(A) 
Security Fund Deposit. Prior to a franchise becoming effective, the franchisee shall post with the City and maintain a cash security deposit to be used as a security fund to ensure the franchisee’s faithful performance of and compliance with all provisions of this Chapter, the franchise Agreement, and other applicable law, and compliance with all orders, permits, and directions of the City, and the payment by the franchisee of any claims, liens, fees, or taxes due the City which arise by reason of the construction, operation, or maintenance of the cable system. The amount of the security fund shall be equal to three percent (3%) of the franchisee’s projected annual average gross revenues or ten thousand dollars ($10,000), whichever is greater. However, a franchise agreement may provide for a smaller security fund for cable systems franchised to serve less than the entire City where the City determines that the size of the cable system justifies a smaller security fund.
(B) 
Letter of Credit. In lieu of a cash security fund, a franchisee may file and maintain with the City an irrevocable letter of credit with an acceptable surety in the amount specified in the preceding paragraph to serve the same purposes as set forth therein. Said letter of credit shall remain in effect for the full term of the franchise plus an additional six (6) months thereafter. The franchisee and its surety shall be jointly and severally liable under the terms of the letter of credit for the franchisee’s failure to its faithfully perform and comply with all provisions of this Chapter, the franchise agreement, and other applicable law, and to comply with all orders, permits, and directions of the City, and to pay any claims, liens, fees, or taxes due the City which arise by reason of the construction, operation, or maintenance of the cable system. The letter of credit shall provide for thirty (30) days’ prior written notice to the City of any intention on the part of the franchisee to fail to renew or otherwise materially alter its terms. Neither the filing of a letter of credit with the City, nor the receipt of any damages recovered by the City thereunder, shall be construed to excuse faithful performance by the franchisee or limit the liability of the franchisee under the terms of its franchise for damages, either to the full amount of the letter of credit or otherwise.
(C) 
Reserved Rights. 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 a franchise agreement, and no action, proceeding, or exercise of a right with respect to such security fund or letter of credit will affect any other right the City may have.
(D) 
Procedures. The franchise agreement shall set forth the procedures for drawing on the security fund and letter of credit.
(A) 
Performance Bond. Prior to any cable system construction, upgrade, or other work in the public rights-of-way required by the franchise agreement, a franchisee shall establish in the City’s favor a performance bond in an amount equal to ten percent (10%) of the total cost of the work or as set forth under applicable law to ensure the franchisee’s faithful performance of the construction, upgrade, or other work.
(B) 
Recovery. In the event a franchisee subject to such a performance bond fails to complete the cable system construction, upgrade, or other work in the public rights-of-way in a safe, timely, and competent manner in accord with the provisions of a franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the City as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchisee, or the cost of completing or repairing the cable system construction, upgrade, or other work in the public rights-of-way, plus a reasonable allowance for attorneys’ fees, up to the full amount of the bond. The City may also recover against the bond any amount recoverable against the security fund where such amount exceeds that available under the security fund.
(C) 
Elimination of Bond. Upon completion of the cable system construction, upgrade, or other work in the public rights-of-way and payment of all construction obligations of the cable system to the satisfaction of the City, the City shall eliminate the bond or reduce its amount after a time appropriate to determine whether the work performed was satisfactory, which time shall be established considering the nature of the work performed. The City may subsequently require a new bond or an increase in the bond amount for any subsequent construction, upgrade, or other work in the public rights-of-way.
(D) 
Bond Rating. The performance bond shall be issued by a surety with an A-1 or better rating of insurance in Best’s Key Rating Guide, Property/Casualty Edition; shall be subject to the approval of the City; and shall contain the following endorsement: “This bond may not be canceled, or allowed to lapse, until sixty (60) days after receipt by the City, by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not to renew.”