Security fund

(a)

The city shall require in a license agreement that, prior to the license becoming effective, the licensee shall post with the city a security fund. Such fund may be in the form of a cash deposit, letter of credit, or performance bond as determined by the city in its sole discretion or as set forth in a license agreement. The security fund shall be used to ensure the licensee's faithful performance of and compliance with all provisions of this chapter, the license agreement, and other applicable law, and compliance with all orders, permits and directions of the city, and the payment by the licensee of any claims, liens, fees, or taxes due the city which arise by reason of the construction, operation or maintenance of the system. The amount of the security fund shall be the amount that the city determines, under circumstances existing at the time, that is necessary to protect the public, to provide adequate incentive to the licensee to comply with this chapter and the license agreement, and to enable the city to effectively enforce compliance therewith, but in no event less than $2,000,000.00. The license agreement shall provide for the procedures to be followed with respect to the security fund. Neither the posting of the cash deposit or filing of an indemnity bond or any form of performance bond with the city, nor the receipt of any damages recovered by the city thereunder, shall be construed to excuse faithful performance by the licensee or limit the liability of the licensee under the terms of its license for damages, either to the full amount of the fund or otherwise.

(b)

The rights reserved to the city with respect to the security fund are in addition to all other rights of the city, whether reserved by this chapter or authorized by other law or the license agreement, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the city may have.

(Ord. No. 11936, § 3, 6-8-00)