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Home My WebLink AboutO-08194ORDINANCE NO._8194 AN ORDINANCE AMENDING SEC. 16-23 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, FOR THE PURPOSE OF PROVIDING THAT AN INSURANCE AGENT WRITING BID GUARANTEES IN CONNECTION WITH CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS OR PURCHASES INVOLVING LARGE SUMS OF MONEY SHALL BE A PROPERLY LICENSED INSUR- ANCE AGENT LOCATED IN DADE COUNTY; REPEALING ALL ORDINANCES, CODE SECTIONS OR PARTS THEREOF IN CONFLICT, INSOFAR AS THEY ARE IN CONFLICT; CONTAIN- ING A SEVERABILITY PROVISION; DECLARING THIS ORDI- NANCE TO BE AN EMERGENCY MEASURE; DISPENSING WITH THE REQUIREMENT OF READING THE SAME ON TWO SEPARATE DAYS BY A VOTE OF NOT LESS THAN FOUR -FIFTHS OF THE MEMBERS OF THE COMMISSION. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. Sec. 16-23 of the Code of the City of Miami, Florida, is hereby amended to read, as follows: Sec. 16-23. Bond of successful bidder. In the case of construction contracts or purchases involving large sums of money, the city manager may provide that the successful bidder shall post a surety bond in any amount that he deems proper. Each call for bids upon any public work or upon the furnishing of any material, supplies, equipment or services, and any specification documents prepared and issued thereon, shall specify that the bid bond, performance bond or any other guarantee required in connection therewith shall be accompanied by an affidavit of a qualified officer of the company tendering such bond or guarantee, or by the attorney in fact of such company, setting forth the amount of capital and the amount of surplus -1- held by such company as of the last published tr por l , and the date of quch report. The 1 imit: of surely acceptable from any one company on any one risk ;h:01 be ten per cent of the combined capital and surplus as shown by such affidavit. No bid bond, performance bond, surety bond, or other guarantee shall be accepted unless it is signed by a licensed agent of the State as attorney -in -fact for the company writing the same and unless the same is written by a properly licensed insurance agent located in Dade County. The right of rejection of any and all tenders of such surety bonds shall be reserved in all cases, which fact and reserva- tion shall be clearly set forth in the call for bids and specification documents. The city manager shall cause each such surety tendered to the city to be reviewed to determine whether the company or agency making such tender is qualified to meet the obligation to be assumed, and shall recommend to the city commis- sion the rejection of any such tender from any company or agency not found to be fully qualified. The director of finance shall cause a list to be kept of all sureties filed with the city, by names of guarantors and amounts, and shall report quarterly to the city manager full details as to bid, performance and other such bonds then in effect. (Code 1957, §14-8; Ord. No. , §l.). Section 2. All ordinances, code sections or parts thereof in conflict herewith, insofar as they are in conflict, are hereby repealed. -2- Section 3. If any section, :sentence, clause, phrase, or word of this ordinance is for any reason held or declared to be unconstitutional, inoperative or void, such holding or invalidity shall not affect the remaining portions of this ordinance; and it shall be construed to have been the intent of the Commission of the City of Miami to pass this ordinance without such unconstitutional, invalid, or inoperative part therein; and the remainder of this ordinance, after the ex- clusion of such part or parts shall be deemed and held to be valid as if such parts had not been included therein. Section 4. This ordinance is hereby declared to be 3n emergency measure on the ground of urgent public need for the preservation of peace, health, safety and property in the City of Miami. Section 5. The requirement of reading this ordinance on two separate days is hereby dispensed with by a vote of not less than four -fifths of the Members of the Commission. PASSED AND ADOPTED BY TITLE ONLY this 26th day of September 1973. DAVID T. KENNEDY Attest: H.D. SOUTHERN City Clerk MAYOR MIAMI ReVIEW fr ANb BARN HOMO Pa6tished baitt wet t Satu zdayi Stay itnd Lodi Hongays Miai t% bade Cdfsaiy► J<'toride. MATE OP tLORIDA CGUNt`Y o€' OA6: betori the undersitned authority pereeneffe ark Pared Ruth otetter w o On Oath s• e • ay3 that slstent to the Pub'sher of the Miami Review and belly Record, a daily , (except Saturday, Sunday and Legal gde COuri ya Florida; that thepatttaiched Copy of dva titernent, belie* a Legel Advertisement or Notice In the Metter 5 113 in the r Court, was published In said newspaper In the Issues of 1 y '? 