01-18-05 -Missing Agenda Item 6CITY OF SOUTH MIAMI
IA Inter - office Memorandum
1927
TO: Honorable Mayor, Vice Mayor
& City Commission
FROM: Maria V. Davis
City Manager '"
RESOLUTION:
DATE: January 18, 2005
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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:
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, 10038.
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:
U Proposed resolution
Ll Sample of Performance Bond
D Sample of Letter of Credit
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RESOLUTION NO.
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
APPROVED:
Maria Menendez, City Clerk
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
day of , 2005.
ATTEST:
Mary Scott Russell, Mayor
Commission Vote:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar:
Bond No. 964 - 002 -518
STATE OF FLORIDA )
ss
COUNTY OF MIAMI -DADS )
SECTION 00610
PERFORMANCE BOND
WILLIAMS PAVING
]KNOW ALL MEN BY THESE PRESENTS, that CO-, INC- as Principal,
Liberty Mutual
hereinafter called 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 Sven
the amount of Hundred Forty Three & 20/00 Dollars (5245.; 743.: 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 Traffic Circles /Calming - Cocoplum Terrace Neighborhood
City's Project No.: 003- 01.14
Kimley –Horn &
In accordance with Drawings and Specifications prepared by Associates, Inc. which Contract
is by reference made a part hereof and is hereinafter referred to as the Contract.
NOW, THEREFORE, THE CONDITIONS OF THIS OBLIGATION ARE SUCII, that, if
the Principal shall in all respects promptly and faithfully perform and comply with the terms and
conditions of said Contract and his obligations thereunder and shall indemnify the Owner and the
Consulting Lngineer 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,
040819010
00610 -1
110/900 z 996IZMH M MN NON OOOULZ /IO
which the said Owner may sustain on account of such work, 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 Owner and shall provide that the Contractor
guarantees to repair or replace for said period of one (1) year all work performed and
materials 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 time, the Owner shall notify the Contractor in writing. If the
Contractor refuses or neglects to do such work within five (5) 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 terns 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 Specifications.
1), The Surety represents and warrants to the Owner that they have a Bcsrs Key Rating
Guide General Policyholder's Rating of A+ and Financial
Category of "Class XV "
IN WITNESS WHET EOF, the above bounded parties have executed this instrument under their
several seals, this 24 day of,!Jc' �, A.D., 20_ 03 , the name and corporate seal of
each corporate parry being hereto affixed and these presents duly signed by its undersigned
representative, pursuant to authority of its governing body.
WITNESSFS: (If Sole Ownership or Partnership, two (2) witnesses required).
(If Corporation, Secretary Only will attest and affix seal).
WITNESSES: n PRINCIPAL: Williams Paving Co., Inc.
Betty Je odriguez— Secreta Signature of Authorized Officer (Affix Seal)
Ronnie Smith, Vice President
Title
11300 N.W. South River Drive
Business Address
Medley, Florida 33178
City, State & Gip Code
040818010
00610 -2
ITO /9000 MINER M U :F1 NOW HONIUTO
WITNESSES:
SURETY:
Libe y M to Insurance Comp y
Cor orate Sure
Title rles Jt Ni son, Attorney- iri ;zFact
1051 Winderley Place, #105
Business Address
Maitland, Florida 32751
City, State & Zip Code
Nielson, Alter & Associates, Inc.
Name of Local Insurance Agency
040318010
00610 -3
TTO /! 00 9961ZZ M TVJ MN NON HON NO
THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT 1S PRINTED 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 Company (the "Company "), a Massachusetts
mutual insurance companypursuant to and by authority. :of the..By law and Authorization hereinafiter set forth; does hereby name,
CITY
constitute and appoint, MARY G ACEVES -, CHARLES J NIE.LSON, WARREN ALTER;_::KRISTL MESSEL LAURA CLYMER, ALL OF THE OF
MIAMI LAKES, STATE OF FLORIDA.::: ....:. ,: .. .......
each individually, and if there be more than one named; its true and lawful attorney -in fact to. make execute, seal, acknowledge and deliver, for.and.on
its behalf as surety and as its act and deed; any and all bonds and. consents of surety for the release of retained percentages and/or final estimates on
engi dd sttr� CCh�i c nfr * * *si i f* *1* *o *rity require., tay the Department of; Transportafion :State of Florida, LIMITED in the amount
Tffff I �LI�I� A� NAC80 * 50;000,000.00 * * - * * * **
of QOLLARS ($ )each, and the execution of,the aforesaid
bonds and consents of in pursuance of these presents; shall be as binding upon the Company as if they had been duly signed by the president
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and attested by the secretary of the Company in their own proper persons.
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That this power is made and,executed pursuant to and by authority of the following By law and Authorization:
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ARTICLE XVI - Execution of Contracts. Section 5-. Surety Bonds and Undertakings.
Any officer or other official of the company authorized for that purpose in writing by the chairman or the president, and subject- to such
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limitations as the chairman or the president may prescribe, shall appoint such attorneys- in-fact, as may be necessary to act in behalf of the
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company to,e make; execute, seal, acknowledge and deliver; as surety any and all undertakings, bonds, recognizances and other surety
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obligations. Such attorneys -in- fact, subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the
company bytheir signature and execution of any such instruments and to attach thereto the seal of the company. When so executed such
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instruments shall,be as binding as if`signed by the presId t and attested by the secretary,
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By the following instrument the chairman:or the president has authorized the officer or other official named therein to appoint attorneys -in -fact:
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Pursuant to Article XVI; Section�5.ofthe By laws, Assistant Vice President Garnet W. Elliott is "hereby authorized to appoint such attorneys In
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fact as may. be necessary to act in behalf of the company to -make, execute, seal, acknowledge and deliver as surety any and all undertakings,
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bonds, recognizances and other surety obligations.
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That the ByAaw.and the Authorizatlon above set forth are true copies thereof and are now in full force and effect.
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IN WITNESS WHEREOF; this . instrument has been subscribed'by its authorized officer and the corporate seal of the said Liberty Mutual Insurance
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Company has been affixed tt: tp m Plymouth Meeting, Pennsylvahia this �- 2nd ; day of July 2001-
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UO RANCE COMPANY -
LIBE RTY MUTU AL IN$,
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G "amet W. Elliott, Assistant Vice President .
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COMMONWEALTH OF PENNSYLVAN]A
COUNTY OF MONTGOMERY
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On this 2nd �aof July A D 260.1 , before me, a Notary Public,`personally cameahe intliuidual, known to
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