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(A) Unless otherwise set forth in the franchise, within 30 days after the award of an initial franchise, the grantee shall deposit with the city either an irrevocable letter of credit from a financial institution or a security deposit in the amount of $50,000. The form and content of such letter of credit or security deposit shall be approved by the City Attorney, such approval not to be unreasonably withheld. These instruments shall be used to insure the faithful performance of the Grantee of all provisions of its franchise; and compliance with all orders, permits and directions of any agency, commission, board, department, division, or office of the city having jurisdiction over its acts or defaults under the franchise, and the payment by the grantee of any claims, liens, and taxes due the city which arise by reason of the construction, operation or maintenance of the cable system.
(B) The letter of credit or security deposit shall be maintained at the amount established by the city for the entire term of the franchise, and shall be replenished within 30 days if amounts have to be withdrawn.
(C) If the grantee fails to pay to the city any compensation within the time fixed herein; or fails after 15 days written notice to pay to the city any taxes due and unpaid; or fails to repay the city within 15 days any damages, costs or expenses which the city is compelled to pay by reason of any act or default of the grantee in connection with the franchise, or fails, after 30 days written notice of such failure by the city to comply with any provision of the franchise which the city reasonably determines can be remedied by demand on the letter of credit or security deposit, the city may immediately request payment of the amount thereof, with interest and any penalties, from the letter of credit or security deposit. The grantee has the right to appeal such demand by the city to the City Council, who shall hear the matter in a public meeting and allow the grantee to be heard and present evidence of compliance.
(D) The rights reserved to the city with respect to the letter of credit are in addition to all other rights of the city, whether reserved by this chapter 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 city may have.
(E) The letter of credit or security deposit shall be non-cancelable, except upon 30 days prior written notice to the city.
(F) If an existing letter of credit or security deposit is to be canceled, grantee shall provide evidence of a replacement letter of credit or security deposit to the city 15 days prior to the cancellation date. Failure to provide evidence of replacement surety shall be construed as a default granting the city the right to call on the bank for the initial security deposit or letter of credit.
(G) The city at any time during the term of this chapter may waive grantee’s requirement to maintain a letter of credit or security deposit. The invitation to waive the requirement can be initiated by the city or grantee.
(Ord. 1846, passed 12-7-98)