Limitations on city liability; indemnification; agreements; insurance; bonds.
Winston-Salem Code of Ordinances § 78-374
in effectSec. 78-374. - Limitations on city liability; indemnification; agreements; insurance; bonds.
To the fullest extent permitted by law, the city shall not assume any liability, whatsoever, with respect to any micromobility device permits the city issues or the operation of any micromobility devices thereunder. As a condition to the issuance of any micromobility device permit, the applicant shall be required to meet all of the following conditions (and by accepting a permit, the applicant agrees to the following conditions):
(1) Execute an agreement, in a form approved by the city attorney, agreeing to release, indemnify, defend (at applicant's sole cost and expense), and hold the city and its officers, officials, employees, representatives, and agents harmless from and against any and all claims, suits, causes of action, losses, damages, demands, injuries, liabilities, or losses, including, but not limited to, any consequential, indirect, incidental, special, or exemplary damages (collectively, the "claims"), which, in any manner, arise out of, in relation to, or in connection with:
a. The city's/committee's/city manager's issuance of, or decision to approve, a micromobility device permit;
b. The process used by the city/committee/city manager in making its/his/her decision;
c. The applicant's operations, acts, or omissions, including, but not limited to, any failure to inspect, repair, service, maintain, or properly place or park devices and to communicate to customers applicable traffic safety laws and appropriate warnings and recommendations for the use of devices, including, but not limited to, any warnings or recommendations issued by manufacturers;
d. Any defective device or equipment applicant displays, deploys, stations, offers for rent, rents, leaves, or abandons;
e. The applicant's and/or its officers', managers', employees', agents', representatives', or customers' injury or damage to person or property, in connection with the use of the permit or the use, misuse, or parking of any device authorized thereunder, including, but not limited to, any injuries or damage to the public rights-of-way;
f. The applicant's or any of its officers', managers', employees', agents', representatives', or customers' alleged or actual violation of any federal, state, or local law, rule, regulation, ordinance, or guidance, in connection with the use of the permit, any device authorized thereunder, or the applicant's business operations;
g. The applicant's or any of its officers', managers', employees', agents', or representatives' breach of the agreement; and/or
h. The city's failure to enforce the provisions of this article, the administrative regulations adopted pursuant to subsection 78-367(a), the agreement specified in this subsection (1), or any provision of the permit. The applicant's indemnification obligation shall apply to all the above-stated claims, regardless of whether any of the applicant's insurance policies apply thereto.
(2) Obtain and maintain in continuous effect, for the duration of the micromobility device permit and the applicant's use of the public rights-of-way, and for one year, thereafter, an insurance policy satisfactory to the city's risk manager, from an insurer authorized to conduct business in the state and possessing a current A.M. Best rating of no less than A:VII, with coverage limits and conditions specified by the city's risk manager, as she/he determines necessary and appropriate, from time to time, naming the city an additional insured, on a primary and non-contributory basis to secure the applicant's indemnification obligations under this section and the aforementioned agreement. The applicant's insurance policy shall be endorsed to state that coverage shall not be cancelled and the amount of coverage shall not be materially reduced until 30 days' following the city's receipt of prior written notice by certified mail. If any insurance policy issued to a permittee is cancelled or the amount of coverage thereof materially reduced, for any reason, the micromobility device permit issued under this article shall be automatically suspended. In order to reinstate the permit, the permittee shall provide a new certificate and policy of insurance to the city, meeting the requirements of this subsection. Original, signed certificates and endorsements, evidencing the coverages required hereunder shall be submitted to the city prior to the issuance of or reinstatement of a permit. The policy limits of the insurance provided hereunder shall not limit the applicant's obligation to the city.
(3) Provide to the city a performance bond, letter of credit, or other surety acceptable to the city attorney, in an amount determined by the city manager to be sufficient to cover the obligations of the applicant under this article, the administrative regulations adopted pursuant to subsection 78-367(a), the agreement specified in subsection (1) above, and the permit. Any bond or letter of credit must be issued by a surety with a credit rating of at least A+ and legally authorized to do business in the state. The surety must guarantee the performance of all of the applicant's obligations under the aforementioned documents. If the amount of the bond is determined according to the number of micromobility devices authorized under the permit, the applicant must submit a revised surety, acceptable to the city attorney, in an amount sufficient to cover the applicant's obligations pertaining to both the existing and additional authorized devices before the additional devices may be deployed.
(4) Advance to the city all costs and expenses the city anticipates incurring or which the city anticipates others will incur on its behalf as a result of any legal challenge related to the city's approval of, or activities conducted pursuant to, the applicant's micromobility device permit, the device, itself, and/or the damage to, or repair of, the public rights-of-way, public area, or other city property damaged in connection with the applicant's and/or its officers', managers', employees', agents', representatives', or customers' use of the public rights-of-way or public areas pursuant to the permit issued to the applicant.
(5) Reimburse the city within 30 calendar days of the date of invoice for all costs and expenses, including, but not limited to, attorneys' fees and court costs, which the city incurs (and which have not already been advanced) as a result of any legal challenge related to the city's approval of, or activities conducted pursuant to, the applicant's micromobility device permit, the device, itself, or damages to the public rights-of-way, public areas, or other city property. The city may, in its sole discretion, elect to participate in the defense of any such action, but such participation shall not relieve the applicant of any of its obligations imposed hereunder.
(6) Reimburse the city within 30 calendar days of the date of invoice for all costs and expenses the city incurs (and which have not already been advanced) to repair the public rights-of-way or other city property damaged in connection with the applicant's and/or its officers', managers', employees', agents', representatives', or customers' use of the public rights-of-way pursuant to the permit issued to applicant.
(7) The applicant will conduct all defense specified in this section 78-376 at the applicant's sole cost and expense, and the city shall reasonably approve selection of the counsel that will represent the city. The applicant shall not settle or compromise any claim or consent to the entry of any judgment which affects the city, without the prior written consent of the city. In no event, shall an adverse judgment be entered against the city, as part of a settlement, without the city's express, prior, written consent.
(8) The indemnification obligations expressed in this article shall continue during the suspension of the micromobility device permit, and shall survive the expiration or earlier termination/revocation of the permit and the expiration or lapse of any insurance policy.
(Ord. No. 2019-7, § 1, 3-25-19; Ord. No. 2024-4, § I, 3-4-24)
Source: City of Winston-Salem, North Carolina, Code of Ordinances, City Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/nc/winston-salem/codes/code_of_ordinances?nodeId=PTIIICOOR_CH78VEHI_ARTXIVMIDE_S78-374LILIINAGINBOFetched: 11/1/2026