Chapter 13.08
TERM—ACCEPTANCE—INSURANCE—BOND
Sections:
13.08.020 Acceptance of franchise.
13.08.030 Nonexclusive franchise.
13.08.060 Faithful performance bond.
13.08.010 Term.
Unless the ordinance granting the franchise provides otherwise, the term of the franchise shall be twenty-five years.
(Ord. 1349 § 1 (part), 9-12-77)
13.08.020 Acceptance of franchise.
The franchisee shall, within thirty days after the passage of the ordinance granting the franchise, file with the city clerk a written acceptance of the terms and conditions of the ordinance: provided, however, that as to franchises granted to the United States of America, use will constitute acceptance.
(Ord. 1349 § 1 (part), 9-12-77)
13.08.030 Nonexclusive franchise.
The granting of the franchise shall not be construed to prevent the city from granting any identical or similar franchise to any person other than the franchisee. Nothing herein contained shall ever be construed so as to exempt the franchisee from compliance with all ordinances, rules or regulations of the city now in effect or which may be hereafter adopted which are not inconsistent with the terms of the franchise.
(Ord. 1349 § 1 (part), 9-12-77)
13.08.040 Change in status.
If the franchisee qualifies before the Public Utilities Commission of the state of California as a common carrier, the franchisee shall then have no right to continue to operate hereunder after the date of such qualification, except with the consent of the city council, granted upon such additional terms and conditions as the city council may deem proper. Such additional terms and conditions shall be expressed by ordinance.
(Ord. 1349 § 1 (part), 9-12-77)
13.08.050 Insurance.
On or before commencement of any franchise operations, the franchisee shall obtain or provide satisfactory evidence of having policies of liability and worker’s compensation insurance from companies authorized to transact business in the state of California by the Insurance Commissioner of California.
(a) The policy of liability insurance shall:
(1) Be issued to the franchisee and name the city, its officers, agents, and employees, as additional insured;
(2) Indemnify for all liability for personal and bodily injury, death and damage to property arising from activities conducted pursuant to this franchise by providing coverage therefor, including but not limited to, coverage for:
(A) Negligent acts or omissions of franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations,
(B) Provide a combined single limit liability insurance in the amount of one million dollars and provide that the insurance is primary to any insurance which may be held by the city and which may be applicable thereto,
(C) Be noncancellable without thirty days’ written notice thereof directed to the city clerk.
(b) The policy of worker’s compensation insurance shall:
(1) Have been previously approved as to substance and form by the California Insurance Commissioner;
(2) Cover all employees of franchisee who in the course and scope of their employment are to conduct or do work pursuant to the franchise operations;
(3) Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the state of California upon an injured employee, including the vocational rehabilitation and death benefits;
(4) Be noncancellable without thirty days’ written notice thereof directed to the city clerk.
The franchisee shall file with the city clerk prior to commencement of any franchise operations, either certified copies of the policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and providing the following information with respect to said policy:
(A) The policy number;
(B) The date upon which the policy will become effective and the date upon which it will expire;
(C) The names of the named insured and the names of additional insureds required by Chapters 13.02 through 13.18;
(D) Subject of the insurance;
(E) The type of coverage provided by the insurance;
(F) Amount of limit of coverage provided by the insurance;
(G) A description of all endorsements that form a part of the policy. Any franchise operations shall not commence until the franchisee has complied with the aforementioned provisions of this section, and any such operations shall be suspended during any period that franchisee fails to maintain the policies in full force and effect.
(c) In lieu of the policy of worker’s compensation insurance required above, the franchisee may substitute and provide a certificate of consent to self-insure, issued by the Director of Industrial Relations of the state of California.
(Ord. 1349 § 1 (part), 9-12-77)
13.08.060 Faithful performance bond.
On or before the effective date of the ordinance granting the franchise, franchisee shall file and thereafter at all times during the life of the franchise keep on file with the city clerk a corporate surety bond running to the city or public entity which may become entitled to the benefits herein reserved in the franchise by virtue of future incorporations or annexations, in the penal sum of ten thousand dollars or such other sum as may be specifically provided for in the ordinance granting the franchise, with surety to be approved by the city attorney, conditioned that franchisee shall well and truly observe, fulfill and perform each condition of the franchise and that in case of any breach of condition of the bond, the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If the bond is not to be filed prior to the effective date of the ordinance granting the franchise, the award of the franchise may be set aside and the ordinance granting the franchise repealed at any time prior to the filing of the bond and any money paid in consideration for the award of franchise shall be deemed forfeited. In the event that the bond, after it has been so filed, shall at any time during the life of the franchise, in the opinion of the city attorney, become insufficient, the franchisee agrees to renew the bond, with sureties to be approved by the city attorney, within ten days after written notice to do so from the city attorney.
(Ord. 1349 § 1 (part), 9-12-77)
13.08.070 Alternate to bonds.
As an alternate to the filing of a bond, the franchisee may deposit with the city clerk and assign to the city savings and loan certificates or shares, or both, in the same amount as required on such bond.
(Ord. 1349 § 1 (part), 9-12-77)