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RESOLUTION NO.86-983I.
A RESOLUTION AUTHORIZING THE CITY
MANAGER TO ESTABLISH AND IMPLEMENT
A PERFORMANCE AND BID BOND PROGRAM
POLICY RELATIVE TO THE REQUIREMENTS
FOR MINORITY AND FEMALE FIRMS AND
FOR THE PROCUREMENT OF GOODS AND
SERVICES AND PUBLIC WORKS
CONSTRUCTION PROJECTS AMOUNTING TO
�2U0,000 OR LESS; FURTHER
RESCINDING RESOLUTION Nos. 84-423
AND 84-873 DEALING WITH PERFORMANCE
AND BID BOND POLICIES.
WHEREAS, the City's electorate approved a charter amendment
authorizing certain changes in the City's general purchases
procedures which would improve small and minority business
participation in City contracts and procurement; and
WHEREAS, the City of Miami's Bid and Performance Bond
Policies, established by Resolutions 84-423 and 84-873, have been
found to be in need of revision; and
WHEREAS, the City Commission has determined that prior
denial of opportunity has created impediments for minorities and
women businesses, professions and trades when they sought
business opportunities in the form of City procurement contracts;
and
WHEREAS, this Resolution will attempt to prevent the
perpetuation of some of the effects of prior unwarranted
discrimination which have heretofore impaired or foreclosed
opportunities for minorities and women to provide goods,
services, supplies, equipment, furnishings, and fixtures to the
City; and
WHEREAS, the City Manager has found that the risks for the
City associated with the modification of the Bid Bond Policy are
manageable and minimal compared to the amount paid indirectly by
Amended
u
CITY COMMISSION
MEETING OF
DEC 11 1966
7RFSOLUTION No. I
K:.MARK$
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the City or directly by minority and women businesses as costs
3 associated with the City's current bid bond requirements; and
WHEREAS, the City Manager has concluded that the risks for
the City associated with the adoption of a policy of waiving the
performance bond requirement for certain contracts or purchases
are manageable and minimal compared to the costs paid indirectly
by the City and directly by small minority and women -owned
businesses; and
WHEREAS, the Legislature of the State of Florida has enacted
Section 255.U5 of the Florida Statutes exempting the requirement
for performance bonds for certain public works contracts
amounting to �200,000 or less and this requires that the policy
of the City reflected in Resolution 84-423 be updated to reflect
this change made by the Florida Legislature; and
WtiEREAS, adoption and implementation of this Resolution will
serve the best interest of the City and will maximize the
opportunity for small business concerns owned and controlled by
minorities and women to participate in expenditures of the City
for goods and services and public works construction contracts;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. A Performance and Bid Bond Program is hereby
established relative to the requirements for bid and performance
bonds on City public works and construction projects and in City
procurement of goods and services.
Section 2. The City's Minority and Women Procurement
Administrator shall administer the Program in accordance with the
following provisions:
A. Pursuant to the Policy established herein, a Bid
Bond Voucher Memorandum will be issued by the Administrator to
eligible certified minority and women vendors to be submitted and
accepted in lieu of a required bid bond or certified check. A
separate bid bond voucher memorandum is required to be issued to
each eligible vendor for each contract upon which the eligible
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certified vendor desires to bid.
(1) Minority and women vendors desiring to
participate in said Program must:
(a) register and be certified by the City as
minority or women -owned business enterprises
under the provisions of Ordinance No. 10062;
(b) attest in writing to their inability to
secure or afford the required bid bond.
(2) The Administrator shall:
(a) review requests for participation and
establish eligibility upon satisfactory proof
of vendor compliance with paragraph (1)
hereof.
(3) Eligible certified minority and women vendors will
be allowed to participate in this Program:
(a) until they have received .and performed
satisfactorily on three bid awards; or
(b) until they fail to comply with the require-
ments of the Program; or
(c) until they fail to accept an award of bid; or
(d) until they fail to perform satisfactorily
under a contract awarded by the City; or
(e) it is determined by the Administrator that
their inability to secure or afford to
purchase the required bid bond no longer
exists.
