Refuse Collector Deferred Payment Bond - City of San Diego, CA in California

Brief Summary

Without this bond, haulers pay at the Miramar Landfill scale every load. With it, the City opens a Deferred Payment Account and bills you monthly. The minimum bond is only $250, but the amount you actually need tracks your landfill usage, so size it right the first time and avoid a rider later.

The City of San Diego Environmental Services Department requires a surety bond before it will open a Deferred Payment Account for Miramar Landfill disposal fees or refuse collector business tax fees. The City Charter bars the City from granting credit, so the bond stands behind every monthly invoice. The minimum is $250, and the City recommends three times your highest monthly landfill usage per quarter.

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How to Apply for a Refuse Collector Deferred Payment Bond:

• Confirm your landfill usage meets the $250 per three month minimum for a Deferred Payment Account.
• Pick a bond amount of at least $250, ideally three times your highest monthly usage per quarter.
• Complete the City of San Diego DPA Application and Agreement.
• Have your surety complete and sign the City's Surety Instrument for the Deferred Payment Account.
• Email signed copies of the application and surety instrument to the Environmental Services accounting office and mail the signed originals.
• Send continuation certificates or riders as needed to keep the bond in force and sized to your usage.

Detailed Information About the California Refuse Collector Deferred Payment Bond:

Why the City asks for a bond

San Diego City Charter Section 99 says the City shall not grant credit. A Deferred Payment Account is a form of credit, since you dump now and pay later, so the City requires a bond payable to the City of San Diego before it opens one. The bond is written on the City's Surety Instrument form, which references San Diego Municipal Code section 66.0129 and covers Miramar Landfill fees and Refuse Collector Business Tax Fees.

How much bond you need

The current application sets a minimum surety amount of $250. The City recommends a bond equal to three times your highest monthly landfill usage per quarter during the current fiscal year. If your usage grows, you are responsible for raising the bond with a rider. Your available surety balance is updated weekly, and if it runs out you lose the ability to use the landfill on account.

Who qualifies

Deferred Payment Accounts are for regular Miramar Landfill users who maintain at least $250 in disposal charges over a three month period. The City may require a San Diego business tax certificate. Bank information and credit references are only needed if you request a bond above $250.

What the bond guarantees

The City invoices monthly and payment is due 17 days from the invoice date. Late payments draw a penalty of $50 or 10 percent of the invoice, whichever is greater, plus 1 percent interest per month. If you default, the Director notifies the surety, and the surety must pay the sums in default within 14 calendar days of demand. The bond is continuous, and the surety can withdraw only on 90 days written notice by certified mail.

How premium is set

Premium depends on the bond amount and the surety's review of the business and owner credit. Because this bond guarantees payment of invoices, the surety looks closely at payment history.

Eligibility and Requirements for a California Refuse Collector Deferred Payment Bond:

• Surety authorized to transact surety business in California.
• City of San Diego named as obligee on the City Surety Instrument form.
• Bond written as continuous, as are any replacement bonds.
• Minimum bond amount of $250.
• San Diego business tax certificate where the City requires one.
• Bank information and credit references if requesting more than $250.

California Refuse Collector Deferred Payment Bond FAQs:

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