Fremont Municipal Code Art. VI Security, Indemnity and Insurance

(a) Security Fund.

(1) Prior to the effective date of any encroachment permit, the city engineer may require permittee to deposit a sum specified as security (“security fund”) for the faithful performance by permittee of all of the provisions of any encroachment permit, compliance with this chapter, with all orders, permits and directions of the city engineer. The security fund shall be deposited and maintained as directed by the city engineer. As an alternative to a security fund, permittee may furnish a bond or certificate of deposit. The provisions of this subsection shall be satisfied if similar security is provided in compliance with a city franchise or other written agreement.

(2) The city engineer may immediately withdraw any unpaid amount from the security fund, with interest, if permittee fails, after prior written notice, to: pay to the city any fees that are due and unpaid; repay upon demand any damages, costs or expenses which the city is compelled to pay by reason of any act or default of permittee in connection with its encroachment permit; or comply with any provision of any encroachment permit or this chapter. After notice to permittee of such withdrawal, permittee shall restore the security fund to the original amount.

(3) The city’s rights stated herein are in addition to all other rights of the city, and no action, proceeding or exercise of any right with respect to such security fund shall affect any other right the city may have.

(b) Permit Fee. Each permittee shall pay to the city a fee established by resolution of the city council to compensate the department for the cost incurred to process applications for encroachment permits under the provisions of this chapter and to inspect the work. Government agencies shall be exempt from the permit fee but shall be charged plan checking and inspection fees. If the fee schedule is inapplicable, the city engineer may accept a fee deposit for plan check, permit and inspection to cover actual costs.

(c) Collection, Return, and Refund of Security Funds and Fees. Permit and inspection fees shall be returned if an application is denied or withdrawn, less any plan check fees if such work is conducted. Upon expiration of three years from the satisfactory completion of the work as determined by the city engineer, permittee’s security, less deductions made, shall be returned to permittee or to its assigns. (Ord. 14-2007 § 2, 5-8-07. 1990 Code § 6-1600.)

To the maximum extent permitted by law, permittee shall at all times defend, indemnify, protect, save harmless, and exempt the city, the city council, its officers, agents, servants, attorneys and employees from any and all penalties, damages or charges arising out of claims, suits, demands, causes of action, award of damages, imposition of fines and penalties, whether compensatory or punitive, or expenses arising therefrom, either at law or in equity, which arise out of, or are caused by, the construction, erection, location, performance, operation, maintenance, repair, installation, replacement, removal or restoration of facilities or performance of any work within the city based upon any act or omission of permittee, its agents or employees, contractors, subcontractors, independent contractors, or representatives except for that which is attributable to the sole negligence or willful misconduct of the city, the city council, its officers, agents, servants, attorneys and employees. With respect to the penalties, damages or charges referenced herein, reasonable attorneys’ fees, consultants’ fees, and expert witness fees are included as those costs which shall be recovered by the city. (Ord. 14-2007 § 2, 5-8-07. 1990 Code § 6-1601.)

Except as provided in or as supplemented by any franchise agreement, license or permit, permittee shall secure and maintain general liability, property damage or other appropriate insurance as reasonably determined by the city engineer and the risk manager. Before permittee commences any construction in the PROW, permittee shall deliver the policies or certificates representing the insurance to the city engineer. (Ord. 14-2007 § 2, 5-8-07. 1990 Code § 6-1602.)