Whenever insurance, security or indemnification is required
by any provision of this code or any other regulation of the city,
they shall be provided in accordance with the requirements of this
chapter. In the event of any conflict between the general provisions
of this chapter and any other provisions of this code, the provisions
of this chapter shall govern; but the provisions shall be interpreted
insofar as possible to avoid conflict. As used in this chapter, "responsible
party" means the person required to indemnify the city or procure
insurance, bonds or other securities pursuant to this code.
(Prior code § 2-150; Ord. 550-87 § 1)
The responsible party shall procure and maintain, at its cost,
public liability and property damage insurance in the amount prescribed
in the applicable statute against all claims for injuries against
persons or damage to property resulting from the responsible party's
acts or omissions arising out of or related to the activity for which
the responsible party was required to procure the insurance. The responsible
party shall maintain the insurance policy through the entire duration
of the activity for which that insurance has been required. The insurance
policy shall contain a severability of interest clause providing that
the coverage shall be the primary coverage for losses arising out
of or related to the activities of the responsible party, and neither
the city nor its insurers shall be required to contribute to any such
loss. The responsible party shall submit to the city certificates
indicating compliance with the above and any additional requirements
specified in applicable individual sections of this code. The city
shall be named as an additional insured. The insurer shall be obligated
to give the city thirty days' prior written notice of any cancellation
before such cancellation may be effective. Only certificates issued
by insurance companies which are rated "A" or "A +" in the "Best Rating
Guide," the "Key Rating Guide" or the "Federal Register" will be accepted.
(Prior code § 2-151; Ord. 550-87 § 1)
A. Whenever
the responsible party is required to provide performance bonds, letters
of credit, a cash deposit or other forms of security (herein called
"security"), those securities may be in the following form:
1. Bond
or bonds by one or more duly authorized corporate sureties;
2. A
deposit, either with the city or a responsible escrow agent or trust
company, at the option of the city, of money or negotiable bonds of
the kind approved for security deposits of public moneys;
3. An
instrument of credit from one or more financial institutions subject
to regulation by the state or federal government and pledging that
the funds necessary to carry out the act or agreement are on deposit
and guaranteed for payment, without recourse, or a letter of credit
issued by such a financial institution;
4. A
lien upon the responsible party's property created by contract between
the responsible party and the city;
5. Any
other form of security, including security interests in real property,
which the city may deem acceptable from time to time through resolution.
B. The
choice of security shall be that of the city manager, department head
or financial officer, as the case may be, but the form shall be determined
by the city attorney. The amount of security required shall be specified
in the applicable individual statute. The security or bonds shall
be released when the city, through its agents or employees, issues
to the responsible party a certificate indicating that the activity
for which the security was required has satisfactorily been completed.
The city shall determine whether the activity has been satisfactorily
completed within fifteen days of the responsible party's request for
such a determination.
(Prior code § 2-152; Ord. 550-87 § 1)
Whenever the responsible party is required to indemnify the
city against losses, damages or liability, the indemnification clause
shall require the responsible party to defend, indemnify and hold
harmless the city, its officers and employees, from and against any
and all actions, suits, proceedings, claims, demands, losses, costs
and expenses, including legal costs and attorney's fees, for injury
to or death of person(s), for damage to property (including property
owned by the city) and, where applicable, for errors and omissions
committed by the responsible party, its officers, employees and agents
arising out of or related to the responsible party's negligent performance
or wilful misconduct under an agreement. In the event that the city
manager determines that such indemnification cannot be provided, the
requirements of this section may be modified by the city manager.
(Prior code § 2-153; Ord. 550-87 § 1; Amended during
6/30/96 supplement)