(A) Except as otherwise provided in this section, a user shall provide proof of insurance as directed by the city, and as a condition of the granting of a permit, in the following types and amounts:
(1) Worker’s compensation insurance covering all employees of permittee engaged in any operation covered by the permit;
(2) Vehicle insurance: $300,000 for personal injuries to any one person and $500,000 for personal injuries arising out of any one accident, casualty or event;
(3) General liability: $500,000 for personal injury and $100,000 for property damage; and
(4) Umbrella coverage: $1,000,000.
(B) Insurance coverage provided and required under this chapter shall be payable on a per occurrence basis and shall include acceptable coverage for personal injury, contractual liability, premises liability, medical damages, underground explosion and collapse hazards.
(C) Each policy shall include a cancellation provision in which the insurance company shall be required to notify the city, in writing, not less than 30 days before the insurance company cancels, fails to renew or reduces any policy limits.
(D) A user shall file with the City Secretary the required original certificate of insurance prior to any construction in the right-of-way. The certificate shall state the policy number, name of the insurance company and underwriter, name and address of the agent or authorized representative of the insurance company, name, address and telephone number of the insured, policy effective and expiration dates and specific coverage amounts.
(E) In addition to the insurance requirements of this chapter, a user shall present to the City Secretary a surety bond, obtained from a surety company authorized to do business in the state, in the estimated amount of the value of the construction to be performed during the course of 12 months, and such bond shall be in effect and valid prior to the commencement of any construction, and such bond shall remain in effect and valid for 12 months after the completion of the construction in order to guarantee the restoration of the right-of-way in the event the user or the user’s contractors or subcontractors leave the right-of-way unfinished, incomplete or unsafe.
(F) If a user is or has been a party to a contract or to a franchise or license agreement with the city, and under such contract or agreement, insurance and a bond or bonds are required to be kept in force, and are in force when the user performs construction under this chapter, then such insurance and bond or bonds shall be accepted by the city in lieu of the user complying with the requirements of this section. A user will be responsible for showing proof that such insurance and bond or bonds are in force before the user commences to perform construction under this chapter.
(G) The requirements of this section may be waived for a user who provides to the city the user’s most recent audited financial statement or similar verifiable documentation showing assets or reserves in excess of $5,000,000.
(Ord. 131101, passed 11-23-2013)