2002 FEBRUARY - Laserfiche WebLink

6.52.070 pendent financial audit of grantee's gross annual cable service revenues and franchise fee records, in accordance with generally accepted accounting procedures (GAAP), and if such audit indicates a franchise fee underpayment of two percent (2%) or more, the grant- ee shall assume all reasonable docu- mented costs of such audit. C. Security Fund: 1. Grantor may require grantee to provide a security fund, in an amount and form established in the franchise agreement. The amount of the security fund shall be established based on the extent of the grantee's obligations under the terms of the franchise. 2. The security fund shall be avail- able to grantor to satisfy all claims, liens and/or taxes due grantor from grantee which arise by reason of con- struction, operation, or maintenance of the system, and to satisfy any actual or liquidated damages arising out of a material breach of the franchise agree- ment, subject to the procedures and amounts designated in the franchise agreement. 3. If the security fund is drawn upon by grantor in accordance with the pro- cedures established in this chapter and the franchise agreement, grantee shall cause the security fund to be replen- ished to the original amount no later than thirty (30) days after receiving written confirmation from the bank where such security fund is deposited that grantor has made a draw against the security fund. Failure to replenish the security fund shall be deemed a material breach of the franchise. (Ord. 1829 § 2, 2001) 6.52.080 Construction Requirements: A. System Construction: 1. Grantee shall not construct any ca- ble system facilities until grantee has secured the necessary permits from grantor, or other responsible public agencies. The grantee shall be subject to all permit and bonding requirements applicable to contractors working with- in the public rights of way. No provi- sion of this chapter or the franchise agreement shall be deemed a waiver of the obligation of a grantee to pay grantor for the issuance of a permit. 2. In those areas of the city where transmission lines or distribution facili- ties of the public utilities providing telephone and electric power service are underground, the grantee likewise shall construct, operate and maintain its transmission and distribution facilities underground. 3. In those areas of the city where the grantee's cables are located on the aboveground transmission or distribu- tion facilities of the public and/or mu- nicipal utility providing telephone or electric power service, and in the event that the facilities of both the telephone and electric power utilities subsequently are placed underground, then the grant- ee likewise shall reconstruct, operate and maintain its transmission and distri- bution facilities underground, at grantee's cost. Certain of grantee's existing equipment, such as pedestals, amplifiers and power supplies, which normally are placed aboveground, may continue to remain in aboveground enclosures, unless otherwise provided in the franchise agreement. 192-13 (Pleasanton February 2002)