(A) The grantee shall maintain in full force and effect, at its own cost and expense during the term of the franchise, General Comprehensive Liability Insurance in the amount of $300,000 for bodily injuries, including accidental death, to any one person, and to the same limit for each person in an amount not less than $5,000,000 on account of any one occurrence, and property damage liability insurance in an amount not less than $5,000,000 resulting from any one occurrence. The insurance shall designate the franchising authority as an additional named insured. The insurance shall be noncancellable, except upon sixty-days' prior written notice to the franchising authority.
(B) The grantee agrees to indemnify, save and hold harmless and defend the franchising authority and its officers, boards and employees from and against any liability for damages and for any liability or claims resulting from property damage or bodily injury, including accidental death, which arise out of the grantee's construction, operation or maintenance of its cable system, including, but not limited to, reasonable attorneys' fees and costs.
(C) Except as expressly provided herein, the grantee shall not be required to obtain or maintain bonds or other surety as a condition of being awarded the franchise or continuing its existence. The franchising authority acknowledges that the legal financial and technical qualifications of the grantee are sufficient to afford compliance with the terms of the franchise and the enforcement thereof. The grantee and franchising authority recognize that the costs associated with bonds and other surety may ultimately be borne by the subscribers in the form of increased rates for cable services. In order to minimize these costs, the franchising authority agrees to require bonds and other surety only in amounts and during times as there is a reasonably demonstrated need therefore. The franchise authority agrees that in no event, however, shall it require a bond or other related surety in an aggregate amount greater than $10,000, conditioned upon the substantial performance of the material terms, covenants, and conditions of the franchise. Initially, no bond or other surety will be required. In the event that one is required in the future, the franchising authority agrees to give the grantee at least 60-days' prior notice thereof stating the exact reason for the requirement. The reasons must demonstrate a change in the grantee's legal, financial or technical qualifications which would materially prohibit or impair its ability to comply with the terms of the franchise or afford compliance therewith.
(Ord. 617, passed 7-1-1985)