Part 4 — PREREQUISITES TO EFFECTIVENESS OF FRANCHISE OR RENEWAL

No franchise or franchise renewal granted pursuant to the provisions of this chapter shall become effective unless and until the ordinance granting the same has become effective and, in addition, unless and until all things required of the grantee by the provisions of this Part 4, all of such things being hereby declared to be conditions precedent, are done and completed. In the event any of such things are not done and completed in the time and manner required, the council may declare the franchise or franchise renewal null and void.

(Prior code § 10124.1; Ord. 22101.)

Within thirty-one days after the effective date of the ordinance awarding a franchise or franchise renewal, or within such extended period of time as the council in its discretion may authorize, the successful applicant or grantee shall file with the city clerk his written acceptance, in form satisfactory to the city attorney, of the franchise or franchise renewal, together with his agreement to be bound by and to comply with and to do all things required of him by applicable provisions of the city's charter, provisions of this chapter and provisions of the franchise or franchise renewal. Such acceptance and agreement shall be acknowledged by the successful applicant before a notary public and shall in form and content be satisfactory to and approved by the city attorney.

(Prior code § 10124.2; Ord. 22101.)

A.

Within thirty-one days from and after the effective date of the ordinance awarding the franchise or franchise renewal, or within such extended period of time as the council in its discretion may authorize, the grantee shall file with the city clerk, and thereby deliver to the city, a corporate surety bond, executed by grantee as principal and by one or more corporate sureties, authorized to engage in such business in the state of California, as surety, in the principal sum of fifty thousand dollars, conditioned that in the event that grantee, during the term of said bond, shall fail to comply with and do all things required of him by applicable provisions of the city's charter, by provisions of this chapter, by provisions of the franchise or franchise renewal, or by provisions of any lawful requirement of the city, then said principal and said surety shall be jointly and severally bound and liable to the city, and there shall be recoverable by the city from said principal and surety, jointly and severally, any and all damages, up to the full amount of said bond, suffered by the city as a result thereof, including but not limited to the full amount of any franchise fee, compensation, indemnification or cost of removal or abandonment of property owing by grantee to the city pursuant to the provisions of this chapter, or of said franchise or franchise renewal, for which grantee may be in default.

B.

The term of said bond shall be the entire term of the franchise, or, in lieu thereof, the grantee may file and deliver, successively, two or more such bonds, each for a term of not less than one year, unless the council

authorizes otherwise, covering the entire term of the franchise. In the latter event, the first such bond shall be filed and delivered as aforesaid within thirty-one days from and after the effective date of the ordinance awarding the franchise, or within such extended period of time as the council in its discretion may authorize, and each subsequent bond shall be filed and delivered on or before the thirtieth day immediately preceding the date of expiration of the bond then in effect.

C.

Neither the provisions of this section nor any bond accepted by the city pursuant thereto, nor the recovery by the city of any damages shall be construed to excuse faithful performance by the grantee of all obligations which he may have under this chapter or under said franchise or franchise renewal, nor excuse or limit the grantee's liability for any damages, either to the full amount of the bond or otherwise.

D.

Each abovementioned bond shall be in form satisfactory to and approved by the city attorney.

E.

Any damages recovered by the city pursuant to this section shall not be general revenue to the grantor but shall be used only for purposes related to the operation, maintenance and programming of the system.

(Prior code § 10124.3; Ord. 22101.)

A.

Within thirty-one days from and after the effective date of the ordinance awarding the franchise, or within such extended period of time as the council in its discretion may authorize, the grantee shall furnish and file with the city clerk, and all times thereafter maintain in full force and effect, at grantee's sole cost and expense, a general comprehensive insurance policy, in a company authorized to do business in the state, said policy to be in form satisfactory to the city attorney, protecting the city, its boards, commissions, officers, agents and employees from and against any and all loss, damage or liability for damages, and from all suits or actions for or because of bodily injury, death and property damage occasioned by operations or omissions of grantee under said franchise. Both bodily injury liability coverage and property damage liability coverage must be on an occurrence basis; and said policy shall provide that the insurance afforded to the city, its boards, commissions, officers, agents and employees, shall be primary insurance to the full limits of liability stated in the declarations, and if the city, its boards, commissions, officers, agents or employees have other insurance against a loss covered by said policy, that other insurance shall be excess insurance only. Said policy of insurance shall provide coverage in the following minimum amounts: For bodily injury liability, two hundred fifty thousand dollars per each person and five hundred thousand dollars per each occurrence; for property damage liability, five hundred thousand on account of any one occurrence.

B.

The policy mentioned in the foregoing paragraph shall contain a provision that a written notice of any cancellation or reduction in coverage of said policy shall be delivered to the city not less than ten days in advance of the effective date thereof. If such insurance is provided by a policy which also covers grantee or any entity or person other than those above named, then such policy shall contain a standard cross-liability endorsement.

(Prior code § 10124.4; Ord. 22101.)

Within one hundred eighty days from and after the effective date of the ordinance awarding the franchise or franchise renewal, or within such extended period of time as the council in its discretion may authorize, the grantee shall file with the city clerk copies of all contracts which it may have with all public utility companies, including but not limited to the Pacific Telephone and Telegraph Company and the Pacific Gas and Electric Company, whereby grantee is granted any right to use any of the property, equipment or facilities of such utility or utilities in the conduct of any operations pursuant to the franchise or franchise renewal awarded to said grantee.

(Prior code § 10124.5; Ord. 22101.)