(Amended by Ord. No. 122,639, Eff. 9/15/62.)
(a) Liability Insurance.
1. Required. Except as otherwise provided in this article, a permit required by Section 64.12 under which an excavation, tunnel or the laying of sewer or storm drain pipe in any public street, public place or public easement is contemplated, will not be issued until the applicant has filed with the City Engineer a policy of protective liability insurance in which the City has been named as insured or coinsured with the permittee. The policy of insurance shall insure the City and its officers and employees while acting within the scope of their duties, against all claims arising out of or in connection with the operations of the permittee, or any contractor or subcontractor of the permittee, pursuant to the permit.
2. Amounts. (Amended by Ord. No. 153,469, Eff. 6/1/80.)
Bodily Injury $250,000 each person
$500,000 each occurrence
$500,000 aggregate products and completed operations
Property Damage $100,000 each occurrence.
$250,000 aggregate
A combined single limit policy with aggregate limits in the amount of $1 million will be considered equivalent to the required minimum limits.
3. Coverage. Such policy of insurance shall provide coverage at least as broad as that provided in the Standard Form approved by the National Bureau of Casualty Underwriters, together with such endorsements as are required to cover the risks involved.
(b) Deposits. (Amended by Ord. No. 180,158, Eff. 10/4/08.)
1. Required. Except as otherwise provided in this article, a permit required by Section 64.12 under which an excavation, tunnel or the laying of sewer or storm drain pipe in any public street or public easement is contemplated, will not be issued until the applicant has deposited with the Board not less than $10,000 in cash which shall remain on deposit with the Board for not less than six months from the date of the last permit issued to the depositor thereof. Such deposit will be held to insure the faithful and proper performance of the work and the payment of all charges required by Sections 64.12 to 64.22 inclusive, and the Board is hereby empowered to deduct from the cash deposit all sums due for charges hereunder and for any and all damages accruing to this City by reason of faulty, defective or incomplete work by the permittee.
2. Surety Bond in Lieu of Deposit. Whenever in this section a cash bond in the amount of $10,000 or over is required, the applicant may provide in lieu of such cash deposit, a good and sufficient bond in an amount equal to the amount of such cash deposit, payable to this City, executed by the applicant as the principal and by a reliable surety company qualified to do business in California and the City of Los Angeles, which bond is satisfactory to this City. Such bond shall be deposited with and held by the City to insure the faithful and proper performance of the work and the payment of all charges required by Sections 64.12 to 64.22 inclusive, upon the same terms as those required by the cash deposit, in lieu of which, the bond is executed. The Board is hereby empowered to demand and receive payment from the bond for all sums due for charges hereunder and for any and all damages accruing to this City by reason of faulty, defective or incomplete work by the permittee.
3. Increase in Bond Amount. On July 1, 2009, the amount set forth in subsections 64.15.1(b)1. and 64.15.1(b)2. for both the required cash deposit and surety bond shall increase from $10,000 to $20,000. On July 1, 2011, the amounts for both the required cash deposit and surety bond shall increase from $20,000 to $25,000 and on each July 1 starting in 2012, the amount of both the required cash deposit and surety bond shall increase annually by the percentage amount of the increase in the consumer price index for the previous calendar year rounded up to the nearest $100. Starting in 2012, all current Bonded Sewer Contractors shall be notified each year by April 1 of the new bonding requirements and the need to have a new bond in the correct amount in place by July 1.