(a) Every cable communications company shall, within thirty days of the grant of a franchise to it pursuant to this chapter, file with the City Clerk, and at all times thereafter maintain in full force and effect for the term of the franchise, at its expense, a corporate surety bond or such other surety arrangement as the City may approve in the amount of twenty-five thousand dollars ($25,000), conditioned upon the faithful performance by such cable communications company of its obligations under its franchise as herein set forth, and upon the further condition that if such cable communications company fails to comply with any of the provisions of this chapter, there shall be recoverable jointly and severally from the principal and surety of such bond any damages or loss suffered by the City as a result thereof, including the full amount of any compensation, indemnification or cost of removal of any property of such cable communications company as provided in this chapter, plus attorney's fees and costs, up to the full amount of the bond. Such condition shall be a continuing obligation for the duration of any franchise granted under this chapter and any renewal thereof, and thereafter until such cable communications company has liquidated all of its obligations to the City which may have arisen under the franchise or from the exercise of any privilege or right granted thereby. Any bond provided under this section shall provide that at least thirty days prior notice of any intention to not renew, to cancel or to make a material change therein shall be filed with the City. Nothing herein shall be construed to excuse faithful performance by any cable communications company or in any way to limit its liability for damages or otherwise. The bond required hereunder may be reduced by Council in face amount to ten thousand dollars ($10,000) at such time as the franchise is actively providing cable communications service to 500 or more subscribers in the City. Such reduction shall not be deemed a material change in the bond.
(b) Any cable communications company, within thirty days of the grant of a franchise pursuant to this chapter, shall file with the City Clerk, in addition to the bond as set forth in subsection (a) hereof:
(1) Proof of a general comprehensive liability insurance policy and an automobile liability insurance policy issued by companies licensed to do business in the State, protecting the City and its officers, boards, commissions, agents and employees against liability for loss or damage for personal injury, death and property damage occasioned by the installation, construction, maintenance or operation of a cable communications system in the City, with minimum liability limits of five hundred thousand dollars ($500,000) for personal injury or death of any one person and one million dollars ($1,000,000) for personal injury or death of two or more persons in any one occurrence, and five hundred thousand dollars ($500,000) for damages to property resulting from any one occurrence. Such policy shall contain a provision that written notice of cancellation or material change or reduction in coverage shall be given the City Clerk at least thirty days in advance of the effective date thereof.
(2) Proof of adequate insurance as required by the State Worker's Compensation Law applicable to it.
(c) No franchise hereunder shall be effective until the provisions of subsections (a) and (b) hereof have been fully complied with. Failure to file the bond, proof of general comprehensive liability insurance, proof of automobile liability insurance, and proof of adequate worker's compensation insurance, or any of them, as required by subsections (a) and (b) hereof, with the City Clerk within thirty days after the grant of a franchise, shall render the franchise null and void without notice or further proceedings.
(d) The franchisee shall indemnify and hold harmless the City at all times during the term of the franchise granted hereby and shall specifically pay all damages and penalties which the City may be legally required to pay as a result of granting the franchise. Such damages and penalties shall include, but not be limited to, damages arising out of the installation, operation or maintenance of the CATV system authorized herein, whether or not any act or omission complained of is authorized, allowed or prohibited by the franchise, and the cost of repair or replacement of streets, alleys, bridges and other public places and ways as shall arise from the construction or maintenance of the CATV system. If 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. 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 shall hold the City harmless therefrom.
(Ord. 175. Passed 7-21-81.)