§ 14-1-48. Grantee insurance.

(A)

Except as provided in subparagraph (C) below, each grantee shall, as a condition of the grant, secure and maintain the following liability insurance policies insuring both the grantee and the City, and its elected and appointed officers, officials, agents and employees as additional insureds:

(1)

General liability insurance with limits not less than:

(a)

Five million dollars for bodily injury or death to each person;

(b)

Five million dollars for property damage resulting from any one accident; and

(c)

Five million dollars for all other types of liability.

(2)

Automobile liability for owned, nonowned and hired vehicles with a limit of $3,000,000.00 for each person and $3,000,000.00 for each accident.

(3)

Workers' compensation within statutory limits and employer's liability insurance with limits of not less than $1,000,000.00.

(4)

Comprehensive form premises-operations, explosions and collapse hazard, underground hazard and products completed hazard with limits of not less than $3,000,000.00.

(B)

The liability insurance policies required by this Section shall be maintained by the grantee throughout the term of the telecommunications franchise, and any such other period of time during which the grantee is operating without a franchise hereunder, or is engaged in the removal of its telecommunication facilities. Each such insurance policy shall contain the following endorsement: "It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until 90 days after receipt by the City, by registered mail, of a written notice addressed to the City Attorney of such intent to cancel or not to renew."

Within 60 days after receipt by the City of said notice, and in no event later than 30 days prior to said cancellation, the grantee shall obtain and furnish to the City replacement insurance policies meeting the requirements of this Section.

(C)

With respect to the obligation to comply with the requirements for automobile liability insurance and for workers' compensation insurance, a carrier may self-insure, provided the carrier tenders satisfactory evidence of self-insurance as contemplated by the Texas Motor Vehicle Safety Responsibility Act, V.T.C.A., Transportation Code § 601.124, and the Texas Workers' Compensation Act, V.T.C.A., Labor Code § 407.001 et seq. With respect to the obligation to provide other forms of insurance, a grantee may self-insure, provided that the grantee is given prior approval by the City. To be given prior approval for self-insurance, the grantee must show to the city's satisfaction that the grantee is in sound financial condition, and that the grantee maintains a dedicated reserve in an amount sufficient to ensure that the grantee's outstanding potential claims do not at any time exceed 50 percent of the value of the reserve.

(D)

Grantees shall obtain and maintain in full force and effect, throughout the term of a franchise granted under this Chapter, insurance with an insurance company licensed to do business in the State of Texas and acceptable to the City as determined by its representative. All companies will be required to be rated "A-VI" or better by A.M. Best or "A" or better by Standard and Poors. Grantees shall furnish the City with proof of such insurance so required at the time of filing the acceptance of a franchise. The City reserves the right to review these insurance requirements during the effective period of any franchise, and to reasonably adjust insurance coverage and their limits when deemed necessary and prudent by the city's risk manager, based upon changes in statutory law, court decisions, or the claims history of the industry or the grantee. The City shall not increase by more than ten percent per year the amount of insurance coverage to be carried by the grantee, unless required by law or court decisions.

(E)

The city attorney shall be entitled, upon request and without expense, to receive copies of certificates of insurance evidencing coverage stated above. The City also may make any reasonable requests for deletion, revision or modification of particular policy terms, conditions, limitations or exclusions, except where policy provisions are established by law or regulation binding upon either the City or a grantee or upon the underwriter for any of such policies. Upon request for deletion, revision or modification by the city manager, the grantee shall exercise reasonable efforts to accomplish the changes and shall pay the cost thereof.

(F)

Grantees shall agree that, with respect to the above-required insurance, all insurance certificates will contain the following required provisions:

(i)

Name the City and its officers, employees, board members and elected representatives as additional insureds (as the interests of each insured may appear) as to all applicable coverage;

(ii)

Provide for 30 days' notice to the City for cancellation, nonrenewal, or material change;

(iii)

Provide for notice to both the city manager and the city secretary by certified mail; and

(iv)

Provide that all provisions of the franchise, as amended, concerning liability, duty, and standard of care, including the indemnity election, shall be underwritten by contractual coverage sufficient to include such obligations within applicable policies, subject to the policy terms and conditions.

(G)

The insurance certificates obtained by grantees in compliance with this Section shall be subject to a approval by the city attorney, and such proof of insurance shall be filed and maintained with the city attorney during the term of the franchise, or any extension or renewal thereof, and may be changed from time to time to reflect changing liability limits, as required by the City. Grantees shall immediately advise the city attorney of any actual or potential litigation that might reasonably compromise or otherwise jeopardize the insurance coverage required by this Section, including, but not limited to, any levels of coverage.

(H)

Insurers shall have no right of recovery against the City, it being the intention that the insurance policies shall protect the grantee and the City and shall be primary coverage for all losses covered by the policies.

(I)

The policy clause "Other Insurance" shall not apply to the City where the City is an insured on the policy.

(J)

Companies issuing the insurance policies shall have no recourse against the City for payment of any premiums or assessments, which all are set at the sole risk of the grantee. Insurance policies obtained by the grantee shall provide that the issuing company waives all rights of recovery by way of subrogation or assignment against the City in connection with any damage covered by these policies.

(K)

Whether or not the grantee purchases insurance or arranges for self-insurance, the grantee and its insurer waive all rights of subrogation against the City. If insurance is purchased, the City shall be furnished with a certificate which reflects this waiver of subrogation.

(Ord. No. 7647, § 1, 9-9-1997)