(a) 
Within 30 days after the granting of a franchise and prior to the commencement of any construction work by Grantee, Grantee shall file with City a construction bond in the amount specified in the franchise agreement in favor of City and any other person who may claim damages as a result of the breach of any duty by Grantee assured by such bond.
(b) 
Such bond shall be in the form approved by City and shall, among other matters, cover the cost of removal of any properties installed by 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 Grantee for damages.
(d) 
City, at its sole option, may waive this requirement, or permit consolidation of the construction bond with the performance bond and security fund specified, respectively, in Sections 6.108.08.020 and 6.108.08.030.
(Prior code § 63021; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Within 30 days after the award or renewal of a franchise, a Grantee shall obtain and maintain at its cost and expense, and file with the City Clerk, a completion and performance bond approved by the City Attorney and issued by a corporate surety authorized to do business in the State of California, in an amount equal to the anticipated costs of the proposed construction or reconstruction, including the cost of all system equipment, to guarantee the timely construction, or reconstruction and full activation of the cable communications system and the safeguarding of damage to private property and restoration of damages incurred by utilities.
The bond shall provide, but not be limited to, the following condition: There shall be recoverable by City, jointly and severally from the principal and surety, any and all damages, loss or costs suffered by City resulting from the failure of a Grantee to satisfactorily complete and fully activate the cable communications system throughout the franchise area pursuant to the terms and conditions of this Chapter and the Franchise Agreement.
(b) 
Any extension to the prescribed construction or reconstruction time limit must be authorized by the City Council. Such extension shall be authorized only when the City Council finds that such extension is necessary and appropriate due to causes beyond the control of a Grantee.
(c) 
The completion and performance bond shall be terminated only after the City Council finds that a Grantee has satisfactorily completed initial construction and activation or reconstruction of the cable communications system pursuant to the terms and conditions of this Chapter and the Franchise Agreement. The principal sum of the bond may be reduced upon application of Grantee and approval by City Council.
(d) 
The rights reserved to City with respect to the completion and performance bond are in addition to all other rights of City, whether reserved by this Chapter or authorized by law, and no action, proceeding, or exercise of a right with respect to such completion and performance bond shall affect any other rights which may be held by City.
(e) 
The completion and performance bond shall contain the following endorsement:
It is hereby understood and agreed that this bond may not be cancelled by the surety nor the intention not to renew be stated by the surety until 60 days after receipt by City, by registered mail, of written notice of such intent to cancel or not to renew.
(f) 
Upon any failure of a Grantee to satisfactorily complete construction or reconstruction and fully activate the cable communications system throughout the franchise area pursuant to the terms and conditions of this Chapter and the Franchise Agreement, or in the event of Grantee's abandonment or material delay of the construction, reconstruction, or activation of the system, City, after giving Grantee 10 days written notice and an additional 10 days to cure the failure, abandonment, or delay, shall become empowered thereby to enter the site of and take possession of the construction, reconstruction, or activation work for purposes of completing the work itself or employing some other person to complete the work, and for such purposes to allow and use Grantee's equipment provided that the entire expense of the completion of the work, whether done by City itself or by the employment of another person, shall be charged to Grantee and provided further, that the doing of such work by City itself or by the employment of other persons shall in no way relieve Grantee from any covenants, undertakings, duties, and obligations under this Chapter or franchise, nor limit the rights and remedies of City hereunder in any manner whatsoever.
(Prior code § 63022; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Within 30 days after the effective date of the franchise, Grantee shall deposit into a bank account, established by City and maintain on deposit through the term of this franchise, 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 City having jurisdiction over its acts or defaults under this ordinance, and the payment by the Grantee of any claims, liens, and taxes due City which arise by reason of the construction, operation, or maintenance of the system.
The security fund may be assessed by City for purposes including, but not limited to the following:
(1) 
Failure of Grantee to pay City sums due under the terms of the franchise.
(2) 
Reimbursement of costs borne by City 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 City's sole option, some portion of the security fund may be provided in the acceptable form of an irrevocable letter of credit or other security acceptable to the City.
