Chico Municipal Code Art. V General Financial and Insurance Provisions

A. Filing of Bond. The grantee of any franchise granted pursuant to this chapter shall, at least thirty days prior to the commencement of operation, file with the city a performance bond in the amount specified in the franchise in favor of the city for all losses and damages the city may sustain as a result of any act or omission of the grantee, its employees, agents, and contractors arising from the operation or termination of the services under the franchise, and including the payments required to be made to the city hereunder. Such bond shall be obtained from an insurance company licensed to do business in the State of California with a Best’s Guide rating of “B” or better, or, in the alternative, an unlicensed, U.S. domiciled company with a Best’s Guide rating of “A”, and shall be in a form approved by the city attorney.

B. No Limitation of Liability. In no event shall the amount of such bond be construed to limit the liability of the grantee for damages.

(Ord. 2107 §1)

A. Scope of Coverage. The grantee shall maintain throughout the term of the franchise the following insurance:

1. Workers’ Compensation Insurance. Workers’ compensation insurance shall be maintained in accordance with the workers’ compensation insurance and safety laws of the state of California.

2. Comprehensive General Liability. Comprehensive general liability insurance, including, but not limited to, coverage for bodily injury and property damage, shall be maintained in the sum(s) specified in the franchise.

3. Comprehensive Automobile Liability. Comprehensive automobile liability insurance including, but not limited to, non-ownership and hired car coverage, as well as owned vehicles with coverage for bodily injury and property damage and an MSC-90 endorsement including environmental restoration coverage for accidents during transportation, shall be maintained in the sum(s) specified in the franchise.

4. Pollution Liability. Pollution liability or sudden accidental pollution liability coverage shall be maintained in the sum(s) specified in the franchise.

5. Employer’s Liability. Employer’s liability coverage shall be maintained in the sum(s) specified in the franchise.

B. Certificates of Insurance. The grantee shall furnish the city with copies of such insurance policies and any endorsements thereto for approval by city’s risk manager. Thereafter, grantee may substitute for same a certificate of insurance issued by the respective insurance company or companies certifying that such insurance policy or policies are in full force and effect.

C. City As Additional Insured. The city, its officers, boards and commissions, and members thereof, its employees and agents shall be named as additional insureds in all of the liability insurance policies required under subsections A.2, A.3 and A.4 of this section. The obligation of the insurers under such policies to provide coverages in the amounts specified in the grantee's franchise shall be primary up to the limits of liability as set forth in such franchise without right of contribution from any insurance in effect for the city. Such policies shall not be canceled or reduced in coverage without thirty (30) days' unqualified prior written notice to the city of the effective date thereof.

D. No Limitation of Liability. The minimum amounts set forth in the franchise for such insurance shall not be construed to limit the liability of the grantee to the city under the franchise issued hereunder to the amounts of such insurance.

E. Licensed Insurers. All insurance carriers providing coverage under this section shall be duly licensed to operate in the state of California and with a Best’s Guide rating of “B” or better, or, in the alternative, an unlicensed, U.S. domiciled company with a Best’s Guide Rating of “A”, and shall be subject to approval of the city.

(Ord. 2107 §1)

The grantee shall, by acceptance of any franchise granted herein, indemnify the city, its officers, boards and commissions, and members thereof, its employees and agents from any and all liabilities which might arise out of or relate to the exercise or enjoyment by the grantee of such franchise. Should the city or any of its officers, boards and commissions, and members thereof, its employees or agents be named in any suit, or should any claim be made against it or any of them by suit or otherwise, whether the same be groundless or not, arising out of or relating to any claim for which the grantee may be required to indemnify the city hereunder, the grantee shall defend the city and said officers, boards and commissions, and members thereof, its employees and agents and shall indemnify them for any judgment rendered against them or any sums paid out in settlement or otherwise.

(Ord. 2107 §1)