2016/12/07 Council Agenda Packet

I D. Maintenance Warranty Bonds. After satisfactory completion of the facilities and release of the performance bond by the City, the developer constructing the facility shall commence a two-(2) year period of satisfactory maintenance of the facility. A warranty bond to be used at the discretion of the City Engineer to correct deficiencies in said maintenance affecting public health, safety and welfare must be posted and maintained throughout the two year maintenance period. The amount of the warranty bond shall be ten percent of the estimated construction cost of the drainage facilities. In addition, the warranty bond shall cover the cost of design defects and/or failures in workmanship of the facilities 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. E. Liability Insurance. The developer constructing the facility shall maintain a liability insurance policy in the amount of five hundred thousand dollars per individual, one million dollars per occurrence, and five hundred thousand dollars 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. Said 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 Section 8 of this ordinance, said liability policy shall be terminated when City Council accepts the facility and City maintenance responsibility commences. SECTION 8: CITY ASSUMPTION OF OPERATION AND MAINTENANCE. Section 8 of Ordinance 2182-96 (previously amended by Ord. 3168-10 § 8 and Ord.2196-97 § 8 and currently codified at EMC 14.28.430) remains in effect and is not amended by this ordinance. SECTION 9: RETROACTIVITY RELATING TO CITY MAINTENANCE. Section 9 of Ordinance 2182-96 (previously amended by Ord. 2196-97 and currently codified at EMC 14.28.440) remains in effect and is not amended by this ordinance.