Chapter 17.06
DEVELOPER BONDS AND LIABILITY INSURANCE
Sections:
17.06.010 Bonds required for improvements.
17.06.020 Combine with other bonds.
17.06.040 Maintenance warranty bond.
17.06.010 Bonds required for improvements.
Developers and contractors constructing public improvements, performing work within the public right-of-way or publicly owned easement(s) shall post a surety bond in the amount and of the type set forth herein. (Ord. 05-13 § 1, 2013; Ord. 10-98 § 2, 1998).
17.06.020 Combine with other bonds.
Where such developers have previously posted or are required to post other such bonds on the project itself or on other construction related to the project, such person may, with the permission of the city engineer and to the extent allowed by law, combine all such bonds into a single bond; provided, that at no time shall the amount thus bonded be less than the amount which would have been required in the form of separate bonds; and provided further, that such a bond shall on its face clearly delineate those separate bonds which it is intended to replace. (Ord. 05-13 § 1, 2013; Ord. 10-98 § 2, 1998).
17.06.030 Performance bond.
No construction permit shall be issued for a project until the developer or contractor constructing the improvement(s) shall post a performance bond in an amount of 150 percent of the cost of the value of the improvements. The city engineer shall review and provide approval, as may be applicable, of the submitted amount. After determination by the city engineer that all improvements are constructed in compliance with the approved plans, the performance bond shall be released. Alternatively, an equivalent cash deposit to an escrow account administered by a local bank designated by the city may be acceptable. (Ord. 05-13 § 1, 2013; Ord. 10-98 § 2, 1998).
17.06.040 Maintenance warranty bond.
After satisfactory completion of the improvements and release of the performance bond by the city, the developer constructing the improvements shall provide a maintenance warranty bond for a two-year period for the improvements. The amount of the warranty bond shall be 25 percent of the estimated construction cost of the improvements. In addition, the warranty bond shall cover the cost of design defects and/or failures in workmanship of the improvements throughout the two-year maintenance period. Alternatively, an equivalent cash deposit to an escrow account administered by a local bank designated by the city may be acceptable. (Ord. 05-13 § 1, 2013; Ord. 10-98 § 2, 1998).
17.06.050 Liability policy.
The developer constructing the improvements shall maintain a liability policy with limits of $1,000,000 per individual occurrence, $2,000,000 in aggregate, and $1,000,000 property damage, which shall name the city as an additional insured and which shall protect the city from liability for any accident, negligence, failure of the facility, or any other liability whatsoever, relating to the construction or maintenance of the facility. Said liability policy shall be maintained for the duration of the facility by the owner of the facility. (Ord. 05-13 § 1, 2013; Ord. 10-98 § 2, 1998).