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Res. No. 005-05-11984RESOLUTION NO. 05-05-11984 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, MANDATING A 100% PERFORMANCE BOND ON EVERY COMMERCIAL DEVELOPMENT AND RIGHT -OF -WAY CONSTRUCTION PERMIT ISSUED, TO BE USED FOR UNSATISFACTORY WORK PERFORMANCE WITHIN THE PUBLIC RIGHT -OF -WAY, INCLUDING REMOVAL OF UTILITY LOCATE MARKS. ON SIDEWALK OR REPLACEMENT OF SIDEWALK STAINED AS A RESULT OF UTILITY LOCATE MARKS; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the Mayor and City Commission wish to require that all commercial developers and right -of -way construction permit applicants must submit a 100% performance bond or a Letter of Credit from a bank before a permit will be issued and; WHEREAS, the City will use the bond or bank credit to repair any unsatisfactory work performed within the public right -of -way, to include removal of utility locate marks on city sidewalk or the replacement of sidewalk slabs stained as a result of utility locate marks and; WHEREAS, said bond or letter of credit shall remain in effect for at least 6 months after the work is accepted by the City. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: The City Manager is hereby authorized to make a 100% performance bond a standard requirement for all commercial development and public right -of -way construction permits requested. Section 2: The performance bond shall be 100% of the estimated construction cost of work to be performed within the public right -of -way, or a minimum of $50,000 if work will not be performed within a public right -of -way. Section 3: This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 14? day of 11904 2005. , APPROVED: Maria Menendez, City Clerk 7 READ AND APPROVED AS TO FORM: I ATTORNEY ATTEST: M r S ott Russel, Ma fir Commission Vote: 4-0 Mayor Russell: out of room Vice Mayor Palmer: Yea Commissioner Wiscombe: Yea Commissioner Birts- Cooper: Yea Commissioner Sherar: Yea CITY OF SOUTH MIAMI Inter- office Memorandum _a•I N••GOft�AOR 1927 TO: Honorable Mayor, Vice Mayor & City Commission r Alit) FROM: Maria V. Davis p"' City Manager RESOLUTION: DATE: January 18, 2005 South Miami M-AmeftaCfly 1"F 2001 AGENDA ITEM No. (0 - RE: Authorizing the City Manager to implement a requirement of a 100% Performance Bond for commercial development & right -of -way construction permits A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, MANDATING A 100% PERFORMANCE BOND ON EVERY COMMERCIAL DEVELOPMENT AND RIGHT -OF -WAY CONSTRUCTION PERMIT ISSUED, TO BE USED FOR UNSATISFACTORY WORK PERFORMANCE WITHIN THE PUBLIC RIGHT -OF -WAY, INCLUDING REMOVAL OF UTILITY LOCATE MARKS ON SIDEWALK OR REPLACEMENT OF SIDEWALK STAINED AS A RESULT OF UTILITY LOCATE MARKS; PROVIDING FOR AN EFFECTIVE DATE BACKGROUND & ANALYSIS: In an effort to ensure that all work permitted within public rights- of-way is promptly and faithfully performed, including removal of utility locate marks from the sidewalk, we are recommending the implementation of an official policy making it a requirement that all commercial developments and anyone doing right -of -way construction work must submit a performance bond before a permit will be issued for the work. The performance bond shall be in the amount of one hundred percent (100 %) of the estimated total cost of proposed construction work within the right -of -way. This bond guarantees that the work is satisfactorily completed, or the property owner /developer (or contractor) and surety jointly and severally agree to pay the City for the satisfactory completion of the work by the City, or for any damages which the City may sustain because of the work not being properly completed. This bond will remain in effect for a period of 6 months from the date of acceptance of the project by the City and will provide that the contractor guarantees to repair or replace all work performed that was not done according to permits or other required standards, and will make good any defects