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� Board of Health <br /> ToVft of Mashnee, Meeting, May , 1 pace three . <br /> . T <br /> . (Continued.- with S. Joseph iMaio/Town Counsel. <br /> CHL: we have informed. Mr. DiMa gio that basically monies are not <br /> allocated until that meeting, and he has indicated back to <br /> us, because we always hold back a week, it would be a two <br /> week wait, <br /> s o, ghat I said was that you wouldn't have to close the dump <br /> on the first, because I wouldn't het paid until the 14th or <br /> 15th whatever the date might be. <br /> CHL: We also informed him we are not awarding the contract until we <br /> 'et a full board. <br /> CFS : In the past we have run into difficulties insofar as bonding <br /> and performance monies, I think it would be best if you elaborat <br /> on that. <br /> TC: sure, the contract traditionally has specified (you may be fa- <br /> miliar with this terminology that "s in the contract) it requires <br /> the posting of a bond, - the bond itself is never a problem, the <br /> bond is simply a contract between you and the Town, that you <br /> agree ' to hold yourself liable to the Town, in the amount of <br /> the bond, the difficulties conte in. surety on the bond because <br /> in the past the Board- has requested, for instance, traditionally <br /> a bond, the surety on the bond is by an insurance company, some- <br /> times it ' s very difficult for a small contractor to het a surety <br /> company to go on a bond because of the imposition of requirement <br /> by insurance companies and it,without meaning to be a wise guy, <br /> the insurance company will only go on a bond if the contractor <br /> is willing to put up cash, a collateral in the amount of the <br /> bond, in which case the contractor doesn ' t meed the insurance <br /> company, he can post the money him-self almost, but in recog- <br /> nition <br /> e o - <br /> nition of this -fact what the Board of Health and the vl <br /> of the selectmen have done in the past is to accept instead of <br /> an insurance company .surety on the bond, they've agreed to per- <br /> mit t±e contractor, for instance, I know of one instance, I <br /> think that one of the contractors in the past put up a savings <br /> deposit bood, I think an uncle loaned him, if I 'm not mistaken, <br /> that was signed over to the Town, it remained his uncle ' s money <br /> but the uncle had signed 'an-.irrevocable assignment to the <br /> Treasurer, so that in event of default the Treasurer could have <br /> cashed in the bank book. other contractors put up other forms <br /> of surety, - I think somebody put up some stocks one time, so it ' s <br /> necessary that there be some form of surety because otherwise <br /> the bond is meaningless without something to back it up. This <br /> has been a problem in -the past, when I submit exactly the reason <br /> I 've .identified that is, that the contractors being small <br /> businessmen have had difficulty in securing ' a surety company to <br /> conte along and pay bond. Frankly, as far as V.m concerned as <br /> Town Counsel I 've informed the hoard of Health and advised there <br /> that it' s preferable to have a cash deposit rather than an. in- <br /> surance company bond, it' s much less cumbersome and <br /> CHL: we l ve done that in the past X amount of dollars is held out each <br /> week until the percentage we wanted is reached and it was held <br /> in escrow so to speak. <br /> TC: something of that sort can be worked out. <br /> CHL: That' s i'n ' case anything' fa'i ls in tryin� to e.t� the surety. <br /> T Excuse me, - who ' s the contractor ,now? <br /> CHL: Cape Cod Landscape. <br /> TC: That' s Steve van Tol <br /> i <br /> W. ■ <br />