(A) No later than the effective date of any franchise granted hereunder, the grantee shall establish and provide to the city a corporate surety bond (the “surety bond”) in a form reasonably acceptable to the city and its counsel in the sum of $15,000 as security for the faithful performance by the grantee of specified provisions of the franchise agreement. The surety bond shall remain at this level throughout the term of the franchise. The surety bond may be assessed by the city, following 14 days' prior written notice and hearing, for the following purposes:
(1) Payment of franchise fees which the grantee has failed to pay to the city for any franchise hereunder;
(2) Reimbursement of proper costs borne by the city to correct franchise violations not corrected by the grantee, provided that the city has first provided grantee with written notice of such violation and grantee has not either cured such violation or given the city notice that it disputes that such violation has occurred within a reasonable time after grantee has received the city's notice of violation;
(3) Payment of liquidated damages assessed against the grantee due to default or violation of the franchise requirements;
(4) Compensation and costs of completing or repairing the system as provided in the franchise agreement;
(5) Compensation and costs of removal of any abandoned property;
(6) Repair of damage to streets caused by grantee or any officer, agent, employee, contractor or subcontractor retained by grantee;
(7) Other public or private improvements made necessary as a result of the failure of grantee to comply with any provisions of any franchise agreement granted hereunder. Within 30 calendar days after notice is mailed to the grantee that any amount has been paid to the city by the surety bond pursuant to this section, the grantee shall restore the surety bond to its original level.
(B) If the surety bond is assessed in accordance with this section and the terms of the surety bond, grantee agrees not to withhold these funds from the city or refuse to restore the surety bond if required by this section, nor to attempt through litigation to prevent or inhibit the city from taking such funds. If grantee has been given the required notice and opportunity to be heard, then grantee's recourse, in the event grantee believes any taking of funds from the surety bond is improper, shall be through legal action, after the surety bond has been drawn upon.
(C) If the city's action or taking is found to be improper by any court or agency of competent jurisdiction, grantee shall be entitled to a refund of the funds taken, plus interest thereon and/or any other award which such court or agency shall make.
(Ord. 94-09, passed 9-12-94)