(A) Within ten days after execution of the franchise agreement pursuant to this chapter, the grantee shall deposit with the City Clerk and shall maintain on deposit through the term of this franchise the sum of $10,000 as security for the faithful performance by it of all the provisions of the franchise and compliance with all orders, permits and directions of any agency of the grantor having jurisdiction over its acts or defaults under the contract and the payment by the grantee of any claims, liens and taxes due the grantor which arise by reason of the construction, operation or maintenance of the system.
(B) Within ten days after notice that any amount has been withdrawn from the security fund deposited pursuant to division (A) above, the grantee shall pay to or deposit with the City Clerk a sum of money sufficient to restore such security fund to the original amount of $10,000.
(C) (1) If the grantee fails to pay to the grantor any compensation within the time fixed or fails after ten days’ notice to pay to the grantor any taxes due and unpaid or fails to repay to the grantor within such ten days any damages, costs or expenses which the grantor shall be compelled to pay by reason of any act or default of the grantee in connection with this franchise or fails after three days’ notice of such failure by the grantor to comply with any provision of this contract which the grantor reasonably determines can be remedied by an expenditure of the security, the City Clerk may immediately withdraw the amount thereof, with interest and any penalties, from the security fund.
(2) Upon such withdrawal, the City Clerk shall notify the company of the amount and date thereof.
(D) The security fund deposited pursuant to this section shall become the property of the grantor if this contract is canceled by reason of the default of the grantee. The grantee, however, shall be entitled to the return of such security fund or portion thereof as remains on deposit at the expiration of the term of this franchise; provided that, there is then no outstanding default on the part of the grantee. Interest earned by the investment of the security fund will accrue to the grantee.
(E) The rights reserved to the grantor with respect to the security fund are in addition to all other rights of the grantor, whether reserved by this franchise 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 grantor may have.
(2013 Code, § 8-8.9) (Ord. 14586, passed 4-13-1998)