947.08 LETTER OF CREDIT.

   (a)   Within ten days after the award of an initial franchise only, a Grantee shall deposit with the Clerk of Council a letter of credit from a local financial institution in the amount of fifty thousand dollars ($50,000). The form and content of such letter of credit shall be subject to the approval by the City. The letter of credit shall be used to ensure the faithful performance by a Grantee of all provisions of this chapter; compliance with all orders, permits and directions of any agency, commission, board, department, division or office of the City having jurisdiction over its acts; defaults under a franchise; and the payment by a Grantee of any claims, liens and taxes due the City which arise by reason of the construction, operation or maintenance of the system.

   (b)   The letter of credit shall be maintained at fifty thousand dollars ($50,000) during the initial term of the franchise, even if amounts have to be withdrawn pursuant to subsection (a) or (c) hereof.

   (c)   If the Grantee fails to pay the City any compensation within the time fixed herein, or fails after ten days' notice to pay to the City any taxes due and unpaid or fails to repay the City within such ten days any damages, costs or expenses which the City is compelled to pay by reason of the act or default of the Grantee in connection with a franchise or fails after three days' notice of such failure by the City to comply with any provision of a franchise which the City reasonably determines can be remedied by demand on the letter of credit, the City may, subject to subsection (d) hereof, request payment of the amount thereof, with interest and any penalties, from the letter of credit. Upon such request for payment, the City shall notify the Grantee of the amount and date thereof.

   (d)   Notwithstanding subsection (c) hereof, in case of a bona-fide dispute regarding compliance, the Grantee may request a hearing before the Director of Administration within thirty days after notification of noncompliance and penalty by the City. No action may be taken on such letter of credit until a prior hearing with an opportunity to be heard has been conducted. At such hearing, all parties may give evidence, and the merits of the dispute will be decided.

   (e)   The Director of Administration shall make public his decision, along with a statement reciting the basis therefor. Within thirty days, the Grantee may appeal to Council, in writing the decision rendered by the Director of Administration. At the appeal hearing the Grantee may contest the findings of fact or interpretation of controlling law, at which time Council may affirm, reject or modify the decision of the Director of Administration. The affirmance, rejection or modification of such decision by Council shall be a final appealable order.

   (f)   The rights reserved to the City with respect to the letter of credit are in addition to all other rights of the City, whether reserved by negotiation with the Grantee or authorized by law, and no actions, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the City may have.

   (g)   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 thirty (30) days after receipt by the City of Wooster, Ohio, by registered mail, of a written notice of such intention to cancel or not to renew. "

   (h)   The Grantee will not be required to provide a letter of credit for any renewals issued. (Ord. 1985-18. Passed 6-3-85.)