HomeMy WebLinkAboutMINUTES - 12102010 - C.125RECOMMENDATION(S):
AUTHORIZE the County Administrator or his designee to sign and send letters releasing
Astound Broadband LLC from Wells Fargo Letter of Credit No. NZS556975 in the amount
of $50,000 and Travelers Casualty and Surety Company of America Franchise Bond No.
104898401 in the amount of $100,000, and to return the Wells Fargo Letter of Credit No.
NZS556975.
FISCAL IMPACT:
It is anticipated that the requested action will have no fiscal impact. The County has no
reason to draw from the Letter of Credit or Performance Bond since Astound is no longer
operating under a video service franchise issued by the County.
BACKGROUND:
Until November 2009, Astound Broadband Cable (“Astound”) provided video service
within the County under a franchise
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 12/14/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Christine Wampler,
(925) 313-1196
I hereby certify that this is a true and correct copy of an action taken and entered on the
minutes of the Board of Supervisors on the date shown.
ATTESTED: December 14, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.125
To:Board of Supervisors
From:David Twa, County Administrator
Date:December 14, 2010
Contra
Costa
County
Subject:Astound Broadband Cable release of liability
BACKGROUND: (CONT'D)
issued by the County. As a condition of the franchise, the County required Astound to
establish a $50,000 line of credit and a $100,000 performance bond in the County’s name.
On November 9, 2009, Astound obtained a video service franchise from the State of
California for service within the County, replacing the franchise issued by the County.
Pursuant to the franchise issued by the State of California, Astound is required to maintain a
$500,000 performance bond with the State.
Since Astound is no longer operating under the video service franchise issued by the
County, Astound is requesting that the County release it from the liability of the line of
credit and performance bond established in the County’s name, by providing them with
signed letters to that effect. Astound is also requesting that the County return the original
letter of credit to it.
CONSEQUENCE OF NEGATIVE ACTION:
If the County does not release Astound from the letter of credit and performance bond,
Astound may seek cancellation of these instruments by alternative means.
CHILDREN'S IMPACT STATEMENT:
N/A