8/6/1991 - Laserfiche WebLink

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� � r EXCLUSION OF CASH MAINTENANCE BOND ON COUNTY -MANAGED PROJECTS The Board reviewed memo from Utility Engineer Oster: DATE: JULY 30, 1991 TO: JAMES E. CHANDLER COUNTY ADMINISTRATOR/% FROM: TERRANCE G. PINTO DIRECTOR OF_UTILi STAFFED AND PREPARED BY: H.D. "D 4s_TER, P.E. ENVIRONMENTAL ENGINEER DEPARTMENT OF UTILITY SERVICES SUBJECT: CASH MAINTENANCE BOND BACKGROUND: As a condition of any permit by the County to a party allowing open cutting of hard -surfaced County roads, there is a cash bond required, which is to be valid for one year from completion of time open cut. The cash "bond" is in the amount of $1, 000.00 per lane, up to $4,000.00, then an irrevocable letter of credit for any amount in excess of $4,000.00. ANALYSIS: _ In County Utilities projects, a maintenance bond for a year isl already required. This cash bond is an additional bonding:of the same work, and will place an additional cost. to the Utilities Department, which will subsequently increase the cost to ourl customers. RECOMMENDATION: It is recommended that the Board of County Commissioners exclude the requirement for the cash bond on all County—managed projects, so long as a maintenance bond is furnished. Director Pinto stressed that in this situation they are paying twice, and he would like to say let's either require one bond or the other but not both. Administrator Chandler felt we can eliminate the cash bond portion of it as it relates to utility projects and utility contractors as long as it is clear that the maintenance bond would cover us. Commissioner Eggert personally preferred the cash bond, and Administrator Chandler agreed it is more difficult to draw upon a bond rather than having the cash in hand; however, in this case, since a maintenance bond is already required for utilities, there would be a duplication. ON MOTION by Commissioner Wheeler, SECONDED by Com- missioner Eggert, the Board unanimously approved 53 UG 6 199 BOOK 83 Ptq.0425