§ 33. Security Fund.

A.

At the time this Franchise is accepted, Franchisee shall deposit into a bank account, established by the City, and maintain on deposit through the term of this Franchise, the sum of Five Thousand Dollars ($5,000.00) as a common security fund for the faithful performance by it of all the provisions of this Franchise and compliance with all orders, permits and directions of the City and the payment by Franchisee of any claim, liens and taxes due the City which arise by reason of the construction, operation or maintenance of the system. Interest accrued on this deposit shall be paid to Franchisee on an annual basis provided that all requirements of this Franchise have been complied with by Franchisee.

B.

Provision shall be made to permit the City to withdraw funds from the security fund. Franchisee shall not use the security fund for other purposes and shall not assign, pledge or otherwise use this security fund as security for any purpose.

C.

Within ten (10) days after notice to it that any amount has been withdrawn by the City from the security fund, Franchisee shall deposit a sum of money sufficient to restore such security fund to the required amount.

D.

If Franchisee fails to pay to the City any amounts due and unpaid; or, fails to repay to the City, any damages, costs or expenses which the City shall be compelled to pay by reason of any act or default of the Franchisee in connection with this Franchise; or fails, after twenty (20) days' notice by the City of such failure to comply with any provision of the Franchise which the City reasonably determines can be remedied by an expenditure of the security, the City may then withdraw such funds from the security fund in accordance with those procedures set forth above.

E.

Penalties from Security Fund. In addition to any other remedies provided herein, penalties for violations of this Franchise are set forth below. As a result of any acts or omissions by Franchisee pursuant to the Franchise, the City may charge to and collect from the security fund any penalty amount assessed as provided above.

F.

The security fund deposited pursuant to this Section shall become the property of the City in the event that the Franchise is canceled by reason of the default of Franchisee or revoked for cause. Franchisee, however shall be entitled to the return of such security fund, or portion thereof as remains on deposit at the expiration of the term of the Franchise.

G.

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 Franchise 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. 1475, § 33, 5-12-2009)