Urban County Program on behalf of the Hidalgo County Precinct No. 2 is requesting approval to enter into a Surety Takeover Agreement with First Sealord Surety, Inc. a Pennsylvania corporation, Bond No. 10-012322-PP.  The agreement will allow the completion of a HUD CDBG-R drainage improvements project (South Tower Estates) contract no. 5209-92-0309-5000-9200-UCP-ML2.  Amount available under CDBG-R funding is $158,900.74.

On January 19, 2010, Hidalgo County Commissioners' Court approved a construction contract with Garcia and Martinez Paving, Inc. for flood drainage improvements under the HUD CDBG-R program.  On or about August 2010 the "Contractor" Garcia & Martinez Paving, Inc. abandoned the job site and defaulted on their contract.  First Sealord Surety, Inc. (Bond Company) has taken over and will proceed with hiring a contractor to complete the project according to the quantities of work defined by the Project Engineer.  Legal counsel has reviewed and approved the agreement.  See attached Surety Takeover Agreement for your review.

Bond Company:                First Sealord Surety, Inc.

Funds Available:               $158,900.74  YR 22 (2009) HUD CDBG-R Flood Drainage Improvements