(1) Within thirty (30) days after written notification of the award of a license by the city, the licensee shall deposit with the finance director of the city, and maintain on deposit throughout the term of the license agreement, a security fund in the sum of fifty thousand dollars ($50,000.00) in cash as security for the faithful performance by the licensee of all provisions of this chapter and the license agreement and compliance with all orders, permits and directions of any agency or department of the city having jurisdiction over the licensee's operations. In lieu of the cash deposit, a licensee may provide an irrevocable and unconditional fifty thousand dollar ($50,000) letter of credit with a local financial institution, in a form acceptable to the city attorney. Both the letter of credit and the cash deposit are referred to by the term "security fund" in subsections (2) through (6).
(2) Within fifteen (15) days after written notice to the licensee by the city that the city has withdrawn any amount from the security fund, the licensee shall deposit or pay to the finance director a sum of money sufficient to restore such security fund to the original amount of fifty thousand dollars ($50,000.00), or, in the case of a letter of credit, restore the letter of credit to its full amount.
(3) If the licensee fails to pay the city any moneys due within the time fixed in this chapter or the license agreement; or fails after ten (10) days' written notice to pay to the city any taxes due and unpaid; or fails to repay to the city after ten (10) days' written notice any damages, penalties, costs or expenses which the city may be compelled to pay by reason of any act, omission or default of the licensee; or fails, after ten (10) days' written notice, to comply with any provision of this chapter or the license agreement which the city reasonably determines can be remedied or partially cured by an expenditure from the security fund, the finance director may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the finance director shall in writing notify the licensee of the amount and date thereof. In the event the security fund is insufficient to pay the city for any compensation, damage, penalties, costs or expenses owing to the city pursuant to this chapter or the license agreement, the performance bond may be drawn upon by the city for any amount due the city over and above the amount in the security fund.
(4) The security fund, including any interest that may have accrued, shall become the property of the city in the event that a license agreement is terminated by the city by reason of a violation of this chapter or breach of the license agreement pursuant to the provisions of section 7A-24 ("renewal and termination").
(5) Upon application to the city, the licensee shall be entitled to the return of all moneys remaining in the cash security fund, including accrued interest, at the expiration of the license agreement or any renewal thereof, provided there is then no outstanding default or moneys owing on the part of the licensee to the city; provided that, nothing herein shall be read to excuse a licensee from its obligation to have a security fund during the renewal term.
(6) 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 chapter 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 city may have.
(Ord. No. 8937, § 2, 9-2-97)