Section 5.34.130 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 operator with the following:

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 shah 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) $500,000 for bodily injury or death to any on person, within the limits, however, of $1,000,000 for bodily injury or death resulting from any one accident, (b) $500,000 for property damage resulting from any one accident, and (c) worker's compensation insurance in such coverage as may be required by the worker's compensation insurance and safety laws of the State of Utah and amendments thereto.

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 contain the following endorsements:

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.

D. 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 of insurance policies shall be provided to the City upon reasonable request.

E. 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 term or condition of the franchise.

F. 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.