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Title 10
Chapter 10.27A
Section 10.27A.330
 

Title 10 Regulation of Activities

Chapter 10.27A Cable Communications Code

Article III. Franchise Conditions

Section 10.27A.330 Performance Security
  1. A franchisee shall deposit with the City a letter of credit from a financial institution chosen by the franchisee and reasonably approved by the City in the amount set by the City, but not to exceed one million dollars.
    1. The letter of credit may not be revoked or terminated during the term of a franchise plus an additional sixty days except with written approval of the City.
    1. The form and content of such letter of credit shall be approved by the city attorney.
    1. The letter of credit shall be used to ensure the faithful performance by a franchisee of all provisions of the franchise and 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 or defaults under the license, and the payment by the franchisee of any costs, claims, liens, liquidated damages and taxes due the City which arise by reasons of the construction, operation or maintenance of the system, or breach or termination of a franchise.
  1. The letter of credit shall be maintained by a franchisee at one million dollars or such lesser amount as the City shall determine during the entire term of the franchise, as the City may require, even if funds are drawn against it pursuant to this chapter.
  1. The letter of credit shall contain the following endorsement:
    1. “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 sixty days after receipt by the city clerk, by certified mail, of a written notice of such intention to cancel or not to renew.”
  1. At the City’s option, it may draw against the letter of credit consistent with the terms specified in a franchise.
  1. 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 this chapter or related documents 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 City may have.

Date Passed: Monday, June 4, 2007

Effective Date: Wednesday, July 11, 2007

ORD C34041 Section 1 (Recodification)

May 1, 2024