1. A franchisee shall pay, save harmless and indemnify the City from any loss, damage, penalty or claim against the City on account of, or in connection with, any activity of the franchisee in the operation of the franchisee’s solid waste collection business, including activity by any contract hauler under BC 4.08.055(D).

2. If such suit shall be filed against the City, either independently or jointly with the franchisee or its contract hauler to recover for any claim or damages, the franchisee, upon notice to it by the City, shall defend the City against the action.

3. In the event of a final judgment being obtained against the City, either independently or jointly with the franchisee or its contract hauler, the franchisee will pay said judgment and all costs and hold the City harmless therefrom. (A/I)

1. Each collection franchisee and drop box franchisee shall furnish a performance bond, in a form approved by the city attorney, by an acceptable surety company in the amount of $25,000, but may, in lieu of a bond, furnish an irrevocable letter of credit or assign a savings account or deposit in any federally insured financial institution in the amount of $25,000 on a form approved by the city attorney.

2. The security shall guarantee faithful performance of all the obligations contained herein, with the premium for such bond or cost of such assignment to be paid by the collection franchisee or drop box franchisee furnishing the bond or letter of credit, or making the assignment. (A/I)

1. A franchisee shall maintain commercial general liability insurance on an occurrence basis, which will cover the franchisee’s business operation, including each vehicle it operates, in such forms and with such companies as shall be approved by the city attorney.

2. The insurance coverage shall include not less than $100,000 for one person, nor less than $300,000 for bodily injury due to each occurrence, and not less than $100,000 for damage to property due to each occurrence, and coverage of at least $1,000,000 in the aggregate per occurrence.

3. All such insurance coverage shall provide a 30-day notice to the city manager in the event of material alteration or cancellation of any coverage afforded in the policies prior to the date the material alteration or cancellation shall become effective.

4. Copies of all policies required hereunder shall be furnished to and filed with the city manager prior to the commencement of operations or the expiration of prior policies, as the case may be.

5. The franchisee shall furnish proof annually to the City that the insurance remains in effect. (A/I)