B (1) For contracts for the purchase of goods and
services of $200,000 or less, no performance bond
will be required unless the City Manager determines a
unique situation exists placing the City at risk. A
performance bond may be required provided that it is
so stated in the initial soliciation of bids.
(2) For public works contracts amounting to
$200,000 or less, a performance bond will not be
required unless the City Manager determines a unique
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situation exits placing the City at risk. A per-
formance bond may be required provided that it is so
stated in the initial solicitation of bids.
(3) On contracts for the purchase of
goods and services exceeding ;2001000, the City
Manager shall determine if a performance bond is to
be required. The amount of the bond will be
determined before bids are advertised.
' (4) On public works contracts exceeding $200,000,
full performance bonds will be required.
Section 3. Resolution No. 84-423, adopted April 5, 1984,
is hereby rescinded.
i
Section 4. Resolution No. 84-873, adopted July 31, 1984,
is hereby rescinded.
PASSED AND ADOPTED thisllth.day of December, 1986.
A'rTES�
MATTY HIRAI, CITY CLERK
PREPARED AND APPROVED BY:
A. QUINN JO , I44
DEPUTY CITATTORNEY
WTOAPPROVED FORM AND CORRECTNESS:
LUCIA A. DOUG
CITY ATTORNEY
AQJ/cm/555
-4- 86-9831.
CITY OF MIAMI, FLORIDA
3
INTER -OFFICE MEMORANDUM
TO. Honorable Mayor and Members
of the City Commission
FROM: Cesar H. Odio
City Manager
RECOMMENDATION
DATE: DEC, 5 1986 FILE:
SUBJECT: Resolution Rescinding
Resolution Nos. 84-423 and
84-873 dealing with Bid &
REFERENCES: Performance Bond Programs
and Establishing a New
ENCLOSURES: Program in Lieu Thereof
It is respectfully recommended that the City Commission adopt the
attached resolution rescinding Resolution Nos. 84-423 and 84-873
dealing with Bid and Performance Bond Policies and authorizing the
City Manager to establish and implement a performance and bid bond
program policy relative to the requirements for minority and female
firms and the procurement of goods and services and public works
construction projects amounting to $200,000 and less.
BACKGROUND
The Departments of General Services Administration and Public Works
analyzed the need to revise the City's existing Bid and Performance
Bond Policies. On April 5, 1984, the City Commission approved
Resolution No. 84-423 establishing a Performance Bond Policy relative
to public works projects and the procurement of goods and services.
This Policy was authorized by State of Florida Statutes - Chapter
255.05 which permitted municipalities to waive performance bonds on
projects $100,000 less.
In July, 1985, the State Senate passed CS/HB 585, increasing the
amount of the discretionary waiver of performance bonds to $200,000
and authorizing municipalities to adopt similar rules.
' The attached resolution will authorize us to increase our Policy of
waiving performance bonds on public works and procurement projects
under $200,000.
On July 31, 1984, the City Commission approved Resolution No. 84-873
creating a Minority Procurement Bid Bond Voucher Program which
j established a Policy relative to the requirement of bid bonds for
minority firms on City Public Works Construction Projects and in the
City's procurement of goods and services.
On December 19, 1985, the City Commission passed Ordinance #10062,
Minority and Women Business Affairs and Procurement Program, which
i included women -owned businesses as an affected class.
86-9831
Honorable Mayor and Members
of the City Commission -2-
The attached resolution makes women -owned businesses eligible to
participate, along with Black and Hispanic minorities, in the City's
Bid Bond Voucher Program.
The Minority and Women Procurement Advisory Committee, created by
Ordinance #10062, has reviewed and has approved this resolution and
will provide you with their comment relative to the Policy under
separate cover.
Attachment:
Proposed Resolution
86-sea► .