(A) Within 15 days after the award of an initial franchise, the grantee shall deposit with the village either an irrevocable letter of credit from a financial institution or a security deposit in the amount of $100,000 with the form to be established by the village.
(B) Within 15 days after the award of a renewal franchise, the grantee shall deposit with the village either an irrevocable letter of credit from a financial institution or a security deposit in the amount of $10,000 with the form to be established by the village.
(C) The form and content of such letter of credit or security deposit shall be approved by the Village Attorney. These instruments shall be used to ensure the faithful performance of the grantee of all provisions of this subchapter, and to ensure compliance with all orders, permits and directions of any agency, commission, board, department, division or office of the village having jurisdiction over its acts or defaults under this subchapter, and to ensure the payment by the grantee of any claims, liens and taxes due the village which arise by reason of the construction, operation or maintenance of the system.
(D) The letter of credit or security deposit shall be maintained at the amount established in division (A) above for the entire term of the franchise, even if amounts have to be withdrawn pursuant to this subchapter.
(E) If the grantee fails to pay to the village any compensation within the time fixed herein; or fails to pay to the village any taxes due and unpaid; or fails to repay the village any damages, costs or expenses which the village is compelled to pay by reason of any act or default of the grantee in connection with the franchise, the village shall provide the grantee with written notice informing the grantee that such amounts are due to the village. The written notice shall describe in reasonable detail the specific reasons for the assessment. The grantee shall have 30 days subsequent to receipt of the notice in which to pay the amounts the village has stated it is owed, or within ten days of receipt of the village notice, notify the village that there is a dispute as to whether grantee believes such amounts are due the village. Such notice by the grantee to the village shall specify with particularity the basis of grantee’s belief that such monies are not due the village, and shall stay the running of the 30-day cure period pending a Board decision. The Board shall hear the grantee’s dispute. The grantee must be given at least ten days’ notice of the hearing. At the hearing, the grantee shall be entitled to the right to present evidence and the right to be represented by counsel. After the hearing, the village shall provide the grantee a copy of its action, along with supporting documents. In the event the village upholds the finding of outstanding monies due the village by the grantee, the village may immediately withdraw the amount thereof, with interest from the letter of credit or security deposit.
(F) The rights reserved to the village with respect to the letter of credit are in addition to all other rights of the village, 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 village may have.
(G) The letter of credit shall contain the following endorsement: “It is hereby understood and agreed that this letter of credit or security deposit may not be canceled by the surety nor the intention not to renew be stated by the surety until 30 days after receipt by the village, by registered mail, of a written notice of such intention to cancel or not to renew.”
(H) Upon receipt of the 30-day notice, this shall be construed as a default granting the village the right to demand payment from the bank for either the security deposit or letter of credit.
(I) The village at any time during the term of this subchapter, may waive the grantee’s requirement to maintain a letter of credit or security deposit. The waiver of the requirement can be initiated by the village or grantee.
(2000 Code, § 113.14) (Ord. 1678, passed 7-21-1997)