(A) Every operator shall establish a cash security fund or provide the city an irrevocable letter of credit in the amount of one hundred thousand dollars ($100,000.00) to secure the payment of fees owed, to secure any other promised performance and to pay any taxes, fees or liens owed to the city.
(B) The letter of credit shall be in a form and with an institution acceptable to the Finance Director and in a form acceptable to the City Attorney.
(C) Should the city draw upon the cash security fund or letter of credit, it shall promptly notify the operator of the utility system and the operator of the utility system shall promptly restore the fund or the letter of credit to the full required amount.
(D) This security fund/letter of credit may be waived or reduced by the city where the city determines in its discretion that a particular person's operations are sufficiently limited that a security fund/letter of credit is not necessary to secure the required performance.
(E) The city may from time to time change the amount of the required security fund/letter of credit to reflect changed risks to the city and to the public, including delinquencies in taxes or other payments to the city.
(Ord. 2003-08, passed 3-17-03)