Article V — General Financial and Insurance Provisions

A.

Filing Bond. Within thirty (30) days after the granting of a franchise and prior to the commencement of any construction work by the grantee, the grantee shall, if required by the franchise, file with the city a construction bond in the amount specified in the franchise in favor of the city and any other person who may claim damages as a result of the breach of any duty by the grantee assured by such bond. Such bond 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.

C.

Waiver. The city, at its sole option, may waive this requirements, or permit consolidation of the construction bond with the performance bond and/or security fund specified in this chapter.

(Prior code § 15027)

A.

Filing of Bond. In addition to the construction bond set forth in Section 5.12.280, the grantee shall, at least thirty (30) days prior to the commencement of operation or, if completion of construction of the cable communications system has occurred, within thirty (30) days after the effective date of the franchise, file with the city a performance bond in the amount specified in the franchise in favor of the city and any other person who may be entitled to damages as a result of any act or omission of the grantee, its employees, agents and contractors arising in the operation or termination of the cable communications system operated under the franchise, and including the payments required to be made to the city hereunder. Such bond 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.

(Prior code § 15028)

A.

Deposit and Amount. If so required under its franchise, within thirty (30) days after the effective date of the franchise the grantee shall deposit with the city, and maintain on deposit through the term of the franchise the sum specified in the franchise as security for the faithful performance by it of all the provisions of the franchise, and compliance with all orders, permits and directions of any department of the city having jurisdiction over its acts or defaults under this chapter, and the payment of the grantee of any claims, liens and taxes due the city which arise by reason of the installation, construction, operation or maintenance of the cable communications system. No interest shall accrue or be paid to the grantee with respect to such security fund. The security fund may be assessed by the city for purposes including, but not limited to, the following:

Failure of the grantee to pay the city sums due under the terms of the franchise;

Reimbursement of costs borne by the city to correct franchise violations not corrected by grantee, after due notice; and

Monetary remedies or damages assessed against the grantee due to default or violation of franchise requirements.

B.

Letter of Credit in Lieu of Deposit. At the city's sole option, all or a portion of the security fund may be provided by way of an irrevocable letter of credit in a form approved by the city attorney.

C.

Restoration of Fund. Within thirty (30) days after notice that any amount has been withdrawn by the city from the security fund or letter of credit pursuant to the provisions of this section, the grantee shall deposit with the city a sum of money sufficient to restore such security fund to the original amount or shall restore the letter of credit to the original amount thereof.

D.

Withdrawal from Fund. If the grantee fails, after ten (10) days' notice, to pay to the city any franchise fee or taxes due and unpaid, or fails to pay to the city within such ten (10) days any damages, costs or expenses which the city shall be compelled to pay by reason of any event of default of the grantee in connection with the franchise, or fails, after notice of such failure by the city and expiration of the applicable cure period, to comply with any provision of the franchise which the city reasonably determines can be remedied by an expenditure of the security fund or draw against the letter of credit, as the case may be, the city may

immediately withdraw the amount thereof, with interest and any penalties, from the security fund or the letter of credit. Upon such withdrawal, the city shall notify the grantee of the amount and date thereof.

E.

Forfeiture or Return of Fund. The security fund deposited pursuant to this section shall become the property of the city in the event that the franchise is revoked for cause by reason of the occurrence of an event of default by the grantee in accordance with the procedures of this chapter. The grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit no later than ninety (90) days after the expiration of the term of the franchise, provided that there is then no outstanding default on the part of the grantee in the performance of its obligations required under its franchise.

F.

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

(Prior code § 15029)

A.

Scope of Coverage. The grantee shall maintain throughout the term of the franchise insurance in amounts at least as follows:

Worker's Compensation Insurance. Worker's compensation insurance shall be maintained in accordance with the worker's compensation insurance and safety laws of the state of California.

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.

Comprehensive Automobile Liability. Comprehensive automobile liability insurance including, but not limited to, nonownership and hired car coverage, as well as owned vehicles with coverage for bodily injury and property damage, 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 or certificates of insurance evidencing compliance by the grantee with the provisions of this section and the corresponding provisions of the franchise.

C.

City as Additional Insured. The city, its officers, boards and commissions, and members thereof, its employees and agents shall be named as additional insured in any of such liability insurance policies required under subsections (A)(2) and (A)(3) of this section. The obligation of the insurer under such policies to provide coverage 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 cancelled or reduced in coverage without thirty (30) days' 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 shall be subject to approval of the city, which approval shall not be unreasonably withheld.

(Prior code § 15030)

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, except with respect to any such liability as may be due to the active negligence of the city, its employees, agents or contractors. 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 such 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, provided that neither the city nor any such other person shall agree to any settlement, compromise, or other resolution or disposition with respect to such suit or claim without the prior written consent of the grantee.

(Prior code § 15031)