(a) Subsequent to the effective date of this chapter, within ten days after the award of a new franchise or the transfer, extension or renewal of an existing franchise, Grantee thereunder shall furnish the Authority, on behalf of all of the Authority's member communities, and thereafter maintain with the Authority, throughout the term of the franchise, a cash deposit of twenty-five thousand dollars ($25,000) as security for:
(1) The faithful performance by it of all the provisions of this chapter and the franchise;
(2) Compliance with all orders, permits and directions of any agency, commission, board or department of the Village having jurisdiction over its acts or defaults under the franchise; and
(3) The payment by 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(b) Within ten days after notice to it that any amount has been withdrawn from the security fund, Grantee shall pay to or deposit with the Authority a sum of money in the full amount withdrawn.
(c) If Grantee fails to pay to the Village any fees within the time fixed herein; or fails, after ten days written notice, to pay to the Village any taxes due and unpaid; or fails to repay the Village within such ten days, any damages, costs or expenses which the Village shall be compelled to pay by reason of any act or default of Grantee in connection with a franchise; or fails, after three days notice of such failure, to comply with any provisions of the franchise which the Village reasonably determines can be remedied by a withdrawal from the security fund, the Authority, on request of the Village may immediately withdraw the amount thereof, with interest and any additional charges, from the security fund. Upon such withdrawal, the Authority shall notify Grantee of the amount and date thereof and shall remit to the Village the amount so withdrawn.
(d) The security fund deposited pursuant to this section, including all interest thereon, if any, shall be held by the Authority, for the benefit of its member communities, in the event that the franchise is rescinded or revoked by reason of the default of Grantee. Grantee, however, shall be entitled to the return of such security fund, or such portion thereof as remains on deposit at the expiration of the term of the franchise, provided that there is then no outstanding default on the part of Grantee. Any interest earned by the investment of the security fund shall become part of the security fund and unless consumed by the payment of liquidated damages, fees or other charges under this article, shall be returned to Grantee at the expiration of the franchise term, provided that there is then no outstanding default on the part of Grantee.
(e) The Authority shall maintain the security fund in a segregated account and shall not commingle the same with any other moneys of the Authority. The Authority may, but shall not be required to, invest the security fund so as to earn interest thereon and shall not be liable to Grantee on any claim based upon the lack or insufficiency of interest earned by such fund.
(f) Payment from the security fund shall not constitute a cure of any violation or any act of noncompliance by Grantee. The rights reserved to the Village with respect to the security fund are in addition to all other rights of the Village whether reserved by this article or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the Village may have.
(g) The security fund provided for in this section shall be in addition to any performance bond, letter of credit or other security provided for in the franchise agreement.
(Ord. 141. Passed 2-12-03.)