Citrus Heights Municipal Code Div. 7 Bonds and Insurance

Each licensee shall file with the commission and, at all times thereafter until the determination by the commission after request by a licensee that the licensee has fully completed construction and made service available to each dwelling unit within the license area, maintain in full force and effect, an acceptable corporate surety bond issued by a surety licensed therefor by the State of California in an amount equal to the greater of (a) the licensee's estimate of the total cost of construction of the cable television system within the license area, or (b) the sum of (i) the product of the number of miles of aerial plant (to the nearest one-tenth of a mile) in the license area and $18,000.00 and (ii) the product of the number of miles of underground plant (to the nearest one-tenth of a mile) in the license area and $32,000.00, effective for the entire term of the license, and conditioned that in the event the licensee shall fail to comply with any one or more of the provisions of the license documents, whether or not the license is terminated, then there shall be recoverable, jointly and severally from the principal and surety of such bond, any damages suffered by the county, cities or cable television commission as a result thereof, including, but not limited to, the full amount of any liquidated damages, delinquent license fees, compensation and costs of repairing or completing the cable television system, and compensation, and cost of removal or abandonment of property and repair of streets and other public or private improvements, up to the full amount of the bond; said condition to be a continuing obligation for the duration of the license and thereafter until the licensee has satisfied all of its obligations which may have arisen from the acceptance of the license or from its exercise of any privileges thereunder.

Upon the determination by the commission, after request by a licensee, that the licensee has fully completed construction and made service available to each dwelling unit within the license area, the amount of the aforesaid corporate surety bond shall be reduced to an amount equal to $50.00 for each dwelling unit located within the license area upon the date of the notice of final completion and maintained at such an amount at all times thereafter during the operation of the cable television system.

Neither the provisions of this section, any bond accepted pursuant thereto, nor any damages recovered thereunder shall be construed to excuse faithful performance by the licensee or to limit the liability of the licensee under the license or for damages, either to the full amount of the bond or otherwise. The bond shall contain a provision which prohibits cancellation by the surety during the term of the license, whether for failure to pay a premium or otherwise, without 30 calendar days' advance written notice mailed by the surety to the clerk of the board of directors of the cable television commission. The form of the bond and surety shall be subject to the approval by the cable television commission.

The performance bond for any license area (including an alternate performance bond comporting with the provisions of section 90-722 below) shall be deposited with the commission prior to the construction of any portion of a cable television system within, upon, or above the streets, provided that conduit and attendant vaults, without other appurtenances of a cable television system, may be installed, at the same time other utilities are so installed, in joint utility trenches in new residential subdivisions prior to the posting of the performance bond.

(Ord. No. 97-12, § 2(5.75.600), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

In lieu of a performance bond in the amounts required by the provisions of section 90-721 above, a licensee may elect and provide a performance bond otherwise comporting with the requirements of section 90-721 above in the amount of $2,500,000.00 for the entire period of the term of a license. Upon the proper posting of such alternative bond, the commission shall return performance bonds previously provided for such license or licenses pursuant to the provisions of this article.

(Ord. No. 97-12, § 2(5.75.601), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Each licensee shall defend, indemnify and hold harmless the commission, its members, and, in their capacity as such, the officials, agents, employees, representatives and volunteers thereof, from any and all claims, demands, suits, causes of action, damages, costs, expense, losses or liability, in law or in equity, of every kind and nature whatsoever ("claims"), arising out of or in connection with licensee's operations under this ordinance including but not limited to:

a. Injury or death to persons including but not limited to, licensee's officers, agents, contractors or employees, or damage to property, including loss of use, caused or alleged to be caused in whole or in part by any act or omission of licensee, its officers, agents, contractors, employees, or representatives or anyone for whose acts licensee may be liable.

b. Injury or damage arising out of invasion of the right of privacy, libel, slander, defamation of any person, firm or corporation, or the violation or infringement of any copyright, patent, service mark, trade mark, trade name, or of any other right of any person, firm or corporation.

c. Injury or damage arising out of anti-competitive practices alleged against the licensee.

d. Claims, damages or penalties arising out of licensee's failure to comply with the provisions of any statute, regulation or ordinance of the United States, State of California or any local agency applicable to the licensee in its business.

e. Injury or damage arising out of licensee's failure to comply with the provisions of this ordinance relating to procurement and maintenance of insurance.

f. Injury or damage arising out of licensee's failure to fulfill any of the covenants set forth in this ordinance.

Licensee shall pay and satisfy any judgment or decree that may be rendered against commission, its members, their officials, agents, employees, volunteers or representatives, or any of them, arising out of any such claims.

Licensee shall reimburse commission, its members, their officials, agents, employees, volunteers or representatives, for any and all legal expense incurred by any of them in connection herewith or in enforcing the indemnity granted in this section.

Indemnitees may, at their discretion, participate in the investigation and defense of any claims or litigation brought against them at anytime, using legal counsel of their choice, and such expense shall be borne solely by licensee. Such participation shall not relieve licensee from its duty to defend, indemnify and hold harmless indemnitees as set forth in this section.

The indemnification obligations of licensee set forth in this section shall apply regardless of any act or omission of commission, its members, their officials, agents, employees, representatives or volunteers which may have contributed to the said injury or damage, to the maximum extent allowed by California law.

