(a) Performance Bonds.
(1) The developer shall be primarily liable for completion of the approved public and private improvements for which he or she has filed an application. Upon failure of completion within the specified time, or any extension granted by Council or by the Planning Commission for good cause shown, the City may, at its option, complete all or any portion of the improvements, and the developer shall be liable to the City for the costs of such completion, plus an additional twenty-five percent of such costs to cover City overhead.
(2) To secure such performance, the developer shall file with the Law Director, in a form approved by the Law Director, a construction performance bond or letter of credit covering the satisfactory and timely completion of improvements. No extension granted to the developer shall operate as a release of such bond. The amount of the bond shall be determined by the Engineer, who shall require of the developer such information as the Engineer deems necessary to reasonably estimate the cost of performance. The amount of the bond shall be 100 percent of such amount.
(3) Should the City exercise its option to complete all or any portion of the improvements, the bond amount shall be declared forfeited and the costs of completion, plus overhead, shall be charged against such amount. Upon expiration of the maintenance bond at no cost to the City, as provided in subsection (f) hereof, the balance of the bonded fund shall be returned to the surety.
(4) No bond shall be accepted unless it is provided in the form of cash or a bond written by a surety company licensed to write such bonds in the State.
(b) Maintenance Bonds.
(1) Prior to the acceptance of improvements by the Engineer, the developer shall file with the Law Director, in a form approved by the Law Director, a maintenance bond guaranteeing the developer's obligation to repair or replace any such improvements which have been found to require maintenance or which have failed for any cause whatsoever. The amount of the bond shall be determined by the Engineer, who may require of the developer such information as the Engineer deems necessary to reasonably estimate the potential cost of maintenance, and who shall then evaluate such data and other information available to him or her and estimate the maximum amount, barring unforeseeable circumstances, that such maintenance should cost. Should the developer fail to provide adequate maintenance, repair, or replacement within a twenty-four month period following acceptance of the improvements by the Engineer, the City shall have the option of providing, either through its own employees or independent contractors, such maintenance, repair, or replacement, or any part thereof. In such event, the bond shall be declared forfeited, and the costs of such work, plus twenty-five percent to cover the costs of City overhead, shall be deducted therefrom. The balance of the bonded fund shall be retained by the City until released as provided in this section, and shall, while retained, be the subject of further maintenance, repair, or replacement charges.
(2) At the end of the twenty-four-month period, the developer shall apply in writing to the Engineer for an inspection of the improvements. Alternatively, such inspection may be requested not more than thirty days in advance of such expiration date. Upon receipt of an application, the Engineer shall inspect the improvements. Any corrections reasonably deemed by the Engineer to be necessary shall be made by the developer, or the maintenance bond fund shall be used to make such corrections.
(3) When the Engineer finds that all necessary maintenance, if any, has been completed, and that the improvements are in a condition satisfactory to him or her, then the bond, or the balance of the bond fund, shall be released, upon proper certification of such facts by the Engineer.
(4) Any bond required by this section shall be in the form of cash or a bond written by a surety company licensed to write such bonds in the State.
(c) Combined Bonds. Guarantees for performance and maintenance may be combined into a single instrument, provided it is in an amount approved by the Engineer and in a form approved by the Law Director. At any time during the existence of approved performance and/or maintenance bonds, the developer may exchange one form of guarantee for another, provided that the substitution is approved by the Law Director.
(d) Insurance. In accordance with Section 1452.01(F) of the Codified Ordinances, the developer agrees to hold the City harmless from any and all claims of any type, nature, and description whatsoever, arising from the provision of improvements or other activities covered by these Subdivision Regulations. In addition, the developer shall defend and pay costs and judgments resulting from such claims upon reasonable notification of the pendency of the claim by the City or by any party. The developer shall not be responsible for claims arising from the sole negligence of an employee of the City.
(1) The developer shall furnish the Law Director with a certificate of insurance, or, at the option of the Law Director, a certified copy of the insurance policy, as proof that the developer and his or her subcontractors are covered by general liability insurance for all activities contemplated by the project, including products liability coverage, in sufficient amounts established by Council. Such policy shall contain no unusual exclusions, shall name the City as an additional insured, and shall not be cancelable as to the City on less than thirty days written notice in advance of such cancellation.
(2) The developer shall further produce and keep on file with the Clerk of Council evidence that he or she has fully complied with the provisions of the Ohio Workers Compensation Act.
(3) The Law Director shall promptly certify his or her findings in this regard in Form S-3. In the event of later cancellation of any insurance required by this subsection, the developer shall cease all work not covered by insurance as of the time and date of lapse of coverage, and the Zoning Administrator or the Law Director may take any necessary action to enforce such work stoppage until coverage resumes.
(Ord. 24-97. Passed 10-14-97; Ord. 75-2005. Passed 10-11-05.)