§ 21-45. Liquidated damages.

(a)

Liquidated damages to be paid by grantee for certain delays or nonperformance. The grantee shall comply with all requirements in its franchise with the city regarding liquidated damages related to delays or nonperformance.

(b)

Procedures established to assure grantee of due process and opportunity to cure problem before damages assessed. If the city manager, following prior reasonable notice to a grantee to cure any problem that might result in liquidated damages, concludes that a grantee is, in fact, liable for liquidated damages pursuant to the franchise, he shall issue to a grantee by certified mail a notice of intention to assess liquidated damages. The notice shall set forth the basis of the assessment and shall inform the grantee that liquidated damages will be assessed from the date of the notice unless the assessment notice is appealed for hearing before the city council and the city council rules that the violation has been corrected, or that an extension of the time or other relief should be granted. If the grantee desires a hearing before the city council, it shall send a written notice of appeal by certified mail to the city manager within ten days of receiving the notice of intention to assess liquidated damages. After the hearing, if the city council sustains in whole or in part the city manager's assessment of liquidated damages, the city manager may at any time thereafter draw upon the letter of credit required by the franchise. Unless the city council indicates to the contrary, such liquidated damages shall be assessed beginning with the date on which the grantee receives the notice of intention to assess liquidated damages and continuing thereafter until such time as the violation ceases, as reasonably determined by the city manager.

(Ord. No. 8113, § 1(15), 10-23-97)