5.54.250 Security.
Prior to or upon acceptance of a franchise pursuant to this chapter, each grantee shall establish a permanent security instrument with the city by furnishing a security instrument in an amount as determined by the public works director in cash, bond, an unconditional letter of credit or other security instrument acceptable to the city, which security instrument shall be maintained at the sole expense of the grantee so long as any of the grantee’s facilities are located within the public ways of the city.
A. The security instrument shall serve as security for the full and complete performance of the franchise and of this chapter, including any costs, expenses, damages or loss the city pays or incurs, including civil penalties, because of any failure attributable to the grantee to comply with the codes, ordinances, rules, regulations or permits of the city.
B. Before any claims are made against the security instrument, the city shall give written notice to the grantee:
1. Describing the act, default or failure to be remedied, or the damages, cost or expenses which the city has incurred by reason of the grantee’s act or default;
2. Providing a reasonable opportunity for the grantee to first cure the existing or ongoing default or failure, if applicable;
3. Providing a reasonable opportunity for the grantee to pay any monies due the city before the city withdraws the amount thereof from the security, if applicable;
4. That the grantee will be given an opportunity to review the act, default or failure described in the notice with the public works director.
C. Grantee shall ensure the security instrument is the most current and shall furnish an updated security instrument upon thirty days’ written notice from the city.
D. Upon termination or expiration of a franchise, the city shall release the security instrument to the grantee within thirty days after removal or abandonment in place (if allowed) of grantee’s facilities within the public ways. (Ord. 009/2022 § 3 (Exh. A))