Not later than sixty (60) days after the effective date of the franchise, the grantee shall obtain and maintain, at its cost and expense, and file with the city a letter of credit in an amount to be specified in the franchise agreement. Upon completion of the cable television system, and complete activation thereof in conformance with the provisions of this article and the franchise agreement, the city shall authorize cancellation of the letter of credit. Failure to timely obtain, file and maintain such letter of credit shall constitute a substantial violation of this article. The letter of credit shall be conditioned upon completion and activation of the construction of the system within the time provided in the franchise agreement. The form and content of the letter of credit shall be approved by the city manager.
(1991 Code, sec. 7-136)
(a) 
Not later than sixty (60) days after the effective date of the franchise agreement, the grantee shall obtain and maintain during the entire term of the franchise and any extensions and renewals thereof at its cost and expense, and file with the city a corporate surety bond in an amount to be specified in the franchise agreement to guarantee the faithful performance of the grantee of all its obligations provided in this article. Failure to timely obtain, file and maintain such bond shall constitute a substantial violation.
(b) 
The performance bond shall provide, but not be limited to the following conditions:
(1) 
There shall be recoverable by the city jointly and severally from the principal and surety any and all fines and penalties due to the city and any and all damages, losses, costs and expenses suffered or incurred by the city resulting from the failure of the grantee to comply with one (1) or more provisions of this article or the franchise agreement. Such losses, costs and expenses shall include, but not be limited to, reasonable attorney’s fees and other legal expenses.
(2) 
Not less than thirty (30) days’ prior written notice to the city shall be provided of the grantee’s intention to cancel, materially change, or to not renew the initial provisions of the bond.
(c) 
Upon written application by the grantee, the city may, at its sole option, permit the amount of the bond to be reduced or waive the requirements for a performance bond; provided, however, that no reduction or waiver shall occur prior to one (1) year following the completion of the system. Reductions granted or denied upon application by the grantee shall be without prejudice to the grantee’s subsequent applications or to the city’s right to require the full bond at any time thereafter. However, no application shall be made by the grantee within one (1) year of any prior application.
(d) 
The total amount of the bond shall be forfeited in favor of the city in the event:
(1) 
The grantee abandons the cable system at any time during the term of the franchise or any extension thereto; or
(2) 
The grantee assigns the franchise without the express written consent of the city.
(1991 Code, sec. 7-137)
(a) 
Prior to commencement of construction, but in no event later than sixty (60) days after the effective date of the franchise agreement and thereafter throughout the duration of the franchise and any extensions or renewals thereof, the grantee shall furnish to the city certificates of insurance, in a form approved by the city, for all types of insurance required under this article. Failure to furnish such certificates of insurance in a timely manner shall constitute a violation of this article.
(b) 
The grantee shall maintain and by its acceptance of the franchise specifically agrees that it will maintain throughout the term of the franchise general liability insurance insuring the grantee in the minimum of:
(1) 
Five hundred thousand dollars ($500,000.00) for property damage per occurrence;
(2) 
One million dollars ($1,000,000.00) for property damage aggregate;
(3) 
One million dollars ($1,000,000.00) for personal bodily injury to any one (1) person; and
(4) 
Two million dollars ($2,000,000.00) bodily injury aggregate per single accident or occurrence.
(c) 
Such general liability insurance must include coverage for all of the following: comprehensive form, premises-operations, explosion and collapse hazard, underground hazard, broad form property damage and personal injury.
(d) 
The grantee shall maintain, and by its acceptance of the franchise specifically agrees that it will maintain throughout the term of the franchise, automobile liability insurance in the minimum amounts of:
(1) 
Two million dollars ($2,000,000.00) for bodily injury and consequent death per occurrence;
(2) 
One million dollars ($1,000,000.00) for bodily injury and consequent death to any one (1) person;
(3) 
Five hundred thousand dollars ($500,000.00) for property damage per occurrence.
(e) 
The grantee shall maintain and by its acceptance of the franchise specifically agrees that it will maintain throughout the term of the franchise worker’s compensation and employer’s liability, valid in the state, in the minimum amount of:
(1) 
Statutory limit for worker’s compensation;
(2) 
One hundred thousand dollars ($100,000.00) for employer’s liability.
(f) 
The grantee shall immediately advise the city of any litigation that may develop that would affect this insurance.
(g) 
Neither the provisions of this section nor any damages recovered by the city hereunder shall be construed to or limit the liability of the grantee under any franchise issued hereunder or for damages.
(h) 
All insurance policies maintained pursuant to this franchise shall contain the following endorsement:
It is hereby understood and agreed that this insurance policy may not be cancelled by the insurance company nor the intention not to renew be stated by the insurance company until thirty (30) days after receipt by the city manager, by registered mail, a written notice of such intention to cancel or not to renew.
(i) 
All insurance policies provided under the provisions of this article shall be written by companies authorized to do business in the state, and approved by the state board of insurance.
(j) 
Copies of certificates of insurance for the required policies shall be filed with the city clerk during the term of the franchise.
(k) 
At any time during the term of the franchise agreement, the city may request the grantee to name the city as an additional named insured for all insurance policies written under the provisions of this article.
(1991 Code, sec. 7-138)
(a) 
Grantee shall, at its sole cost and expense, fully indemnify, defend and hold harmless the city, its officers, boards and commissions, and city employees against any and all claims, suits, actions, liability and judgments for damages (including but not limited to expenses for reasonable legal fees and disbursements and liabilities assumed by the city in connection therewith):
(1) 
To persons or property, in any way arising out of or through the acts or omissions of grantee, its servants, agents or employees, to or which grantee’s negligence shall in any way contribute.
(2) 
Arising out of any claim for invasion of the right of privacy, for defamation of any person, firm or corporation, or the violation or infringement of any copyright, trademark, trade name, service mark or patent, or of any other right of any firm or corporation (excluding claims arising out of or relating to city programming).
(3) 
Arising out of grantee’s failure to comply with the provisions of any federal, state, or local statute, ordinances or regulations applicable to grantee in its business hereunder.
(b) 
The foregoing indemnity is conditioned upon the following:
The city shall give grantee prompt notice of the making of any claim or the commencement 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 grantee and participating in the defense of any litigation by its own counsel at its sole cost and expense. No recovery by the city of any sum by reason of the penalties required in this article shall be in any way a limitation upon the liability of the grantee to the city.
(1991 Code, sec. 7-139)
Costs to be borne by grantee shall include, but shall not be limited to, all costs of publications of notices prior to any public meeting provided for pursuant to this article and any costs not covered by the application fees, incurred by the city in its study, preparation of proposal documents, evaluation of all applications, and examinations of applicants’ qualifications, up to a maximum of twenty-five thousand dollars ($25,000.00). The city shall provide the grantee with an accounting of these expenses, and shall supply the grantee with invoices for such expenses. The grantee shall deliver such payment to the city within thirty (30) days of receipt of such invoices. Failure to make timely payment of such expenses, except for those services which are the subject of legitimate dispute, shall constitute a material violation of this article.
(1991 Code, sec. 7-140)