Each Licensee shall file with the Commission and, at all times
thereafter until the determination by the Commission after request
by a Licensee that the Licensee has fully completed construction and
made service available to each Dwelling Unit within the License Area,
maintain in full force and effect, an acceptable corporate surety
bond issued by a surety licensed therefor by the State of California
in an amount equal to the greater of (a) the Licensee's estimate of
the total cost of construction of the Cable Television System within
the License Area, or (b) the sum of (i) the product of the number
of miles of aerial plant (to the nearest 1/10 of a mile) in the License
Area and Eighteen thousand dollars and (ii) the product of the number
of miles of underground plant (to the nearest 1/10 of a mile) in the
License Area and Thirty "Two Thousand Dollars ($32,000), effective
for the entire term of the License, and conditioned that in the event
the Licensee shall fail to comply with any one or more of the provisions
of the License Documents, whether or not the License is terminated,
then there shall be recoverable jointly and severally from the principal
and surety of such bond, any damages suffered by the County, Cities
or Cable Television Commission as a result thereof, including but
not limited to, the full amount of any liquidated damages, delinquent
License Fees, compensation and costs of repairing or completing the
Cable Television System, and compensation, and cost of removal or
abandonment of property and repair of streets and other public or
private improvements, up to the full amount of the bond; said condition
to be a continuing obligation for the duration of the License and
thereafter until the Licensee has satisfied all of its obligations
which may have arisen from the acceptance of the License or from its
exercise of any privileges thereunder.
Upon the determination by the Commission after request by a
Licensee, that the Licensee has fully completed construction and made
service available to each Dwelling Unit within the License Area, the
amount of the aforesaid corporate surety bond shall be reduced to
an amount equal to Fifty dollars for each Dwelling Unit located within
the License Area upon the date of the Notice of Final Completion and
maintained at such an amount at all times thereafter during the operation
of the Cable Television System.
Neither the provisions of this section, any bond accepted pursuant
thereto, nor any damages recovered thereunder shall be construed to
excuse faithful performance by the Licensee or to limit the liability
of the Licensee under the License or for damages, either to the full
amount of the bond or otherwise. The bond shall contain a provision
which prohibits cancellation by the surety during the term of the
License, whether for failure to pay a premium or otherwise, without
30 calendar days advance written notice mailed by the surety to the
Clerk of the Board of Directors of the Cable Television Commission.
The form of the bond and surety shall be subject to the approval by
the Cable Television Commission.
The performance bond for any License Area (including an alternate
performance bond comporting with the provisions of section 5.575.601
below) shall be deposited with the Commission prior to the construction
of any portion of a Cable Television System within, upon, or above
the Streets, provided that conduit and attendant vaults, without other
appurtenances of a Cable Television System, may be installed, at the
same time other utilities are so installed, in joint utility trenches
in new residential subdivisions prior to the posting of the performance
bond.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989; SCC 0820 § 1,
1991)
In lieu of a performance bond in the amounts required by the provisions of Section 5.75.600 above, a Licensee may elect and provide a performance bond otherwise comporting with the requirements of Section 5.75.600 above in the amount of two million five hundred thousand dollars ($2,500,000) for the entire period of the term of a License. Upon the proper posting of such alternative bond, the Commission shall return performance bonds previously provided for such License or Licenses pursuant to the provisions of this chapter.
(SCC 753 § 1, 1989; SCC
786 § 1, 1989)
Each Licensee shall defend, indemnify and hold harmless Commission,
its members, and, in their capacity as such, the officials, agents,
employees, representatives and volunteers thereof, from any and all
claims, demands, suits, causes of action, damages, costs, expense,
losses or liability, in law or in equity, of every kind and nature
whatsoever ("claims"), arising out of or in connection with Licensee's
operations under this Ordinance including but not limited to:
a.
Injury
or death to persons including but not limited to, Licensee's officers,
agents, contractors or employees, or damage to property, including
loss of use, caused or alleged to be caused in whole or in part by
any act or omission of Licensee, its officers, agents, contractors,
employees, or representatives or anyone for whose acts Licensee may
be liable.
b.
