13.40.110 Bonds and liability insurance required.
A. The public works department is authorized to require all persons constructing retention/detention or other drainage facilities to post surety and cash bonds.
B. Where such persons have previously posted or are required to post other such bonds on the facility itself or on other construction related to the facility, such persons may, with the permission of the public works department and to the extent allowable by law, combine all such bonds into a single bond; provided, that at no time shall the amount thus bonded be less than the total 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.
1. Construction Bond. Prior to commencing construction, the person constructing the facility shall post a construction bond in an amount sufficient to cover the cost of conforming the construction with the approved stormwater site plans. The amount of the bond shall be increased at one-year intervals in a proportion equivalent to the prevailing rate of inflation in construction costs. After determination by the public works department that all facilities are constructed in compliance with the approved plans, the construction bond shall be released. Alternatively, an equivalent cash deposit to an escrow account administered by a local bank designated by the city could be required at city option.
2. Maintenance Bond. After satisfactory completion of the facilities and concurrent with release of the construction bond by the city, the person constructing the facility shall commence a two-year period of satisfactory maintenance of the facility. A cash bond to be used at the discretion of the engineer to correct deficiencies in the maintenance affecting public health, safety and welfare must be posted and maintained throughout the two-year maintenance period. The amount of the cash bond shall be determined by the city engineer, but shall not be in excess of 10 percent nor less than five percent of the estimated construction cost of the drainage facilities. In addition, a surety bond or cash bond to cover the cost of design defects or failures in workmanship of the facilities shall also be posted and maintained throughout the two-year maintenance period. The amount of the bonds shall be increased at one-year intervals in a proportion equivalent to the prevailing rate of inflation. Alternatively, an equivalent cash deposit to an escrow account administered by a local bank designated by the city could be required at city option.
3. Liability Policy. The person constructing the facility shall maintain a liability policy in the amount of $100,000 per individual, $300,000 per occurrence, and $50,000 property damage, which shall name the city as an additional insured and which shall protect the city from any liability up to those amounts for any accident, negligence, failure of the facility, or any other liability whatsoever, relating to the construction or maintenance of the facility. The liability policy shall be maintained for the duration of the facility by the owner of the facility; provided, that in the case of facilities assumed by the city for maintenance pursuant to LMC 13.40.120, the liability policy shall be terminated when the city maintenance responsibility commences. (Ord. 3443 § 1, 2023; Ord. 2833 § 2, 2010)