(A) The franchisee shall indemnify and hold harmless the city at all times during the term of the franchise and specifically agrees that it will pay all damages and penalties which the city may be legally required to pay as a result of the franchisee's actions or inaction in constructing, operating, maintaining, repairing, or removing the system, in carrying on the franchisee's business or operations in the city, or in exercising or failing to exercise any right or privilege granted in the franchise agreement. The damages and penalty 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 cable system, whether or not any act or omission complained of is authorized, allowed, or prohibited by the franchise agreement. In the case suit shall be filed against the city, either independently or jointly with the franchisee, to recover for any claim or damages, the franchisee, upon notice to it by the city, shall defend the city against the action and, in the event of a final judgment being obtained against the city, 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 city harmless therefrom. The city shall promptly notify the franchisee of any claims subject to indemnification by the franchisee and shall cooperate with all reasonable requests by the franchisee for information, documents, testimony, or other assistance appropriate to a resolution of such claims. The franchisee shall have the right to control and approve any action directed toward settlement of such claims.
(B) Upon the effective date of the franchise agreement, the franchisee shall furnish proof of the posting of a faithful performance bond running to the city with good and sufficient surety approved by the city, in the initial sum of $250,000; however, at the end of each of the first five years of the franchise term, the bond shall be reduced in $25,000 increments per year for each year of faithful performance (including during which no amounts of the bonds shall have been recovered by the city as damages). Thereafter, the amount of the bond shall be maintained at its minimum of $125,000 throughout the remainder of the term of the franchise. Written evidence of the payment of the establishment and maintenance of the bond shall be filed with the city.
(C) A franchisee shall be required to maintain insurance in such forms and in such companies as shall be approved by the city, such approval not to be unreasonably withheld, to protect the city and the franchisee from and against any and all claims, injury, or damage 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 such insurance shall not be less than the following:
(1) General liability insurance.
Bodily injury per person: $3,000,000.
Bodily injury per occurrence: $5,000,000.
Property damage per occurrence: $1,000,000.
Property damage aggregate: $1,000,000.
(2) Automobile insurance.
Bodily injury per person: $1,000,000.
Bodily injury per occurrence: $3,000,000.
Property damage per occurrence: $1,000,000.
(D) Workmen’s compensation insurance shall also be provided as required by the laws of the state. All such insurance shall name the city as an additional insured and shall provide a ten day notice to the City 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. Copies of all policies required hereunder shall be furnished to and filed with the City Clerk prior to the commencement of operations or the expiration of prior policies as the case may be.
(E) Neither the provisions of this section, nor any damage recovered by the city hereunder shall be construed to excuse unfaithful performance by a franchisee or limit the liability of the franchisee under this chapter or the franchise agreement for damages.
(Ord. 96-9, passed 2-26-1996)