(A) The city shall require in a franchise agreement that the franchisee post with the city a security fund. The fund may be in the form of a cash deposit, letter of credit, or bond as agreed to in the franchise agreement. The security fund will be used to ensure the franchisee's faithful performance of and compliance with all provisions of this subchapter, the franchise agreement, and other applicable law, and the payment by the franchisee of any claims, liens, fees or taxes due the city which arise by reason of the construction, operation or maintenance of the cable system or OVS. The amount of the security fund shall be the amount that the city determines, under circumstances existing at the time, that is necessary to protect the public, to provide adequate incentive to the franchisee to comply with this subchapter and the franchise agreement, and to enable the city to enforce effectively compliance therewith, and, based on the city's prior experience in needing to draw on the security fund submitted by a franchisee, the city finds that with respect to a franchise agreement granted after the effective date of this subchapter, in no event shall such fund be less than $200,000. The franchise agreement shall provide for the procedures to be followed with respect to the security fund. Neither the posting of the cash deposit or filing of an indemnity bond or any form of surety bond with the city, nor the receipt of any damages recovered by the city thereunder, shall be construed to excuse faithful performance by the franchisee or limit the liability of the franchisee under the terms of its franchise for damages, either to the full amount of the bond or otherwise.
(B) The rights reserved to the city with respect to the security fund are in addition to all other rights of the city, whether reserved by this subchapter or authorized by other law or the franchise agreement, and no action, proceeding, or exercise of a right with respect to such security fund will affect any other right the city may have.
(Ord. 1406, passed 5-15-02)