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A. The City may, at its sole option, apply the following in connection with delays in system construction after sending to the licensee its notice of intent to:

1. Reduce the duration of the license on a month-for-month basis for each month of delay within the licensee’s control exceeding three months. Such reduction in term cannot accumulate beyond a total of two years.

2. Forfeiture of performance bonds.

B. Each license granted by the City must state that the licensee agrees that failure to comply with any requirements in this chapter and the license will result in damage to the City, and it is and will be impracticable to determine the actual amount of such damage in the event of delay or nonperformance. The license must include provisions for liquidated damages to be paid by the licensee in amounts set forth in the license and chargeable to the security fund for the following concerns:

1. Failure to complete system construction or reconstruction in accordance with this chapter and/or the license, unless the City Council specifically approves the delay by motion or resolution;

2. Failure to provide a cable connection within the time(s) set forth in any line extension policy;

3. Failure to properly restore the public right-of-way or to correct related violations of specifications, code, or standards after having been notified to correct such defects;

4. Failure to comply with customer service standards as required by the license;

5. Failure to test, analyze and report on the performance of the cable system as required by the license;

6. Failure to provide in a continuing manner the type of services proposed in the renewal proposal, or license, unless the City Council specifically approves modification of licensee’s obligation;

7. Any other action or nonaction by the licensee, as agreed upon between the City and the licensee, and set forth in the license.

C. If the City Manager concludes that a licensee is in fact liable for liquidated damages pursuant to this section, and that the particular event, occurrence or failure of the licensee which is the basis for the conclusion was not the basis for a prior assessment of liquidated damages, the City will issue to the licensee by certified mail a notice of intention to assess liquidated damages. The notice will set forth the nature of the violation and the amount of the proposed assessment. The licensee must, within 30 days of receipt of such notice:

1. Respond to the City in writing, contesting the City’s assertion of violation and providing such information or documentation as may be necessary to support licensee’s position; or

2. Cure any such violation (and provide written evidence of the same), or, in the event that, by the nature of the violation, such violation cannot be cured within such 30-day period, take reasonable steps to cure the violation and diligently continue such efforts until the violation is cured. The licensee will report to the City, in writing, at 30-day intervals as to licensee’s efforts, indicating the steps taken by the licensee to cure said violation and reporting licensee’s progress until such violation is cured.

D. If the licensee timely contests the City’s assertion of violation and intention to assess liquidated damages, the City will within 15 days schedule a hearing in accordance with the procedures set forth in Section 5-64 to determine whether there is a violation and whether liquidated damages may be assessed against the licensee.

E. If the licensee does not contest in writing the City’s assertion of violation or cure or begin curing of such violation within 30 days of receipt of such notice, the City Manager’s decision and the amount of the proposed assessment of liquidated damages becomes final and the City may exercise all remedies provided in the license to collect such liquidated damages. (Ord. No. G-6034, 2015)