Poway Municipal Code Art. IV General Financial and Insurance Provisions

The grantee shall be subject to the financial and insurance provisions described in this chapter; provided, however, that inconsistent provisions of the franchise agreement shall control.

(Ord. 129 § 6.1, 1984; Ord. 298 § 1, 1989)

A. The grantee shall, at least 30 days prior to the commencement of construction or reconstruction, file with the grantor a performance bond in the amount specified in the franchise agreement in favor of the grantor and any other person who may be entitled to damages as a result of any occurrence in the operation or termination of the cable communications system operated under the franchise agreement, and including the payments required to be made to the grantor hereunder.

B. Such bond as contemplated herein shall be in the form and with a company approved by the grantor and shall among other matters cover the cost of removal of any properties installed by the grantee in the event said grantee shall default in the performance of its franchise obligation.

C. In no event shall the amount of the bond be construed to limit the liability of the grantee for damages.

D. Grantor, at its sole option, may waive this requirement, or permit consolidation of the construction bond with the performance bond and security fund specified in PMC § 5.60.230.

(Ord. 129 § 6.2, 1984; Ord. 298 § 1, 1989)

A. Within 30 days after the effective date of the franchise, the grantee shall deposit into a bank account, established by the grantor and maintain on deposit through the term of the franchise, or establish an irrevocable letter of credit, the sum specified in the franchise agreement, 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 agency of the grantor having jurisdiction over its act or defaults under this chapter, and the payment by the grantee of any claims, liens and taxes due the grantor which arise by reason of the construction, operation or maintenance of the system. The security funds or letter of credit funds may be assessed by the grantor for purposes including, but not limited to the following:

1. Failure of grantee to pay the grantor sums due under the terms of the franchise;

2. Reimbursement of costs borne by the grantor to correct franchise violations not corrected by grantee, after due notice;

3. Monetary remedies or penalties assessed against grantee due to default or violation of franchise requirements.

B. At the grantor’s sole option, some portion of the security fund may be provided in the acceptable form of an irrevocable letter of credit, in lieu of a cash deposit.

C. Within 30 days after notice to it that any amount has been withdrawn by the grantor from the security fund pursuant to subsection A of this section, the grantee shall deposit a sum of money sufficient to restore such security fund to the original amount or increase the letter of credit to accomplish the same.

D. If the grantee fails, after 10 days’ notice to pay to the grantor any franchise fee or taxes due and unpaid; or, fails to pay to the grantor within such 10 days, any damages, costs or expenses which the grantor shall be compelled to pay by reason of any act or default of the grantee in connection with the franchise; or fails, after 30 days’ notice of such failure by the grantor to comply with any provision of the franchise which the grantor reasonably determines can be remedied by an expenditure of the security fund, the grantor may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the grantor shall notify the grantee of the amount and date thereof.

E. The grantee shall be entitled to the return of such security fund, or portion thereof, as remains on deposit or release the letter of credit, as appropriate, no later than 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.

F. The rights reserved to the grantor with respect to the security fund are in addition to all other rights of the grantor whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right with respect to such security fund shall affect any other right the grantor may have.

(Ord. 129 § 6.3, 1984; Ord. 298 § 1, 1989)

A. The grantee shall by acceptance of the franchise, agree to indemnify, defend and hold harmless the grantor, its officers, boards, commissions, agents, and employees from any and all claims, suits, judgments for damages in any way arising out of or through or alleged to arise out of or through:

1. The act of the grantor in granting the franchise; and

2. The acts or omissions of grantee, its servants, employees, or agents, except for acts of negligence of the grantor. Both such indemnifications shall cover such claims arising in tort, contracts, violations of statutes, ordinances or regulations or otherwise.

B. In the event any such claims shall arise, the grantor shall tender the defense thereof to the grantee; provided, however, that the grantor in its sole discretion may participate in the defense of such claims at its expense.

(Ord. 129 § 6.4, 1984)

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

1. Worker’s Compensation Insurance. In such coverage as may be required by the worker’s compensation insurance and safety laws of the State of California and amendments thereto.

2. Comprehensive General Liability. Comprehensive automobile liability 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 at the sum(s) specified in the franchise agreement.

B. The grantee shall furnish the grantor with certificates of insurance.

C. Such insurance certificates provided for in this chapter shall name the grantor, its officers, boards, commissions, agents, and employees as additional insureds and shall contain the following endorsement:

D. The minimum amounts set forth in the franchise agreement for such insurance shall not be construed to limit the liability of the grantee to the grantor under the franchise issued to the amounts of such insurance.

(Ord. 129 § 6.5, 1984)