§ 16-37. Application fee and bond.

An application fee of $100.00, nonrefundable, shall be provided by the franchisee before consideration of a proposal. At the time this franchise becomes effective, the franchisee shall furnish a bond to the city in the amount of $100,000.00, in such form with such sureties as shall be acceptable to the city, guaranteeing the faithful performance of all obligations of the franchisee under the terms of this franchise (except such sums as are covered by the insurance provided in section 16-35), and further, the franchisee will furnish a payment bond to the city in the amount of $10,000.00, guaranteeing the payment of all sums which may become due from the franchisee to the city during the first full year of operation. At the discretion of the council, such payment bond will not be required after the first full year of operation. The city council may reinstate requirement for a payment bond at any time they deem it to be necessary. All bonds must be furnished before the franchising contract is signed, and must be approved by the city attorney.

(Code 1985, § 4-420; Ord. of 4-6-1981)