At the time of the execution of a franchise agreement, each franchisee shall provide
the city with a bond in the amount of twenty percent (20%) of the franchisee's gross
revenues for the quarter immediately preceding the execution date of the franchise
agreement. For the initial franchises that begin on May 1, 2013, the bond amount shall
be fifty thousand dollars ($50,000). The bond shall conform with the requirements
of CMC Chapter 304. The bond shall be used to ensure the franchisee's performance under this chapter
and the franchise agreement. Among other things, the bond shall be used to ensure
the franchisee's payment of franchise fees and other sums that are due and owing to
the city. The bond also shall be used to indemnify the city from any damages that
may be suffered by the city in any manner as a result of the city's award of a franchise
to the applicant, including but not limited to damages resulting from the applicant's
performance or non-performance of the conditions and requirements of the franchise
agreement, the applicant's use of the city's streets, the failure of the applicant
to conform with applicable laws, and any negligent, reckless or intentional wrongful
act or omission of the applicant or the applicant's employees, agents, officers, or
representatives. The bond shall be kept in full force at all times during the term
of the franchise. The bond shall be released by the city if the application is denied,
or the franchise agreement expires or is terminated.
