§ 5.12.100. Protection of the county and residents.

A.

Indemnity Required. No franchise shall be valid or effective until and unless the county obtains an adequate indemnity from the franchisee. The indemnity shall be in a form approved by county counsel and must:

1.

Release the county from and against any and all loss, damage, expense, cost (including cost of litigation), liability, and responsibility in or arising out of the construction, operation or maintenance of the cable communications system. Each cable communications system operator must further agree not to sue or seek any money or damages from the county in connection with the above-mentioned matters.

2.

Indemnify, hold harmless, and defend the county, its elected and appointed officers, agents, and employees, from and against any and all liability, loss, damage, cost, 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.

3.

Provide that the covenants and representations relating to the release, indemnification, and hold harmless provision shall survive the term of the franchise or other authorization and continue in full force and effect as to the party's responsibility to indemnify.

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 as set by the board from time to time, as well as other requirements related thereto. At a minimum, such insurance shall include comprehensive general liability, workers' compensation, and comprehensive auto liability satisfactory to the county. The required insurance must be obtained and maintained for the entire period the franchisee has facilities in the public 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 subsequent to the effective date of the ordinance, certificates and other required proofs shall be filed within thirty days of the issuance of a franchise, prior to the commencement of construction, once a year thereafter, and whenever there is any change in coverage. For entities that have facilities in the public rights-of-way prior to the effective date of the ordinance, the certificate shall be filed within sixty days of the effective date of the ordinance, annually thereafter, and whenever there is any change in coverage, unless a preexisting franchise provides for filing of certificates in a different manner.

D.

Construction Bond. Every operator of a cable communications system shall obtain and maintain a construction bond to ensure the faithful performance of its responsibilities under this chapter and any franchise. The amount of the bond shall be set in the franchise, but shall not be less than ten percent of the estimated cost of constructing or (in the case of existing systems) upgrading the system, and shall include a sufficient amount to cover the removal of facilities and/or restoration of county facilities within the right-of-way. 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.

E.

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 one hundred thousand dollars to secure the payment of fees owed, to secure any other performance promised in a franchise, and to pay any taxes, fees, penalties or liens owed to the county. The letter of credit shall be in a form and with an institution acceptable to the county. 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. 1262 § 2 (part), 2005)