7 {?C:L.• 9 Alfiant further says that the said Miami Review and Daily Record is a newspaper published at Miami, in said Dada County, Florida, and that the said news• paper has heretofore been continuously published in said Dade County Florida, each day (except Saturday. Sunday and Legal Holidays) and has been entered as second class mail matter at the post office in Miami, in said Dade County, Florida for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose o ascuwag.this advertisement for publication In the eorsp elr� kwortf'to and subscribed�`beforore this day ',bf'_ ; A.D. 16 No ty ftibtip, 4taterrida at Large MEAL) l tl My Commission expires tAbtitt t p VtA A L OAL rqt ttt•1 itteeeweeilneethataMfgheedOn th 25111 day nil Septetrtbet, 32 $ the Conanlpslon at the City of ttfih; ern!, Florida adopted an pith hence entitled AN b %btNANic: AM fO- iNG sEe. t6-23 OF Tit$; CODE OF THE . CIT'i! OF ttTA?�tt, RtoRibA, FOR VHE PURPOSE OF RO- 1DING THAT'AN INSLR R:1NCE AGENT WRITING BID GUARANTEES IN CONNECTION WITH CON- TRACTS FOR PUBLIC WORKS OR IMPROVE• ?ilE:YTS OR PURCHASES INVOLVING LARGE. SUMS or MONEY SHALL BE A PROPERLY LICENSED INSURANCE AGENT LO- CATED IN DADE COUNTY; REPEALING ALL ORDI- NANCES. CODE SECTIONS OR PARTS THEREOF IN CONFLICT. INSOFAR AS THEY ARE IN CONFLICT; C('NT.IINING A SEVER - ABILITY PROVISION: DEC i.ARING THIS ORDI- NANCE TO BE AN EMER- GENCY MEAS.PRE; DIS- PENSING WITH TILE REQUIREMENT OF READ- ING THE SAME ON TWO SEPARATE DAYS BY A VOTE OF NOT LESS THAN FOUR -FIFTHS OF THE 'AiEMBERS OF THE COi!. MISSION which is designated Ordinance 1o. F194. H D SOUTHERN Y'ITY CLERK CITY OF MIAMI, FLORIDA Publication of this notice on the 1st day of October. 1973. Ad No. inO1► SRS/ts 9/17/73 ORDINANCE NO. CIPI/9 AN ORDINANCE AMENDING SEC. 16-23 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, FOR THE PURPOSE OF PROVIDING THAT AN INSURANCE AGENT WRITING BID GUARANTEES IN CONNECTION WITH CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS OR PURCHASES INVOLVING LARGE SUMS OF MONEY SHALL BE A PROPERLY LICENSED INSUR- ANCE AGENT LOCATED IN DADE COUNTY; REPEALING ALL ORDINANCES, CODE SECTIONS OR PARTS THEREOF IN CONFLICT, INSOFAR AS THEY ARE IN CONFLICT; CONTAIN- ING A SEVERABILITY PROVISION; DECLARING THIS ORDI- NANCE TO BE AN EMERGENCY MEASURE; DISPENSING WITH THE REQUIREMENT OF READING THE SAME ON TWO SEPARATE DAYS BY A VOTE OF NOT LESS THAN FOUR -FIFTHS OF THE MEMBERS OF THE COMMISSION. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. Sec. 16-23 of the Code of the City of Miami, Florida, is hereby amended to read, as follows: Sec. 16-23. Bond of successful bidder. In the case of construction contracts or purchases involving large sums of money, the city manager may provide that the successful bidder shall post a surety bond in any amount that he deems proper. Each call for bids upon any public work or upon the furnishing of any material, supplies, equipment or services, and any specification documents prepared and issued thereon, shall specify that the bid bond, performance bond or any other guarantee required in connection therewith shall be accompanied by an affidavit of a qualified officer of the company tendering such bond or guarantee, or by the attorney in fact of such company, setting forth the amount of capital and the amount of surplus held by such company as of the last published report, and the date of such report. The limit of surety acceptable from any one company on any one risk shall be ten per cent of the combined capital and surplus as Shown by such affidavit. No bid bond, performance bond, surety bond, or other guarantee shall be accepted unless it is signed by a licensed agent of the State as attorney -in -fact for the company writing the same and unless the same is written by a properly licensed insurance agent located in Dade County. The right of rejection of any and all tenders of such surety bonds shall be reserved in all cases, which fact and reserva- tion shall be clearly set forth in the call for bids and specification documents. The city manager shall cause each such surety tendered to the city to be reviewed to determine whether the company or agency making such tender is qualified to meet the obligation to be assumed, and shall recommend to the city commis- sion the rejection of any such tender from any company or agency not found to be fully qualified. The director of finance shall cause a list to be kept of all sureties filed with the city, by names of guarantors and amounts, and shall report quarterly to the city manager full details as to bid, performance and other such