(A) Within ten days after the award of the franchise, the company shall deposit with the Board a letter of credit from a financial institution in the amount of $30,000. The form and content of such letter of credit shall be approved by the County Attorney. The letter of credit shall be used to insure the faithful performance by the company of all provisions of the franchise, and compliance with all orders, permits and directions of any agency, commission, board, department, division or office of the county having jurisdiction over its acts or defaults under this franchise, and the payment by the company of any claims, liens and taxes due the county or other municipalities which arise by reason of the construction, operation or maintenance of the system.
(B) The letter of credit shall be maintained at $30,000 during the entire term of this franchise, even if amounts have to be withdrawn pursuant to division (A) or (C) of this section.
(C) If the company fails to pay to the Board any compensation within the time fixed herein; or fails, after ten days' notice, to pay to the Board any taxes due and unpaid; or fails to repay the Board within ten days any damages, costs or expenses which the Board is compelled to pay by reason of any act or default of the company in connection with the franchise; or fails, after three days' notice of such failure by the company, to comply with any provision of this franchise which the Board reasonably determines can be remedied by demand on the letter of credit, the Board may immediately request payment of the amount thereof, with interest and any penalties, from the letter of credit. Upon such request for payment, the Board shall notify the company of the amount and date thereof.
(D) The rights reserved to the Board with respect to the letter of credit are in addition to all other rights of the Board, whether reserved by the franchise 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 Board 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 cancelled by the surety nor the intention not to renew be stated by the surety until 30 days after receipt by the Board, by registered mail, of a written notice of such intention to cancel or not to renew.”
(Ord. 450.1, passed 12-4-80)