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(A) Unless otherwise specified in a franchise agreement between the permittee and the town, prior to the granting of any permit, the permittee shall file with the town an insurance policy or certificate in a form satisfactory to the town with coverage as follows:
(1) The permittee shall carry and maintain in full effect at all times a commercial general liability policy, including broad form property damage, completed operations contractual liability, explosion hazard, collapse hazard, underground property damage hazard, commonly known as XCU, for limits not less than $1,000,000 each occurrence for damages of bodily injury or death to one or more persons; and $500,000 each occurrence for damage to or destruction of property;
(2) Workers’ compensation insurance as required by state law; and
(3) Town departments shall be relieved of the obligation of submitting a certificate of insurance.
(B) Whenever any person has filed with the town evidence of insurance as required, any additional or subsequent permit holder in the employ of said initial person may, at the discretion of the town, be excused from depositing or filing any additional evidence of insurance if such employee is fully covered by the permittee’s insurance policy.
(C) Each permittee shall construct, maintain and operate its facilities in a manner which provides protection against injury or damage to persons or property.
(1) The permittee, for itself and its related entities, agents, employees, subcontractors and the agents and employees of said subcontractors, shall save the town harmless, defend and indemnify the town, its successors, assigns, officers, employees, agents and appointed and elected officials from and against all liability or damage and all claims or demands whatsoever in nature unless caused by the negligent or intentional acts of the town, and reimburse the town for all its reasonable expenses, as incurred, arising out of the installation, maintenance, operation or any other work or activity in the public right-of-way or by the permittee related to its use thereof, including, but not limited to, the actions of the permittee, its employees, agents, contractors, related entities, successors and assigns, or the securing of and the exercise by the permittee of the permit rights granted in the permit, including any third party claims, administrative hearings and litigation; whether or not any act or omission complained of is authorized, allowed or prohibited by this code or other applicable law.
(2) The terms of each contract awarded by the permittee for activities pursuant to a permit shall contain indemnity provisions whereby the contractor shall indemnify the town to the same extent as described above.
(3) Following the receipt of written notification of any claim the permittee shall have the right to defend the town with regard to all third party actions, damages and penalties arising in any way out of the exercise of any rights in the permit. If, at any time, however, the permittee refuses to defend, and the town elects to defend itself with regard to such matters, the permittee shall pay all reasonable expenses incurred by the town related to its defense.
(4) In the event the town institutes litigation against the permittee for a breach of the permit or for an interpretation of this code and the town is the prevailing party, the permittee shall reimburse the town for all costs related hereto, including reasonable attorney’s fees. The permittee shall not be obligated to hold harmless or indemnify the town for claims or demands to the extent that they are due to the negligence, or any intentional and/or willful acts of the town or any of its officers, employees or agents.
(5) In the event the permittee is a public entity, the indemnification requirements of this section shall be subject to the provisions of the state’s Governmental Immunity Act, being C.R.S. §§ 24-10-101 et seq.
(Prior Code, § 165.7) (Ord. 503, passed 7-7-2005; Ord. 577, passed 11-6-2014)
(A) Before any permit required by this chapter shall be issued to an applicant, the applicant shall file with the Director a bond or letter of credit in favor of the town in an amount equal to the total cost of construction, including labor and materials, or $5,000, whichever is greater. The bond or letter of credit shall be executed by the applicant as principal and by at least one surety upon whom service of process may be had in the state. The bond or letter of credit shall be conditioned upon the applicant fully complying with all provisions of town codes, ordinances, rules and regulations, and upon payment of all judgments and costs rendered against the applicant for any material violation of town codes, ordinances or state statutes that may be recovered against the applicant by any person for damages arising out of any negligent or wrongful acts of the applicant in the performance of work done pursuant to the permit. The town may bring an action on the bond or letter of credit on its own behalf or on behalf of any person so aggrieved as beneficiary. The bond or letter of credit must be approved by the Town Manager as to form and as to the responsibility of the surety thereon prior to the issuance of the permit. However, the town may waive the requirements of any such bond or letter of credit or may permit the applicant to post a bond without surety thereon upon finding that the applicant has financial stability and assets located in the state to satisfy any claims intended to be protected against the security required by this section.
