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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Agenda Date Requested: <br /> <br />December 13,2010 <br /> <br />Appropriation <br /> <br />Requested By: Susan Cream <br /> <br />Source of Funds: N/A <br /> <br />Department: Finance/Purchasing <br /> <br />Account Number: N/A <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: XX <br /> <br />Amount Budgeted: N/A <br /> <br />Exhibits: Ordinance # <br /> <br />Amount Requested: N/A <br /> <br />Exhibits: <br /> <br />Exhibits: <br /> <br />Budl!eted Item: N/A <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Currently, Chapter 2 "Administration" of the La Porte Code of Ordinance requires that contractors purchase <br />payment bonds for a Public Works Contract if the job is worth $25,000 or more. Chapter 2253 of the Texas <br />Government Code was amended by the Legislature to increase the allowable payment bond threshold for cities, <br />from $25,000, to $50,000. However, cites are not disallowed by this law from keeping a payment bond threshold <br />that is lower than $50,000; rather, it simply gives cities the option of increasing it to the new state minimum <br />requirement of $50,000. <br /> <br />No change was made to Chapter 2253 of the Government Code regarding the $100,000 threshold for performance <br />bonds. Therefore, staff is not asking that the City's $100,000 payment bond requirement located in Chapter 2 of <br />the City Code, be amended. <br /> <br />Staff Recommendation: <br /> <br />Staff recommends City Council increase the limit of payment bond requirements to match the allowable minimum <br />standard under state law for public works project, to $50,000. <br /> <br />Action Required bv Council: <br /> <br />Approve Ordinance to increase the limit for payment bond requirements. <br /> <br /> <br />I L /1. Ir<> <br /> <br />Date <br />