(A) Within 30 days after the execution of the franchise agreement, the operator shall deposit with the City of Lawrence monies, a bond, a letter of credit or a combination of these instruments in amounts specified in the franchise agreement (the security fund) as security for the faithful performance of all the provisions of the franchise agreement, for timely completion of any construction required by the franchise agreement, for payment of administrative fines described in § 4-2-7-19, and for payments by the operator of any claims, liens and taxes due the City which arise by reason of the construction, operation or maintenance of the system. Any monies deposited pursuant to this section shall be placed by the City Clerk of the City of Lawrence in an interest-bearing account at a bank or local savings institution agreeable to both parties. Interest on this account will accrue to the benefit of the operator upon completion and activation of the system as required by the franchise agreement. Upon completion of construction required by the franchise agreement, the security fund shall be reduced to a reasonable amount by the Mayor, considering the nature and extent of any anticipated liabilities during the remaining term of the franchise, which amount shall be maintained during the period of the franchise agreement.
(B) If the Mayor determines that City of Lawrence taxes are due from the operator and are unpaid, that the City has been compelled to pay damages, cost or expenses by reason of any act or default of the operator in connection with the franchise agreement or that any other claims against the operator have arisen by reason of the construction, operation or maintenance of the system, so that the City may withdraw monies from the security fund, the City Clerk shall make a written report to the Common Council outlining both the circumstances which entitle the City to withdraw monies from the security fund and the amount proposed to be withdrawn. The City Clerk shall provide a copy of the report to the operator.
(C) The Common Council shall hold a hearing on the proposed withdrawal during which the operator may respond to the City Clerk’s report. Following the hearing, the Common Council shall vote on the City Clerk’s recommendation. If the Council confirms recommendation, the City Clerk may immediately withdraw the amount and, upon the withdrawal, the City Clerk shall notify the operator of the amount and the withdrawal date.
(D) Within ten days after notice to the operator that any amount has been withdrawn from the security fund, the operator shall pay to, or deposit with, the City of Lawrence a sum of money or securities sufficient to restore the security fund to the full amount required by division (A) above. If the operator fails to restore the security fund within the specified ten-day period, the City of Lawrence may withdraw the entire security fund deposit remaining, which shall be forfeited.
(E) With respect to violations for which administrative fines are specified in § 4-2-7-19, the Mayor or other authorized City official shall provide written notice of the alleged violation to the operator and allow the operator 30 days to comply. If the operator fails to comply or to notify the City of Lawrence that corrective action is being actively and expeditiously pursued, the authorized City official may initiate a proceeding before the Board of Public Works and Safety, which is hereby designated pursuant to I.C. 36-1-6-9 as the administrative board before which the violations may be enforced. Proceeding shall be initiated by filing a complaint with the Board of Public Works and Safety, which shall issue a summons to the operator setting a time and date at which the Board will hold a hearing on the violations alleged in the complaint. If after a hearing conducted in compliance with I.C. 36-1-6-9 the Board finds that the operator has violated the ordinance as alleged, the Board shall enter an order fixing the amount of the administrative fines. If the operator fails to appeal the order of the Board within 60 days after the date of the order as provided in I.C. 36-1-6-9(f), the City of Lawrence shall withdraw the amount of administrative fines fixed in the order from the security fund.
(F) The security fund deposited pursuant to this section shall become the property of the City of Lawrence in the event that the franchise agreement is canceled by reason of the default of the operator. Notwithstanding the foregoing, the operator shall have the right to contest the Common Council’s or Board of Public Works and Safety’s decision to authorize a withdrawal from the security fund by filing an action in a court of competent jurisdiction. If the operator prevails in the action, the City of Lawrence shall repay to the operator the amount so withdrawn together with interest at the statutory rate which applies to judgments from the date of the withdrawal.
(G) The operator shall be entitled to the return of the security fund, or portion thereof, and interest as remains on deposit with the City of Lawrence at the expiration of the term of its franchise, provided that there is then no outstanding default on the part of the operator.
(H) The rights reserved by the City of Lawrence with respect to the security fund are in addition to all other rights of the City, whether reserved by this chapter, the franchise agreement or authorized by law; and no action, proceeding or exercise of a right with respect to the security fund shall affect any other right the City may have.