Insurance; bonds; indemnity

(a)

Upon the granting of a franchise and within thirty (30) days following the filing of the acceptance required under section 7-12, and at all times during the terms of the franchise, including the time for removal of facilities or management as a trustee as provided for herein, the grantee shall obtain, pay all premiums for, and file with the city written evidence of payment of premiums and executed duplicate copies of the following:

(1)

A general comprehensive liability policy indemnifying, defending and saving harmless the city, its officers, boards, commissions, agents or employees from any and all claims by any person whatsoever on account of injury to or death of a person or persons occasioned by the operations of the grantee under the franchise herein granted or alleged to have been caused or occurred, with a minimum liability of five million dollars ($5,000,000.00) combined single limit for personal injury or death, or such greater amount as shall be specified in the franchise;

(2)

Property damage insurance indemnifying, defending and saving harmless the city, its officers, boards, commissions, agents and employees from and against all claims by any person whatsoever for property damage occasioned by the operation of grantee under the franchise herein granted or alleged to have been so caused or occurred, with a minimum liability of two million dollars ($2,000,000.00) combined single limit for property damage, or such greater amount as shall be specified in the franchise;

(3)

A performance bond running to the city with good and sufficient surety approved by the city in the amount specified in the franchise or, if no amount is specified therein, then in the sum of one million dollars ($1,000,000.00) conditioned upon the faithful performance and discharge of the obligations imposed by the chapter and the franchise awarded hereunder from the date thereof including, but not limited to, faithful compliance with the construction timetable proposed by the grantee in its bid as incorporated into the franchise, unless appropriate extension is approved by the mayor upon authorization of the city council. The city's right to recover under the bond shall be in addition to any other rights retained by the city under this chapter and other applicable law. Any proceeds recovered under the bond may be used to reimburse the city for the loss of expected payments of the franchise fee and other valuable consideration given for the grant of the franchise and such additional expenses as may be incurred by the city as a result of grantee's failure to comply with the obligations imposed by this chapter and the franchise including, but not limited to, attorney's fees and costs of any action or proceeding, the cost of refranchising, and the cost of removal or abandonment of any property, or other costs which may be in default.

(b)

The bond and all insurance policies called for herein shall be in a form satisfactory to the city attorney and shall require thirty (30) days' written notice of any cancellation to both the city and the grantee. The grantee shall, in the event of any such cancellation notice, obtain, pay all premiums for, and file with the city written evidence of the issuance of a replacement bond or policies within thirty (30) days following receipt by the city or the grantee of any notice of cancellation.

(c)

The grantee shall, at its sole cost and expense, indemnify and hold harmless the city, its officials, boards, commissions, consultants, agents and employees against any and all claims, suits, causes of action, proceedings, and judgments for damage arising out of the award of a franchise to the grantee and its operation of the cable television system under the franchise. These damages shall include, but not be limited to, penalties arising out of copyright infringements and damages arising out of any failure by grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee's cable television system, whether or not any act or omission complained of is authorized, allowed or prohibited by the franchise. Indemnified expenses shall include, but not be limited to, all out-of-pocket expenses, such as attorney's fees, and shall also include the reasonable value of any services rendered by the city attorney or his assistants or any consultants, agents and employees of the city.

(Code 1971, § 52-43; Ord. No. 7864-A, § 1(Art. IV, § 13), 1-28-82)

Cross reference— Sureties of persons dealing with city to be licensed by state, § 2-231.