169.12 RETAINAGE.

   In connection with contracts awarded by the City, the following principles shall apply:

   (a)    "Retainage" means an amount of money due and payable by the City to a contracting party in connection with a City contract which is withheld by the City as security for satisfactory completion of the contract and which is subsequently paid to the contracting party upon satisfactory performance of the contract in accordance with the contract documents and after deducting from said amount any cost of completing the work which the City incurs that is rightfully the obligation of the contracting party.

   (b)    Retainage, in an amount and upon a schedule to be determined by the City Manager and to be set forth in the bid documents, will be withheld from each partial payment to a City contractor and shall be returned, less deductions for costs of completion, if any, incurred by the City, either:

      (1)    No later than thirty days after the contract work is completed and accepted by the City, or

      (2)    In such amounts and at such earlier time as the contract documents may provide.

   (c)   Retainage will not be withheld on contracts involving an expenditure of fifty thousand dollars ($50,000) or less.

   (d)    No interest shall be paid or shall accrue or accumulate on money withheld by the City as retainage.

   (e)    Retainage shall be deemed to be set aside and placed in escrow without need for a separate escrow account for each fund or contract by being denoted as "withheld for retainage" on Purchasing Division records of draws and payments on a specific contract, provided the Director of Finance shall certify that the monies noted as being retained are indeed set aside, in existence, encumbered and not available for any other purpose except payment of retainage due.

      (Ord. 2013-9-79. Passed 9-25-13.)