which become apparent before the expiration of the 6 months. As part of this recommendation, we will require the following qualifications of the sureties: 1. The Surety shall be rated as "A" or better as to General Policyholders Rating and Class X or better as to Financial Category by Best's Key Rating Guide, published by Alfred M. Best Company, Inc., of 75 Fulton Street, New York, New York, 1 0038. Page 2 of 2 Comm. Mtg. Agenda Nov. 18, 2005 2. The Surety shall be listed on the U.S. Department of the Treasury, Fiscal Service, Bureau of Government Financial Operations, Circular 570, (1982 Revision) entitled, "Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies." 3. All Surety Companies are subject to approval and may be rejected by the City without cause, in the same manner that bids may be rejected. 4. Limitations & Requirements: Bonding Limits or Bonding Capacity refer to the limit or amount of Bond acceptable on any one risk. • The bonding limit of the Surety shall not exceed ten percent (10 %) of the policyholder surplus (capital and surplus) as listed by the aforementioned Best's Key Rating Guide, on any one risk (penalty or amount of any one bond). • Policy Holders Surplus is required to be 5 times the amount of any one bond. • The Agent countersigning the bond shall be a resident of Dade County. A Letter of Credit from a local financial institution could be submitted in lieu of the performance bond. Attached are copies of both Performance Bond and Letter of Credit. RECOMMENDATION: it is recommended that the City Commission approve the resolution. ATTACHMENTS: ❑ Proposed resolution ❑ Sample of Performance Bond ❑ Sample of Letter of Credit Bond. loo, 964 -002 -518 SECTION 00610 PERFORMANCE BOND STATE OF FLORIDA ) ss COUNTY OF M V41 -DADE } WILLIAMS PAVING KNOW ALL MEN BY TI ESE PRESENTS, that CO., INC. as Principal, Liberty Mutual. hereinafter tailed Contractor, and Insurance Company as Surety, hereinafter called Surety, are held in firmly bound unto the City of South Miami as Obligee hereinafter called Owner, in Two Hundred Forty Five Thousand Seven the amount of Hundred Forty Three & 20%00 Dollars (S245'31743'..',20) for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and Severally, firmly by these presents. WHEREAS, contractor has by written agreement dated January 24 , 20 03, entered into Contract with Owner for: Permanent `I'raffc Circles /Calming — Cocoplurn Terrace Neighborhood City's Project No.: C103 -01.14 Kimley —Horn & In accordance with Drawings and Specifications prcparcd by Associates, Inc. which Contract is by reference made a part hereof and is hereinafter referred to as the Contract. NOVA, THEREFORE, THE CONDITIONS OF THIS OBLIGATION A.RE SUCH;, that, if the Principal shall in all respects promptly and faitltfully perform and comply with the terms and conditions of said Contract and his obligations thereunder and shall indemnify the Owner and the Consulting Engineer and save either or all of them harmless against and from all costs, expenses and damages arising from the performance of said Contract or the repair of any work thereunder, then this obligation shall be void; otherwise, this Bond shall remain in full force and effect, in accordance with the following terms and conditions: A. The Principal and Surety jointly and severally agree to pay the Owner any difference between the sum of which the said Principal would be entitled on the completion of the Contract, and that sum which the Owner may be obliged to pay for the completion of said work by Contractor or otherwise, and any damages, direct or indirect or consequential, 040918010 00610 -1 TTnIQO{n FA 996HUM F3 MT Now nouall0 which the said Owner may sustain on account of such worm, or on account of the failure of said Contractor to property and in all things, keep and excuse all of the provision of said Contract. B. And this Bond shall remain in full force and effect for a period of one (1) year from the date of acceptance of the project by the the Owner and