DEVELOPMENT STANDARDS SECTION 9 – BONDING STANDARDS 4 MAINTENANCE BOND Prior to release of the performance bond required herein, developers and contractors for public roadway, water, sewer, storm drainage, and public improvements shall provide a maintenance bond for a guarantee of all materials, construction and workmanship in an amount equal to 10% of the estimated cost of the improvements, furnished by the Developers Engineer, as verified by the City Engineer, for a period of one (1) year after the date of substantial completion. Substantial completion shall be when it is mutually agreed upon by the City Engineer and the Developer that the project is 95 percent complete. Such maintenance bond shall be in the form substantially similar to the sample Maintenance Bond located at the end of this section or in a form approved by the City Engineer and shall be executed by a security company authorized to transact business in the state of Washington, or secured by methods established in the Methods to Securing Performance and Payment Bonds Section, preceding this Maintenance Bond Section. The City of Ellensburg will track the maintenance bonds and perform inspections at beginning of term and approximately 60 days prior to the end of the 1 year term, to allow bondee time to make repairs to damaged infrastructure. Release of the maintenance bond will occur one (1) year from the date of City acceptance if all maintenance has been accepted by the City. The following outline depicts the process for the Developer or Developer’s Contractor to Final project and/or start of Guarantee Period: 1. Written request shall be submitted to the City of Ellensburg for Substantial Completion. 2. Project must be 95% complete. 3. City shall have 5 working days to process punch list. 4. Contractor then required to leave performance bond in place or post a 125% bond for remaining work. 5. Contractor shall then submit a maintenance bond for 1 year. The date of maintenance bond acceptance by the City of Ellensburg shall begin the one year maintenance period. In the event the Developer and/or contractor fails to maintain the improvement in accordance with the provisions of this section and the terms of the maintenance bond, the City shall have the right to maintain the same, and shall call upon the security for reimbursement or shall appropriate, from any cash deposit, funds for reimbursement. In the event the security bond or cash deposit shall exceed all costs and expenses incurred by the City, it shall release the remainder of such maintenance bond or cash deposit, and if the amount of the security bond or cash deposit is less than the cost of expense incurred by the City, the applicant shall be liable to the City and shall immediately pay for such difference upon notice from the City. Please note, the Continuous Right of Way Bond, described below, can suffice for the maintenance bond, if requested in writing and bond amount language is sufficient to cover the maintenance bond amount on requested project(s). CONTINUOUS RIGHT-OF-WAY BOND Before any permit as hereinbefore provided shall be issued, the person, firm, contractor, or corporation performing such work shall execute in favor of and deliver to the City and file with the City Clerk, a bond of at least ten thousand dollars or equal to that cost of improvement to be done in any street, sidewalk, alley, public Right of Way, or public easement, whichever is greater. Sureties shall be approved by the Public Works Director and the City Attorney, and stipulate that the surety will save harmless the City from all claims, liabilities, judgments, costs, damages, and expense arising from any acts which he or she may do under the permit, or which may be done by any of his agents, servants, contractors, or any of them in disturbing the roadway, planters, sidewalk, utilities, or other place affected and to place the same in its former condition as near as may be, and within the time specified by the Director of Public Works, and to include all fees, or other costs to the City as a result of activity by the permittee in the execution of his contract for which the permit is issued. Any contractor, normally operating within the City, may file with the City Clerk a bond with sureties in the amount of ten thousand dollars or more and that such filing of a bond will be due evidence of good faith for any permit obtained during the life of the bond. The bond shall continue in force until such time that all work is complete and a maintenance bond is received. In the event the cost of any and all improvements performed by the respective contractors exceed in total the value of the bond on file by the permittee, it shall be the permittee’s responsibility to increase the value of the bond equal the total cost of the several improvements before further permits will be issued.
