HomeMy WebLinkAbout1990-12-13 - Resolution No. 90-40r •
RESOLUTION NO. 90-40
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE YORBA LINDA WATER DISTRICT
ADOPTING THE USE OF AN ASSIGNMENT OF A
PASS-BOOK ACCOUNT OR A CERTIFICATE OF DEPOSIT
FOR PROJECT BONDING PURPOSES
WHEREAS, the Yorba Linda Water District requires a Surety Bond in the amount of
10% of the cost of construction be provided for all Water and Sewer
facilities installed by applicants, and
WHEREAS, the purpose of the Surety Bond is to guarantee the installation of the
water and sewer facilities against leaks, breaks and or settlement of
backfill for a period of twelve months from the date of acceptance by the
Yorba Linda Water District, and
WHEREAS, the District's bond requirements can be met by providing a Surety Bond or
by using the option of depositing, with the District, cash in the full amount
of the Surety Bond amount, and
WHEREAS, the Yorba Linda Water District desires to provide for another option to
employ an assignment of a Pass-Book Account or a Certificate of Deposit
as an additional method of meeting the District's Surety Bond
requirements.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Yorba
Linda Water District as follows:
Section 1: The Yorba Linda Water District's requires all applicants to provide a
Surety Bond to guarantee the installation of the water and sewer facilities
against leaks, breaks and or settlement of backfill for a period of twelve
months from the date of acceptance by the Yorba Linda Water District.
Section 2: The methods of satisfying the Surety Bond Requirements set forth in
Section 1 herein are as follows:
a. Surety Bond in the amount of 10% of the cost of construction,
completed on the District's standard Surety Bond form; or
b. depositing cash with the District in the amount of 10% of the cost of
construction; or
c. the use of an Assignment of a Pass Book account, or a Certificate of
Deposit in the amount of 10% of the cost of construction.
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Section 3: The Pass-Book Account or Certificate of Deposit assigned for the purpose
of meeting the Yorba Linda Water District's bond requirements must be
deposited in institutions approved by the District and in accordance with
the criteria set forth in the District's investment policy and in an amount
which does not exceed the Maximum amount covered by Federal Deposit
Insurance.
Section 4: The methods of satisfying the Surety Bond requirements adopted herein
shall take effect immediately.
Section 5: That all conflicting Resolutions and Minute Orders are hereby rescinded,
effective immediately.
PASSED AND ADOPTED this 13th of December, 1990 by the following called vote:
Ayes:ARTHUR C. KORN, M. ROY KNAUFT, PAUL ARMSTRONG, STERLING FOX AND
Noes: o CARL SCANLIN
Absent: o
Abstain: o
President
Yorba Linda Water District
Attest-
Secretary
Yorba Linda Water District