[Ord. #89-07]
a.
Within thirty (30) days after the granting of a new franchise, or
a renewal which requires significant system construction, and prior
to the commencement of any construction work by the Grantee, the Grantee
shall file with the Grantor a construction bond in the amount specified
in the Franchise Agreement in favor of the Grantor as a result of
the breach of any duty by the Grantee assured by such bond.
b.
Such bond as contemplated herein shall be in the form approved by
the Grantor and shall, among other matters, cover the cost of removal
of any properties installed by the Grantee in the event said Grantee
shall default in the performance of its franchise obligation.
c.
In no event shall the amount of said bond be construed to limit the
liability of the Grantee for damages.
e.
Upon completion of construction, any construction bonds then in force
shall be released.
f.
Grantee shall, within thirty (30) days after all or any portion of
the bond is drawn upon by Grantor, restore the amount of the bond
to its original value.
[Ord. #89-07]
a.
In addition to the construction bond set forth above, the Grantee
may be required, at least thirty (30) days prior to the commencement
of operation, to file with the Grantor a performance bond in the amount
specified in the Franchise Agreement in favor of the Grantor for damages
as a result of any occurrence in the operation or termination of the
Cable Communications System operated under the Franchise Agreement
and including the payments required to be made to the Grantor hereunder.
b.
Such bond as contemplated herein shall be in the form approved by
the Grantor and shall among other matters cover the cost of removal
of any properties installed by the Grantee in the event said Grantee
shall default in the performance of its franchise obligation.
c.
In no event shall the amount of said bond be construed to limit the
liability of the Grantee for damages.
d.
Grantee shall, within thirty (30) days after all or any portion of
the bond is drawn upon by Grantor, restore the amount of the bond
to its original value.
[Ord. #89-07]
a.
Within ten (10) days after the effective date of the franchise, the
Grantee shall deposit into a bank account, established by the Grantor,
the sum specified in the Franchise Agreement, as security for the
faithful performance by it of all the provisions of the franchise,
and compliance with all orders, permits and directions of any agency
of the Grantor having jurisdiction over its acts or defaults under
this ordinance, and the payment by the Grantee of any claims, liens
and taxes due the Grantor which arise by reason of the construction,
operation or maintenance of the system.
Subject to the provisions of paragraph d below, the security
fund may be assessed by the Grantor for purposes including, but not
limited to, the following:
1.
Failure of Grantee to pay Grantor sums due under the terms of the
franchise.
2.
Reimbursement of costs borne by the Grantor to correct franchise
violations not corrected by Grantee, after due notice.
3.
Monetary remedies or damages assessed against Grantee due to default
or violation of franchise requirements.
b.
At Grantor's sole option, some portion of the security fund may be
provided in the acceptable form of an irrevocable letter of credit,
in lieu of a cash deposit.
c.
Within thirty (30) days after notice to it that any amount has been
withdrawn by the Grantor from the security fund pursuant to paragraph
a of this section, the Grantee shall deposit a sum of money sufficient
to restore such security fund to the amount required by the Franchise
Agreement.
d.
If the Grantee fails, after ten (10) days written notice to pay to
the Grantor any franchise fee or taxes due and unpaid; or, fails to
pay to the Grantor within such ten (10) days, any damages, costs or
expenses which the Grantor shall be compelled to pay by reason of
any act or default of the Grantee in connection with the franchise;
or fails, after ten (10) days notice of such failure by the Grantor
to comply with any material provision of the franchise which the Grantor
reasonably determines can be remedied by an expenditure of the security
fund, the Grantor may thereafter withdraw the amount thereof, with
interest and any penalties, from the security fund. Upon such withdrawal,
the Grantor shall notify the Grantee of the amount and date thereof.
e.
The security fund deposited pursuant to this section shall become the property of the Grantor in the event that the franchise is revoked for cause by reason of the default of the Grantee in accordance with the procedures of subsection 6-4.14 above. The Grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit no later than ninety (90) days after the expiration of the term of the franchise, provided that there is then no outstanding default on the part of the Grantee. The Grantee shall be entitled to any interest accrued on the cash portion of the security fund.
f.
The rights reserved to the Grantor with respect to the security fund
are in addition to all other rights of the Grantor whether reserved
by this chapter or authorized by law, and no action, proceeding or
exercise of a right with respect to such security fund shall constitute
an election of remedies or a waiver of any other right the Grantor
may have.
[Ord. #89-07]
a.
The Grantee shall by acceptance of any franchise granted indemnify,
defend and hold harmless the Grantor, its officers, boards, commissions,
agents, and employees from any and all claims, suits, judgments for
damages or other relief, costs and attorneys' fees in any way arising
out of or through or alleged to arise out of or through:
1.
The act of the Grantor in granting the franchise; and
2.
The acts or omissions of Grantee, its servants, employees, or agents
including, but not limited to, any failure or refusal by Grantee,
its servants, employees or agents to comply with any obligation or
duty imposed on Grantee by this chapter or the Franchise Agreement.
3.
The exercise of any right or privilege granted or permitted by this
chapter or the Franchise Agreement.
Such indemnification shall include, but not be limited to, all
claims arising in tort, contracts, infringements of copyright, violations
of statutes, ordinances or regulations or otherwise.
b.
In the event any such claims shall arise, the Grantor or any other
indemnified party shall tender the defense thereof to the Grantee.
Provided, however, that the Grantor in its sole discretion may participate
in the defense of such claims at its expense, and in such event, Grantee
shall not agree to any settlement of claims without Grantor approval,
which approval shall not be unreasonably denied.
c.
The Grantee shall not be required to indemnify the Grantor for negligence
or willful misconduct on the part of Grantor's officials, boards,
commissions, agents or employees.
[Ord. #89-07]
a.
The Grantee shall maintain throughout the term of the franchise insurance
in amounts at least as follows:
1.
Worker's Compensation Insurance. In such coverage as may be required
by the worker's compensation insurance and safety laws of the State
of California and amendments thereto.
2.
Comprehensive General Liability. Comprehensive general liability
insurance, including, but not limited to, coverage for bodily injury
and property damage shall be maintained at the sum (s) specified in
the Franchise Agreement.
3.
Comprehensive Automobile Liability. Comprehensive automobile liability
including, but not limited to, nonownership and hired car coverage
as well as owned vehicles with coverage for bodily injury and property
damage shall be maintained at the sum (s) specified in the Franchise
Agreement.
b.
The Grantee shall furnish the Grantor with copies of such insurance
policies or certificates of insurance.
c.
Such insurance policies provided for herein shall name the Grantor,
its officers, boards, commissions, and agents as additional insured,
and shall be primary to any insurance carried by Grantor, and shall
contain the following endorsement:
"It is hereby understood and agreed that this insurance policy
may not be cancelled by the surety or the intention not to renew be
stated by the surety until thirty (30) days after receipt by the City
by registered mail or written notice of such intention to cancel or
not renew."
d.
The minimum amounts set forth in the Franchise Agreement for such
insurance shall not be construed to limit the liability of the Grantee
to the Grantor under the franchise issued hereunder to the amounts
of such insurance.
e.
All insurance carriers providing coverage under paragraph a above
shall be duly licensed to operate in the State of California.
