A. Performance Deposit to City. The grantee shall, concurrently with the filing of an acceptance of award of the franchise granted under this chapter, deposit in a financial institution selected by the city the sum of one hundred fifty thousand dollars in a joint account with the grantee and the city as cosignatories. This sum shall be maintained in this account during the period from commencement to completion of construction of the cable television system within the city limits. At the grantee's sole option, the grantee may provide a letter of credit in the same sum in lieu of the deposit required by this section, provided that such letter of credit, the form of such letter of credit and issuing institution, is approved by the city attorney. The return of said sum, together with interest, to the grantee shall be conditioned upon the faithful performance of the grantee, and upon the further condition that in the event that the grantee fails to comply with any one or more material terms or conditions set forth in this agreement, the grantor may draw from this sum, together with interest thereon, any damages or loss suffered by the grantor as a result of such failure, including, but not limited to, the full amount of any compensation, indemnification or cost of removal or abandonment of any property of the grantee which may be in default, plus a reasonable allowance for any attorney's fees and other costs.
B. Surety. Upon the effective date of the franchise agreement, the grantee shall provide to the grantor by filing with the city clerk, and shall thereafter maintain in full force and effect during the entire term of such agreement, a corporate surety bond or other surety agreement, including a certificate of deposit or letter of credit with an unconditional right of call on the part of the grantor, approved in writing by the grantor, in the amount of fifty thousand dollars. This bond or agreement filed with the grantor shall provide that in the event the grantee fails to comply with any one or more of the material terms or conditions set forth in the agreement, or with any term or condition of any undertaking made between the grantee and any subscriber, then there shall be recoverable jointly and severally from the principal and surety any and all damages and costs suffered or incurred by any subscriber as a result thereof, including, but not limited to, reasonable attorney's fees and costs of any action or proceeding brought to collect such damages or costs.
C. Hold-harmless Agreement. The grantee shall indemnify and hold harmless the city, its officers, boards, commissions, agents and employees, against and from any and all claims, demands, causes of actions, actions, suits, proceedings, damages (including but not limited to damages to city property and damages arising out of copyright infringements, and damages arising out of any failure by the grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee's cable television system), costs or liabilities (including costs or liabilities of the city with respect to its employees), of every kind and nature whatsoever, including, but not limited to, damages for injury or death or damage to person or property, and regardless of the merit of any of the same, and against all liability to others, and against any loss, cost and expense resulting or arising out of any of the same, including any attorney's fees, accountant's fees, expert witness or consultant's fees, court costs, per-diem expense, traveling and transportation expense, or other costs or expenses arising out of or pertaining to the exercise or the enjoyment of any franchise under this chapter by the grantee or the granting thereof by the city.
D. Defense of Litigation.
1. The grantee shall, at the sole risk and expense of the grantee, upon demand of the city made by and through the city attorney, appear in and defend any and all suits, actions or other legal proceedings, whether judicial, quasi-judicial, administrative, legislative or otherwise, brought or instituted or had by third persons or duly constituted authorities, against or affecting the city, its officers, boards, commissions, agents or employees, and arising out of or pertaining to the exercise or the enjoyment of such franchise or the granting thereof by the city.
2. The grantee shall pay and satisfy or shall cause to be paid and satisfied any judgment, decree, order, directive or demand rendered, made or issued against the grantee, the city, its officers, boards, commissions, agents or employees in any of these premises; and such indemnity shall exist and continue without reference to or limitation by the amount of any bond, policy of insurance, deposit, undertaking or other assurance required under this chapter or otherwise; provided that neither the grantee nor the city shall make or enter into any compromise or settlement of any claim, demand, cause of action, action, suit or other proceedings without first obtaining the written consent of the other.
E. Insurance Required. Upon being granted a franchise, and upon the filing of the acceptance required under Section 5.32.080, the grantee shall file with the city clerk and shall thereafter during the entire term of such franchise maintain in full force and effect at its own cost and expense each of the following policies of insurance:
1. General comprehensive liability insurance in the amount of two million dollars;
2. Bodily injury liability insurance in an amount not less than five hundred thousand dollars for injuries, including accidental death, to any one person, and subject to the same limit for each person in an amount not less than one million dollars on account of any one occurrence;
3. Property damage liability insurance in an amount not less than two hundred fifty thousand dollars resulting from any one occurrence;
4. Broadcasters' liability insurance in the amount of one million dollars, insuring against all liability by reason of or arising out of any failure by the grantee to secure consents from the owners, authorized distributors or licensees of programs to be delivered by the grantee's CATV system, or violation or alleged violation of copyright, and against any loss, cost, expense and damages resulting therefrom;
5. Workers' compensation insurance in the statutory amount.
F. The grantor, its officers, employees and agents, shall be named as an additional insured in any and all of these insurance policies, except for workers' compensation, which shall not be cancellable nor shall coverage be reduced without thirty days' advance written notice to the grantor. The grantee shall make a good-faith effort to have the city named as an additional insured on the broadcaster's liability insurance, but if such cannot be obtained, the grantor hereby waives such requirement. All of these insurance policies shall be maintained in full force and effect at the sole cost and expense of the grantee for the term of this agreement. Where such insurance is provided by a policy which also covers the grantee or any other entity or person, the policy shall contain the standard cross-liability endorsement.
G. The type of insurance and minimum limits of insurance required herein may become inadequate during the term of such franchise. The grantee shall add such insurance coverage and increase such minimum limits by such amounts as will adequately protect the grantor, when reasonably requested to do so by the grantor. (Prior code § 7-7)