(A) All persons submitting an application for a franchise in accordance herewith shall file with their application bonds solely for the protection of the city with surety or sureties as follows:
(1) A bid bond in the amount of $25,000 which shall indemnify the city up to the full amount of the bond for any damages or losses arising out of the failure of the franchisee to execute an agreement in the form proposed under this chapter.
(2) A construction bond in the amount of $25,000 to be effective from the date of execution of the franchise agreement and the effective date of the ordinance awarding the franchise, and thereafter until the cable communications systems referred to therein is certified completed by an independent electrical engineer to be employed by the city for such purpose. The bond required under this section shall indemnify the city in its own right and as trustee for subscribers up to the full amount of the bond from any damages or losses arising out of the failure of the franchisee to faithfully perform and satisfactorily complete construction of the cable communication system in accordance with this chapter and any agreement or ordinance in connection with, including, but not limited to, the cost of removal of any construction.
(3) All persons submitting an application for a franchise shall file with their application a bond with a corporate surety in the amount of $25,000 to be effective upon the execution of the franchise agreement and the effective date of the ordinance awarding the franchise, and conditioned that in the event that the franchise fails to comply with any provision of this chapter or any agreement or ordinance awarding a franchise in accordance herewith, then there shall be recovered jointly and severally from the principals and surety any and all damages or costs suffered or incurred by the city or any subscriber as a result thereof, including, but not limited to, costs and reasonable attorney's fees of any action or proceeding, and including the full amount of any compensation, indemnification, costs of removal, or abandonment of any property or other costs which may be in default, up to the full principal amount of such bond; this condition shall be a continuing obligation during the entire term of any agreement, ordinance or ordinances awarded the franchise in accordance herewith and thereafter until the franchisee shall have satisfied in full any and all obligations to the city which arise out of or pertain to same.
(4) None of the provisions of this section, nor any bond accepted by the city pursuant thereto, nor any damages recovered by the city thereunder, shall be construed to excuse the faithful performance by or limit the liability of the franchisee under this chapter or any agreement or ordinance awarding a franchise in accordance herewith or for damages either to the full amount of the bond or otherwise.
(B) Within 30 days after the granting of the franchise and at all times during the term of the franchise, the franchisee shall obtain and pay all premiums for the following:
(1) A general comprehensive public liability insurance policy indemnifying, defending, and saving harmless the city, its officers, boards, commissions, agents, or employees, from any and all claims by any person whatsoever on account of injury to or death of a person or persons occasioned by the operations of a franchisee under the franchise granted, or alleged to have been so caused or incurred with a minimum liability of $250,000 for bodily injury or death of any one person and $500,000 for bodily injuries or death to two or more persons in any one occurrence.
(2) Property damage insurance indemnify- ing, defending, and saving 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 operation of franchisee under the franchise granted, or alleged to have been so lost or incurred with a minimum liability of $250,000 for property damage to any one person and $500,000 for property damage to two or more persons in any one occurrence.
(C) Such insurance as provided for in this section shall be kept in full force and effect by the franchisee during the existence of the franchise with insurance companies qualified to do business in the Common-wealth of Kentucky. The policies shall require 30 days written notice to both city and franchisee prior to any cancellation thereof, and copies of these policies shall be filed with the city.
('81 Code, § 450.1, § 8)