(a) Within ten days after the award of a franchise, the grantee shall deposit with the Clerk/Treasurer a letter of credit from a local financial institution in the amount of twenty-five thousand dollars ($25,000). The form and content of such letter of credit shall be approved by the Village. The letter of credit shall be used to ensure the faithful performance by the 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 or defaults under the franchise; and the payment by the grantee of any claims, liens, and taxes due the Village which arise by reason of the construction, operation or maintenance of the cable television system.
(b) The letter of credit shall be maintained at twenty-five thousand dollars ($25,000) during the entire term of the franchise, even if amounts have to be withdrawn pursuant to subsection (a) or (c) hereof.
(c) If the grantee fails to pay the Village any compensation within the time fixed herein, fails, after ten days' notice, to pay to the Village any taxes due and unpaid, fails to repay the Village within such ten days any damages, costs or expenses which the Village is compelled to pay by reason of an act or default of the grantee in connection with the franchise, or fails, after three days' notice by the Village of such failure, to comply with any provision of the franchise which the Village reasonably determines can be remedied by demand on the letter of credit, the Village may, subject to the following paragraph, 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.
Notwithstanding the preceding paragraph, in case of a bona fide dispute regarding compliance, the grantee may request a hearing before the Mayor within thirty 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. The Mayor shall make public his or her decision, along with a statement reciting the basis therefor. Within thirty days, the grantee may appeal to the Council, in writing, the decision rendered by the Mayor. 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 Mayor. The affirmance, rejection or modification of said decision by the Council shall be final.
(d) 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 action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the Village may have.
(e) The letter of credit shall contain the following endorsement:
“It is hereby understood and agreed that this letter of credit may not be canceled by the surety nor the intention not to renew be stated by the surety until thirty days after receipt by the Village of Brooklyn Heights, Ohio, by registered mail, or a written notice of such intention to cancel or not to renew.”
(Ord. 16-80. Passed 5-20-80.)