Security fund for support of enforcement shall comply with:
(a) A grantee may be required to obtain or maintain bonds or other surety as a condition of being awarded a franchise or continuing its existence. The city shall determine whether or not a bond or surety is required based upon a review of an applicant’s or a grantee’s legal, financial and technical qualifications. If the qualifications of a grantee are sufficient for compliance with the terms of this chapter and a franchise and the enforcement thereof, the city may waive any requirement for a bond or surety. In the event that a bond or other surety is required in the future, the city agrees to give a grantee at least 60 days’ prior written notice thereof stating the amount and the reason for the requirement;
(b) If a bond or other surety has been established, the security fund may be drawn on by city for those purposes specified. In the event, after complying with the due process procedures provided herein, the city finds that a material violation exists and that a grantee has not corrected the same in a satisfactory manner or has not diligently commenced correction of the violation, the city may establish a date, no earlier than 30 days following notification, by which a grantee must comply with the obligation or the city may thereafter impose damages, payable from the security fund;
(c) Within 30 days after notice to a grantee that any amount has been withdrawn by the city from the bond or other surety, a grantee shall deposit a sum of money or otherwise replace the bond or other surety in a manner sufficient to restore the bond or other surety to its original amount; and
(d) Nothing herein will be deemed a waiver of the normal permit and bonding requirements made of all contractors working within the city’s rights-of-way, except as may be waived in accordance with a franchise.
(1992 Code, § 44-92) (Ord. 104-09, passed 11-16-2009)