The notice of sale may require that the grantee shall file, within the time specified therein, and at all times during the life of the franchise, keep on file with the city, a corporate surety bond running to the city, and also to any public entity which may become entitled to the benefits herein reserved in the franchise in a penal sum as shall be determined from time to time by resolution of the City Council, or such other sum as may be specifically provided in the notice of sale with surety to be approved by the City Council, conditioned that the grantee shall well and truly observe, fulfill and perform each term and condition of the bond. The whole amount of the penal sum named in such bond shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties upon the bond. If the bond is not so filed within the time required in this section, the award of the franchise may be set aside at any time prior to the filing thereof and any money paid therefor shall be forfeited and if an ordinance has been enacted granting the franchise, the City Council may repeal such ordinance. In the event that the bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, the grantee by accepting the terms and conditions thereof agrees to renew such bond with sureties to be approved by the City Council within 10 days after written notice to do so from the City Council.
('64 Code, § 10-6) (Ord. 168, passed 2-9-61)