(a) Indemnification of the city. The grantee shall save the city and its agents and employees harmless from and against all claims, damages, losses, and expenses, including attorney's fees sustained by the city on account of any suit, judgment, execution, claim or demand whatsoever arising out of but not limited to copyright infringements and all other damages arising out of the installation, operation, maintenance, or reconstruction of the cable television system authorized in a franchise agreement.
(b) Reimbursement of costs. A grantee shall pay all expenses incurred by the city defending itself with regard to all damages and penalties mentioned in Section 95-5(a) above.
(c) Public liability insurance. A grantee shall maintain throughout the term of the franchise or any renewal or extension thereof, a general comprehensive liability insurance policy issued by an insurer with an A- or better rating of insurance in Best's Key Rating Guide, Property/Casualty Edition, authorized to do business in the State of Texas, naming as the additional insured the city, its officers, boards, commissions, agents and employees, in a form satisfactory to the City Attorney protecting the city and all persons against liability for loss or damage for personal injury, death or property damage, occasioned by the operations of the grantee under any franchise granted hereinafter, in the amounts of (i) $500,000.00 for bodily injury or death to any one person, within the limit, however, of $1,000,000.00 for bodily injury or death resulting from any one accident, (ii) $250,000.00 for property damage resulting from any one accident, and (iii) workers compensation insurance in compliance with all workers compensation insurance and safety laws of the State of Texas, and amendments thereto.
(d) Notice of cancellation or reduction of coverage. The insurance policies mentioned above shall state that the policies are extended to cover the liability assumed by the grantee under the terms of any franchise agreement and shall contain the following endorsement:
"It is hereby understood and agreed that this policy may not be canceled nor the amount of coverage thereof reduced until 30 days after receipt by the city by registered mail of written notice of such intent to cancel or reduce the coverage."
(e) Evidence of insurance filed with the city. All policies of insurance or certificates of insurance with a notice of cancellation provision shall be filed and maintained with the city during the term of this franchise or any renewal thereof.
(f) No waiver of insurance, construction bond or letter of credit. Recovery by the city of any amounts under insurance, the construction bond (Section 95-5(g)) or letter of credit (Section 95-16), or otherwise does not limit a grantee's duty to indemnify the city in any way; nor shall such recovery relieve a grantee of its obligations under a franchise, limit the amounts owed to the city, or in any respect prevent the city from exercising any other right or remedy it may have.
(g) Construction bond. Prior to any cable system construction, upgrade, or other work in the public rights-of-way, a grantee shall establish in the city's favor a performance bond in an amount specified in a franchise agreement or other authorization as necessary to ensure the grantee's faithful performance of the construction, upgrade, or other work.
In the event a grantee subject to such a performance bond fails to complete the cable system construction, upgrade, or other work in the public rights-of-way in a safe, timely, and competent manner in accord with the provisions of a franchise agreement, there shall be recoverable, jointly and severally from the principal and surety of the bond, any damages or loss suffered by the city as a result, including the full amount of any compensation, indemnification, or cost of removal or abandonment of any property of the grantee, or the cost of completing or repairing the cable system construction, upgrade, or other work in the public rights-of-way, plus a reasonable allowance for attorney's fees, up to the full amount of the bond. The city may also recover against the bond any amount recoverable against the letter of credit where such amount exceeds that available under the letter of credit.
Upon completion of the cable system construction, upgrade, or other work in the public rights-of-way and payment of all construction obligations of the cable system to the satisfaction of the city, the city may eliminate the bond or reduce its amount after a time appropriate to determine whether the work performed was satisfactory, which time shall be established considering the nature of the work performed. The city may subsequently require a new bond or an increase in the bond amount for any subsequent construction, upgrade, or other work in the public rights-of-way.
The performance bond shall be issued by a surety with an A- or better rating of insurance in Best's Key Rating Guide, Property/Casualty Edition and shall be subject to the prior approval of the city.
The construction bond shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be canceled by the surety nor the intention not to renew be stated by the surety until 60 days after receipt by the city, by registered mail, of written notice of such intent to cancel or not to renew."
(Ord. No. 2801, § 3, 2-25-99)