The grantee shall file with the city a construction bond in
the amount specified in the franchise ordinance within thirty days
prior to the commencement of any construction work by the grantee.
The construction bond shall be in the form approved by the city attorney,
which approval shall not be unreasonably withheld if the bond is in
a form consistent with the usual custom and practice of the industry.
(Ord. 1598 § 1, 1992)
If required under the franchise ordinance, the grantee shall,
at least forty-five days after the effective date of the franchise
ordinance, file with the city a performance bond in the amount specified
in the franchise ordinance and in the form approved by the city attorney.
The city, in its sole discretion, may permit consolidation of the
performance bond with the construction bond and letter of credit specified
in this chapter.
(Ord. 1598 § 1, 1992)
(a)
Within
forty-five days after the effective date of the franchise ordinance,
the grantee shall, if required by the franchise ordinance, establish
a letter of credit in favor of the city in the sum specified in the
franchise ordinance and in the form approved by the city attorney.
The letter of credit shall serve as security for the faithful performance
by the grantee of all the provisions and obligations of the franchise.
(b)
If
thirty days following receipt of written notice from the city of the
grantee's failure to pay the city an amount owing under the franchise,
the grantee has not paid such amount as is due and owing to the city,
the letter of credit may be assessed by the city upon five days prior
written notice to the grantee indicating the intention of the city
to draw upon the letter of credit, the amount to be drawn and the
reason therefor. If authorized by the franchise ordinance, the city
may assess the letter of credit for purposes including, but not limited
to:
(1)
Failure of the grantee to pay the city sums due under the terms of
the franchise after due notice and opportunity to cure as provided
under this chapter;
(2)
Reimbursement of costs borne by the city to correct franchise violations
not corrected by the grantee, after due notice and opportunity to
cure as provided under this chapter.
(3)
Monetary remedies or damages assessed against the grantee due to
breach of the franchise after due notice and opportunity to cure as
provided under this chapter.
(c)
The
grantee shall deposit a sum of money sufficient to restore the letter
of credit to the original amount within thirty days after notice from
the city that an amount has been withdrawn from the letter of credit,
specifying the date and amount of the withdrawal.
(Ord. 1598 § 1, 1992)
Remedies provided for in this chapter are cumulative and in
addition to other rights the city may have at law or equity or under
the franchise, which it may exercise at any time, save and except
that collection of liquidated damages shall be in lieu of any claim
for actual damages. In no event shall the amount of any bond or letter
of credit be construed to limit the grantee's liability for damages.
(Ord. 1598 § 1, 1992)
Each franchise ordinance shall contain a liquidated damages
provision in connection with the construction, rebuild or reconstruction
of the cable television system. Liquidated damages due the city shall
be a proper charge against the letter of credit, or other security
specified in the franchise ordinance, to the extent grantee does not
pay such damages when due following due notice and opportunity to
cure as provided under this chapter.
(Ord. 1598 § 1, 1992)
(a)
The
grantee shall indemnify and hold harmless the city from all damages,
penalties, judgments and liability of any kind, and defend all claims,
actions or causes of action arising as a result of the grantee's operation
of the cable television system, regardless whether any act or omission
complained of is authorized, allowed, or prohibited by the franchise,
to the extent such damages, penalties, judgments, claims, actions
or causes of action arise out of or are caused by the act or omission
of the grantee, its officers, employees or agents. Upon demand of
the city, made by and through the city attorney, the grantee shall
appear in and defend the city, its officers, employees and agents
in any legal action, whether judicial, administrative or otherwise,
with respect to which city is entitled to indemnification hereunder.
(b)
The
city shall indemnify and hold harmless the grantee, its affiliates
and their respective officers, directors, employees and shareholders
from and against any and all damages, penalties, judgments and liability
of any kind, and defend all claims, actions or causes of action arising
as a result of the use of the grantee's cable television system by
the city, including the use of access channels provided to the city
for purposes of public, educational or governmental programming or
the programming carried on such channels, or any public, educational
or governmental programming provided by the city for carriage on any
other channel or channels of the grantee's cable system, including
without limitation with respect to the solicitation, production, content,
selection, scheduling, funding or presentation or such programming
and of commercial advertising or promotional material for use in connection
with such programming, as well as such liability as may arise from
claims of libel, slander, defamation, invasion of privacy, infringement
of copyright, musical performing rights or any other right of any
person. This indemnity shall not apply with respect to any programming
provided by the grantee and which is carried on the access channels.
(Ord. 1598 § 1, 1992)
(a)
Within
forty-five days after the effective date of the franchise ordinance,
the grantee shall furnish proof that the grantee is insured under
a broad form policy of liability insurance issued by a company authorized
to do business in California. Such proof may be by one or more certificates
of insurance evidencing compliance with the provisions of this chapter
and the franchise ordinance. The insurance policy shall include, but
not be limited to, coverage for premises operations, explosion and
collapse hazard, underground hazards, contractual insurance, broad
form property damage, independent contractors and personal injury,
and automobile liability. The grantee shall also maintain a policy
of broadcaster's liability coverage. The insurance shall be maintained
at the sum specified in the franchise ordinance.
(b)
The
city and its officers and employees shall be named as additional insureds
on said policy (except broadcaster's liability coverage) at no cost
to the city. Grantee shall also provide workers' compensation coverage
consistent with California statutory requirements. The city shall
receive thirty days advance written notice of any proposed reduction
in coverage of the insurance policies on which it is carried as a
named insured, as well as on coverage required to maintained by this
section. Such advance notice shall also be required as to any proposed
or actual cancellation of any such policies of insurance. Insurance
endorsements of such coverage shall be filed with the city.
(Ord. 1598 § 1, 1992)
