Prior to a franchise or franchise renewal becoming effective, the franchisee shall post with the Authority a cash security deposit in an amount as determined by the Authority. The deposit is to be used as a security fund to ensure the faithful performance of all provisions of law and the franchise agreement and compliance with all orders, permits and directions of the Authority and the payment by the franchisee of any fees, claims, liquidated damages, liens or taxes due the Authority which arise by reason of the construction, operation or maintenance of the system.
The Authority shall place the security deposit in an interest bearing account. The interest will accrue to the benefit of the franchisee but may not be withdrawn during the franchise term and any renewal thereof. All interest will be added to and become part of the original security fund during the term of the franchise and any renewal thereof.
Within thirty (30) days after notice to it that any amount has been withdrawn from the security fund, the franchisee shall pay to or deposit with the Authority funds sufficient to restore such security fund.
If the franchisee fails to pay the Authority any compensation within the time fixed herein or fails, after thirty (30) days notice, to pay the Authority, City or County any fees or taxes due or fails to pay or repay to the Authority within thirty (30) days, any damages, costs or expenses which the Authority shall be compelled to pay by reason of any act or default of the franchisee in connection with this franchise or fails, after thirty (30) days notice of such failure by the Authority, to comply with any provisions of the franchise agreement which the Authority reasonably determines can be remedied by an expenditure of the security, the Authority may immediately withdraw the amount due, with interest and any penalties, from the security fund. Upon such withdrawal, the Authority shall notify the franchisee of the amount and date thereof.
The security fund deposited pursuant to this section shall become the property of the Authority in the event the franchise agreement is canceled by reason of the default of the franchisee. The franchisee, however, shall be entitled to the return of such security fund, or portion thereof as remains at the expiration of the term of the franchise agreement and any renewal thereof, provided that there is then no outstanding default on the part of the franchisee. Interest earned by the investment of the security fund will accrue to the franchisee.
The rights reserved to the Authority with respect to the security fund are in addition to all other rights of the Authority whether reserved by this ordinance or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the Authority may have.
The franchise agreement shall contain a schedule of liquidated damages pursuant to this Section.