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FRANCHISE AGREEMENT ADMINISTRATION
The franchisee shall have no recourse whatsoever against the town or its officers, boards, commissions, agents or employees for any loss, cost, expense or damage arising out of any provision or requirement of the franchise or because of its enforcement.
(Prior Code, § 4.1-40) (Ord. passed 9-19-1979)
(A) The franchisee shall not be relieved of its obligation to comply promptly with any of the provisions of the franchise by any failure of the town to enforce prompt compliance.
(Prior Code, § 4.1-41)
(B) Neither the provisions of this chapter nor any bonds accepted by the town pursuant hereto, nor any damage recovered by the town hereunder, shall be construed to excuse unfaithful performance by the franchisee or limit the liability of the franchisee under this chapter or the franchise for damages, either to the full amount of the bond or otherwise.
(Prior Code, § 4.1-45) (Ord. passed 9-19-1979)
The franchisee shall indemnify and hold harmless the town at all times during the term of the franchise and shall specifically agree that it will pay all damages and penalties which the town may legally be required to pay as a result of granting the franchise. The damages and penalties shall include, but not be limited to, damages arising out of copyright infringements and other damages arising out of the installation, operation or maintenance of the CATV system authorized by the franchise, whether or not any act or omission complained of is authorized, allowed or prohibited by the franchisee. In case suit shall be filed against the town, either independently or jointly with the franchisee, to recover for any claim or damages, the franchisee, upon notice by the town, shall defend the town against the action and in the event of a final judgment being obtained against the town, either independently or jointly with the franchisee, solely by reason of the acts of the franchisee, the franchisee will pay the judgment and all costs and hold the town harmless therefrom.
(Prior Code, § 4.1-43) (Ord. passed 9-19-1979)
The franchisee shall be required to maintain insurance in the forms and in the companies as shall be approved by the Board of Alderpersons, with the town named as the coinsured, the approval not to be unreasonably withheld, to protect the town and franchisee from and against any and all claims, injuries or damages to persons or property, both real and personal, caused by the construction, erection, operation or maintenance of any aspect of the system. The amount of the insurance shall not be less than the following:
(A) General liability insurance.
Bodily injury, per person | $500,000 |
Bodily injury, per occurrence | $1,000,000 |
Property damage, per occurrence | $500,000 |
(B) Automobile insurance.
Bodily injury, per person | $100,000 |
Bodily injury, per occurrence | $300,000 |
Property damage, per occurrence | $300,000 |
(C) Coverage may be changed from time to time during the term of the franchise.
(D) Worker’s compensation insurance shall also be provided as required by state law.
(E) All the insurance coverage shall provide a 30-day notice to the Town Administrator/Town Clerk in the event of material alteration or cancellation of any coverage afforded in the policies prior to the date the material alteration or cancellation shall become effective.
(F) A certificate of coverage for all policies required by this section shall be furnished to and filed with the Town Administrator/Town Clerk prior to the commencement of operations or expiration of prior policies, as the case may be.
(Prior Code, § 4.1-44) (Ord. passed 9-19-1979)
(A) The franchisee shall, concurrently with its acceptance of this franchise, file with the Town Administrator/Town Clerk and, at all times thereafter, maintain in full force and effect for the term of the franchise or any renewal thereof, at the franchisee’s sole expense, a corporate surety bond in a responsible company licensed to do business in the state and approved by the town, in the amount of $10,000, renewable annually and conditioned upon the faithful performance of the franchisee and in accordance with the provisions of this chapter and upon the further condition that, in the event the franchisee shall fail to comply with any one or more of the provisions of the franchise, there shall be recoverable jointly and severally from the principal and surety of the bond any damages or loss suffered by the town as a result thereof, including the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the franchisee as prescribed hereby, plus a reasonable allowance for attorneys’ fees and costs, up to the full amount of the bond, the condition to be a continuing obligation for the duration of the franchise and any renewal thereof and thereafter until the franchisee has liquidated all of its obligations with the town that may have arisen from the acceptance of the franchise or renewal by the franchisee or from its exercise of any privileges or rights herein granted. The bond shall provide that at least 30 days’ prior written notice of intention not to renew, cancellation or material change be given to the town by filing the same with the Town Administrator/Town Clerk. Notwithstanding the above provisions of this section, the Board of Alderpersons may, in its sole discretion, waive the bond or reduce the required amount thereof after two years of operation of a system under the franchise by the franchisee, its successors or assigns, which, in the sole opinion of the Board of Alderpersons, has been satisfactory. Failure to keep a performance bond in force at all times as herein provided shall constitute an event of default.
(Prior Code, § 4.1-46)
(B) In lieu of the performance bond by a surety company as provided in § 110.144, the franchisee may file and deposit with the Town Administrator/Town Clerk a performance bond without a corporate surety but secured by a certificate of deposit in some bank or savings and loan association in the state, in the sum of $10,000, conditioned in the same manner as the performance bond of a surety company as described in § 110.144. The income from the deposit shall be payable to the franchisee. As an alternative, the franchisee may provide the other security as may be approved by the Board of Alderpersons, but absent the approval, it shall provide a bond or deposit in lieu thereof as above provided.
(Prior Code, § 4.1-47) (Ord. passed 9-19-1979)
(A) Right to purchase system. The town shall have the right to purchase the system, as specified elsewhere in this chapter.
(B) Right to inspect records and examine officers and employees. The town shall have the right to inspect all books and records and examine officers and employees as specified in § 110.105.
(C) Right to inspect plans and construction. The town reserves the right, but shall not have the duty, to inspect plans and construction of any facility to be used in connection with the cable system, irrespective of its location.
(D) Right of intervention. The franchisee shall not oppose intervention by the town in any suit or proceeding to which the franchisee is a party.
(E) Right to require removal of property. The town reserves the right, not inconsistent with any other provision of this chapter, to require the franchisee to remove any of its property from publicly owned property at the franchisee’s own expense.
(Prior Code, § 4.1-48) (Ord. passed 9-19-1979)
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