On or before the effective date of the ordinance, the franchisee shall file and thereafter at all times during the life of the franchise keep on file with the City Clerk a corporate surety bond approved by the City Attorney running to the city in the penal sum of one hundred thousand dollars ($100,000), with a surety licensed to do business in California and approved by the City Engineer. The bond shall provide that franchisee shall well and truly observe, fulfill and perform each condition of the franchise and that in case of any breach of condition of the bond the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If the bond is not filed prior to the effective date of the ordinance, the award of the franchise may be set aside and the ordinance may be repealed at any time prior to the filing of the bond and any money paid in consideration for the award of franchise shall be deemed forfeited. In the event that the bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, in the sole opinion of the City Council, the franchisee shall renew said bond within twenty (20) days after written notice to do so is provided by the City Engineer. At such time, the bond shall be increased by a rate equal to adjustments to the Consumer Price Index for the Orange-Anaheim-Riverside Area, or successor index thereto, since the effective date of the franchise or the most recent increase to the bond.
(Ord. 1152, passed 5-17-11)