(A) Insurance.
(1) A franchisee shall carry and maintain during the entire length of the franchise term liability insurance coverage protecting the County Commissioners, CCRC, the franchisors, their agents, servants, officials, boards, commissions, and employees and the franchisee from and against any and all claims, injury or damage to persons or property, both real and personal, caused by the construction, erection, operation, or maintenance of the cable system and the conduct of the franchisee’s business in the county, in the amounts set forth in its franchise agreement.
(2) Worker’s compensation insurance shall also be provided as required by the state law.
(3) The insurance policies obtained by a franchisee in compliance with this and other sections shall be issued by a company or companies acceptable to CCRC.
(4) The insurance policies shall name the County Commissioners and CCRC as an additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to CCRC at least 30 days in advance of the effective date thereof.
(5) Certificates of insurance shall be filed and maintained with the County Commissioners and CCRC during the term of the franchise.
(B) Indemnification.
(1) A franchisee shall, at its sole cost and expense, indemnify, defend, and hold harmless CCRC and the franchisors, their agents, servants, officials, boards, commissions, and employees, at all times against any and all claims, suits, causes of action, proceedings, and judgments for damages or equitable relief arising out of the construction, maintenance, or operation of the cable system; and specifically agrees that it will pay all damages and costs which CCRC and the franchisors or their agents, servants, officials, boards, commissions, or employees may be legally required to pay arising from the franchise granted herein. Such damages and penalties shall include but not be limited to damages arising out of copyright infringements, or a failure by the franchisee to secure consents from the owners, authorized distributors, or franchisees of programs to be delivered by the cable system, and other damages arising out of the installation, operation, or maintenance of the cable system authorized, allowed, or prohibited by the franchise.
(2) In the event suit shall be filed against CCRC or the franchisors or their agents, servants, officials, boards, commissions, or employees either independently or jointly with a franchisee to recover for any claim or damages, the franchisee, upon notice to it by CCRC, shall defend CCRC, the franchisors, or their agents, servants, officials, boards, commissions, or employees, as the case may be, against the action and, in the event of a final judgment being obtained against any of them, either independently or jointly with the franchisee by reason of the acts of the franchisee, the franchisee will pay said judgment and all costs and legal fees, and hold CCRC and the franchisors, their agents, servants, officials, boards, commissions, and employees harmless therefrom.
(C) Bond.
(1) A franchisee shall, concurrently with its acceptance of a franchise, and during the entire term of the franchise and any extensions or renewals thereof, file with CCRC, at franchisee’s sole expense, a corporate surety bond with a responsible company acceptable to CCRC, and licensed to do business in this state, in the amount specified in its franchise agreement, renewable annually, and conditioned upon the faithful performance of franchisee’s obligations under the franchise, and upon the further condition that in the event the franchisee shall fail to comply with any one or more of the provisions of the franchise agreement or this chapter, there shall be recoverable, jointly and severally from the principal and surety of such bond, any damages or loss suffered by CCRC, franchisors, or subscribers as a result thereof, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the franchisee as prescribed hereby, plus a reasonable allowance for attorneys’ fees and costs, said condition to be a continuing obligation on the part of the franchisee to CCRC and the franchisors that may arise from the acceptance of the franchise or its renewal or from the exercise of any privilege or right herein granted.
(2) The bond shall provide that at least 30 days prior written notice of intention not to renew or to cancel or of any material change be given by the surety company by filing the same with CCRC.
(3) CCRC may withdraw the amount due, with interest and any penalties, from the bond if after 30 days written notice the franchisee fails to:
(a) Pay to CCRC or the franchisors any franchise fees, taxes, or other amounts due;
(b) Pay any damages, costs, or expenses that CCRC or the franchisors are compelled to pay by reason of any act or default of the franchisee in connection with the franchise; or
(c) Comply with any material provision of the franchise that CCRC determines can be remedied by an expenditure of the bond.
(4) Within 30 days after any withdrawal from the bond, the franchisee shall restore the full amount of the bond as required in division (C)(1) above.
(D) Nonwaiver. Neither the provisions of this section nor any damages recovered by CCRC, the franchisors, or their agents, servants, officials, boards, commissions, or employees shall be construed to limit the liability of a franchisee for damages under the franchise.
(2004 Code, § 93-7) (Ord. 41, passed 4-28-1983; Ord. 08-10, passed 12-18-2008)