(A) Indemnification of grantor.
(1) A grantee shall indemnify, defend and hold harmless grantor, its officers, boards, committees, commissions, elected officials, employees and agents, from and against all liability, damages and penalties which they may legally be required to pay as a result of the exercise of a franchise granted pursuant to this chapter, including claims covered by workers’ compensation insurance or any claims arising from or related to grantor’s negligence. Nothing in this chapter relieves a person from liability arising out of the failure to exercise reasonable care to avoid injuring the grantee’s facilities while performing work connected with grading, regarding or changing the line of a street or public place or with the construction or reconstruction of a sewer or water system.
(2) In order for grantor to assert its rights to be indemnified, defended and held harmless, grantor must, with respect to each claim:
(a) Notify a grantee in writing when grantor becomes aware of any claim or legal proceeding which reasonably gives rise to such right;
(b) Afford grantee the opportunity to participate in any compromise, settlement or other resolution or disposition of any claim or proceeding; and
(c) Cooperate in good faith with reasonable requests of grantee, at grantee’s expense, in its participation in compromise, settlement or resolution or other disposition of such claim or proceeding subject to division (A)(2)(b) above.
(B) Insurance.
(1) A grantee shall maintain in full force and effect, at its sole expense, a comprehensive general liability insurance policy, including contractual liability coverage, in protection of grantor in its capacity as such.
(2) The policies of insurance shall be in the sum of not less than $300,000 for personal injury or death of any one person and $1,000,000 for personal injury or death of two or more persons in any one occurrence and $300,000 for property damage to any one person and $1,000,000 for property damage resulting from any one act or occurrence.
(C) Franchise fee.
(1) A grantee will pay grantor a monthly franchise fee in the amount of 5% of grantee’s gross revenues.
(2) The franchise fee shall be payable monthly, together with a brief report showing the basis for the computation.
(3) The period of limitation for recovery of any franchise fee payable hereunder shall be six years from the date on which payment by grantee is due.
(Prior Code, § J-1-6) (Ord. 991, passed - -)