Injury
or damage arising out of invasion of the right of privacy, libel,
slander, defamation of any person, firm or corporation, or the violation
or infringement of any copyright patent, service mark, trade mark,
trade name, or of any other right of any person, firm or corporation.
c.
Injury
or damage arising out of anti-competitive practices alleged against
the Licensee.
d.
Claims,
damages or penalties arising out of Licensee's failure to comply with
the provisions of any statute, regulation or ordinance of the United
States, State of California or any local agency applicable to the
Licensee in its business.
e.
Injury
or damage arising out of Licensee's failure to comply with the provisions
of this Ordinance relating to procurement and maintenance of insurance.
f.
Injury
or damage arising out of Licensee's failure to fulfill any of the
covenants set forth in this Ordinance.
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Licensee shall pay and satisfy any judgment or decree that may
be rendered against Commission, its members, their officials, agents,
employees, volunteers or representatives, or any of them arising out
of any such claims.
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Licensee shall reimburse Commission, its members, their officials,
agents, employees, volunteers or representatives, for any and all
legal expense incurred by any of them in connection herewith or in
enforcing the indemnity granted in this section.
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Indemnitees may, at their discretion, participate in the investigation
and defense of any claims or litigation brought against them at anytime,
using legal counsel of their choice, and such expense shall be borne
solely by Licensee. Such participation shall not relieve Licensee
from its duty to defend, indemnify and hold harmless indemnitees as
set forth in this section.
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The indemnification obligations of Licensee set forth in this
section shall apply regardless of any act or omission of Commission,
its members, their officials, agents, employees, representatives or
volunteers which may have contributed to the said injury or damage,
to the maximum extent allowed by California law.
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(SCC 690 § 1, 1987; SCC
786 § 1, 1989; SCC 1096 § 6,
1997)
Each Licensee shall file with the application which it files pursuant to the provision of Section 5.75.102, and at all times thereafter maintain in full force and effect at its sole expense, the following insurance:
a.
General
Liability: General Liability insurance including, but not limited
to, protection for claims of bodily injury and property damage liability,
personal and advertising injury liability, and products and completed
operations liability. Coverage shall be at least as broad as Insurance
Services Office Commercial General Liability coverage form GG 0001
(occurrence). The limits of liability shall be not less than:
Each Occurrence: One Million Dollars ($1,000,000)
Personal & Advertising Injury: One Million Dollars ($1,000,000)
General Aggregate: Two Million Dollars ($2,000,000
Products and Complete Operations Aggregate: Two Million Dollars
($2,000,000)
The policy shall cover contractual liability applicable to the
Licensee's assumed liability under this contract.
b.
Automobile
Liability: Automobile Liability insurance providing protection against
claims of bodily injury and property damage arising out of ownership,
operation, maintenance, or use of owned, hired, and non-owned automobiles.
Coverage shall be at least as broad as Insurance Services Office Automobile
Liability coverage form CA 0001, symbol 1 (any auto). The limits of
liability shall not be less than:
Bodily Injury and Property One Million Dollars ($1,000,000)
Damage Combined Single Limit
If General Liability coverage, as required in section 5.75.604.a,
above, is provided by the Commercial General Liability form, the Automobile
Liability policy shall include an endorsement providing automobile
contractual liability.
c.
Workers'
Compensation: Workers' Compensation insurance, with coverage as required
by the State of California (unless the Licensee is a qualified self-insurer
with the State of California), and Employers Liability coverage. The
limits of Employers Liability shall not be less than:
Each Accident: One Million Dollars ($1,000,000)
Disease Each Employee: One Million Dollars ($1,000,000)
Disease Policy Limit: One Million Dollars ($1,000,000)
d.
Excess
or Umbrella Liability: Excess or Umbrella Liability providing excess
coverage at least as broad as the underlying coverage for general
liability, automobile liability and employers liability with a limit
of $4,000,000 per occurrence and in the aggregate.
