Article IV — BONDS, INSURANCE, AND HOLD HARMLESS PROVISIONS

A. The grantee, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, shall file with the city clerk, and at all times thereafter maintain in full force and effect for the term of such franchise or renewal thereof, at grantee's sole expense, a corporate surety bond in a company and in form and content approved by the city attorney, in the amount of three hundred thousand dollars, renewable annually; provided, that upon certification by the city engineer, construction of the entire system has been satisfactorily completed, the amount of said bond may be reduced to fifty thousand dollars for the duration of the term of the franchise. The bond, both during construction and thereafter, shall be conditioned upon the faithful performance of grantee, and upon the further condition that in the event grantee fails to comply with any one or more of the provisions of this chapter, or of any franchise issued to the grantee hereunder, there shall be recoverable by city or any other governmental entity jointly and severally from the principal and surety of such bond:

1. Any amounts due to or expended by city or such other governmental entity by reason of such failure of grantee;

2. Any damages or loss suffered by city or any such other governmental entity as a result of any such failure;

3. Interest at ten percent per year from the date due as to the amount finally determined, whether liquidated or not in amount when due;

4. Any liquidated damages provided for hereunder; and

5. In the event of litigation, the reasonable attorney's fees, court costs and other expenses of city or any such other governmental entity in the event city or such other governmental entity is the prevailing party; all up to the full amount of the bond, provided that grantee's liability shall not be limited to said amount. B. The condition of said bond shall be continuing obligation for the duration of such franchise and any renewal thereof and thereafter until the grantee has liquidated all of its obligations that may have arisen from the acceptance of said franchise or renewal by the grantee or from its exercise of any privilege therein granted. The bond shall not be subject to any disclaimer or limitation of liability. The bond shall provide that thirty days' prior written notice of intention not to renew, cancellation, or material change, be given to the city, in which event grantee shall provide a substitute bond complying with this section in form and content approved by the city attorney. C. Neither the provisions of this section, nor any bond accepted by the city pursuant hereto, nor any damages recovered by the city hereunder, shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee under any franchise issued hereunder of for damages, either to the full amount of the bond or otherwise. D. In lieu of said bond, grantee may provide the city with a cash deposit, letter of credit, certificate of deposit, or other form of security in the foregoing amounts, in form and content approved by the city attorney, and subject to the same terms and conditions as provided herein for the bond and further subject to the approval of the city council. In the event grantee shall fail to comply with any one or more of the provisions of this chapter or the franchise agreement, then the city shall have the right to draw upon the security for any damages suffered by the city as a result thereof, including the full amount of any compensation, liquidated damages, indemnification, or cost of removal or abandonment of property as prescribed by Section 13.12.245 which may be in default, up to the full amount of the security deposit. Grantee shall, as a condition of this section, maintain the balance in such a security deposit so that any amounts withdrawn by the city pertinent to this section shall be replaced by the grantee within fifteen days' notice of withdrawal by the city. E. The amount of the bond or security deposit may be increased by the city at five-year intervals by an amount not exceeding thirty percent. The increase shall be determined by the city based upon grantee's performance and changes in the consumer price index. (Ord. 85-07-950 § 1 (part))

A. The grantee shall, concurrently with the filing of an acceptance of award of any franchise granted under this chapter, furnish to the city and file with the city clerk, and at all times during the existence of any franchise granted hereunder, maintain in full force and effect, as its own cost and expense, liability insurance policies provided by a company approved by the city manager, and in a form satisfactory to the city attorney, naming as additional insureds, the city, its officers, bonds, commissions, agents, and employees, as follows:

1. Liability insurance in the amount of two million dollars indemnifying, defending, and holding harmless the city, its officers and employees from and against any and all claims, demands, actions, suits and proceedings by others, against all liability to others, including but not limited to any liability for damages by reason of or arising out of any failure by the grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee's CATV system, and against any loss, cost, expense and damages resulting therefrom, including reasonable attorney's fees, arising out of the exercise or enjoyment of its franchise, irrespective of the amount of the comprehensive liability insurance policy required hereunder.
2. A general comprehensive liability insurance policy, with minimum liability limits of two million dollars aggregate per single accident or occurrence, one million dollars for personal injury or death of one or more persons in any one occurrence, one million dollars for damage to property resulting from any one occurrence, and three hundred thousand dollars for property damage to any one person.
3. Workers' compensation insurance in accordance with state law. B. In lieu of such the policy specified in subsection A1 of this section, the grantee may provide a notarized certificate of self-insurance in like amounts and conditions, in a form acceptable to the city attorney, attesting to the provisions of this section, or, in the alternative, the grantee may provide a notarized indemnity and hold-harmless certificate, showing a net worth of at least five million dollars in a form acceptable to the city attorney, attesting to the provisions of this section. C. The policies mentioned in subsection A of this section, shall name the city, its officers, boards, commissions, agents and employees, as additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the city thirty days in advance of the effective date thereof. If such insurance is provided by a policy which also covers grantee or any other entity or person other than those above names, then such policy shall contain the standard cross-liability endorsement. (Ord. 85-07-950 § 1 (part))

The grantee, by acceptance of the franchise, thereby agrees to indemnify, defend, and hold harmless the city, its officers, boards, commissions, agents, and employees from and against any and all claims, demands, actions, suits and proceedings by others, against all liability to others, including but not limited to any liability for damages by reason of or arising out of any failure by the grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee's CATV system, and against any loss, cost, expense and damages resulting therefrom, including reasonable attorney's fees, arising out of the exercise or enjoyment of its franchise, irrespective of the amount of insurance required hereunder. (Ord. 85-07-950 § 1 (part))