No franchise or other authorization to use the rights-of-way issued to a communications system operator or a private communications system owner shall be valid or effective until and unless the city obtains an adequate indemnity from such operator. Unless otherwise agreed, in writing, adequate indemnity must at least include the following:
A. 
Release the city from and against any and all liability and responsibility in or arising out of the construction, operation or maintenance of the communications facility in the public right-of-way by the communications facility operator except for damages caused by the city's sole negligence. Each communications facility operator must further agree not to sue or seek any money or damages from city in connection with the above mentioned matters;
B. 
Indemnify and hold harmless the city, its trustees, elected and appointed officers, agents, and employees, from and against any and all claims, demands, or causes of action of whatsoever kind or nature, and the resulting losses, costs, expenses, reasonable attorneys' fees, liabilities, damages, orders, judgments, or decrees, sustained by the city or any third party arising out of, or by reason of, or resulting from or of the acts, errors, or omissions of the communications system operator, or its agents, independent contractors or employees related to or in any way arising out of the construction, operation or repair of the facility in the public rights-of-way;
C. 
Provide that the covenants and representations relating to the indemnification provision shall survive the term of any franchise or other authorization and continue in full force and effect as to the party's responsibility to indemnify.
(Ord. 1402 § 1(11.01.7.1), 2001; Ord. 1777 § 1 (Exh. A), 2012)
No franchise or other authorization to use the rights-of-way issued to a communications system operator or a private communications system owner shall be valid or effective until and unless the city obtains assurance that such operator (and those acting on its behalf) have adequate insurance. Unless otherwise agreed, in writing, adequate insurance must at least meet the following requirements:
A. 
A communications system operator shall not commence construction or operation of the facility without obtaining all insurance required under this section and approval of such insurance by the city, nor shall a communications system operator allow any contractor or subcontractor to commence work on its contract or subcontract until all similar such insurance required of the same has been obtained and approved. The required insurance must be obtained and maintained for the entire period the communications system operator has facilities in the rights-of-way, and for a period thereafter as specified in the minimum coverages described below. If the operator, its contractors, or subcontractors do not have the required insurance, the city may order such entities to stop operations until the insurance is obtained and approved.
B. 
Certificates of insurance, reflecting evidence of the required insurance and naming the city as an additional insured, shall be filed with the city's risk manager. For entities that are entering the market, the certificates shall be filed prior to the commencement of construction and once a year thereafter, and as provided below in the event of a lapse in coverage. For entities that have facilities in the rights-of-way as of the effective date of the ordinance codified in this title, the certificate shall be filed within 60 days of the effective date of ordinance codified in this title, annually thereafter, and as provided below in the event of a lapse in coverage, unless a pre-existing franchise provides for filing of certificates in a different manner.
C. 
These certificates shall contain a provision that coverages afforded under these policies will not be canceled until at least 30 days' prior written notice has been given to the city. Policies shall be issued by companies authorized to do business under the laws of the state of Washington. Financial ratings must be no less than "A" in the latest edition of "Best's Key Rating Guide," published by A.M. Best Guide.
D. 
In the event that the insurance certificate provided indicates that the insurance shall terminate or lapse during the period of the franchise or license, then, in that event, the communications system operator shall furnish, at least 30 days prior to the expiration of the date of such insurance, a renewed certificate of insurance as proof that equal and like coverage has been or will be obtained prior to any such lapse or termination during the balance of the period of the franchise or license under which the communications system operates.
E. 
A communications system owner or operator, and its contractors or subcontractors engaged in work on the operator's behalf in, on, under or over public rights-of-way, shall maintain the following minimum insurance. The city shall be named as an additional insured on the general liability and automotive policies.
1. 
Comprehensive general liability insurance to cover liability bodily injury and property damage. Exposures to be covered are: premises, operations, products/completed operations, and certain contracts. Coverage must be written on an occurrence basis, with the following limits of liability:
a. 
Bodily injury:
i. 
Each occurrence: $1,000,000.
ii. 
Annual aggregate: $3,000,000.
b. 
Property damage:
i. 
Each occurrence: $1,000,000.
ii. 
Annual aggregate: $3,000,000.
c. 
Personal injury:
i. 
Annual aggregate: $3,000,000.
d. 
Completed operations and products liability shall be maintained for two years after the termination of the franchise or license (in the case of the communications system owner or operator) or completion of the work for the communications system owner or operator (in the case of a contractor or subcontractor).
e. 
Property damage liability insurance shall include coverage for the following hazards: X – explosion, C – collapse, U – underground.
2. 
Workers' compensation insurance shall be maintained during the life of this contract to comply with statutory limits for all employees, and in the case any work is sublet, each communications system operator shall require the subcontractors similarly to provide workers' compensation insurance for all the latter's employees unless such employees are covered by the protection afforded by each communications system operator. Each communications system operator and its contractors and subcontractors shall maintain during the life of this policy employers' liability insurance. The following minimum limits must be maintained:
a. 
Workers' compensation: statutory.
b. 
Employer's liability: $500,000 per occurrence.
3. 
Comprehensive Auto Liability.
a. 
Bodily injury:
i. 
Each occurrence: $1,000,000.
ii. 
Annual aggregate: $3,000,000.
b. 
Property damage:
i. 
Each occurrence: $1,000,000.
ii. 
Annual aggregate: $3,000,000.
Coverage shall include owned, hired, and non-owned vehicles.
F. 
Each communications system operator shall hold the city, its agents, and employees harmless on account of claims for damages to persons, property or premises arising out of its construction, operation or repair of its communications system and name the city as an additional insured.
G. 
In every franchise or license agreement, the city shall reserve the right to require any other insurance coverage it deems necessary depending upon the exposures.
(Ord. 1402 § 1(11.01.7.2), 2001)
Every operator of a communications facility shall be required to obtain performance bonds and, if necessary, payment bonds to ensure the faithful performance of its responsibilities under this title and any franchise, permit or license, including a sufficient amount to cover removal of facilities and/or restoration of city facilities within right-of-way. The amount of the performance and payment bonds shall be set by the city manager or may be set in a franchise ordinance in light of the nature of the work to be performed and is not in lieu of any additional bonds that may be required through the permitting process. The bond shall be in a form acceptable to the city attorney. The city may from time to time increase or decrease the amount of the required performance bond to reflect changes in risks to the city and to the public.
(Ord. 1402 § 1(11.01.7.3), 2001)