A. Upon the granting of a franchise and within 30 days following the filing of the acceptance required under Section 4-280-470 hereof and at all times during the term of the franchise, including the time for removal of facilities or management as a trustee as provided for herein, a grantee shall obtain, pay all premiums for and file with the city comptroller written evidence of payment of premiums and executed duplicate copies of the following:
1. A commercial general liability policy for bodily injury, personal injury and property damage arising in any way from the franchise or the installation or operation of the grantee's cable system, or alleged to have been so caused or occurred, with a minimum liability of an amount as established in the franchise;
2. The franchise shall indemnify, defend and hold harmless the city, its officers, boards, commissions, agents and employees from and against all claims by any person whatsoever for property damage occasioned by the installation or operation of the grantee's cable system, or alleged to have occurred or been so caused, with a minimum liability of an amount as established in the franchise;
3. A performance bond running to the city with good and sufficient surety approved by the city comptroller in the amount specified in the franchise, conditioned upon the faithful performance and discharge of the obligations imposed by this chapter and the franchise awarded hereunder from the date thereof including, but not limited to, faithful compliance with the construction timetable proposed by a grantee in its application as incorporated into the franchise, unless appropriate extension is approved by the commission. The city's right to recover under the bond shall be in addition to any other rights retained by the city under this chapter and other applicable law. Any proceeds recovered under the bond may be used to reimburse the city for the loss of expected payments of the franchise fee and other valuable consideration given for the grant of the franchise and such additional expenses as may be incurred by the city as a result of grantee's failure to comply with the obligations imposed by this chapter and the franchise including, but not limited to, attorney's fees and costs of any action or proceeding, the cost of refranchising and the cost of removal or abandonment of any property, or other costs which may be in default.
B. The bond and all insurance policies called for herein shall be issued by companies licensed to do business in Illinois and shall be in a form satisfactory to the corporation counsel and shall require 30 days' written notice of any cancellation to the cable administrator, the corporation counsel, and the grantee. A grantee shall, in the event of any such cancellation notice, obtain, pay all premiums for and file with the cable administrator (with a copy to the corporation counsel) written evidence of the issuance of replacement bond or policies within 30 days following receipt by the city or the grantee of any notice of cancellation.
C. With regard to a renewal franchise agreement applicable to a Grantee that has completed construction of its cable system, the bond required by this section may be conditioned on the resumption of construction or other circumstances that, in the reasonable judgment of the cable administrator, requires such additional security to adequately protect the city.
D. A grantee shall, at its sole cost and expense, indemnify and hold harmless the city, its officials, boards, commissions, consultants, agents and employees against any and all claims, suits, causes of action, proceedings and the resulting losses, costs, expenses, liabilities, damages, orders, judgments, or decrees, sustained by the City arising out of the acts, errors, or omissions of the grantee, its agents, independent contractors, or employees related to or in any way arising out of the award of franchise to the grantee and its installation and operation of the cable system under the franchise. These damages shall include, but not be limited to, penalties arising out of copyright infringements and damages arising out of the failure by grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee's cable system whether or not any act or omission complained of is authorized, allowed, or prohibited by the franchise. Indemnified expenses shall include, but not be limited to, all out-of-pocket expenses, such as attorney fees and shall also include the reasonable value of any services rendered by the corporation counsel or his assistants or any consultants, agents and employees of the city.
(Prior code § 113.1-18; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 11-8-12, p. 38872, § 132; Amend Coun. J. 11-16-16, p. 37901, Art. II, § 19)
Editor's note – Coun. J. 4-24-12, p. 23998, § 1, repealed former § 4-280-140, which pertained to transfer of ownership to grantor, and renumbered this section, which was formerly § 4-280-180.