Division IV — Deposits, Insurance, Payments

Upon the start of any construction or system replacement program, the grantee shall furnish proof of the posting of a faithful performance bond running to the grantor, with good and sufficient surety approved by the grantor, for one hundred percent of the labor and materials, conditioned that the grantee shall well and truly observe, fulfill and perform each term and condition of said construction program. Such bond shall be maintained by the grantee throughout the duration of this work. Written evidence of payment of required premiums shall be filed and maintained with the grantor.

(Ord. 483 §1, 1984)

• A. The grantee shall maintain, throughout the term of the franchise, liability insurance expressly insuring both the grantee and the grantor with regard to all damages including "damages and defense costs," in the minimum amounts of:

  1. One million dollars for bodily injury or death to any person;

  2. Three million dollars for bodily injury or death resulting from any one accident;

  3. Five hundred thousand dollars for property damage resulting from any one accident;

  4. Five hundred thousand dollars for all other types of liability.

• B. Upon the effective date of the franchise, the grantee shall furnish a certificate of insurance to the grantor that a satisfactory insurance policy has been obtained. Said insurance certificate shall be approved by the grantor, and written evidence of payment of required premiums, shall be filed and maintained with the grantor.

• (Ord. 483 §1, 1984)

• A. Within thirty days after the effective date of the franchise, the grantee shall deposit into an interest bearing account established by the city, and maintain on deposit through the term of the franchise, a sum of four thousand dollars as a maintenance and operating surety for the franchise, and compliance with all orders, permits and directions of any agency of the grantor having jurisdiction over its acts or defaults under the ordinance codified in this chapter, and the payment by the grantee of any claims, liens and taxes due the grantor, which arise by reason of the operation or maintenance of the system.

• B. Within thirty days after notice to it that any amount has been withdrawn by the city from the security fund described herein, the grantee shall deposit a sum of money sufficient to restore such security fund to the original amount.

• C. If the grantee fails, after ten days' notice to pay to the city any taxes or fees due; or fails to repay to the city, within such ten days, any damages, costs or expenses which the city shall be compelled to pay by reason of any act or default of the company in connection with the franchise; or fails, after thirty days' notice of such failure by the city, to comply with any provision of the franchise which the city reasonably determined can be remedied by an expenditure of the security, the city may immediately withdraw the amount thereof, with any penalties, from the security fund. Upon such withdrawal, the grantor shall notify the grantee of the amount and date thereof.

• D. The security fund deposited pursuant to this section shall become the property of the grantor in the event that the franchise is cancelled by reason of the default of the grantee or revocation for cause. The grantee, however, shall be entitled to all interest earned, and the return of such security fund, or portion thereof, as remains on deposit at the expiration of the term of the franchise, or upon termination of the franchise at an earlier date, provided that there is then no outstanding default on the part of the grantee.

• E. The rights reserved to the grantor with respect to the security fund are in addition to all other rights of the grantor.

• (Ord. 483 §1, 1984)

For the use of the street and for the purposes of providing revenue with which to defray the costs of regulation arising out of issuance of franchises under this chapter and promoting, assisting and financing community use programming and other cable services of a public character, each franchisee shall pay franchise fees in the amount prescribed in Section 5.24.280. (Ord. 483 §1, 1984)

During the term of each franchise, each franchisee shall pay to the grantor an amount equal to three percent per year of the franchisee's annual gross revenues, or an amount up to five percent as may be determined by council resolution.

Said fees shall be paid semi-annually not later than August 1st, and February 1st for the preceding six-month period. Not later than the date of each payment, each franchisee shall file with the city, a written financial statement signed under penalty of perjury by an officer of the franchisee which identifies the sources and amount of gross revenues received by a franchisee during the period for which payment is made.

(Ord. 483 §1, 1984)