§ 111.085 INSURANCE AND BONDS.
   During the term of any franchise, a franchisee shall obtain and maintain at its sole expense, all insurance and bonds required by this chapter. It is expressly understood that the city does not in any way represent that the specified limits of liability or coverage or policy forms are sufficient or adequate to protect the interest or liabilities of franchisee.
   (A)   (1)   The franchisee shall file with the city:
         (a)   A franchise bond in the amount of $1,000,000 which shall be required to be in place for the entire term of the franchise; and
         (b)   A performance bond in an amount to be determined by the City.
      (2)   In no event shall the amount of the performance bond required by the city exceed the reasonable costs of repairing the rights-of-way in the event of non-performance by the franchisee. The performance bond shall provide for the faithful performance of construction and installation of the franchisee’s system. Two years after demonstration of the completion of the construction of the system by franchisee to the city, the city shall release the performance bond.
   (B)   The performance bond shall indemnify the city in its own right and as trustee, from any damages or losses arising out of the failure of franchisee to faithfully perform and satisfactorily complete construction of the system in accordance with this chapter.
   (C)   The failure of franchisee to comply with its obligations under this chapter or the franchise as determined by the city shall entitle the city to draw against either or both of franchisee’s performance or franchise bonds.
   (D)   The rights reserved to the city with respect to the performance and franchise bonds required hereunder are in addition to all other rights of the city, whether reserved by this chapter or authorized by law, and no action, proceeding or exercise of a right with respect to such performance or franchise bonds shall affect any other rights the city may have.
   (E)   Unless otherwise released by the city, the performance or franchise bonds required hereunder shall not expire or be materially altered without 30 days’ written notice and without securing and delivering to the city a substitute, renewal, and replacement bond in conformance with this chapter. In the event the city does draw monies against the performance bonds required hereunder, within ten days thereafter, the franchisee shall pay such funds to the bonding company as necessary to bring said performance and/or franchise bonds back to the applicable principal, where it shall continue to be maintained. The performance and franchise bonds required hereunder shall contain the following endorsements: “It is hereby understood and agreed that this bond may not be reduced, altered or canceled by the franchisee or surety without 30 days’ written notice, by certified mail, to the City of Windy Hills. Such termination or cancellation shall have no effect on any liability incurred or accrued under this bond prior to the effective date of such termination or cancellation.”
   (F)   Immediately upon the effective date of the resolution granting a franchise under this chapter, franchisee shall file with the city the following proof of liability insurance issued by a company(ies) authorized to do business in the commonwealth with an AM Best Rating of A- or better:
      (1)   General liability insurance, via an occurrence form, covering bodily injury, including death, personal injury, and property damage, and including completed operations, contractual liability, independent contractors protective liability and personal injury liability protection. The minimum acceptable limit of liability amount is $5,000,000 per occurrence and aggregate under a combined single limit. This policy must include the city, including its Mayor and City Council members, as additional insureds as respects all operations of the insured franchisee. This policy must cover the city for damages resulting from any transmission over a system, the city reserves the right to make reasonable increases in the required amount of insurance coverage herein at any time. Nothing herein is intended as a limitation on the extent of any legal liability of the franchisee;
      (2)   Automobile liability, insuring all owned, non-owned, and hired motor vehicles. The minimum coverage liability limit is $5,000,000 combined single limit for any one accident. The limit of liability may be subject to increase according to any applicable state or federal transportation regulations; and
      (3)   Workers’ compensation (if applicable), insuring the employers’ obligations under KRS Chapter 342 at statutory limits, and employers’ liability, $100,000 each accident/$500,000 disease - policy limit/$100,000 disease - each employee.
   (G)   The franchisee shall maintain on file with the city a certificate of insurance certifying the coverage required under this chapter, which certificate shall be subject to the approval of the city as to the adequacy of the certificate and of the insurance certified under the requirements of this chapter, the city may at its sole discretion require a certified copy of the insurance policy(s) required under this ordinance, specifically endorsed to include all liability assumed by franchisee hereunder. Such policy(s) and certificate shall be identified on their face by the name of franchisee, and shall be submitted to the city, in accordance with the terms and conditions of this chapter. Failure to maintain adequate insurance as required under this chapter shall be deemed a breach of the franchise.
   (H)   The city reserves the right to make increases in the amount of insurance coverage referred to in this section at any time.
   (I)   The following clause shall be added to franchisee’s (and subcontractors) commercial general liability policies: “The City of Windy Hills, its elected and appointed officials, employees, agents and successors are added as an “additional insured” as respects operations of the Named Insured performed relative to the contract.”
(Ord. 2 S2018/2019, passed 10-8-2018)