Applications for a franchise shall be in writing and filed with the city clerk, and shall state the nature of the franchise applied for and the term desired, and shall be accompanied by a cash deposit of five thousand dollars, which sum shall be retained by the city for its expenses in evaluating the application (including the fees of any professional consultants the city deems necessary), said expenses to be paid in full by the successful bidder. Every application for a franchise under this article shall, in addition to being accompanied by the sum of five thousand dollars, be accompanied by the sum of ten thousand dollars, or by a certified check for that amount, payable to the city clerk, as a guaranty of good faith, which sum of ten thousand dollars, or certified check, shall be returned only on execution of a bond as hereinafter provided. Every application for a franchise under this article shall state either the percentage to be annually paid to the city of the gross receipts generated by the franchise, or the annual compensation to be paid to the city.
If, after the filing of such application accompanied by the original cash deposit, the council deems it desirable to grant the same, it shall set such application for hearing and advertise the fact and the time of such hearing, together with a brief description of the franchise applied for, and that it proposes to grant the same, in a daily newspaper published in said city, for not less than ten days before the hearing. At the conclusion of said hearing, the council may grant the franchise by ordinance.
In the event said franchise is awarded, and within such reasonable time thereafter as the council shall allow, the franchisee shall cause to be executed a bond to the city in a sum to be fixed by the council, but not less than ten thousand dollars, and with sufficient sureties, approved by the mayor, after approval thereof as to form by the city attorney, conditioned that such franchisee will faithfully execute the conditions of such franchise upon his or her part to be performed. After such bond is received, all deposits made shall be returned to the person making them; provided that the amounts expended by the city for its expenses in connection therewith shall be deducted from the deposits made by the franchisee and retained by the city to reimburse itself for the expenses so incurred. If the franchise is not awarded, all deposits made shall be returned to the person making them, provided that the amounts expended by the city for its expenses in connection therewith shall be deducted from the deposits made by the franchisee and retained by the city to reimburse itself for the expenses so incurred.
Every franchise shall have inserted therein a proviso that it shall be forfeited in the event that the specified percentage of the gross receipts or the annual compensation required by the franchise is not annually paid to the city at a date set by the council in the ordinance granting the franchise.
Editor's note: This section was amended by the voters of the city on March 26, 1996; this section was further amended by the voters of the city on March 5, 2002.