shall provide that the Contractor guarantees to repair or replace for said period of one (1) year all work performed and matcrials and equipment furnished that were not performed or furnished according to the terms of the Contract, and shall make good, defects thereof which have become apparent before the expiration of said period of one (1) year. If any part of the project, in the judgement of the Owner, for the reasons above stated needs to be replaced, repaired or made good during that tune, the Owner shall notify the Contractor in writing. If the Contractor refuses or neglects to do such work within five (S) days from the date of service of such Notice, the Owner shall have the work done by others and the cost thereof shall be paid by the Contractor or his Surety. C. And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall in any way affects its obligations on this board, and it does hereby waive Notice of any change, extension of time, alteration or addition to the terms of the Contract or to the work or to the Spec 'ifications. ll. The Surety represents and warrants to the Owner that they have a Best'; Key Rating Guide General Policyholder's Rating of A+ " ,ind Financial Category of "Class XV IN WITNESS WHEREOF, the above bounded parties have executed this instrument under their several seals, this 24 day of ,J Y �, A.D., 20_03 , the name and corporate seal of each corporate party being hereto affixed and these presents duly signed by its undersigned representative, pursuant to authority of its governing body. WITNESSES: (If Sole Ownership or ,Partnership, two (2) witnesses required). (IC Corporation, Secretary Only will attest and affix seal). WITNESSES: PRINCIPAL: Wzlliam5 Paving Co. , Inc. Betty Je o ri-guez- 5ecreta Signature of Authorized Officer (Affix Seal) Ronnie Smith, Vice-President Title 11300 N.W. South River Drive Business Address Medley, Florida 33178 City, State & Zip Code 040918010 00610 -2 77n lflAAR QQAT77QC(1(` YV.4 MN MAN PA07/11/T11 WITNESSES: SURETY: Libe y M to Insurance Comp y Cor orate Sure Title rles J Ni son Attorne y— �n..Fact 1051 Winderley Place, #105 Business Address Maitland, Florida 32751 City, State & Zip Code Nielson, Alter & Associates, Inc. Name of Local Insurance Agency 040815010 00610 -3 TTA/IAliR QQAT774W YV.J M7 019 PH7f17/TR THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PR NTED ON RED BACKGROUND. 933470 This Power of Attorney limits the act of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated. LIBERTY MUTUAL INSURANCE COMPANY BOSTON, MASSACHUSETTS POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS: That .Liberty_ Mutual Insurance Cottjpany (the "Company "), a Massachusetts mutual insurance compan - pursuant to arid: by authariW -_of the: By -law and Auihonzatien hereinafter. set forth, does hereby name, constitute and appoint, M WRY. C:. ACEVES,:CHARLES J M14LSON;y Af3REN ALTER. XRISTI. MESSELx I_AIJR:A ;CLYMER, ALL OF THE CITY OF MIAMI LAKES, STATE OF Fk,D�iDA... .... ....... .............................................. .......... ............... ... ................... ..r:. .. .............. ...... .. . each individually, and if there be more than one named, ifs fr et and lawful att®rney -in fact to make execute, seal aekni3wledge and deliver, for. and.on. -. its behalf :as surety and as -its . act and _deed any and all .bonds ind consents pf surety for the release of ietair�ed perpentages and /or final estimates. on engi : �8 .Figs rf1 i CC ni*r r r i ii a u It my requited by.3f� Department: of Transpoffatton : State:: of Flon a, LIMITED in the amount �fV .