Chino Hills Municipal Code Art. III General Financial and Insurance Provisions

Grantee may be required to obtain and maintain throughout the period of any construction (or reconstruction), at its sole cost and expense, a corporate surety bond from a company authorized to do business in the state of California. Such bond will guarantee the timely construction (or reconstruction) and full activation of the cable system, and the safeguarding of damage to private property and restorage of damages incurred by utilities. The bond shall be filed with the City Clerk at least thirty (30) days prior to the commencement of any construction, and shall be in the form specified and approved by the City Attorney. Bond requirements, including amount, shall be specified in the franchise agreement.

(Ord. 140 § 1 (part), 2000)

Grantee may be required to obtain and maintain throughout the term of the franchise, at its sole cost, a corporate surety bond from a company authorized to do business in the state of California. The bond will guarantee performance by grantee of all the provisions and obligations of the franchise (other than construction). The bond shall be filed with the City Clerk within forty-five (45) days after the award, renewal or transfer of a franchise and shall be in the form specified and approved by the City Attorney. Bond requirements, including amount, shall be specified in the franchise agreement.

(Ord. 140 § 1 (part), 2000)

A. Grantee shall establish and maintain throughout the term of its franchise a letter of credit in favor of the city. The letter of credit shall serve as security for the faithful performance by grantee of all the provisions and obligations of the franchise. The letter of credit shall be established within forty-five (45) days after the award, renewal or transfer of a franchise and shall be in the form specified and approved by the City Attorney. Specific requirements pertaining to the letter of credit, including amount, shall be specified in the franchise agreement.

B. Grantee shall restore the letter of credit to the original amount within thirty (30) days after notice from the city that an amount has been withdrawn.

C. Failure to maintain the letter of credit in the required amount shall be considered a material breach of the franchise.

(Ord. 140 § 1 (part), 2000)

A. Grantee shall fully indemnify, defend and hold harmless the city, its officers, boards, commissions, elected officials, agents, attorneys, representatives, servants and employees against any and all costs, damages, expenses, claims, suits, actions, liabilities, and judgments for damages, including but not limited to, expenses for legal fees, whether suit be brought or not, and disbursements and liabilities incurred or assumed by the city in connection with:

1. Damage to persons or property, in any way arising out of or through the acts or omissions of grantee, its servants, officials, agents, attorneys, representatives or employees or to which grantee's negligence or that of their servants, agents, officials, attorneys, representatives or employees shall in any way contribute;

2. Requests for relief arising out of any grantee action or inaction which results in a claim of invasion of the right of privacy; for defamation of any person, firm or corporation; for the violation or infringement of any copyright, trademark, trade name, service mark or patent; unfair competition or of any other right of any person, firm, or corporation;

3. Any and all claims arising out of grantee's failure to comply with the provisions of this chapter or a franchise or any federal, state or local law, ordinance or regulation applicable to grantee, the cable system or cable services.

Grantee will not be required to indemnify the city from claims, demands, actions, suits, liabilities and judgments arising out of the sole acts or omissions of the city.

B. Grantee shall at its sole cost defend the city against any suit brought or threatened against the city in connection with the above matters. Grantee shall pay all such defense costs that accrue or are incurred after the city provides notice to grantee of such suit. Such costs include, but are not limited to, attorney's fees and the reasonable value of services rendered by the city of any of its employees, officials, attorneys, servants, agents or representatives.

C. The city shall indemnify, and hold harmless grantee, its affiliates and their respective officers, directors, employees and shareholders from and against any and all damages, penalties, judgments and liability of any kind, and defend all claims, actions or causes of action arising as a result of the city's use of PEG channels. This indemnity shall not apply with respect to any programming provided by grantee and carried on such access channels.

(Ord. 140 § 1 (part), 2000)

A. Within forty-five (45) days after the effective date of the franchise agreement, grantee shall file with the City Clerk, and shall thereafter during the entire term of such franchise, maintain in full force and effect, at its own expense, a general comprehensive liability insurance policy or policies which shall insure grantee and provide primary coverage for the city, its officers, boards, commissions, agents and employees, against liability for loss or liability for personal injury, death, property damage (both automobile and nonautomobile caused), premises operations, explosion and collapse hazard, underground hazards, or other damages. Such policy or policies shall include insurance against damages from, and any failure by grantee to secure consents, occasioned by any activity or operation of grantee under such franchise, and regardless of any claimed or actual activities of the city, its officers, boards, commissions, agents and employees. Grantee shall also provide a standard broadcaster's liability policy. Each such policy shall contain the standard cross-liability endorsement, shall be issued by a company approved by the City Risk Manager and shall be in a form approved by the City Attorney, with minimum combined single limits of liability coverage or the equivalent thereof in the amount of not less than five million dollars ($5,000,000.00), or such other amount if expressly stated in the franchise agreement.

B. The policy or policies shall name the city, its officers, boards, commissions, agents and employees as additional insured (except broadcaster's liability coverage) at no cost to the city, and shall contain a provision that a written notice of any cancellation, modification or reduction in coverage of said policy shall be delivered to the City Clerk thirty (30) days in advance of the effective date thereof. Grantee shall also provide worker's compensation coverage consistent with California statutory requirements.

(Ord. 140 § 1 (part), 2000)