A. Within fifteen (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 an amount of up to one hundred thousand dollars ($100,000.00) with the amount and form to be established by the Village, and specified in the franchise agreement. 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 Chapter, 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 Chapter, 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.
B. Within fifteen (15) days after the award of a renewal franchise, the grantee shall deposit with the Village either: 1) an irrevocable letter of credit from a financial institution or a security deposit of thirty thousand dollars ($30,000.00) or 2) a surety bond in the amount of one hundred fifty thousand dollars ($150,000.00) with the amount and form to be established by the Village. The form and content of such letter of credit, surety bond 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 Chapter, 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 Chapter, 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.
C. The letter of credit, surety bond or security deposit shall be maintained at the amount established in subsections A and B of this Section for the entire term of the franchise. If amounts have to be withdrawn pursuant to this Chapter, the grantee shall promptly restore the letter of credit or security deposit to the full amount.
D. 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, or fails, any provision of the franchise which the Village reasonably determines can be remedied by demand on the letter of credit, surety bond, or security deposit, the Village may demand payment of the amount thereof, with interest and any penalties, from the letter of credit or security deposit in accordance with the procedures set forth in this Section. Grantee will be provided thirty (30) days by the Village and an opportunity to cure during such period. Grantee has the right to appeal the Village's determination to a court of competent jurisdiction.
E. 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.
F. 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 thirty (30) days after receipt by the Village, by registered mail, of a written notice of such intention to cancel or not to renew."
G. Upon receipt of the thirty (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. Failure to renew the letter of credit or to post a substitute within ten (10) days of the notice shall be deemed a default.
H. The Village at any time during the term of this Chapter, may waive grantee's requirement to maintain a letter of credit or security deposit. (Ord. 98-2054, 9-28-1998)