been corrected, or (3) an extension of time or other relief should be granted in lieu of liquidated damages.
(C) If grantee desires a hearing before the City Council, then grantee shall send a written Notice of Appeal by certified mail to the City Manager within ten days of the date on which the city sent the Notice of Intention to Assess Liquidated Damages. The hearing on grantee's appeal shall be within 30 days of the date on which the city mailed the Notice of Intention to Assess Liquidated Damages. After the hearing, if the City Council sustains in whole or in part the City Manager's Assessment of Liquidated Damages, the City Manager may at any time thereafter draw upon any of the security funds provided for by this chapter and/or the franchise agreement. Unless the City Council indicates to the contrary, said liquidated damages shall be assessed beginning with the date on which the city sent the Notice of the Intention to Assess Liquidated Damages and continuing thereafter until such time as the violation ceases, as determined by the City Manager. Grantee may appeal any determination of the City Council to an appropriate forum.
(Ord. 4315, passed 11-12-96)