12.02.360 Security fund.
A. Prior to issuance of a franchise pursuant to this chapter, each grantee shall establish a permanent security fund with the city by depositing the amount of fifty thousand dollars, or such other amount as deemed necessary by the director, with the city in cash, bond, or an unconditional letter of credit, based upon both operating history in rights-of-way, other ways, and city property and the cost of removal of the grantee’s facilities, which fund shall be maintained at the sole expense of the grantee so long as any of the grantee’s telecommunications facilities are located within the rights-of-way.
B. The fund shall serve as security for the full and complete performance of this chapter and the franchise 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 applicable to the construction, maintenance, repair, or removal of telecommunications facilities in the rights-of-way or upon city property.
C. The city and the grantee shall agree upon and specify in the franchise certain amounts which represent both parties’ best estimate of the damages for failure to comply with the franchise issued thereunder. The liquidated damages provided in the franchise shall be the exclusive monetary remedy for the named breaches. Neither the right to liquidated damages nor the payment of liquidated damages shall bar or otherwise limit the right of the city in a proper case to:
1. Obtain judicial enforcement of a grantee’s obligations by means of specific performance, injunctive relief, mandamus, or other remedies at law or in equity;
2. Consider any substantial violation or breach as grounds for forfeiture and termination of a franchise issued thereunder; and
3. Consider any violation or breach as grounds for nonrenewal or nonextension of a franchise or issuance of a new franchise.
D. Before any sums are withdrawn from the security fund, the city shall give written notice to the grantee:
1. Describing the act, default or failure to be remedied, or the damages, costs, or expenses which the city has incurred by reason of grantee’s act or default regarding the installation, maintenance, repair, or removal of telecommunications facilities in the rights-of-way, other ways, or upon city property or in connection with restoration of the foregoing;
2. Providing a reasonable opportunity for grantee to first remedy the existing or ongoing default or failure regarding the installation, maintenance, repair, or removal of telecommunications facilities in the rights-of-way or in connection with the restoration of the foregoing, if applicable;
3. Providing a reasonable opportunity for grantee to pay any monies due the city before the city withdraws the amount thereof from the security fund, if applicable; and
4. That the grantee will be given an opportunity to review the act, default or failure described in the notice with the city or its designee.
E. Grantees shall replenish the security fund within fourteen days after written notice from the city that there is a deficiency in the amount of the fund.
F. Upon termination or expiration of a franchise all funds remaining in the security fund shall be returned to the grantee within thirty days after removal of grantee’s telecommunications facilities within the rights-of-way. (Ord. 1188-21 § 2 (Exh. A), 2021).