12.02.330 Grantee insurance.
As consideration for the issuance of a franchise, the franchise shall include an insurance provision substantially conforming to the following:
Each grantee shall secure and maintain the following liability insurance policies insuring both the grantee and the city as an additional insured against claims for injuries to persons, death, or damages to property which may arise from or in connection with the exercise of the rights, privileges, and authority granted to the grantee:
A. Comprehensive general liability insurance, written on an occurrence basis, with limits not less than:
1. Two million dollars for bodily injury or death to each person;
2. Two million dollars for property damage resulting from any one accident;
3. Two million dollars for all other types of liability; and
4. Five million dollars in the aggregate for bodily injury and property damage.
B. Automobile liability for owned, nonowned, and hired vehicles with a combined single limit of two million dollars for each accident;
C. Worker’s compensation within statutory limits and employer’s liability insurance with limits of not less than one million dollars; and
D. Comprehensive form premises-operations, explosions and collapse hazard, underground hazard and products completed hazard with limits of not less than five million dollars.
E. Excess umbrella liability policy with limits of no less than five million dollars per occurrence and in the aggregate.
F. The liability insurance policies required by this section shall be maintained by the grantee throughout the term of the franchise, and such other period of time during which the grantee is operating without a franchise or is engaged in the removal of its telecommunications facilities. Failure to maintain such insurance shall be grounds for cancellation. The grantee shall provide an insurance certificate, together with an endorsement including the city, and its elected and appointed officers, officials, agents, employees, representatives, engineers, consultants, and volunteers as additional insureds, to the city prior to the commencement of any work or installation of any telecommunications facilities pursuant to said franchise.
Payment of deductibles and self-insured retentions shall be the sole responsibility of the grantee. The insurance certificate required by this section shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. The grantee’s insurance shall be primary and noncontributory insurance as respects the city, its elected and appointed officers, officials, employees, agents, representatives, engineers, consultants, and volunteers. Any insurance maintained by the city, its elected and appointed officers, officials, employees, consultants, agents, representatives, engineers, and volunteers shall be in excess of the grantee’s insurance and shall not contribute with it. Receipt by the city of any certificate showing less coverage than required is not a waiver of grantee’s obligations to fulfill the requirements. Grantee may utilize primary and excess liability insurance policies to satisfy the insurance policy limits required in this section. Grantee’s excess liability insurance policy shall provide “follow form” coverage over its primary liability insurance policies.
G. In addition to the coverage requirements set forth in this section, the grantee must notify the city of any cancellation or reduction in said coverage. Within thirty days after receipt by the city of said notice, and in no event later than fifteen days prior to said cancellation or intent not to renew, the grantee shall obtain and furnish to the city a replacement insurance certificate meeting the requirements of this section.
H. Grantee’s maintenance of insurance as required by this section shall not be construed to limit the liability of grantee to the coverage provided by such insurance, or otherwise limit the city’s recourse to any remedy available at law or equity. Further, grantee’s maintenance of insurance policies required by this franchise shall not be construed to excuse unfaithful performance by grantee.
I. Upon approval by the director and based on conditions set by the city in the franchise, the grantee may self-insure under the same terms as required by this section. Further, the director may modify these insurance requirements as he/she deems necessary to comply with the city’s risk management policies or as otherwise approved by the city’s risk manager; provided, that any such changes provide adequate protection for the city. (Ord. 1188-21 § 2 (Exh. A), 2021).