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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Downey holds a performance security on every covered construction or demolition project until you prove the debris was diverted. A surety bond is one of the forms the City accepts, so you can meet the requirement without leaving up to $50,000 of project cash sitting with the City until final sign off.
Downey Municipal Code section 5840 requires every applicant for a covered project to submit a performance security with the Construction and Demolition Waste Management Plan. The amount is 3% of the total estimated project cost or a minimum of $2,500, capped at $50,000, and the City accepts performance bonds and surety bonds. The security is returned once the applicant proves 100% of inert debris and at least 65% of the remaining construction and demolition debris was diverted from disposal.
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Section 5840 sets the security at 3% of the total estimated project cost or a minimum of $2,500, and it cannot exceed $50,000. In practice the $2,500 minimum applies until 3% of the estimated cost passes $2,500, which happens a little above $83,333 in project cost. The $50,000 cap applies to projects estimated at roughly $1.67 million or more.
A covered project is any construction, renovation or grading project in Downey with total projected costs of $75,000 or more, or any demolition or removal project with projected costs of $75,000 or more or that is 500 square feet or greater. Section 5820 lists work that is not covered, including emergency work, work that needs no building permit, roofing that does not include tear off of the existing roof, work that needs only a plumbing, electrical or mechanical permit, and projects with no structural building modifications unless they include parking lot or residential driveway improvements.
The security backs the diversion requirement: 100% of inert debris such as asphalt, brick, concrete, rock, soil, rebar, metals and tile, plus at least 65% of the remaining construction and demolition debris, reused or recycled rather than landfilled. The City of Downey is the obligee, and the WMP compliance official is the Director of Public Works or a designee.
Under section 5830 the Waste Management Plan goes in with the application packet for the building, encroachment or demolition permit, and section 5840 requires the performance security to be submitted with the plan. After the project is finished, section 5860 makes the compliance report a condition of final approval and of any certificate of occupancy. Form B asks for it within 30 days after completion, with original receipts and weight tags attached.
The full security is returned, without interest, once the applicant proves the required diversion. If a lesser percentage was diverted, a proportionate share comes back. If the official finds noncompliance, the entire security is forfeited to the City and used to promote recycling.
An applicant who believes the diversion rate is not feasible can request an exemption under section 5870, and decisions of the compliance official can be appealed within 10 days under section 5880. Section 5830(B) says a project that certifies all debris will be processed by the City franchise hauler, and actually uses the franchise hauler as verified in its monthly reports, has met the requirements of the chapter. Ask the WMP compliance official whether a performance security is still collected in that case before you order the bond.
Downey Municipal Code section 5840 sets the performance security at 3% of the total estimated project cost or a minimum of $2,500, and it may not exceed $50,000.
Only covered projects. That means construction, renovation or grading with projected costs of $75,000 or more, or demolition or removal with projected costs of $75,000 or more or covering 500 square feet or more. Section 5820 excludes work such as roofing without tear off and plumbing, electrical or mechanical only permits.
After completion you submit the compliance report with receipts and weight tags. The entire security is returned without interest once the City accepts proof that the required diversion was met. A lower diversion rate returns a proportionate share, and noncompliance forfeits the whole amount.
Yes. Section 5810 defines performance security to include a performance bond or surety bond, along with cash, money order, letter of credit or certificate of deposit.
Section 5870 lets you request an exemption by stating the maximum feasible diversion rate and the circumstances. If the official finds the requirement feasible, you have 30 days to resubmit a compliant plan. Decisions can be appealed within 10 days under section 5880.
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