(c) 
If Grantee fails, after 10 days notice, to pay to City any franchise fee or taxes due and unpaid; or, fails to pay to City within such 10 days, any damages, costs, or expenses, which City shall be compelled to pay by reason of any act or default of Grantee in connection with the franchise; or, fails, after 30 days notice of such failure by City, to comply with any provision of the franchise which City reasonably determines can be remedied by an expenditure of the security fund, City may immediately withdraw the amount thereof with interest, from the security fund. Upon such withdrawal, City shall notify Grantee of the amount and date thereof.
(d) 
Within 30 days after notice to it that any amount has been withdrawn by City from the security fund pursuant to subsection (a) of this Section, Grantee shall deposit a sum of money sufficient to restore such security fund to the original amount.
(e) 
The security fund deposited pursuant to this Section shall become the property of the City in the event that the franchise is revoked for cause by reason of the default of the Grantee. The Grantee, however, shall be entitled to the return of such security fund, or portion thereof, as remains on deposit no later than 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.
(f) 
The rights reserved to City with respect to the security fund are in addition to all other rights of City whether reserved by this ordinance 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 City may have.
(Prior code § 63023; added by Ord. No. 1407CCS, adopted 4/28/87)
By acceptance of the franchise granted by City, Grantee understands and shall agree that failure to comply with any time and performance requirements as stipulated in this Chapter and the Franchise Agreement, will result in damage to City, and that it is and will be impracticable to determine the actual amount of such damage in the event of delay or non-performance; the Franchise Agreement shall include provisions for liquidated damages to be paid by Grantee, in amounts set forth in the Franchise Agreement and chargeable to the security fund for the occurrence of any of the following events:
(a) 
Failure to complete system construction or reconstruction in accordance with Sections 6.108.10.040 et seq., unless the City Council specifically approves the delay by motion or resolution, due to the occurrence of conditions beyond Grantee's control.
(b) 
Failure to provide upon written request, data, documents, reports, information, or to cooperate with City during a franchise renewal or transfer process or cable communications system review.
(c) 
Failure to test, analyze, and report on the performance of the system following a written request pursuant to this Chapter.
(d) 
For failure to provide in a continuing manner the types of services proposed in the accepted application, unless the City Council specifically approves Grantee a delay or change, or Grantee has obtained modification of its obligation under Section 625 of the Cable Communications Policy Act of 1984.
(e) 
Failure of Grantee to comply with operational, maintenance, or technical standards.
(f) 
Any other action or nonaction by Grantee, as agreed upon between City and Grantee, and set forth in the Franchise Agreement. Nothing in this Section shall preclude further liquidated damages as agreed upon by the parties in the Franchise Agreement.
(g) 
If the City Manager concludes that a Grantee is liable for liquidated damages pursuant to this Section, he or she shall issue to Grantee by certified mail a notice of intention to assess liquidated damages. The notice shall set forth the basis for the assessment, and shall inform Grantee that liquidated damages will be assessed from the date of the notice unless the assessment notice is appealed for hearing before the City Council and the City Council rules: (1) that the violation has been corrected, or (2) that an extension of time or other relief should be granted. A Grantee desiring a hearing before the City Council shall send a written notice of appeal by certified mail to the City Manager within 10 days of the date on which the City sent the notice of intention to assess liquidated damages. The hearing on the Grantee's appeal shall be within 30 days of the date on which City sent the notice of intention to assess liquidated damages. At any time after the expiration of the appeal period or after a hearing, if the City Council sustains in whole or in part the City Manager's assessment of liquidated damages, the City Manager may at any time thereafter draw upon the security fund or letter of credit required by Section 6.108.08.030. Unless the City Council indicates to the contrary, said liquidated damages shall be assessed beginning with the date on which City sent the notice of intention to assess the liquidated damages and continuing thereafter until such time as the violation ceases, as determined by the City Manager.
(Prior code § 63024; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Grantee shall by acceptance of any franchise granted indemnify, defend, and hold harmless City, its City Council, boards and commissions, officers, agents, servants, 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:
(1) 
The act of City in granting the franchise.
