(A) In consideration of the rights, privileges and permits hereby grant in compensation to the town for the use of its public place, the operator agrees to pay to the town, no later than March 1 for the preceding calendar year, 3% of gross revenues from the sale of services to the cable television system.
(B) The town shall have the right to inspect the operator’s books, plans, income tax returns and other business records and its studios, equipment and other facilities at any time during normal business hours and a complete accounting supporting the gross revenues paid to the town shall be submitted by operator not later than March 1 of each year.
(1) Security fund. Within 30 days after the adoption of this chapter, the operator shall deposit with the town the sum of $50,000 to partially assure that satisfactory completion of construction of the cable television system along with providing a source of funds to provide indemnification should any damage be incurred by citizens of the town or subscribers as a result of improper installation of workmanship. The town shall keep the deposit in an interest-bearing account or certificate of deposit as may be allowed by law and all interest shall accrue and be paid to the operator. Subsequent to the completion and activation of the cable television system, the town shall release $35,000 of the above security fund to operator and town may release additional sums upon application for release made by operator to the town. The operator shall be entitled to the return of the security fund, or portions thereof, as remains on deposit with the town to the expiration of the term of this chapter; providing, there is then no outstanding default on the part of the operator.
(2) Letter of credit. Within 30 days after the adoption of this chapter, the operator shall furnish to the town an irrevocable letter of credit ensuring and guaranteeing the timely construction and full activation of the cable system by the operator. The irrevocable letter of credit shall be in the sum of $250,000 and be issued and drawn with such terms, conditions and contingencies as approved by the Council and legal counsel for the Council. Said irrevocable letter of credit shall provide for the recoverability by the town, from the financial institution issuing the irrevocable letter of credit, of any and all damages, losses or costs suffered by the town resulting from the failure of the operator to satisfactorily complete the fully activate the cable television system within one year from the adoption of this chapter. Said letter of credit shall expire by its terms not later than one year and three months from adoption of this chapter. Any extension to said irrevocable letter of credit shall be agreed to by the Council only when said Council finds that such extension is necessary and appropriate due to causes beyond the control of the operator.
(1996 Code, § 11-20) (Ord. 82-3, passed - -)