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(a) City Not Liable. The City, and its agents, employees, and contractors, shall not be liable to the grantee or the grantee's customers for any interference with or disruption in the operation of the grantee's electric system, or the provision of service over or through the electric system, or for any damages arising out of the grantee's use of the public ways.
(b) Indemnification. As part of the consideration for of this chapter, the grantee shall defend, indemnify, protect and hold harmless the City, its officers, agents, employees, departments, boards, and commissions from any and all claims, losses, liabilities, causes of action, demands, judgments, decrees, proceedings, and reasonable expenses of any nature (including, without limitation, actual fees and expenses of attorneys, expert witnesses and consultants), arising out of or resulting from the acts or omissions of the grantee, its officers, agents, employees, contractors, successors, or assigns, but only to the extent of the fault of the grantee, its officers, agents, employees, contractors, successors, or assigns.
(c) Assumption of Risk. The grantee undertakes and assumes for its officers, agents, contractors and subcontractors and employees, all risk of dangerous conditions, if any, on or about any City-owned or controlled property, including public ways, and the grantee hereby agrees to indemnify and hold harmless the City against and from any claim asserted or liability imposed upon the City for personal injury or property damage to any person arising out of the installation, operation, maintenance or condition of the electric system or the grantee's failure to comply with any Federal, State or local statute, ordinance or regulation.
(d) Notice, Cooperation and Expenses. The City shall give the grantee prompt notice of the making of any claim or the commence of any action suit or other proceeding covered by the provisions of this section.
Nothing herein shall be deemed to prevent the City from cooperating with the grantee and participating in the defense of any litigation by City's own counsel.
The grantee shall pay all expenses incurred by the City in defending itself with regard to any such actions, suits or proceedings. These expenses shall include all out-of-pocket expenses such as attorney fees and shall also include the reasonable value of any services rendered by or on behalf of the City's attorney(s), and the actual expenses of the City's agents, employees or expert witnesses, and disbursements and liability assumed by the City in connection with such suits, actions or proceedings.
(Ord. 2000-02. Passed 1-18-00.)
The grantee shall, at the time of ownership or construction of any system, equipment, lines, and/or buildings independent of its use of the existing transmission and distribution system, obtain and maintain in full force and effect, for the entire effective period of this chapter, the following insurance covering all insurable risks associated with its ownership and use of its electric system:
(a) A comprehensive general liability insurance policy, including completed operations. Liability, independent contractors liability, contractual liability coverage and coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as XCU coverage, in an amount not less than five million dollars ($5,000,000).
(b) An automobile liability insurance policy to cover any vehicles used in connection with its activities under this chapter, in an amount not less than two million dollars ($2,000,000).
(c) Workers' compensation and employer's liability insurance with statutory limits. The City shall be named as an additional insured in all applicable policies. All insurance policies shall provide that they shall not be canceled or modified unless thirty days prior written notice is given to the City. The grantee shall provide the City with a certificate of insurance evidencing such coverage as a condition of this chapter and shall maintain on file with the City a current certificate. All insurance shall be issued by insurance carriers licensed to do business by the State of Michigan or by surplus line carriers on the Michigan Insurance Commission approved list of companies qualified to do business in Michigan. All insurance and surplus line carriers shall be rated A+ or better by A.M. Best Company.
(Ord. 2000-02. Passed 1-18-00.)
The grantee shall be entitled to charge the inhabitants of the City for electricity furnished at the rates approved by the Michigan Public Service Commission, which body, or its successors, have authority and jurisdiction to fix and regulate electrical rates and promulgate rules regulating such service in the City.
(Ord. 2000-02. Passed 1-18-00.)
The grantee shall be and remain subject to all ordinances, rules and regulations of the City now in effect or which might subsequently be adopted for the regulation of land uses or for the protection of the health, safety and general welfare of the public; provided, however, that nothing herein shall be construed as a waiver by the grantee of any of its existing or future rights under Michigan or Federal law or a limitation upon the existing or future powers of the City pursuant to its charter or Michigan or Federal law.
(Ord. 2000-02. Passed 1-18-00.)
(a) Jurisdiction. The grantee shall, as to all other conditions and elements of service not addressed or fixed by this chapter, remain subject to the rules and regulations applicable to electric service promulgated by the Michigan Public Service Commission, or its successor bodies.
(b) Filing. The grantee shall provide the City with copies of all documents which the grantee sends to the Michigan Public Service Commission and copies of all orders, decisions, or correspondence the grantee receives from the Public Service Commission. The grantee shall permit City inspection and examination of all records it is required to maintain or file under Michigan Public Service Commission rules and regulations.
(Ord. 2000-02. Passed 1-18-00.)
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