[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.
A.
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.
B.
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.
C.
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.
