(A) Insurance.
(1) Grantee shall maintain public liability and property damage insurance that protects grantee and the city, as well as the city’s officers, agents, and employees, with the following limits and coverages:
(a) Comprehensive general liability insurance with limits not less than:
1. $3,000,000 for bodily injury or death to each person;
2. $3,000,000 for property damage resulting from any 1 accident; and,
3. $3,000,000 for all other types of liability.
(b) Automobile liability for owned, non-owned and hired vehicles with a limit of $1,000,000 for each person and a combined limit of $3,000,000 for each accident.
(c) Workers’ compensation coverage at a minimum consistent with state law, and employer’s liability insurance with limits of not less than $1,000,000.
(2) The limits of the insurance shall be subject to statutory changes as to increases in the maximum limits of liability imposed on municipalities of the State of Oregon during the term of this franchise. The grantee will maintain on file with the City Recorder a certificate of insurance certifying the coverage required above. After notice to the franchisee, the failure to maintain insurance shall be cause for immediate termination of this franchise by the city.
(3) The insurance shall be without prejudice to coverage otherwise existing and shall name as additional insureds, the city and its officers, agents, and employees. Notwithstanding the naming of additional insureds, the insurance shall protect each insured in the same manner as though a separate policy had been issued to each, but nothing in this division (A)(3) shall operate to increase the insurer’s liability as set forth elsewhere in the policy beyond the amount or amounts for which the insurer would have been liable if only 1 person or interest had been named as insured. The coverage must apply as to claims between insureds on the policy.
(4) The insurance shall provide that the insurance shall not be canceled or materially altered without 30 days’ prior written notice first being given to the city. If the insurance is canceled or materially altered within the term of this franchise, grantee shall provide a replacement policy with the same terms as required in this franchise. Grantee shall maintain continuous uninterrupted coverage, in the terms and amounts required, upon and after the effective date of this franchise.
(B) Indemnification.
(1) Grantee hereby agrees to indemnify, defend, and hold the city, its officers, agents, and employees harmless from any claims for injury, damage, loss, liability, cost or expense, including court and appeal costs and attorney fees or expenses, arising from any casualty or accident to person or property by reason of any act done under this franchise, by or for grantee, its agents or employees, or by reason of any negligent or omission of grantee to keep its gas facilities in a safe condition. The duty to indemnify shall not extend to any gross negligence or willful misconduct by the city, its officers, agents or employees.
(2) The city shall provide grantee with prompt notice of any such claim, which grantee shall defend with counsel that is mutually acceptable to the city and the grantee, and no settlement or compromise of any such claim will be done by either party without the prior written approval of the grantee. Grantee and its agents, contractors and other employees shall consult and cooperate with the city while conducting its defense of the city, and the city’s officers, agents, employees, and assigns will consult and cooperate with grantee while conducting its defense of the city.
(Ord. 2008-04-01, passed 4-8-2008; Ord. 2010-04-01, passed 5-13-2010)