§ 10-43. Security fund.

(a)

Within thirty (30) days after the effective date of the ordinance or resolution awarding an initial or renewal license, a licensee shall deposit into an interest-bearing account, established by the city, and the licensee shall maintain on deposit through the term of its license, the sum of not less than forty thousand dollars ($40,000.00), as security for the faithful performance by the licensee of all provisions of its license, and compliance with all orders, permits and directions of any city agency having jurisdiction over the licensee's acts or defaults under this chapter or the license, and the payment by the licensee of any claims, liens, liquidated damages and taxes due the city which arise by reason of the construction and operation of the cable system. The city shall have the full power of withdrawal of funds from the account, except that all interest accrued shall be payable to the licensee on demand. No withdrawals from the security fund account other than withdrawals of interest shall be made by the licensee without the prior written approval of the city manager.

(b)

The city may, during the term of a license, no more frequently than every three (3) years, modify the amount of the security fund required by this section, based on increases in the consumer price index, so as to maintain the initial protection provided by this section. A licensee shall have thirty (30) days from the date of notification from the city to comply with any increase.

(c)

Prior to making any withdrawal from the security fund, the city shall give a licensee written notice of the city's intent to make such withdrawal. If a licensee fails to pay any fees or amounts due and unpaid under its license within thirty (30) days of receiving the city's notice, and if the licensee does not request an administrative hearing pursuant to section 10-92 within such thirty (30) day period, the city may immediately withdraw the appropriate amount from the security fund. Upon such withdrawal, the city shall notify the licensee of the amount and date thereof.

(d)

Within thirty (30) days after notice to a licensee that any amount has been withdrawn by the city from the security fund pursuant to this section, the licensee shall deposit a sum of money sufficient to restore such security fund to the original amount.

(e)

The security fund shall become the property of the city if a license is terminated for cause. A licensee shall be entitled to the return of such security fund as remains on deposit within thirty (30) days after the expiration of the term of a license, if there is then no outstanding default on the part of the licensee.

(f)

Any funds that the city improperly withdraws shall be returned to a licensee, with interest at the rate of eighteen percent (18%) per annum from the date of withdrawal, within thirty (30) days of a final determination that the withdrawal was improper

(g)

The rights reserved to the city with respect to the security fund are in addition to, not in lieu of, any other rights of the city specified in this chapter or a license or authorized by law.

(h)

In lieu of providing a security fund, a licensee may provide a letter or credit in a form approved by the finance director. All provisions set forth in subsections (a) through (g) shall apply to such letter of credit.

(Ord. No. 2053, § 1, 12-8-98)