(a) Grantee shall maintain, throughout the period of construction and for so long as the facilities constructed, placed, installed or located occupy the rights-of-way or other public place, liability insurance insuring the City and the grantee with regard to all damages of the type mentioned in Section 191.18 above, or otherwise, in the following minimum amounts, (which insurance or the limits of same however, shall not serve to limit the grantee's obligations or duties to indemnify and save the City harmless as provided herein, particularly in Section 191.18 hereof):
(1) One million dollars ($1,000,000) for bodily injury or death to any one person;
(2) Three million dollars ($3,000,000) for bodily injury or death resulting from any one accident or occurrence;
(3) Five hundred thousand dollars ($500,000) for property damage to any single property; and
(4) Three million dollars ($3,000,000) for excess liability or umbrella coverage.
(b) Grantee shall furnish to the City certificates of insurance evidencing grantee's compliance with this section. All insurance required by this chapter shall be and remain in full force and effect for the entire term of this chapter. Such insurance, if canceled for any reason, shall immediately be put back in force subject to the terms and requirements specified herein.
(c) Any insurance policy obtained by the grantee to comply with this section must be approved by the City's Law Director, which approval shall not be unreasonably withheld, and a certificate of insurance and a duplicate copy of said insurance policy, along with written evidence of payment of required premiums, shall be filed and maintained with the City Clerk during the term of this chapter. Such insurance may be changed from time to time to reflect changing liability limits as may be reasonably requested by the City, but not below the minimum established herein. Grantee shall immediately notify the City in writing of any litigation that may develop that would affect the insurance required herein.
(d) Upon acceptance of the rights-of-way construction permit, grantee shall deposit with the City a surety bond in the amount of fifty thousand dollars ($50,000) in a form reasonably acceptable to the City's Law Director; provided, however, that the City Manager, in his sole discretion, may waive or reduce the amount of the bond. The performance bond shall be available to insure the faithful performance by grantee of all provisions of the rights-of-way construction permit. The performance bond shall be maintained at fifty thousand dollars ($50,000) during the entire term of this chapter, regardless of withdrawals which may be made under this section. The performance bond shall be conditioned upon and insure the faithful performance of grantee of all terms and conditions of the rights-of-way construction permit and the payment by grantee of any claim, liens, costs, expenses and taxes due the City which arise by reason of the construction, repair or maintenance of grantees' facilities in the rights-of-way or other public place. The rights reserved to the City with respect to the performance bond are in addition to all other rights the City may have under this chapter or any law. The company providing such bond must be licensed to do business in the State of Ohio. In the event of a default by grantee in any of its obligations under the rights-of-way construction permit which default is not cured within ten (10) days after notice by the City to grantee of such default (or such longer time as it is necessary to cure, so long as grantee commences to cure within ten (10) days and diligently pursues cure), the City may levy on the performance bond upon notifying grantee of the amount of such charge. Grantee may contest in good faith any dispute with respect to any levy by the City on the performance bond. The rights reserved to the City with respect to the performance bond are in addition to all other rights of the city, at law or in equity. The performance bond provided hereunder shall contain the following endorsement:
"It is hereby understood and agreed that this bond may not be canceled without thirty (30) days advance written notice to the City of Sandusky, Ohio."
(e) Upon written request of the grantee, and approval of the City Manager, grantees who maintain a net book value in excess of fifty million dollars ($50,000,000) may self-insure and self-bond in lieu of maintaining and providing the policies of insurance and bonds described above. Such grantees shall provide to the City Manager such certificates or other documents attesting to such book value, insurance and bonding as the City Manager may reasonably request.
(Ord. 00-261. Passed 9-25-00.)