bonds then in effect. (Code 1957, §14-8; Ord. No. Section 2. All ordinances, code sections or parts thereof in conflict herewith, insofar as they are in conflict, are hereby repealed. Section 3. If any section, sentence, clause, phrase, or word of this ordinance is for any reason held or declared to be unconstitutional, inoperative or void, such holding or invalidity shall not affect the remaining portions of this ordinance; and it shall be construed to have been the intent of the Commission of the City of Miami to pass this ordinance without such unconstitutional, invalid, or inoperative part therein; and the remainder of this ordinance, after the ex- clusion of such part or parts shall be deemed and held to be valid as if such parts had not been included therein. Section 4. This ordinance is hereby declared to be an emergency measure on the ground of urgent public need for the preservation of peace, health, safety and property in the City of Miami. Section The requirement of reading this ordinance on two separate days is hereby dispensed with by a vote of not less than four -fifths of the Members of the Commission. PASSED AND ADOPTED BY TITLE ONLY this la 4 day of JOPPOW410 0.10 , 1973. Alt MAYO R City Clerk • PREPAREp/AND APP**700/BYt 0.11'1 S. R' Sterbenz Assistant City Attorney REVIEWED BY: A.Ircthn S. Lloyd (Assistant to Directot , APPROVED AS TO FCYRYLAND CORRECTNESS: / ( Alan tr.-Rothstein J City Attorney CITY OF MIAMI. FLORIUA INTER -OFFICE MEMORANDUM FROM: 1 TO* P. W. Atttir cvs `: '' ' 4\ DATE! September 13, 1973 FILE: City Manager— / ®UbJECTI License Requirements for Agents 11 Writing Performance T'sonds for City Contracts ent E . m (* }}[ r REFERENCES: Dom► Pdblic Works ENCLOSURES: The City is experiencing some difficulty in the execution of con- tracts for City work because of an outmoded requirement of the City Code. It would appear that a simple amendment to the Code can •1ld.rn- inate the problem and encourage more contractors to accept Cit; work. The problem exists in Chapter 16 which contains the fotlowing state- ment under Article IV in Section 16-23: "No bid bond, performance bond, surety bond, or other guarantee shall be accepted unless it is signed by a licensed agent of the State as attorney -in -fact for the company writing the same and unless the same is written by an insurance agency licensed by the City and the State." The problem exists because of the requirement that the insurance agency be licensed by the City of Miami. When this requirement first appeared in the City Code, the City of Miami was the site of: most major businesses and offices. Now, many such offices, includ- ing insurance agencies, are located in other cities in Dade County as well as in the unincorporated area of Dade County. When a prospective contractor overlooks the licensing requirement, and the City finds it necessary to require him to obtain a per- formance bond written by an insurance agency licensed by the City, the contractor is placed at a disadvantage by having to obtain a new insurance agency who, of course, is unfamiliar with his busi- ness. This involves considerable delay as well as additional ex- pense on the part of the contractor. The former insistence upon an agency licensed by the City of Miami appears to have resulted from a case where the insurance agency was located in West Palm Beach. When the City ran into difficulty P. W. Andrews Page 2 September 13, 1973 regarding the performance bond, dealing with an out -of -county agency proved to be a difficult and laborious process. However, this dif- ficulty would not exist if the agency were located in Dade Count:;. It is obvious that the City could deal as easily with an agency located in North Miami or Coral Gables as with an agency located in the City of Miami. The City finds it necessary to take all possible steps to encour- age contractors to bid on City work. The Department of Public Works feels that the revision of the City Code to permit the use of properly licensed insurance agencies located in Dade County would be of assistance to the contractors while at the same time retaining all of the safeguards needed by the City. For the above reasons we feel that it is in the best interest cf the City if Section 16-23 of the Miami City Code be amended to change the underlined portion of the above quoted sentence so that it reads as follows: . . . properly licensed insurance agency located in Dade County" If you concur, will you please forward the attached memorandum to the City Attorney's office in order that a proper resolution or ordinance can be prepared for consideration at the first Commis- sion meeting to be held in September, 1973. VEG:CTS:hh