During the term of any franchise, a franchisee shall obtain and maintain at its sole expense, all insurance and bonds required by this chapter. Nothing contained in this chapter shall limit a franchisee's liability to the city to the limits of insurance certified or carried.
(A) All persons submitting an application for a franchise in accordance herewith shall file with their applications performance bonds with a surety company or trust company or companies as surety or sureties solely for the protection of the city in an amount determined by the city to be reasonable for the proposed scope of the system to be constructed. The determination of the amount of the performance bond required shall be made in a nondiscriminatory manner. Said performance bond shall provide for the faithful performance of construction and installation of franchise's system. Two years after demonstration of the completion of the construction of the system by franchisee to the city, the city shall release the performance bond.
(B) Said performance bond shall indemnify the city in its own right and as trustee, from any damages or losses arising out of the failure of franchisee to faithfully perform and satisfactorily complete construction of the system in accordance with this chapter.
(C) The failure of franchisee to comply with its obligations under this chapter or the franchise as determined by the city shall entitle the city to draw against said performance bond.
(D) The rights reserved to the city with respect to the performance bonds required hereunder are in addition to all other rights of the city, whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right with respect to such performance bond shall affect any other rights the city may have.
(E) The performance bonds required hereunder shall not expire or be materially altered without 30 days written notice and without securing and delivering to the city a substitute, renewal and replacement bond in conformance with this chapter. In the event the city does draw monies against the performance bonds required hereunder, within ten days thereafter, franchisee shall pay such funds to the bonding company as necessary to bring said performance bonds back to the applicable principal, where it shall continue to be maintained. The performance bonds required hereunder shall contain the following endorsements:
"It is hereby understood and agreed that this performance bond may not be reduced, altered or canceled by Franchisee or the bonding company without thirty (30) days written notice, by certified mail, to the City."
(F) Immediately upon the effective date of the resolution granting a franchise under this chapter, franchisee shall file with the city the following liability insurance policies issued by a company authorized to do business in the Commonwealth:
(1) General liability: $1,000,000 each occurrence, $5,000,000 aggregate, against bodily injury, death, or property damage.
(2) Automobile insurance: $1,000,000 each occurrence, and aggregate against bodily injury, death, or property damage for any of franchisee's owned or leased motor vehicles used in the construction/ installation of any lines, facilities or equipment authorized by the franchise.
(3) Worker's compensation: The amount required by Kentucky Revised Statutes.
(G) Franchisee shall maintain on file with the city a certified copy of the insurance policy(s) specifically endorsed to include all liability assumed by franchisee hereunder and a certificate of insurance certifying the coverage required under this chapter, which certificate shall be subject to the approval of the city as to the adequacy of the certificate and of the insurance certified under the requirements of this chapter. Such policy(s) and certificate shall be identified on their face by the name of franchisee, and shall be submitted to the city, in accordance with the terms and conditions of this chapter. Failure to maintain adequate insurance as required under this chapter shall be deemed a breach of the franchise.
(H) Franchisee shall maintain public liability, property damage and other insurance required by this chapter that protects franchisee and the city, its officers, agents, employees and appointed and elected officials from any and all claims for damages or personal injury including death, demands, actions, and suits brought against any of them arising from operations under the franchise or in connection therewith. This insurance coverage constitutes a minimum requirement and shall in no way be deemed to lessen, limit or define the liability of franchisee, related entities, its successors or assigns, under the terms of the franchise.
(I) The city reserves the right to make increases in the amount of insurance coverage referred to in this section at any time.
(Ord. 4-2005, passed 5-19-05) Penalty, see § 10.99