(a) Parties shall agree to specific liquidated damages to be paid by grantee for certain delays or nonperformance. A grantee's failure to comply with any timing or performance requirements set forth in a franchise agreement will result in damage to the city, the amount of which will be impracticable to ascertain. Therefore, the city and the grantee will negotiate the amount of liquidated damages to be set forth in a franchise agreement. Every franchise agreement shall provide that the city's recovery of such damages shall be without prejudice to any other remedy the city may have.
(b) Procedures established to assure grantee of due process and opportunity to cure problem before damages assessed. If the City Manager, following prior reasonable notice to a grantee to cure any problem that might result in liquidated damages, concludes that a grantee is liable for liquidated damages pursuant to the franchise agreement, he/she shall issue to grantee by certified mail a notice of intention to assess liquidated damages. The notice shall set forth the basis of the assessment, and shall inform the grantee that liquidated damages will be assessed from the date of the notice unless the assessment notice is appealed for hearing before the City Council and the Council rules (a) that the violation has been corrected, or (b) that an extension of the time or other relief should be granted. If the grantee desires a hearing before the Council, it shall send a written notice of appeal by certified mail to the City Manager within ten days of the date on which the City Manager sent the notice of intention to assess liquidated damages. After the hearing, if the Council sustains in whole or in part the City Manager's assessment of liquidated damages, the City Manager may at any time thereafter draw upon the letter of credit required by Section 95-15. Unless the Council indicates to the contrary, said liquidated damages shall be assessed beginning with the date on which the City Manager sent the notice of intention to assess liquidated damages and continuing thereafter until such time as the violation ceases, as determined by the City Manager.
(Ord. No. 2801, § 3, 2-25-99)