(A) General conditions. Grantee shall procure and maintain in full force and effect during the life of this Franchise, such insurance as is required herein. Policies of insurance shall be written by companies authorized to write such insurance in New Mexico, and they shall be in a form satisfactory to City. Grantee shall furnish City a minimum of seven copies of certificates of required insurances (or copies of insurance policies if City calls for them). All certificates of insurance (or policies) shall provide that 30 days' written notice be given to the Director, Risk Management Department, City of Albuquerque, Box 470, Albuquerque, New Mexico 87103, before a policy is cancelled or materially changed. Various types of required insurance may be written in one or more policies. With respect to all coverages required other than workers' compensation, the City shall be a named additional insured. All coverages shall be primary with respect to operations provided. The certificates of insurance and endorsements for each policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. The City reserves the right to require complete, certified copies of all required insurance policies at any time. Because Grantee has facilities in the Public Rights-of-Way as of the effective date of this Franchise, the certificate shall be filed within 60 days of the effective date of this Article, annually thereafter, and whenever there is any change in coverage.
(B) No work without insurance. Grantee (or those acting on its behalf) shall not commence construction, maintenance, operation or repair of the system without first obtaining insurance in amounts and of a type satisfactory to City. The required insurance must be obtained and maintained for the entire period Grantee has facilities in the Public Rights-of-Way. If Grantee, its contractors, or subcontractors do not have the required insurance, City may order such persons to stop operations until the insurance is obtained and approved.
(C) Work of subcontractors. If any part of the construction, maintenance, operation or repair of the system is subcontracted, Grantee shall:
(1) Include any and all subcontractors in its insurance policies; or
(2) Require the subcontractor to secure insurance to protect itself against all hazards enumerated herein which are not covered by Grantee's policies.
(D) Approval of insurance. Neither approval nor failure to disapprove certificates, policies or the insurance by City shall relieve Grantee or any subcontractor of full responsibility to maintain the required insurance in full force and effect.
(E) Commercial general liability insurance including automobile.
(1) Grantee shall procure and maintain during the life of this Franchise a comprehensive commercial general liability and automobile liability insurance policy with liability limits in amounts not less than $1,000,000 combined single limit of liability for bodily injury, including death, and property damage in any one occurrence and in the aggregate. Said policies or insurance must include coverage for all operations performed in the City by Grantee, including, but not limited to, coverage for collapse (C), explosion (X), and underground (U) liability coverage, coverage for the user of all owned, non-owned, hired automobiles, vehicles, and other equipment both on and off work, and contractual liability coverage which shall specifically insure the indemnification provisions of this ordinance and any franchise.
(F) Workers' compensation insurance. Grantee shall comply with the provisions of the Workers' Compensation Act, the Subsequent Injury Act, and the New Mexico Occupational Disease Disablement Law. Grantee shall procure and maintain during the life of this Franchise, complete workers' and employer's liability insurance in accordance with New Mexico law and regulations. Such insurance shall include coverage permitted under Section 52-1-10 NMSA 1978, for safety devices. With respect to workers' compensation insurance, if Grantee elects to be self-insured, it shall comply with the applicable requirements of law. If any portion of the construction, operation or repair of the system is to be subcontracted, Grantee shall require the subcontractor similarly to provide such coverage (or qualify as a self insured) for all latter's employees to be engaged in such work. Grantee shall save harmless City, its officers, agents and employees from any claims or actions occasioned by failure of Grantee to comply with the provisions of this subparagraph. It is agreed that with respect to all workers' compensation insurance, the Grantee and its insurer shall waive any right of subrogation it may acquire against the City, its officers, agents and employees by reason of any payment made on account of injury, including death resulting there from, sustained by any employee arising out of the performance of a franchise.
(G) Property insurance. If the construction, maintenance, operation or repair of the system includes bridge, culvert or channel lining work (referred to below collectively as "channel work"), Grantee shall procure and maintain during the life of such work until the work is inspected and declared acceptable, property insurance upon the entire channel work to the full insurable value thereof. Such insurance shall include the interest of City, Grantee, and subcontractor and shall be on the "all risk" basis, specifically including the perils of fire, extended coverage, theft, vandalism, malicious mischief, flood and earthquake. The deductible for the flood and earthquake coverage shall not be greater than 20% of the insurable value of the work, except that it shall not be less than $25,000.
(H) Alterations in limits. The City may require Grantee to increase its insurance limits, or obtain additional types of insurance should the City determine that there are increased risks to the City or its citizens, by such time as may be specified by the City.
(I) Ratings. Grantee's insurer shall have an "A" policyholder's rating and a financial rating of at least Class XI in accordance with the most current Best's rating, unless specifically waived in writing by the Risk Manager of the City.
(J) No contribution. Any insurance or self-insurance maintained by the City shall be in excess of the Grantee's insurance and shall not contribute with it.
(K) Insurance as required by § 13-4-8-16 may be satisfied by equivalent coverage provided by excess liability insurance. Such excess liability insurance may be excess of self-insured retention amounts usually maintained by Grantee in the conduct of its business.
(Ord. 2-2003)