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• • <br />AANDERUD Kris <br />From: <br />SNYDER Mark R <br />Sent: <br />Thursday,'May 11, 2006 5:02 PM <br />To: <br />RISDAL Lacey L; BELLMORE Mike; FOERSTLER Kevin J <br />Cc: <br />AANDERLID Kris <br />Subject: <br />Thoughts on Certificate of Deposit <br />I had some more thoughts on the assignment of a certificate of deposit we're currently working on -- <br />The only question I can think of right off the bat regards the agreement to waive any penalties if the funds are <br />withdrawn before the maturity date. Not knowing what the time frame for the maturity date is, there's a good <br />likelihood that at least a portion of the certificate will have to be automatically renewed for another period after <br />that initial maturity date has passed, since only a portion of the trees are usually approved on final inspection. <br />Would the agreement to waive any penalties still apply after that (with the new — or rolled over -- certificate of <br />deposit)? I'll work with you, Lacey, on any questions first, then ask Twylla if I still have any concerns. <br />The process of inspecting trees after their three -year establishment period usually results in 80 -90% or more of <br />the trees being approved. With a performance bond, the next step is usually pretty simple — we require a new <br />bond in a reduced amount to be delivered to us before we release the first bond. I'm not sure how simple this <br />process will be with reducing an assigned certificate of deposit, because a minimum deposit is usually required. <br />I don't think it's a big deal for us, because we hold all the cards, so to speak. If a new, reduced certificate of <br />deposit cannot be obtained, we can offer to release the entire certificate of deposit once we have a performance <br />bond for the reduced amount in hand. Another option we offer the developer at this juncture is for cash <br />payment that allows the City to assume the responsibility for planting and establishing the remaining few trees. <br />By this time, the developer is usually quite anxious to just be done with the project, and this option has worked <br />well for us on a number of occasions. <br />I checked the actual code language, and a bond or "deposit" are cited as options for the developer. <br />We'll see what the C.D. looks like when it's faxed tomorrow. <br />Thanks, <br />Mark <br />Urban Forester <br />City of Eugene Public Works <br />Parks and Open Space Division <br />1820 Roosevelt Boulevard <br />Eugene, OR 97402 <br />541 - 682 -4819 <br />Fax 541 - 682 -4882 <br />mark. r.snvdeKc_ci.euaene.or.us <br />www.eugene- or.gov <br />