A. A franchisee shall defend, hold harmless and indemnify the city and its officials, agents, and employees from any loss, damage, penalty or claim against the city, its officials, agents, or employees, 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 approved subcontractor providing solid waste management collections and services. In the event that lawsuit is filed against the city either independently or jointly with the franchisee or its subcontractor to recover for any claim or damages, the franchisee upon notice to it by the city shall defend the city against the action, and in the event of a final judgment being obtained against the city, either independently or jointly with the franchisee or its subcontractor, the franchisee will pay said judgment and all costs and hold the city harmless therefrom.

B. A franchisee shall furnish a performance bond, in a form approved by the city, 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. The security shall guarantee faithful performance of all the obligations pursuant to this chapter with the premium for such bond or cost of such assignment to be paid by the franchisee furnishing the bond, letter of credit, or making the assignment.

C. A franchisee shall maintain commercial general liability insurance on an occurrence basis in such forms and with such companies as shall be approved by the city, which will cover the franchisee’s business operation, including each vehicle operated by the franchisee. The insurance coverage shall include not less than $1,000,000 per person, not less than $5,000,000 for bodily injury per occurrence, not less than $1,000,000 for damage to property per occurrence and coverage of at least $5,000,000 in the aggregate per occurrence. All such insurance coverage shall provide a 30-day notice to the city manager or designee 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. Copies of all policies required hereunder shall be furnished to and filed with the city manager or designee prior to the commencement of operations or the expiration of prior policies, as the case may be. The franchisee shall furnish proof annually to the city manager or designee that the insurance remains in effect. The franchisee will name the city of Talent in its policy as an additionally insured party.

D. The provisions of this section, any bonds accepted by the city pursuant thereto, and any damage recovered by the city hereunder shall not be construed to excuse unfaithful performance by the franchisee or limit the liability of the franchisee under this chapter or limit the franchisee’s responsibility for damages, either to the full amount of the bond, or otherwise. [Ord. 872 § 7.2, 2014.]