Section 5.33.130 Acceptance of franchise.

A. Effective Date of Franchise. A franchise, together with the rights, privileges and authority granted thereby, shall take effect and be in force as of the date provided herein, upon adoption of the franchise agreement by the City Council of the City, and compliance by the

3. The operator shall file with the City a certificate of insurance as required by this section.

4. The operator shall shah advise the City in writing of its local office and its address for mail and official notifications from the City.

B. Surety Bond. Within thirty (30) days after execution of the franchise agreement, the operator shall provide a surety bond to the benefit of the City in the amount of ten thousand dollars ($10,000). The surety bond shall be in a form approved by the City and shall be maintained throughout the term of the franchise.

The bond shall guarantee payment to the City, as restricted by this ordinance, if the operator fails to comply with any provision of this ordinance or any applicable law or regulation regulating cable television services. The surety company shall be authorized to transact surety

business in the State of Utah. Multiple and partial drawings on the bond shall be permitted. The operator may provide the surety bond in the form of an irrevocable letter of credit.

Any letter of credit must be on forms and with language approved by the City. The surety bond shall be established as security to the City for the faithful performance of the operator of all the provisions of this ordinance and compliance with all orders, permits and directions of any agency of the City having jurisdiction over the operator's acts or defaults under the franchise or any other provision of City code.

The bond shall also act as security to the City for the payment by the operator of any claims, liens, and taxes due to the City that arise by reason of the construction, operation, or maintenance of the network.

No demands shall be made on the surety bond without providing the operator opportunity to correct the default. Within thirty (30) days of notice that any amount has been demanded from the surety bond, the operator shall restore the bond to the original amount.

C. Public Liability Insurance. Within thirty (30) days after execution of the franchise agreement, the operator shall provide proof of general comprehensive liability insurance coverage protecting the City against liability for loss or damage for personal injury, death, or property

damage, occasioned by the operations of operator under this ordinance, in the amount of (a) $2,000,000 for bodily injury or death to any one person, within the limits, however, of $2,000,000 for bodily injury or death resulting from any one accident, (b) $500,000 for property

The insurance policies referred to above shall contain an endorsement stating that the policies are extended to cover the liability assumed by the operator under the terms of this ordinance and shall show the City as an additional insured.

1. The providers public and personal liability and property damage insurance policy shall specifically include the City, the Mayor, the Council, their officials, agents, employees or representatives as additional insureds.

2. The public and personal liability and property damage insurance policy shall be issued by an agent or representative of an insurance company licensed to do business in the State, and which has one (1) of three (3) highest or best ratings from the Alfred M. Best Company, and which is acceptable to the City, or has been rated acceptable by the State.

3. The public liability and property damage insurance policy shall contain an endorsement obligating the insurance company to furnish the Mayor with at least thirty (30) days written notice in advance of the cancellation of the insurance.

D. Workers compensation insurance. A provider shall secure and maintain for as long as it provides service to subscribers. Worker's compensation insurance, in accordance with the laws of the State. Annually, a certificate shall be filed with the City by either the insurance carrier or provider showing such insurance to be in force.

It is hereby understood and agreed that this policy may not be canceled nor the amount of coverage thereof reduced until thirty (30) days after receipt by the City of Vernal by registered mail of written notice of such intent to cancel or reduce the coverage.

E. Evidence of Insurance Filed with City. Certificates of insurance for all insurance policies together with written evidence of payment of required premiums shall be filed and maintained with the City during the term of the franchise or any renewal thereof. Certified copies

F. Inducements Not Offered. The operator, by acceptance of the franchise agreement, acknowledges that it has not been induced to accept the franchise by any understanding or promise or other statement, whether verbal or written, by or on behalf of the City concerning any

G. Operator Accepts Terms of Franchise. The operator, by acceptance of the franchise agreement, acknowledges that it has thoroughly examined and is familiar with the terms and conditions of this ordinance.