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(a) Within thirty (30) days after written notification of the award of a license or franchise by the city, the selected applicant shall deposit with the finance director of the city, and maintain on deposit throughout the term of the license or franchise agreement, a security deposit in the sum of fifty thousand dollars ($50,000.00) in cash or in the form of a letter of credit, bond, or alternative form of security acceptable to the city as security for the faithful performance by the licensee or franchisee of all provisions of this chapter and the license or franchise agreement and compliance with all orders, permits and directions of any agency or department of the city having jurisdiction over the licensee's or franchisee's operations.
(b) Within fifteen (15) days after written notice to the licensee or franchisee by the city that the city has withdrawn any amount or taken other steps to draw upon the security in the security deposit, the licensee or franchisee shall deposit or pay to the finance director a sum of money or other alternative form of security sufficient to restore such security deposit to the original amount of fifty thousand dollars ($50,000.00).
(c) If the licensee or franchisee fails to pay the city any moneys due within the time fixed in this chapter or the license or franchise 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 within 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 franchisee; or fails, after ten (10) days' written notice, to comply with any provision of this chapter or the license or franchise agreement which the city reasonably determines can be remedied or partially cured by an expenditure or calling of the security within the security deposit, the finance director may immediately withdraw or call the amount thereof, with interest and any penalties, from the security deposit. Upon such withdrawal, the finance director shall in writing notify the licensee or franchisee of the amount and date thereof. In the event the security deposit 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 or franchise agreement, the performance bond may be drawn upon by the city for any amount due the city over and above the amount held in the security deposit.
(d) The security deposit, including any interest that may have accrued, shall become the property of the city in the event that a license or franchise agreement is terminated by the city by reason of a violation of this chapter or breach of the license or franchise agreement pursuant to the provisions of section 7B-18 ("Renewal and Termination").
(e) Upon application to the city, the licensee or franchisee shall be entitled to the return of all moneys or other form of security remaining in the security deposit, including accrued interest, at the expiration of the license or franchise agreement or any renewal thereof, provided there is then no outstanding default or moneys owing on the part of the licensee or franchisee to the city.
(f) The rights reserved to the city with respect to the security deposit are in addition to all other rights of the city, whether reserved by the license or franchise, this chapter or authorized by law; and no action, proceeding or exercise of a right with respect to such security deposit shall affect any other right the city may have.
(Ord. No. 8522, § 1, 6-12-95; Ord. No. 8545, § 9, 7-10-95)