(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 ordinance or the franchise agreement.
(3) 
The exercise of any right or privilege granted or permitted by this ordinance 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, regulations or otherwise.
(b) 
In the event any such claims shall arise, the City or any other indemnified party shall tender the defense thereof to Grantee. Provided, however, that City 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 City approval.
(Prior code § 63025; added by Ord. No. 1407CCS, adopted 4/28/87)
(a) 
Required Insurance. Grantee shall maintain throughout the term of the franchise insurance in amounts at least as follows:
(1) 
Worker's Compensation Insurance. As required by California Labor Code and Employee Liability Insurance.
(2) 
Broad Form Comprehensive General Liability. Comprehensive general liability insurance, including, but not limited to, coverage for bodily injury, personal injury, and property damage, and broadcaster's liability, shall be maintained at the sum(s) specified in the franchise agreement.
(3) 
Comprehensive Automobile Liability. Comprehensive automobile liability including, but not limited to, non-ownership 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.
(4) 
Subcontractor Coverage.
(b) 
Grantee shall include any of its subcontractors as insureds under the policies of insurance required herein, or alternatively, shall provide to City certificates of insurance and binding endorsements evidencing satisfactory compliance by each subcontractor with the insurance requirements stated herein.
(c) 
Verification of Insurance. Grantee shall furnish to City satisfactory certificates of insurance, copies of each insurance policy, and original endorsements affecting coverage required and fully complying with all insurance specifications stated herein. Each such original endorsement shall be signed by a person authorized by that particular insurer to bind coverage on its behalf.
(d) 
Acceptability of Insurers. Each required insurance policy shall be procured from insurance companies with a minimum rating of B + X or better by A.M. Best's rating service.
(e) 
Deductibles and Self-Insured Retention. Any deductibles or self-insured retention on the insurance policies required herein shall be declared to City and be subject to City's written approval. At the sole discretion of City, either (1) the insurer may be required to reduce or eliminate such deductibles or self-insured retentions as respects City, its officials, and employees; or (2) Grantee may be required to procure a bind guaranteeing payment of losses, related investigation, claim administration, and defense expenses.
(f) 
Notices Pertaining to Insurance Policies. Each policy of insurance shall require 30 days prior written notice of cancellations, non-renewal, or material changes in the terms of such policy. Notice thereof shall be given to City by registered mail, return receipt requested, for all of the above-stated insurance policies.
(g) 
Additional Requirements for Insurance Policies.
(1) 
This insurance shall not be cancelled, limited in scope of coverage or limits, or non-renewed until 30 days written notice has been given to City.
(2) 
The City of Santa Monica, members of its City Council, board and commission, officers, agents, volunteers, and employees are included as additional insureds with regard to damages and defenses of claims arising from (i) activities performed by or on behalf of Grantee, (ii) products and completed operations of Grantee, or (iii) premises owned, leased, or used by Grantee. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, agents, volunteers, or employees.
(3) 
Grantee's insurance coverage shall be primary with respect to the City, its officers, agents, volunteers, and employees. It is agreed that any insurance or self-insurance maintained by City shall apply in excess of and not contributory with, insurance provided by the policy.
(4) 
Insurers shall have no right of recovery or subrogation against City (including its officers, employees, volunteers, and other agents and agencies), it being the intention of the parties that the insurance polices so effected shall protect both parties and be primary coverage for any and all losses covered by the above-described insurance.
(5) 
The above-described policies shall apply separately to each insurance company against whom claim is made or suit is brought except with respect to the limits of the insurance company's liability.
(6) 
The insurance company issuing the policy or policies shall have no recourse against the City for payment of any premiums or for assessments under any form of policy.
(7) 
Any and all deductibles in the above-described insurance policies shall be assumed by and be for the account of, and at the sole risk of, Grantee.
(8) 
Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, employees, agents, or volunteers.
(h) 
The minimum amounts set forth in the franchise agreement for such insurance shall not be construed to limit the liability of Grantee to City under the franchise issued hereunder to the amounts of such insurance.
(Prior code § 63026; added by Ord. No. 1407CCS, adopted 4/28/87)