§ 33-18.13. Insurance; suspension of franchise.

(a)

It is unlawful for the holder of a solid waste collection franchise to operate a solid waste collection business unless said holder shall maintain in force during the authorized period of its operating authority the amount and character of insurance coverage for all motor vehicles used in the solid waste collection service as follows:

(1)

A one million dollar ($1,000,000.00) per occurrence combined single limit liability policy with a deductible not to exceed one thousand dollars ($1,000.00) which shall pay on behalf of the insured named therein and any other person, as insured, using any such motor vehicle or motor vehicles with the express or implied permission of such named insured, all sums which the insured shall become legally obligated to pay as damage arising out of the operation of the solid waste collection service or the ownership, maintenance or use of such motor vehicles or motor vehicles operated by independent contractors or vehicles operated for or on behalf of the franchise holder;

(2)

Carried with an insurance company authorized to do business in the State of Texas;

(3)

Including a cancellation rider under which the insurance company is to renotify the city in writing no later than thirty (30) days before making a material change to the insurance policy;

(4)

Providing that the city is an additional named insured;

(5)

Providing coverage for all solid waste collection vehicles operating under the name of the franchise holder whether said solid waste collection vehicles are owned, leased, hired or contracted and liability coverage for the drivers operating said solid waste collection vehicles, whether on or off duty; and

(6)

Containing a provision for a continuing liability thereon up to the full amount thereof, notwithstanding any recovery thereon.

(b)

The insurance policy required by this chapter shall be filed with the director five (5) working days prior to the time any solid waste collection vehicle operated by the holder is operated upon city streets.

(c)

The holder shall secure written confirmation from the city that the policy meets the requirements of this section before operating any solid waste collection vehicle on the streets of the city.

(1)

Except as provided in subsection (g) below, a franchisee shall procure and keep in full force and effect automobile and truck liability insurance written by an insurance company approved by the State of Texas and acceptable to the city and issued in the standard form approved by the Texas Department of Insurance. All provisions of the policy must be acceptable to the city. The insured provisions of the policy must name the city and its officers and employees as additional insured and the coverage provisions must provide coverage for any loss or damage that may arise to any person or property by reason of the operation of a solid waste collection service by the franchisee.

(2)

The automobile and truck liability insurance must provide combined single limits of liability for bodily injury and property damage of not less than five hundred thousand dollars ($500,000.00) for each occurrence, or the equivalent, for each motor vehicle used by the franchisee, with a maximum deductible of not more than the deductible allowed under the Texas Safety Responsibility Act, as amended. Aggregate limits of liability are prohibited.

(d)

Insurance required under this section must include:

(1)

A cancellation provision in which the insurance company is required to notify the director in writing not fewer than thirty (30) days before canceling, failing to renew, or making a material change to the insurance policy; and

(2)

A provision to cover all vehicles, whether owned or not owned by the franchisee, operated under the franchisee's solid waste collection franchise.

(e)

No insurance required by this section may be obtained from an assigned risk pool.

(f)

A solid waste collection franchise will not be granted or renewed unless the applicant or franchisee furnishes the director with such proof of insurance as the director considers necessary to determine whether the applicant or franchisee is adequately insured under this section.

(g)

If the insurance of a franchisee lapses or is canceled and new insurance is not obtained, the director shall suspend the franchise until the franchisee has provided evidence that insurance coverage required by this section has been obtained. A person may not operate a solid waste collection service while a franchise is suspended under this section whether or not the action is appealed.

(h)

This section does not apply to any person who:

(1)

Operates a solid waste collection service only to remove, transport, or dispose of wet or dry solid waste actually generated by the person's own business; and

(2)

Does not receive any compensation for operating a solid waste collection service.

(Ord. No. 8256, § 3, 12-4-03; Ord. No. 2017-9981, § 1, 9-21-17 )