(A) Each franchisee shall establish a permanent security fund with the Town by depositing the amount of $50,000 with the Town in cash, an unconditional letter of credit or other instrument acceptable to the Town, which fund shall be maintained at the sole expense of the franchisee so long as any of the franchisee’s telecommunications facilities are located within the streets of the Town.
(B) The fund shall serve as security for the full and complete performance of this chapter, including any costs, expenses, damages or loss the Town pays or incurs because of any failure attributable to the franchisee to comply with the codes, ordinances, rules, regulations or permits of the Town.
(C) Before any sums are withdrawn from the security fund, the Town shall give written notice to the franchisee:
(1) Describing the act, default or failure to be remedied or the damages, cost or expenses which the Town has incurred by reason of the franchisee’s act or default;
(2) Providing a reasonable opportunity for the franchisee to first remedy the existing or ongoing default or failure, if applicable;
(3) Providing a reasonable opportunity for franchisee to pay any monies due the Town before the Town withdraws the amount thereof from the security fund, if applicable;
(4) That the franchisee will be given an opportunity to review the act, default or failure described in the notice with the Town Administrator or his or her designee.
(D) A franchisee shall replenish the security fund within 14 days after written notice from the Town that there is a deficiency in the amount of the fund.
(`83 Code, § 13-750) (Ord. 00-20, passed 9-11-00)