§ 43-8. Protection of the county and residents.

(a)

Indemnity Required. No franchise shall be valid or effective until and unless the county risk manager approves the indemnity and insurance to be provided by the franchisee. The indemnity, at a minimum, must:

(1)

Release the county from and against any and all liability and responsibility in or arising out of the construction, operation or maintenance of the cable communications system. Each cable communications system must further agree not to sue or seek any money or damages from the county in connection with the above mentioned matters.

(2)

Indemnify and hold harmless the county, its trustees, elected and appointed officers, agents and employees, from and against any and all claims, demands or causes of action of any kind or nature, and the resulting losses, costs, expenses, reasonable attorneys' fees, liabilities, damages, orders, judgments or decrees sustained by the county or any third party arising out of, or by reason of, or resulting from or of the acts, errors or omissions of the cable 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 system.

(b)

Insurance Required. A franchisee (or those acting on its behalf) shall not commence construction or operation of the system without obtaining insurance in amounts and of a type satisfactory to the county. The required insurance must be obtained and maintained for the entire period that the franchisee has facilities in the rights-of-way. If the franchisee, its contractors or subcontractors do not have the required insurance, the county may order such entities to stop operations until the insurance is obtained and approved.

(c)

Proof. Certificates of insurance, reflecting evidence of the required insurance and naming the county as an additional insured, and other proofs as the county may find necessary, shall be filed with the county. For persons issued franchises after the effective date of this ordinance, certificates and other required proofs shall be filed within thirty days of the issuance of a franchise, once a year thereafter, and whenever there is any change in coverage. For entities that have facilities in the rights-of-way as of the effective date of this chapter, the certificate shall be filed within sixty days of the effective date of this chapter, annually thereafter, and whenever there is any change in coverage, unless a pre-existing franchise provides for filing of certificates in a different manner.

(d)

Certificate Contents. Certificates shall contain a provision that coverages afforded under these policies will not be canceled until at least thirty days' prior written notice has been given to the county. Policies shall be issued by companies authorized to do business under the laws of the State of California. Financial ratings must be no less than "A VII" in the latest edition of "Best's Key Rating Guide," published by A.M. Best Guide.

(e)

Insurance Amounts. A cable communications system operator (and those acting on its behalf to construct or operate the system) shall maintain the following minimum insurance. The county shall be named as an additional insured or the general liability and automotive policies; those insurance policies shall be primary and contain a cross-liability clause.

(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:

Bodily Injury
1. Each occurrence	$1,000,000.00
2. Annual aggregate	3,000,000.00
Property Damage
1. Each occurrence	$1,000,000.00
2. Annual aggregate	3,000,000.00
Personal Injury
Annual Aggregate	$3,000,000.00

 

Completed operations and products liability shall be maintained for two years after the termination of the franchise or license (in the case of the cable communications system owner or operator) or completion of the work for the cable communications system owner or operator (in the case of a contractor or subcontractor).

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 cable 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 cable communications system operator. Each cable 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:

Workers' compensation: Statutory

Employer's liability: $ 500,000.00 per occurrence

(3)

Comprehensive Auto Liability.

Bodily Injury
1. Each occurrence	$ 1,000,000.00
2. Annual aggregate	3,000,000.00
Property Damage
1. Each occurrence	$ 1,000,000.00
2. Annual aggregate	3,000,000.00

 

Coverage shall include owned, hired and nonowned vehicles.

(f)

Performance Bond. Every operator of a cable communications system shall obtain and maintain a performance bond to ensure the faithful performance of its responsibilities under this chapter and any franchise. The amount of the performance and payment bonds shall be set by the county administrator or may be set in a franchise ordinance in light of the nature of the work to be performed, but shall not be less than ten percent of the estimated cost of constructing or (in the case of existing systems) upgrading the system. The bond 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 county counsel. Bonds must be obtained prior to the effective date of any franchise, transfer or franchise renewal, unless a franchise specifically provides otherwise.

(g)

Security Fund. Every cable communications system operator shall establish and maintain a cash security fund or provide the county an irrevocable letter of credit in the amount of fifty thousand dollars to secure the payment of fees owed, to secure any other performance promised in a franchise, and to pay any taxes, fees or liens owed to the county. The letter of credit shall be in a form and with an institution acceptable to the county's director of finance and in a form acceptable to the county counsel. Should the county draw upon the cash security fund or letter of credit, the cable communications system operator shall, within fourteen days, restore the fund or the letter of credit to the full required amount. This security fund/letter of credit may be waived or reduced by the county for a franchisee where the county determines in its discretion that a particular franchisee's operations are sufficiently limited that a security fund/letter of credit is not necessary to secure the required performance. The county may from time to time require a franchisee to change the amount of the required security fund/letter of credit to reflect changed risks to the county and to the public, including delinquencies in taxes or other payments to the county. The cash security fund or letter of credit must be obtained prior to the effective date of any franchise, transfer or franchise renewal, unless a franchise specifically provides otherwise.

(Ord. No. 4371, § 2)