A. The city reserves the right to require of any person subject to this chapter that such person deposit into a bank account, established by the city, and maintain for such term as is reasonable under the circumstances with interest running to such person, a sum of money in an amount reasonably determined by the city as security for the faithful performance by such person of all the provisions of its franchise, and compliance with all orders, permits and directions of any agency of the city, and for the payment of any claims, liens and taxes due the city or liquidated damages imposed by the city which arise by reason of the construction, operation or maintenance of such person’s system. Within 30 days after notice to it that any amount has been withdrawn by the city from the security fund pursuant to the foregoing, such person shall deposit a sum of money sufficient to restore such security fund to the original amount in the account at the time of withdrawal.

B. If such person fails after 10 days’ notice to pay the city any delinquent fees, taxes or other amounts due and unpaid; or fails to repay to the city, after 20 days’ notice, any damages, costs or expenses which the city shall be compelled to pay by reason of any act or default of such person; or fails after 45 days’ notice of such failure by the city to comply with any provision of its franchise which the city reasonably determines can be remedied by an expenditure of the security, the city may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the city shall notify such person of the amount and date thereof.

C. The security fund deposited pursuant to this section shall become the property of the city in the event that a franchise is canceled by reason of the default of the person subject to this chapter or revoked for cause. Such person, however, shall be entitled to the return of such security fund or portion thereof which remains on deposit at the expiration of the term of the permit or franchise, or upon termination of the permit or franchise at an earlier date upon payment of all sums then due to the city. [Ord. 2018-09-015 § 1].