HomeMy WebLinkAboutO-1991-1773
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ORDINANCE NO. 1773
AN ORDINANCE ESTABLISHING QUALIFICATIONS FOR CORPORATE SURETIES ISSUING
PERFORMANCE AND PAYMENT BONDS TO THE CITY OF LA PORTE FOR PUBLIC WORKS
PROJECTS; ESTABLISHING CRITERIA FOR REQUIREMENT OF PERFORMANCE AND PAYMENT
BONDS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. Corporat~ sureties issuing performance and payment bonds
payable to the City of La Porte on public works projects shall meet all of the
following criteria:
a. The surety company must be authorized to do business in the State of
Texas, which authorization must be recorded in the files of the Texas
State Board of Insurance;
b. The surety company must ,be an approved surety company listed in the
current United States Department of Treasury list of approved corporate
sureties for performance and payment bonds for federal jobs, including
specifically the rules related to the underwriting limitation;
c. The surety company must be authorized to issue payment and performance
bonds in the amount required for the Contract, which authorization must
be recorded in the files of the Texas State Board of Insurance;
d. The person executing the Payment and Performance Bonds must be a
licensed Texas local recording agent and such licensing must be recorded
in the files of the Texas State Board of Insurance; and
e. The person executing the Payment and Performance Bonds must be
authorized by the surety company to execute performance and payment
bonds on behalf of the company in the amount required for the Contract
and such authorization must be recorded in the files of the Texas State
Board of Insurance.
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f. Failure to meet the criteria for acceptability of surety company issuing
Payment and Performance Bonds will result in disqualification of the
bid.
g. The Payment and Performance Bonds shall remain in effect at least one
year beyond final acceptance of' work under the Contract by the Owner.
Section 2. Performance and payment bonds shall not be required on public
works contracts for $25,000.00 or less. Performance and payment bonds for
public works contracts in excess of $25,000.00, but for less than $100,000.00,
may be waived, at the discretion of City Council, upon written recommendation
from the City Manager or his designee. Performance and payment bonds shall be
required on all publiC works contracts for $100,000.00 or more.
Section 3. The City Council officially finds, determines, recites and
declares that a sufficient written notice of the date, hour, place and subject
of this meeting of the City Council was posted at a place convenient to the
public at the City Hall of the City for the time required by law preceding
this meeting, as required by the Open'Meetings law, Article 6252-17, Texas
Revised Civil Statutes Annotated; and that this meeting has been open to the
public as required by law at all times during which this ordinance and the
subject matter thereof has been discussed, considered and formally acted upon.
The City Council further ratifies, approves and confirms such written notice
and the contents and posting thereof.
Section 3. This Ordinance shall be effective from and after its passage
and approval, for contracts awarded and bonds submitted to the City of la
Porte for approval, from and after the date of passage hereof.
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Section 4. This ordinance shall be in effect from and after its passage
and approval.
PASSED and APPROVED this the 22nd day of July, 1991.
By
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City Secrefary .
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City Attorney