§ 34-29. Insurance; bond.

(a)

Prior to beginning any construction in or installation of the telecommunications system in the public right-of-way, the permittee shall obtain the following insurance, and submit certificates evidencing the same:

(1)

Commercial general liability insurance including completed operations liability, independent contractors liability, contractual liability coverage and XCU coverage in an amount not less than $5,000,000.00.

(2)

Liability insurance for sudden and accidental environmental contamination.

(3)

Automobile liability insurance in an amount not less than $1,000,000.00.

(4)

Workers compensation and employer's liability coverage with statutory limits.

(b)

The city shall be named additional insured on all policies, other than workers compensation and employer's liability, and all policies shall not be canceled, modified or not renewed unless the insurance carrier provides 30 days written notice to the city.

(c)

Pursuant to section 15(3) of the Act (MCL 484.3115(3)), the city manager shall require that a bond be posted by the telecommunications provider as a condition of the permit. Prior to and during construction of the telecommunications system, the telecommunications provider shall provide a cash bond to the city in an amount not less than $1,000.00 or greater than $20,000.00 to protect both public and private property, and to ensure that any damage to the street surface and all installations on, over, below, or within the public right-of-way will be repaired and restored to its preexisting condition. The amount of the cash bond shall be established by the city manager or the city manager's designee, based upon the size, scope and location of the telecommunications facility, and the potential disruption caused by the construction, installation or excavation. After the construction is complete, the amount of the bond shall not exceed the reasonable cost to ensure that the public right-of-way is returned to its original condition during and after the telecommunications provider's access and use.

(d)

Pursuant to section 15(5) of the Act (MCL 484.3115(5)), a telecommunications provider undertaking an excavation or construction or installing telecommunications facilities within a public right-of-way or temporarily obstructing a public right-of-way in the city, as authorized by a permit, shall promptly repair all damage done to the street surface and all installations under, over, below, or within the public right-of-way, and shall promptly restore the public right-of-way to its preexisting condition.

(e)

As a condition of a permit, the permittee shall indemnify and hold harmless the city as set forth in the permit at all times during the life of the permit, and will pay all damages and penalties which the city may be required to pay as a result of granting a permit to the permittee.

(Code 1988, § 2.411; Ord. No. 424, § 1, 9-14-1998; Ord. No. 470, § 10, 10-15-2002)