On the effective date of the franchise, the company shall establish a permanent security fund with the city in the amount of $50,000 in cash, an irrevocable letter of credit, corporate surety bond or other instrument which complies with the requirements of this subchapter and is approved by the City Attorney, which approval shall not be unreasonably withheld. The security fund shall be maintained at the sole expense of the company so long as any part of the system is located within the public ways of the city.
(A) The fund shall serve as security for the full and complete performance of this subchapter and the franchise agreement, including payment of any costs, expenses, damages or loss the city pays or incurs because of any act or omission attributable to the company that constitutes a violation, default or failure to comply with the codes, ordinances, rules, regulations or permits of the city, and the payment of any liquidated damage amounts, penalties, judgments, fees or taxes due the city.
(B) In the case of any default or failure of the company to pay any liquidated damages, penalties, judgments, fees or taxes due the city in connection with the construction, operation or maintenance of the cable system and the provision of cable service within the city pursuant to the franchise, the city may assess the security fund pursuant to the applicable procedures set forth in § 122.088, or in the franchise agreement.
(C) The company shall promptly pay any undisputed liquidated damages, penalties, judgments, fees or taxes due the city. If the company fails to pay any undisputed amounts due the city within 30 days after written notice from the city, the city may withdraw the amount stated in the notice from the security fund.
(D) The company shall replenish the security fund to its full amount within 30 days after written notice from the city that monies have been withdrawn from the fund.
(E) The rights reserved to the city with respect to the security fund are in addition to all other rights and remedies of the city, whether reserved by this subchapter or authorized by law, and no action or proceeding to exercise rights with respect to the security fund shall constitute an election of remedies or a waiver of any other rights the city may have.
(Prior Code, § 122.061) (Ord. 2001-377, passed 11-13-2001)