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Each Grantee shall secure and maintain insurance and bond as set forth below:

A. Insurance required. Commercial General Liability Insurance, and, if necessary, Umbrella Liability Insurance, which will cover bodily injury, property damage, and any other exposure which be reasonably identified as potentially arising from the Grantee's activities within the rights-of-way. The limit of liability shall not be less than two million dollars ($2,000,000) for each occurrence. The City, its elected and appointed officers, officials, employees, agents, and representatives shall be named as additional insured with respect to activities occurring within its rights-of-way. Coverage shall be comprehensive with respect to the Grantee's activities within the rights-of-way and shall include completed operations, explosions, collapse, and underground hazards. Such insurance shall name the City as additional insured and provide a certificate of insurance with a 45-day cancellation notice.

B. Bond required. The grantee or the contractor for the grantee shall post with the city a bond with surety qualified to do a bonding business in this state, a cash deposit or an assigned savings account or other security acceptable to the city in an amount equal to one hundred fifty percent of the cost of the work as estimated by the Director or in an amount as set forth in the franchise agreement. Such bond, deposit or other security shall be conditioned upon the grantee or its contractor performing the work pursuant to the terms of this Chapter, including the restoration and/or replacement of the street, sidewalk, or other rights-of-way within the time specified by the Director. Such bond, deposit or other security shall be approved by the City Attorney before being accepted by the City.

C. Security fund.

1. The City reserves the right to require of any Person subject to this chapter that such Person deposit into a bank account, established by the City, and maintain for such term as is reasonable under the circumstances with interest running to such Person, a sum of money in an amount reasonably determined by the City as security for the faithful performance by such Person of all the provisions of its franchise or permit, and compliance with all orders, permits and directions of any agency of the City, and for the payment of any claims, liens and taxes due the City or liquidated damages imposed by the City which arise by reason of the construction, operation or maintenance of such Person's system. Within 30 days after notice to it that any amount has been withdrawn by the City from the security fund pursuant to the foregoing, such Person shall deposit a sum of money sufficient to restore such security fund to the original amount in the account at the time of withdrawal.

2. If such Person fails after 10 days' notice to pay the City any delinquent fees, taxes or other amounts due and unpaid; or, fails to repay to the City, after such 10 days' notice, any damages, costs or expenses which the City shall be compelled to pay by reason of any act or default of such Person; or fails after 45 days' notice of such failure by the City to comply with any provision of its franchise or permit which the City reasonably determines can be remedied by an expenditure of the security, the City may immediately withdraw the amount thereof, with interest and any penalties, from the security fund. Upon such withdrawal, the City shall notify such Person of the amount and date thereof.

3. The security fund deposited pursuant to this section shall become the property of the City in the event that a franchise or permit is canceled by reason of the default of the Person subject to this chapter or revoked for cause. Such Person, however, shall be entitled to the return of such security fund or portion thereof which remains on deposit at the expiration of the term of the permit or franchise, or upon termination of the permit or franchise at an earlier date, upon payment of all sums then due to the City.