The Licensee's General Liability, Automobile Liability, and
Excess or Umbrella Liability policies, shall contain the following:
a.
The Commission, its members, their officials, agents, employees,
representatives and volunteers, shall be covered as additional insureds
as respects liability arising out of the activities performed by or
on behalf of the Licensee, products and completed operations of the
Licensee, premises owned, occupied, or used by the Licensee, or automobiles
owned, leased, hired, or borrowed by the Licensee.
b.
The Licensee's insurance coverage shall be primary insurance as respects
the Commission, its members, their officials, agents, employees, representatives
or volunteers. Any insurance or self-insurance maintained by the Commission,
its members, their officials, agents, employees, representatives or
volunteers shall be excess of the Licensee's insurance and shall not
contribute with it.
c.
Any failure to comply with reporting or other provisions of the policies
on the part of the Licensee, including breaches of warranties or unintentional
misrepresentations, shall not affect coverage provided to the Commission,
its members, their officials, agents, employees, representatives or
volunteers.
d.
The Licensee's Workers' Compensation and Employer's Liability policies
shall contain an endorsement that waives any rights or subrogation
against the Commission, its members, their officials, agents, employees,
representative or volunteers.
e.
Each insurance policy shall state that coverage shall not be suspended,
voided, canceled by either party, reduced in scope or in limits, non-renewed,
or materially changes unless the insurer provides 30 days advance
written notice by certified mail to the Clerk of the Board of Directors
of the Sacramento Metropolitan Cable Television Commission, 700 H
Street, Room 2450 Sacramento, California 95814, prior to such change.
The insurer shall provide 10 days advance written notice by certified
mail to the Clerk of the Board of Directors of the Sacramento Metropolitan
Cable Television Commission in the event of cancellation due to nonpayment
of premium.
f.
All of the Licensee's insurance coverage, except as noted below,
shall be placed with insurance companies with a current A.M. Best's
rating of at least A-:VII.
Exceptions:
g.
The Commission will accept Licensee's self-insurance of its general
or automobile liability risks only if the Licensee has a minimum net
worth of at least $10 million.
h.
The Licensee shall furnish the Commission with certificates of insurance,
including copies of all endorsements specifically required hereunder,
signed by a person authorized by the insurer to bind coverage on its
behalf, as evidence of the coverage required by this section.
i.
For unforseen risks, the Commission, at its discretion, may increase
the amounts and types of insurance coverage required hereunder at
any time during the term of the contract by giving written notice
to the Licensee. Licensee shall immediately procure such insurance
or increase the amounts of insurance coverage, and provide certificates
of insurance as required in Section 5.50.706.g.
j.
The form and substance of the insurance required of the Licensee
shall be subject to the approval of Commission and the County of Sacramento
Risk Manager. Any acceptance of insurance certificates by Commission
or the County of Sacramento Risk Manager shall in no way limit or
relieve Licensee of Licensee's duties and responsibilities set forth
in this Ordinance.
k.
The failure of the Commission to enforce in a timely manner any of
the provisions of this section shall not act as a waiver to enforcement
of any of these provisions at any time during the term of the franchise.
(SCC 690 § 1, 1987; SCC
786 § 1, 1989; SCC 0820 § 2,
1991; SCC 1096 § 7, 1997)
Each Licensee shall cause each insurance policy obtained by
it to provide that the insurance company waives all right of recovery
by way of subrogation against the County, Cities, Cable Television
Commission and in their capacities as such the officers, agents, and
employees thereof in connection with any damage covered by any policy,
whether for nonpayment or premium, or otherwise, and whether at the
request of the Licensee or for other reasons, except after 30 calendar
days advance written notice mailed by the insurer to the Clerk of
the Board of Directors of the Sacramento Metropolitan Cable Television
Commission, and that such notice shall be transmitted postage prepaid,
with return receipt requested, and addressed to the Clerk at 1010
8th Street, Sacramento, California 95814.
(SCC 690 § 1, 1987; SCC
753 § 11, 1989; SCC 786 § 1,
1989)