� DOLiARS 50;000, ©00.0[)" * * *; each, and the execution of the. of ($ 7 bonds and consents of surety,.Cn pursuance of these presents, shall be. as. bin upon the Company as if they ]gad: been :duly signed by the president and attested by the secretary of the Company in their own proper persons, y G Thai this power is made and executed pursuant to and by authoritycf the following By raw and Authorization: � a) ARTICLE.XVI -. Execution of Contracts Section 5., Surety Bonds and .UndeitE ings. "y Any, officer or other official of the company authorized for that purpose in writing writing by the chairman or the president, and subject to such (D limitations as the _chairman or the president may prescribe; shall appoint such aitomeys -in -fact, as may be necessary to act in behalf of the Z - company- to make; execute, seal; acknowledge and deliver as sure an and all undertakings; bonds, recd nizances and other sure g. ty .. y g g surety obligations. Such attorneys -in fact; subject to the limitations set forth in their re obligations. of attorney, shall have full. power to bind the ce company by their signature arid execution. of any such instruments and to attach theretothe. seal of the company. When so executed such r_ 5— cts z instruments shall, be as binding as if signed by the president and attested by the secretary. v F v: w By the following instruIment the.chairman or the pmsident.has authorized the officer.or other official named therein to appoint attorneys- in-fact > cn Pursuant.to AY€icfe X1/I Section 5' of the $y laws Assistant Vice President Garne# W. Elliott is hereby- authorized to appoint such attorneys in I E L_ � fact as :Wray be necessary to act in.behalf. of the company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, O D to bonds, recognizances and ather.surety obligations. ` That the By -law and th.a Authorization above set forth are true copies thereof and are now in full force and effect. y 1N WfTNESS ".WHEREOF, this instrument has been subscribed by its authorized officer and the corporate seal of the said Liberty Mutual Insurance. .� C Company has been affixed �n Piymauth Meeting, Pennsylvania this 2nd day Of July 2001 O ca p 7k :. LIBERTY, MUTUAL INSURANCE, COMPANY a ,. G rg - e i 54rhet W. Ellibtt Assistant VicoPresideni_ _ S += Q7 Q:G COMMONWEALTH OF PENNSYLVANIA ss. - E COUNTY Or MONTGOMERY � '0 Dn this 2nd . Jul A D 2001 before me, a Notary Public;. personally came.the individual known to V rtie- to :.be,the therein.. es i�b in aj! and officer of Libe€ty,fsllutuai Insurance Company who executed the.preceding instrument, and he acknowled - +a co ed :that he execute *s t ? e seai: affixed to the said preceding instT invent is:the corporate leaf pf said corrrpany and that said corporate E N �> saa[:and hissignatsirebebdtte1 e as dory -- affixed and ss�i�scr[bec! try the. saicJ instnartsent by authQnty ah€3 dlreefion of the said company. ;,_ ��� c . 0 :v 1N TESTIMbbY !`±VHERE� f he junto set-_ ybari aai.at Plymouth Meeting P the day and year first above written_. 00 co F ti 5 iEt�-y i .c'�i?�1,5 n _x„re _ >,2i. _ Ngtary. PubIIC CERTIF1 T. L the undersigned _ s 's #arti�Secretary of Libeiy Mutuai insurance. Company, do . areby certify that the original power .of attorney of which the fore ain s_a full, :true_and oot_eot Copy; iSdn.fuil_force arii3 eta cl on the rJete of this Certificate �ndl:xio fur4her certify that the_ bfficer:who of the 9 . g of power. of attorneYwas one of the- pfflmiis specially authorszecfby.Abe chairman or the olbsideni to appoint ariv -a rney in =fact as provided in Article XVf; :Seciiori 5. of the..By laws: of _Liberty 11(Iufual Insurance :Company his certificate may be.= signetl by facsirri'iI- under. -and by authority of the following vote af: the board: of directors of liberty Mutual insurance Company at a. meeting duly called -and held on -the 12th day of March, 1980. . VCTED_ that the facsimile or mechanically reproduced signature of any assistant secretary of the company. wherever : :appearing upon a certified copy of any power of attorney issued by the c pang, shiail be valid and. tiinding upon the companyuvith the_same force and :effect as though rnanuallyaffixed; IN TESTIMONY WHERE-OF, I "have hereunto subscribed my -name and affix corporate seal of the said company, this day of P 01 P ' nt Secretary THIS 0OWE.R 0 F ATTORNEY MAY NOT BE USED To EXECUTE ANY BOND WITH AM iNCEP71ON DATE AFTER JuIy 2 2003