A. Construction performance bond.
(1) Within 30 days after the granting of any franchise and prior to the commencement of any construction work by the grantee, the grantee shall file with the grantor a construction performance bond in the amount equal to the construction cost specified in the grantee's proposal, in favor of the grantor and any other person who may claim damages as a result of the breach of any duty by the grantee assured by such bond.
(2) Such bond as contemplated herein shall be in the form approved by the City Attorney in accordance with standard municipal bonding practices and shall among other matters cover the cost of removal of any properties installed by the grantee in the event said grantee shall default in the performance of its construction obligation.
(3) In no event shall the amount of said bond be construed to limit the liability of the grantee for damages.
B. Compliance bond.
(1) In addition to the construction performance bond set forth above, the grantee shall, at least 30 days prior to the commencement of operation, file with the grantor a compliance bond in the amount specified in the franchise agreement, in favor of the grantor and including the payments required to be made to the grantor hereunder.
(2) Such bond as contemplated herein shall be in the form approved by the City Solicitor in accordance with standard municipal bonding practices and shall among other matters cover the cost of removal of any properties installed by the grantee in the event said grantee shall default in the performance of its franchise obligation.
(3) In no event shall the amount of said bond be construed to limit the liability of the grantee for damages.
C. Indemnification.
(1) The grantee shall by acceptance of the franchise granted herein indemnify, defend and hold harmless the grantor, its officers, boards, commissions, agents, and employees from any and all claims, suits, judgments for damages in any way arising out of or through or alleged to arise out of or through the acts or omissions of grantee, its servants, employees or agents.
(2) In the event any such claims shall arise, the grantee shall tender the defense thereof to the grantor; provided, however, that the grantor, in its sole discretion, may participate in the defense of such claims at its expense.
(3) As between the grantor and the grantee, the foregoing liability and indemnity obligations of the grantee pursuant to this section shall not apply:
(a) To any services distributed over the municipal channels or the portion of the institutional network available to and used by the grantee to the extent that the grantor has not participated in the production of said services or any other act forming the basis for such claim.
(b) With respect to any negligent or wrongful act or failure to act by the grantor, its officers, employees, or agents.
D. Insurance.
(1) The grantee shall maintain throughout the term of the franchise insurance in amounts at least as follows:
(a) Workers' compensation insurance. In such coverage as may be required by the laws of the Commonwealth of Pennsylvania and any amendments thereto.
(b) Grantee's liability. In the amount specified in the franchise agreement.
(c) Comprehensive general liability. Bodily injury and property damage in the amount specified in the franchise agreement.
(d) Comprehensive automobile liability. Comprehensive automobile liability insurance for damages in the amount specified in the franchise agreement.
(2) The grantee shall furnish the grantor with copies of such insurance policies or certificates of insurance.
(3) Such insurance policies provided for herein shall name the grantor, its officers, boards, commissions, agents, and employees as additional insured and shall contain the following or similar endorsement: "It is hereby understood and agreed that this insurance policy may not be canceled by the surety or the intention not to renew be implemented by the surety until 30 days after receipt by the grantor by registered mail written notice of such intention to cancel or not renew."
(4) The minimum amounts set forth for such insurance shall not be construed to limit the liability of the grantee to the grantor under the franchise issued to the amounts of such insurance.
E. Payment of costs. Within 30 days of notice from the City, the grantee shall reimburse the City for all costs and charges reasonably incidental to the award or renewal of a franchise agreement.