(A) Application requirement. All Persons applying for a License Agreement shall demonstrate financial responsibility in the form of a bond:
(1) With a surety or trust company or companies acceptable to the City's Director of Financial Services;
(2) Naming the City as a named additional insured;
(3) With an expiration date no earlier than six months after the expiration of the License Agreement; and
(4) The bond shall be in the full principal amount as set forth below per qualified provider for the purpose of protecting the City from and against any and all damages or costs suffered or incurred, including but not limited to: compensation and payment of past due fees; attorney's fees and costs in any action or proceeding; cost of removal or other damages resulting from Abandonment, failure to repair, or failure to pay appropriate Fees, liens, and taxes or to deliver proof of renewal of the bond for the next License Agreement term. The bond amount requirements are follows:
1 to 10 Pay Telephones $ 5,000
11 to 20 Pay Telephones 7,500
21 to 30 Pay Telephones 10,000
above 30 Pay Telephones 20,000
(B) Renewal. Proof of continuation of such bond shall be required before any License Agreement will be renewed and must be kept in full force and effect during the entire term of any License Agreement. Failure to keep the bond in full force and effect shall be cause for the License Agreement to be canceled.
(C) No exculpation. No provision of this section nor any bond accepted by the City pursuant hereto, nor any damages recovered by the city thereunder, shall be construed as excusing the faithful performance by or limiting the liability of any Qualified Provider under this chapter.
(Ord. O-96-48, passed 11-6-96; Am. Ord. 0-99-37, passed 11-3-99)