(B) A letter of responsibility will be accepted in lieu of a performance bond or letter of credit from all public utilities, and all franchised entities operating within the town.
(C) The performance bond, letter of credit or letter of responsibility shall remain in force and effect for a minimum of three years after completion and acceptance of the street cut, excavation or lane closure.
(Prior Code, § 165.8) (Ord. 503, passed 7-7-2005; Ord. 577, passed 11-6-2014)
(A) Any warranty made hereunder shall serve as security for the performance of work necessary to repair the public right-of-way if the permittee fails to make the necessary repairs or to complete the work under the permit.
(B) The permittee, by acceptance of the permit, expressly warrants and guarantees complete performance of the work in a manner acceptable to the town and warrants and guarantees all work done for a period of two years after the date of probationary acceptance, and agrees to maintain upon demand and to make all necessary repairs during the two-year period. This warranty shall include all repairs and actions needed as a result of:
(1) Defects in workmanship;
(2) Settling of fills or excavations;
(3) Any unauthorized deviations from the approved plans and specifications;
(4) Failure to barricade;
(5) Failure to clean up during and after performance of the work; and
(6) Any other violation of this chapter or the codes or ordinances of the town.
(C) The two-year warranty period shall run from the date of the town’s probationary acceptance of the work. If repairs are required during the three-year warranty period, those repairs need only be warranted until the end of the initial two-year period starting with the date of probationary acceptance. It is not necessary that a new two-year warranty be provided for subsequent repairs after probationary acceptance.
(D) At any time prior to completion of the two-year warranty period, the town may notify the permittee in writing of any needed repairs. Such repairs shall be completed within 24 hours if the defects are determined by the town to be an imminent danger to the public health, safety and welfare. Non- emergency repairs shall be completed within 30 calendar days after notice.
(E) The warranty described in this section shall cover only those areas of work undertaken by a permittee, and not directly impacted by the work of any other permittee or the town. In the event that a portion of work warranted by the permittee is subsequently impacted by work of another permittee or the town during the warranty period, that other permittee or the town shall assume responsibility for repair to the subsequently impacted section of right-of-way.
(Prior Code, § 165.9) (Ord. 503, passed 7-7-2005; Ord. 577, passed 11-6-2014)
A minimum of three inspections shall take place. First, the permittee shall request that the town conduct a pre-construction inspection, to determine any necessary conditions for the permit. Second, the permittee shall notify the town immediately after completion of work operations. The town shall inspect the completed work within 21 days of the permittee’s notification. Probationary acceptance will be made if all work meets town and permit standards. Third, approximately 30 days prior to the expiration of the two-year guarantee, the town shall conduct a final inspection of the completed work. If the work is still satisfactory the bond or letter of credit shall be returned or allowed to expire, with a letter of final acceptance, less any amounts needed to complete work not done by the permittee. Upon review of the application for a permit, the Director shall determine how many additional inspections, if any, may be required. For work that does not involve material disturbance in the rights-of-way, the Director shall waive the final inspection and the performance bond/letter of credit.
(Prior Code, § 165.10) (Ord. 503, passed 7-7-2005; Ord. 577, passed 11-6-2014)
The permittee shall maintain a safe work area, free of safety hazards. The town may make any repair necessary to eliminate any safety hazards not performed as directed. Any such work performed by the town shall be completed and billed to the permittee at overtime rates. The permittee shall pay all such charges within 30 days of the statement date. If the permittee fails to pay such charges within the prescribed time period, the town may, in addition to taking other collection remedies, seek reimbursement through the warranty guarantee. The town shall not issue any further permits of any kind to said permittee, until all outstanding charges (except those outstanding charges that are honestly and reasonably disputed by the permittee and being negotiated in good faith with the town) have been paid in full.
(Prior Code, § 165.11) (Ord. 503, passed 7-7-2005; Ord. 577, passed 11-6-2014)
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