(A) Within 15 days after the award of an initial franchise, the grantee shall deposit with the Municipality either an irrevocable letter of credit from a financial institution acceptable to the Board or a cash security deposit in the amount of $100,000. The form and content of such letter of credit shall be approved by the Municipality's attorney. No interest shall be paid on any cash deposit.
(B) Within 15 days after the award of a renewal franchise, the grantee shall deposit with the Municipality an irrevocable letter of credit from a financial institution acceptable to the Municipality in the amount of $50,000 and a cash security deposit in the amount of $15,000. The form and content of such letter of credit shall be approved by the Municipality's attorney. No interest shall be paid on any cash security deposit.
(C) The letter of credit and cash security deposit shall be used to ensure the faithful performance of the grantee of all provisions of this chapter, as may be amended from time to time, and to ensure compliance with all orders, permits and directions of any agency, commission, board, department, division, or office of the Municipality having jurisdiction over its acts or defaults under this chapter, and to ensure the payment by the grantee of any claims, liens, taxes and penalties assessed pursuant to § 115.999 due the Municipality which arise by reason of the construction, operation or maintenance of the cable system.
(D) The letter of credit and cash security deposit shall be maintained at the amount established herein for the entire term of the franchise, even if amounts have to be withdrawn pursuant to this chapter. The grantee shall promptly replace any amounts withdrawn from the letter of credit or security deposit.
(E) In the event that the grantee fails to pay to the Municipality any compensation within the time fixed herein; or fails to pay to the Municipality any penalties assessed on taxes due and unpaid; or fails to repay the Municipality any damages, costs or expenses which the Municipality incurs as a result of the grantee's failure to comply with all rules, regulations, orders, permits, and other directives of the Municipality issued pursuant to a franchise or which the Municipality is compelled to pay by reason of any act or default of the grantee in connection with a franchise; or fails to properly and adequately restore any public street, public way, public property or private property disturbed by the grantee's activities; or fails to pay any costs incurred by the Municipality in connection with the award of any initial franchise or renewal franchise; or otherwise fails to faithfully perform the duties and responsibilities of a franchise, then the Municipality may withdraw money from the letter of credit or cash security fund in accordance with the procedures set forth in division (F) below.
(F) The Municipality shall provide the grantee with written notice informing the grantee that such amounts are due to the Municipality. The written notice shall describe, in reasonable detail, the reasons for the assessment. The grantee shall have 15 days subsequent to receipt of the notice within which to cure every failure cited by the Municipality or to notify the Municipality that there is a dispute as to whether the grantee believes such amounts are due the Municipality. Such notice by the grantee to the Municipality shall specify with particularity the basis of the grantee's belief that such monies are not due the Municipality.
(G) The rights reserved to the Municipality with respect to the letter of credit and cash security deposit are in addition to all other lawful rights of the Municipality, whether reserved by the franchise or authorized by applicable law, and no action, proceeding or exercise of a right with respect to such letter of credit and security deposit shall waive or otherwise affect any other lawful right the Municipality may have.
(H) 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 issuer bank nor the intention not to renew be stated by the issuer bank until 45 days after receipt by the Municipality, by registered mail, of a written notice of such intention to cancel or not to renew."
(I) Receipt of the 45 day notice by the Municipality shall be construed as a default granting the Municipality the right to immediate payment from the issuer bank of the entire amount of the letter of credit.
(J) The Municipality, at any time during the term of a franchise, may waive, in writing, the grantee's requirement to maintain a letter of credit or cash security deposit.
(Ord. 767, passed 4-25-00)