02-712ORIGi�AL
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Presented By
ORDINANCE
CITY OF SAINT PAUL, MINNESOTA
3S
Referred To � Committee: Date
An ordinance amending certain sections of
Saint Paul Administrative Code Chapter 83
pertaining to definitions and bond requirements
THE COUNCIL OF THE CITY OF SA1NT PAUL DOES ORDAIN:
Section 1
That Chapter 83.01 of the Saint Paul Administrative Code is hereby amended to read as follows:
For the purposes of this chapter, the following words and phrases shall have the meanings set forth in
this section, except where the context clearly indicates that a different meaning is intended:
Bid bond shall mean a bond to assure that the successfui bidder will sign a contract according to the bid
specifications at the price of the bid and supply any performance bonds, insurance or other documents
required by law or the bid specificarions.
Equivalent financial security shall mean cash, certified checks, certificates of deposit or irrevocable
letters of credit.
Performance bond shail mean a bond underwritten by a surety in the contract amount to guarantee that
the contractor will perform the required work according to the contract specifications,
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Pavment bond shall mean a bond underwritten bv a suretv in the contract amount to euarantee that the
contractor will make payment to all �ersons furnishing labor and materials en�aged under, or to perform the
contract, conditioned for the payment. as they become due, of all just claims for the labor and materials.
Retainage shall mean the difference between the amount earned by the contractor on a city contract and
the amount paid on the contract by the city.
Section 2
That Chapter 83.02 of the Saint Paul Administrafive Code is hereby amended to read as follows:
Section 83.02. Bonds required.
Pi16LlStiEn
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39 ��, , lf'id fl quivalent financial security in the amount of five (5) percent of the bid price shall be
40 t��q�#����t accompany all bids in each of the following cases: p 3,,1 \�--
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50 (b)
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(1)
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For the making of any local unprovement.
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For the construcrion of any public building or structure whatsoever.
In any other case where the purchasing agent deems it advisable that a bond be given and shall
so state in the specifications. The requirement may be stated in the request of advertisement for
bids.
, . .
� , . A performance
bond to the city shall be rec�uired for a contract in the amount of more than seventv-five thousand
dollarsl$75,000.001 with the city for the doine of an�nublic work for the use and benefit of the city to
complete the contract accordin�to its terms, and conditioned on savine the citv hannless from all costs
and charges that mav accrue on account of com�letine the soecified work.
,
�ek�newle�gec� A�avment bond shall be rec�uired for a contract in the amount of more than
seventy-five thousand dollars ($75.000.00) for the doin¢ of any public work, for the use and benefit of
all persons furnishing labor and materials engaged under, or to perform the contract, conditioned for the
�avment, as thev become due. of all just claims for the labor and materials.
For contracts that reauire a performance bond from a contractor doing a public work �roject of under
�50,000, the city maypermit the contractor to provide, in place of the performance bond. an irrevocable
bank letter of credit in the same amount as required for the bond and subject to the same conditions as
the bond.
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-:.,..��:,.�:.,..:�.,.:.:,.:,R�.....- -- - - - - -- - - - - - -
Where labor is involved and no bond is required, retainage in the amount of five (5) percent of the
contract may be used as a method to assure performance. However, the retainage provision must be
clearly stated in writing prior to execution of an agreement and must be included in the written
agreement.
Notwithstandin� any other provision of the Administrative Code to the contrary, the bond monetarv
v_alue requirement orovisions in this Section, which are identical to the Minnesota statutory_provisions,
shall be as provided in the said Minnesota statutory provisions.
Section 3
That Chapter 83.04 of the Saint Paul Administrative Code is hereby amended to read as follows:
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Secfion 83A . Bonc��p'rovisions.
O�.-'11a+
Every bidder required to furnish a bid bond or equivalent fmancial security under this chapter shatl, if
the contract is awazded to the bidder and within the time presczibed in Section 83_O5, execute and deliver a
performance bond '- to the city in the proper form, conditioned for the faithful
performance of the contract. A surety or guazantee company authorized to do business in this state may be the
sole security on such bond. Such bond shall be approved as to form by the city attorney and shail be filed
98 with the department of finance and management services.
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100 Section 4
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102 This ordinance shall take effect and be in force fliirty (30) days from and after its passage, approval and
103 publication.
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Adopted by Council: Date
Adopuon Certified by Council Secretary
�
App.
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O ,'Z�
Form�ed by City Attomey
noved by Mayor for Submission to
mcil
€'UBLISHED
S� 16 ��2
Requested by Department of:
oa-'1�'a- v
fi&MS-- Contract Services � 7/1
XNJTACTPERSONBPHONE
SHEET
N° 202460
iS3�!:I
�If 7-�Ial
FOR
TOTAL # OF SIGNATURE PAGES 2
oEVARrI@ROatE:rax
� tlfYAiiORIEY �� � ❑ UIYCLERK
❑ FlWNfJRL4ERYICFYOW. ❑ ALM011L!
� YnYOrt1art64flS�ANn ❑
(CLJP ALL LOCATIONS POR SIGNATURE)
Amend Chapter 83 of the Administxative Code to Uring it into conformance with amendments to
State of Minnesota Statute 574 related to contractors bonds. State law was amended during
the 2001 Legislative Session.
or
PLANNING COMMISSION
CIB COMMITTEE
CIVIL SERVICE COMMISSION
What, When. Where. W�Y)
Has this persoMfirm ever worked under a contiact tor Mis department'7
YES NO
F�s Uus W'-�son(fi�m ever 6een a cily employee7
YES NO
Does this persoNfirm possese a slfill not �rortnallypossessed by a�ry cunent ciry employee�
YES NO
Is Nia persaMrm a targded vendoR .
YES NO
ilain all ves answe�s an senarate sheet and attach to areen she�
Chapter 574 of the Minnesota Statutes governs bonds for,eontractors. This Statute was ame
during the 2001 Legislative Session; performance and payment bonds are now required on con
of $75,000 and abave. Previously bonds were required for contracts of $10,000 and above.
4DVANTAGESIFAPPROVED
City will be able to waive performance'bonds on sma11 contracts. This will reduce the cost
scme projects and rill be particularly ce'��fuivto":small_,businesses who want to bid on City
contracts. �c^
t ,_ .. _...
��
JUL 2 � �!�`t`�
City Administrative Code will not be consistent with State Law. -a.
TRANSACTION
SOURCE Nnt a�ilirnhla
INFORMATON (IXPWN)
COST/REVENUE BUDGETED (CIRCLE ONE) YES NO NA
! ,- h Cpt�
ACTNRY NUMBER ���
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