(A) Insurance.
(1) The grantee shall procure and maintain for the duration of the franchise the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance hereunder by the grantee:
(a) Commercial general liability insurance as follows:
1. Bodily injury with limits of not less than $5,000,000.00 per person and $10,000,000.00 per occurrence;
2. Property damage with limits of not less than $5,000,000.00 per occurrence, $10,000,000.00 in the aggregate;
3. Products-completed operations coverage;
4. Personal and advertising injury coverage;
5. Explosion, collapse and underground coverage;
6. Grantee’s commercial general liability insurance policy will list as additional insureds, the City of Richmond, its elected and appointed officials, employees, volunteers and consultants for their vicarious liability from the negligent acts or omissions of grantee.
7. Additionally, such insurance shall contain endorsement that grantee’s insurance coverage shall be primary insurance with respect to the city. Any insurance or self-insurance maintained by the city shall be in excess of the grantee’s insurance and shall not contribute to it.
(b) Comprehensive automobile liability insurance providing limits of not less than $3,000,000.00 per person/$5,000,000.00 per occurrence for bodily injury, and property damage not less than $3,000,000.00 per occurrence.
(c) Workers’ compensation insurance as required by the Kentucky Revised Statutes and employers liability coverage equal to $1,000,000.00 with endorsement that insurer shall agree to waive all rights of subrogation against the city for losses arising from work performed by the grantee for the city; and
(2) The grantee shall abide by all local, state, and federal insurance regulations.
(3) Insurance is to be placed with insurers qualified to do business in the Commonwealth of Kentucky;
(4) Grantee shall furnish the city with certificates of insurance reflecting the above coverages, and grantee shall provide to the city the following:
(a) Signed renewal certificates for expiring policies; and
(b) New certificates of insurance if policies or carriers change during the term of this franchise, showing compliance with the above requirements.
(5) The city may review, audit, and inspect any and all of grantee’s relevant records and operations to ensure compliance with these insurance requirements.
(6) Grantee shall to adhere to and comply with all federal, state and local safety and environmental laws, regulations and ordinances. The grantee shall provide all safeguards, safety devices and protective equipment and apparatus necessary to protect the life, health, safety and property of all persons on the job site, the public and the owner as required by applicable federal, state and local law.
(7) The insurance required herein shall not be suspended, voided, canceled by the grantee, reduced in coverage or in limits, except upon 30 days prior written notice by certified mail, return receipt requested, to the city.
(8) If grantee fails to comply with any of these insurance, safety or loss control provisions within ten business days after notice from the city, then the grantee shall be in noncompliance which noncompliance shall constitute a default under this chapter. The city may elect, at its option, any single remedy or any combination of remedies, as available, including but not limited to, purchasing insurance and charging grantee for any such insurance premiums purchased, or terminating the grantee’s franchise. The date of default shall relate back to the date of breach, without regard to the date on which notice of such breach is provided by the city.
(B) Performance bond.
(1) Upon the effective date of the franchise agreement requiring telecommunications system construction, the grantee 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 a sum equal to one-fourth of the fair estimated cost of the telecommunications system to be erected. Said bond shall be enforceable in case the grantee should fail, within 180 days, to establish and begin rendering the telecommunications service in the manner set forth in this chapter.
(2) Upon completion of any telecommunication system construction/upgrade the bond shall be reduced to $50,000. The bond shall be conditioned that the grantee shall well and truly observe, fulfill and perform each and every term and condition of this chapter and the franchise agreement, and that, in the case of any breach of condition of the bond, the amount thereof shall be recoverable from the principal and the surety, jointly and severally, thereof by the city for all damages resulting from the failure of the grantee to well and truly observe and perform any provisions of this chapter or the franchise agreement. The aforesaid bond shall be maintained by the grantee throughout the term of the franchise and written evidence of the payment of the required payments shall be filed and maintained with the office of the City Clerk.
(Ord. 22-08, passed 4-12-22)