If an applicant for a building or encroachment permit is required, as a condition for the issuance of such permit, to indemnify the city from liability or responsibility for any damage or injury to persons or property occurring as a proximate result of activities undertaken pursuant to the permit, the applicant may be required to file a certificate of insurance evidencing coverage of the city of not less than $5,000,000 for bodily injury and $1,000,000 for property damage, or such lesser amounts as the city engineer determines is sufficient due to the nature of the risks involved in a particular project. (Ord. 544 § 1; Ord. 443 § 2. 2002 Code § 13-1.4).