17.16.055 Security Exemption for Nonprofit Corporations.
Whenever an entity required to furnish security in accordance with Larkspur Municipal Code Section 17.16.050 is a California nonprofit corporation, funded by the United States of America or one of its agencies, or funded by this state or one of its agencies, the entity shall not be required to comply with Larkspur Municipal Code Section 17.16.050 if the following conditions are met:
A. The contractor installing the improvements has bonded to the nonprofit corporation and the co-obligee the amount of one hundred (100) percent of the contract for the faithful performance of the work, and has further bonded to the nonprofit corporation and the local agency as co-obligee an amount of not less than fifty (50) percent of the contract for the payment of labor and materials, and those bonds comply with the provisions of this chapter.
B. All monies payable to the contractor by the nonprofit corporation are deposited in a depository complying with the provisions of this chapter, and out of which monies progress payments are conditioned upon:
1. The contractor’s certification to the nonprofit corporation that all labor performed in the work, and all materials furnished to and installed in the work, have been paid for in full to the date of the certification.
2. The written approval of the nonprofit corporation.
3. Final payment to the contractor not being made until sixty (60) days shall have expired after the filing and recording of the notice of completion of the work and acceptance of the work by the local agency in writing.
C. All certifications as to progress payments shall be delivered through the United States mail to the nonprofit corporation. The term “progress payments” means payments made in compliance with the schedule of partial payments agreed upon in the contract for the work. No less than ten (10) percent of the total contract price shall be retained for the sixty (60) days following the filing of the notice of completion. (Ord. 1030 § 2(11), 2018; Ord. 702 § 6, 1983)