Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Contracts And Procurement topic
No spam. Unsubscribe anytime.
City holds $1M surety bond for fiber project; staff proposes $500,000 transfer to connectivity fund
Summary
Staff told the committee the city received a $1,000,000 surety bond from a contractor involved in fiber installation; none of the funds have been spent and the controller proposed a $500,000 transfer to a digital/fiber connectivity fund in the upcoming budget.
During the discussion of fund balances and transfers, staff explained the city created a "surety bond proceeds" fund last year after receiving a $1,000,000 deposit from a contractor involved in a fiber installation project.
"You all created that last year...that's the fund that you all created last year to receive that million dollar bond," the controller said, noting none of that money has yet been spent. Staff said a portion of the budget proposal will include a $500,000 transfer out of that fund to the digital/fiber connectivity fund to defray costs of connecting low-income households.
Committee members asked whether remediation costs and cleanup were covered by the bond; staff said engineering and contracting arrangements mean some repairs were or will be covered by the parties that assumed subsequent contracts, and that the bond proceeds and other insurance were used for cleanup in past instances. Staff committed to providing further documentation in the budget packet.
