[HISTORY: Adopted by the Board of Trustees of the Village of Chittenango 7-24-1984 by L.L. No. 5-1984. Amendments noted where applicable.]
The Village of Chittenango has occasion during construction projects to obtain retainage funds from the contractors hired by the village, to assure adequate performance of such contracts. During the course of such construction contracts and pursuant to § 106 of the General Municipal Law, such contractors have the opportunity to withdraw cash retained and to substitute therefor bonds or notes of the United States of America, bonds or notes of the State of New York or bonds of any political subdivision of the State of New York. Thereafter, in the event that such substituted bonds are coupon bonds, the Village Treasurer and/or Clerk is required to administratively process such coupons for collection and remittance to the contractor, pursuant to § 106 of the General Municipal Law. The processing of such coupons and transmittal to the contractor requires time and effort of such village employees which might otherwise be expended towards village activities and accrues entirely to the benefit of the contractor. In order to recompense the Village of Chittenango for the lost time required to process such coupons and to fairly reflect the expense and time commitment thereof, this chapter will impose an administrative fee comparable to that charged by financing institutions in the local area for such service. It is also anticipated that the fee charged for such service shall be modified hereafter, depending on the change in the processing requirements or modification of the existing charge by financing institutions to higher or lower rates, such that the charge by the Village of Chittenango shall remain comparable with such other institutions.
Whenever coupon bonds have been substituted by contractors performing construction contracts for the Village of Chittenango for cash retainage and such coupon bonds require administrative processing by an employee of the Village of Chittenango, including presenting such coupons for collection and transmittal of payment therefor to the contractor, such village employee shall secure from the proceeds thereof an administrative fee equal to the sum of $10, representing the time and labors of such village employee for such service. The balance of funds collected from the processing of interest coupons shall be remitted immediately thereafter to the contractor.
The administrative charge levied to process coupon collection and payment shall be deposited with the Village Clerk and credited to the general fund of the Village of Chittenango. No part thereof shall be retained by any village employee responsible for the processing and payment of such coupons.
The village employee processing such coupons shall provide a receipt for the administrative charge levied herein to the contractor at the time that the balance of such funds representing the interest on the coupon processed is transmitted to the contractor.