(Ord. No. 97-12, § 2(5.75.602), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997; Ord. No. 97-22, § 7, 12-10-1997)

Each licensee shall file with the application which it files pursuant to the provision of section 90-567, and at all times thereafter maintain in full force and effect at its sole expense, the following insurance:

a. General liability: General liability insurance including, but not limited to, protection for claims of bodily injury and property damage liability, personal and advertising injury liability, and products and completed operations liability. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage form GG 0001 (occurrence). The limits of liability shall be not less than:

Each occurrence $1,000,000.00

Personal and advertising injury $1,000,000.00

General aggregate $2,000,000.00

Products and complete operations aggregate $2,000,000.00

The policy shall cover contractual liability applicable to the licensee's assumed liability under this contract.

b. Automobile liability: Automobile liability insurance providing protection against claims of bodily injury and property damage arising out of ownership, operation, maintenance, or use of owned, hired, and non-owned automobiles. Coverage shall be at least as broad as Insurance Services Office Automobile Liability coverage form CA 0001, symbol 1 (any auto). The limits of liability shall not be less than:

Bodily injury and property damage combined single limit $1,000,000.00

If general liability coverage, as required in section 90-724.a, above, is provided by the commercial general liability form, the automobile liability policy shall include an endorsement providing automobile contractual liability.

c. Workers' compensation: Workers' compensation insurance, with coverage as required by the State of California (unless the licensee is a qualified self-insurer with the State of California), and employer's liability coverage. The limits of employers liability shall not be less than:

Each accident $1,000,000.00

Disease each employee $1,000,000.00

Disease policy limit $1,000,000.00

d. Excess or umbrella liability: Excess or umbrella liability providing excess coverage at least as broad as the underlying coverage for general liability, automobile liability and employer's liability with a limit of $4,000,000.00 per occurrence and in the aggregate.

The licensee's general liability, automobile liability, and excess or umbrella liability policies, shall contain the following provisions:

a. The commission, its members, their officials, agents, employees, representatives and volunteers, shall be covered as additional insureds as respects liability arising out of the activities performed by or on behalf of the licensee, products and completed operations of the licensee, premises owned, occupied, or used by the licensee, or automobiles owned, leased, hired, or borrowed by the licensee. The policy shall contain no special limitations on the scope of coverage afforded to the commission, its members, their officials, agents, employees, representatives or volunteers.

b. The licensee's insurance coverage shall be primary insurance as respects the commission, its members, their officials, agents, employees, representatives or volunteers. Any insurance or self-insurance maintained by the commission, its members, their officials, agents, employees, representatives or volunteers shall be excess of the licensee's insurance and shall not contribute with it.

c. Any failure to comply with reporting or other provisions of the policies on the part of the licensee, including breaches of warranties or unintentional misrepresentations, shall not affect coverage provided to the commission, its members, their officials, agents, employees, representatives or volunteers.

d. The licensee's workers' compensation and employer's liability policies shall contain an endorsement that waives any rights or subrogation against the commission, its members, their officials, agents, employees, representative or volunteers.

e. Each insurance policy shall state that coverage shall not be suspended, voided, canceled by either party, reduced in scope or in limits, nonrenewed, or materially changed unless the insurer provides 30 days' advance written notice by certified mail to the clerk of the board of directors of the Sacramento Metropolitan Cable Television Commission, 700 H Street, Room 2450, Sacramento, California 95814, prior to such change. The insurer shall provide ten days' advance written notice by certified mail to the clerk of the board of directors of the Sacramento Metropolitan Cable Television Commission in the event of cancellation due to nonpayment of premium.

f. All of the licensee's insurance coverage, except as noted below, shall be placed with insurance companies with a current A.M. Best's rating of at least A-:VII.

Exceptions:

i. Underwriters at Lloyd's of London;

ii. Workers' compensation which is provided through a state compensation insurance fund;

iii. Licensee's qualified workers' compensation self-insurance under California law.

g. The commission will accept licensee's self-insurance of its general or automobile liability risks only if the licensee has a minimum net worth of at least $10,000,000.00.

h. The licensee shall furnish the commission with certificates of insurance, including copies of all endorsements specifically required hereunder, signed by a person authorized by the insurer to bind coverage on its behalf, as evidence of the coverage required by this section.

i. For unforeseen risks, the commission, at its discretion, may increase the amounts and types of insurance coverage required hereunder at any time during the term of the contract by giving written notice to the licensee. Licensee shall immediately procure such insurance or increase the amounts of insurance coverage, and provide certificates of insurance as required in section 90-754.g.

j. The form and substance of the insurance required of the licensee shall be subject to the approval of commission and the County of Sacramento risk manager. Any acceptance of insurance certificates by commission or the County of Sacramento risk manager shall in no way limit or relieve licensee of licensee's duties and responsibilities set forth in this ordinance.

k. The failure of the commission to enforce in a timely manner any of the provisions of this section shall not act as a waiver to enforcement of any of these provisions at any time during the term of the franchise.

(Ord. No. 97-12, § 2(5.75.604), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997; Ord. No. 97-22, § 8, 12-10-1997)

Each licensee shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against the county, cities, cable television commission and in their capacities as such the officers, agents, and employees thereof in connection with any damage covered by any policy, whether for nonpayment or premium, or otherwise, and whether at the request of the licensee or for other reasons, except after 30 calendar days' advance written notice mailed by the insurer to the clerk of the board of directors of the Sacramento Metropolitan Cable Television Commission, and that such notice shall be transmitted postage prepaid, with return receipt requested, and addressed to the clerk at 1010 8th Street, Sacramento, California 95814.

(Ord. No. 97-12, § 2(5.75.606), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)