SUBJECT
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Approve Conditional Release and Assignment to Merchants Bonding Company (Mutual) (No Fiscal Impact)
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DESCRIPTION
Pouncy Recycling and Sanitation, Inc. [“Pouncey”], a Commercial Franchise Holder which disposes of waste at the North Central Landfill, engaged Merchants Bonding Company (Mutual) [the “Surety”] as its surety so Pouncey could pay its landfill disposal fees monthly rather than at the time of disposal. Over time Pouncey fell behind in payment of its monthly invoices, and it eventually became apparent Pouncey would be unable to pay its past due disposal fees. County staff then filed a claim with the Surety to recover the unpaid disposal fees, and associated finance charges, which collectively total $117,103.18. The Surety has reviewed the claim and will pay this sum to the County upon the County’s release of Pouncey and Surety from the County’s claim for payment against the bond, and the County’s assignment to the Surety of its claims against Pouncey for payment of the delinquent disposal fees. The proposed Conditional Release and Assignment to the Surety provides the required release and assignment and is effective upon the County’s receipt of the funds.
RECOMMENDATION
Approve the Conditional Release and Assignment to the Surety.
FISCAL IMPACT
No Fiscal Impact
CONTACT INFORMATION
Dale Henderson
Director, Waste & Recycling
284-4319