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HomeMy WebLinkAboutO-2010-3304 increase threshold for payment bonds to $50,000.00/match the allowable minimum standard under state law for public works projects I REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 13,2010 Appropriation Requested By: Susan Cream Source of Funds: N/A Department: Finance/Purchasing Account Number: N/A Report: Resolution: Ordinance: XX Amount Budgeted: N/A Exhibits: Ordinance # Amount Requested: N/A Exhibits: Exhibits: Budl!eted Item: N/A SUMMARY & RECOMMENDATION Currently, Chapter 2 "Administration" of the La Porte Code of Ordinance requires that contractors purchase payment bonds for a Public Works Contract if the job is worth $25,000 or more. Chapter 2253 of the Texas Government Code was amended by the Legislature to increase the allowable payment bond threshold for cities, from $25,000, to $50,000. However, cites are not disallowed by this law from keeping a payment bond threshold that is lower than $50,000; rather, it simply gives cities the option of increasing it to the new state minimum requirement of $50,000. No change was made to Chapter 2253 of the Government Code regarding the $100,000 threshold for performance bonds. Therefore, staff is not asking that the City's $100,000 payment bond requirement located in Chapter 2 of the City Code, be amended. Staff Recommendation: Staff recommends City Council increase the limit of payment bond requirements to match the allowable minimum standard under state law for public works project, to $50,000. Action Required bv Council: Approve Ordinance to increase the limit for payment bond requirements. I L /1. Ir<> Date ORDINANCE NO. 2010- ~1 AN ORDINANCE AMENDING CHAPTER 2, "ADMINISTRATION" OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING ARTICLE III "FINANCE", DIVISION 2 "PURCHASES AND CONTRACTS", SUBDIVISION II "PUBLIC WORKS CONTRACTS", SECTION 2-108, "PERFORMANCE AND PAYMENT BONDS REQUIRED", BY INCREASING THRESHOLD FOR REQUIREMENT OF PAYMENT BONDS FOR PUBLIC WORKS CONTRACTS TO $50,000.00; CONTAINING A SEVERABILITY CLAUSE; 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. Chapter 2, "Administration", Article III "Finance", Division 2 "Purchases and Contracts", Subdivision II "Public Works Contracts", Section 2-108, "Performance and payment bonds required", subsection (a)(2), is hereby amended and shall hereafter read as follows, to-wit: "(a)(2) A payment bond ifthe contract is in excess of$50,000.00." Section 2. Severability. Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portions thereof; but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. 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, Chapter 551, Texas Government Code; 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 thereofhas 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 4. This Ordinance shall be effective after its passage and approval PASSED AND APPROVED, this {!II-day of OlC€fJ1ber , 2010. By: ATTEST: "1l1 0A1It4 a. (1Jiu1 Martha A. Gillett City Secretary At?!:: ____ , ~l;~ CEtrk T. Askins Assistant City Attorney