211_-_2021-9-8_George_SchroederFrom:George Schroeder
To:Lori Barlow
Subject:Painted Hills Planned Residential Development - DEIS
Date:Wednesday, September 8, 2021 10:50:18 PM[EXTERNAL] This email originated outside the City of Spokane Valley. Always use caution when openingattachments or clicking links.
Lorie - I wish to make my comments today relative to the above Painted Hills
Planned Residential Development DEIS relative to the maintenance and operation of
the water abatement system proposed by the developer and live at 5205 S. Cree
Drive. The developer has proposed the HOA maintain and operate the system and
provide a surety bond guaranteeing such for the life of the system. I started my career
in the surety bond business in 1971 working with a large insurance company for six
years and for the past 44 years have been a surety broker for large brokerage firmsand still active in the business. I can tell you without question that there will not be a
surety company willing to provide a bond in perpetuity without full cash or equivalent
collateral to support such a bond obligation. No bonding company is willing to
consider such a bond and certainly not from a HOA. Fact is, I've written bonds formulti-million dollar companies and still do and the longest time frame a surety is
willing to support bond obligations is five years with hesitancy for that long a time
frame. You may be surprised to learn the City of the Spokane Valley won't even
accept surety bonds for certain obligations and will only consider a certified check orbank irrevocable letter of credit as financial assurance for any time frame as I have
met with Theisen Schroeder and another gentlemen to try to get such acceptance of
surety bonds. The City would be putting themselves in tremendous jeopardy by even
considering such financial assurance let along not knowing the sum needed to protectthemselves for HOA failure. Thanks very much for your time.