(A) Within ten days after the award of an initial franchise only, a grantee shall deposit with the Village Fiscal Officer a letter of credit from a local financial institution in the amount of $50,000. The form and content of such letter of credit shall be subject to the approval by the village. The letter of credit shall be used to ensure the faithful performance by a grantee of all provisions of this chapter; compliance with all orders, permits, and directions of any agency, commission, board, department, division, or office of the village having jurisdiction over its acts; defaults under a franchise; and the payment by a grantee of any claims, liens, and taxes due the village which arise by reason of the construction, operation, or maintenance of the system.
(B) The letter of credit shall be maintained at $50,000 during the initial term of the franchise, even if amounts have to be withdrawn pursuant to division (A) above or division (C) below.
(C) If the grantee fails to pay the village any compensation within the time fixed herein, or fails after ten days’ notice to pay to the village any taxes due and unpaid or fails to repay the village within such ten days any damages, costs, or expenses which the village is compelled to pay by reason of the act or default of the grantee in connection with a franchise or fails after three days’ notice of such failure by the village to comply with any provision of a franchise which the village reasonably determines can be remedied by demand on the letter of credit, the village may, subject to division (D) below, request payment of the amount thereof, with interest and any penalties, from the letter of credit. Upon such request for payment, the village shall notify the grantee of the amount and date thereof.
(D) Notwithstanding division (C) above, in case of a bonafide dispute regarding compliance, the grantee may request a hearing before the Director of Administration within 30 days after notification of non-compliance and penalty by the village. No action may be taken on said letter of credit until a prior hearing with an opportunity to be heard has been conducted. At such hearing, all parties may give evidence, and the merits of the dispute will be decided.
(E) The Director of Administration shall make public his or her decision, along with a statement reciting the basis therefor. Within 30 days, the grantee may appeal to the Council, in writing, the decision rendered by the Director of Administration. At the appeal hearing, the grantee may contest the findings of fact or interpretation of controlling law, at which time the Council may affirm, reject, or modify the decision of the Director of Administration. The affirmance, rejection, or modification of said decision by the Council shall be a final appealable order.
(F) The rights reserved to the village with respect to the letter of credit are in addition to all other rights of the village, whether reserved by negotiation with the grantee or authorized by law, and no actions, proceeding, or exercise of a right with respect to such letter of credit shall affect any other right the village may have.
(G) The letter of credit shall contain the following endorsement:
“It is hereby understood and agreed that this letter of credit may not be cancelled by the surety nor the intention not to renew be stated by the surety until thirty (30) days after receipt by the Village of Apple Creek, Ohio, by registered mail, of a written notice of such intention to cancel or not to renew,”
(H) The grantee will not be required to provide a letter of credit for any renewals issued.
(Ord. 1987-16, passed 8-3-1987)