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Mosier council unanimously waives performance and payment bonds for Dreamland skate park to preserve grant-funded scope
Summary
The Mosier City Council voted unanimously to waive performance and payment bonds for the Dreamland Skateparks LLC contract (GMP not-to-exceed $552,000), citing contractor references, progress-based grant payments, and the project's short four-month schedule; staff said bond costs would have forced reductions to project components.
The Mosier City Council voted unanimously on Feb. 18 to waive the performance and payment bond requirements for the Dreamland Skateparks LLC contract, a not-to-exceed guaranteed maximum price of $552,000, to preserve scope within grant funding.
City Manager Andrea Rogers told the council that Project Manager John Grimm assessed waiving the bonds as minimal risk and "had never had a bond called," and that Dreamland will not subcontract the project. Rogers presented cost estimates showing traditional performance/payment bonds at about 3–3.5% (roughly $20,000) versus a letter of credit at about 1.5% (roughly $10,000); she said requiring the higher bond costs would have required reductions to other grant-funded project components.
City Attorney Laura Westmeyer advised the council that "Oregon law requires a public works bond for contracts over $100,000," but that under ORS 279C.390 the city may waive performance and payment bonds; she noted draft contract language on liquidated damages and alternative security remained pending Council direction. Councilors and staff reported positive reference checks from Driggs, Idaho; Culver and Bay City, Oregon; and Gresham, Oregon, with Rogers adding that Driggs has worked with Dreamland for more than 20 years.
Councilor Gary Lindemyer moved to waive the requirement that Dreamland Skateparks LLC provide performance or payment bonds pursuant to ORS 279C.390; Councilor Brenna Campbell seconded. The motion carried with unanimous affirmative votes from Mayor Witt Anderson and councilors Noah Estes, Charlie Cannon, Ron Wright, Gary Lindemyer and Brenna Campbell. The council's action included direction that drafted liquidated-damages and alternative-security language be finalized for the contract.
Next steps: staff will incorporate the Council's direction into contract documents and proceed under the grant-funded schedule; no additional Council action was recorded at the meeting.
