Performance Bond Credit Risk | Risk Of Performance Bond

   

		

			
      
SECTION 5840. PERFORMANCE SECURITY.

 

A.    Performance Security Required; Acceptable Form. All applicants for a covered project shall submit a performance security with all WMP documents. The amount of the performance security shall be three percent (3%) of the total estimated project cost or a minimum of twenty-five hundred dollars ($2,500.00), but shall not exceed fifty thousand dollars ($50,000.00). Acceptable forms of performance security include the following: performance bonds, surety bonds, cash deposits, money orders, letters of credit, and certificates of deposit.

 

B.    Return of Performance Security; Requirements; Amount Returned. The entire performance security shall be returned, without interest, within a reasonable period of time following submission of satisfactory proof to the WMP compliance official that no less than the required percentage of construction and demolition waste tonnage generated by the covered project has been diverted from disposal and has been recycled or reused or stored for later reuse or recycling. If a lesser percentage of construction and demolition waste tonnage than required is diverted, a proportionate share of the deposit shall be returned. The deposit shall be forfeited entirely or to the pro-rated extent that there is a failure to comply with the requirements of this chapter, in the discretion of City staff. The deposit, or portion thereof, shall be returned only after the project has been completed, upon submittal of the required WMP reports, and the WMP compliance official’s approval. (See Appendix A at the end of this chapter.) (Added by Ord. 1217, adopted 8-17-07; amended by Ord. 1252, adopted 9-8-09)

 


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