§ 12-1. Purpose.

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.