(A) Protection of public and city. A permit for construction and connection of the extension between a building drain and the sewer main or stub, herein called the building sewer, or for construction of a water main or stub, shall be issued only upon application by a person who has furnished a bond either to the Clerk/Treasurer/Administrator or to the Secretary of State, under M.S. § 326.40, as it may be amended from time to time. The bond shall be in the amount of $2,000 conditioned so as to secure compliance by the principal with the provisions of this code and to further secure the person’s performance of all work undertaken within the city.
(B) Liability insurance. Before undertaking the construction work authorized by the permit, the person shall secure and maintain a policy of insurance against damages to property or injury or death to individuals. Before the permit should be issued, the person shall agree to hold the city harmless and shall agree to defend and indemnify the city, and the city’s employees and agents, for any claims, damages, losses, and expenses related to the work under the permit. The city shall be named as an additional insured under that insurance. The licensee’s contract of insurance shall be the primary
insurance for the city and the person or insurance company shall provide a certificate of insurance which verifies the existence of the insurance required, including provisions to hold the city harmless and defend and indemnify the city. The insurance shall provide coverage up to $300,000 for any single claim and $1,000,000 for any number of claims in a single occurrence. Proof of insurance shall be filed with the city prior to construction work and the policy shall provide that the city shall be notified immediately of any termination or modification of the insurance. If the insurance coverage is adequate in amount, the person shall indemnify and save harmless the city and its personnel in like manner.
(C) Indemnification by owner. The owner shall bear the costs and expenses incident to the installation and connection of the building sewer or extension of water service to private property. The owner shall indemnify the city for any loss or damage directly or indirectly caused by its installation. The Clerk/Treasurer/Administrator shall establish rules and regulations for the proper implementation of these requirements which, when approved by the Council by resolution, shall govern the installation of building sewers and connections.
(’77 Code, § 401.05) Penalty, see § 10.99