04-136Council File # �� � �0
Ordinance #
Crreen Sheet # �iC��9�� �
ORDINANCE
CITY OF SAINT PAUL, MINNESOTA
Presented By
Referred To
Committee Date :
�
1 An administrative ordinance to amendment the Saint Paul Administrative Code Chapter 83,
2 Bidders' and Contractars' Bonds, to conform the chapter to Minnesota State Statutes, to facilitate
3 title changes within the contract and analysis services section and the Office of Financial
4 Services as referenced in the chapter.
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THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
Section 83, Bidders' and Contractors' Bonds, of the Saint Paul Administrative Code is hereby
amended to read as follows:
Sec. 83.01. Definitions.
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 successful bidder will sia 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 specifications.
EguivaZent financial security shall mean cash, certified checks, certificates of deposit or
irrevocable letters of credit.
Manager shall mean the mana�er of the contract and analysis services section.
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.
33 Payment bond shall mean a bond undercvritten by a surety in the contract amount to
34 guarantee that the contractor will make payment to all persons furnishing labor and materials
35 engaged under, or to perform the contract, conditioned far the payment, as they become due, of �
36 all just clanns for the labor and materials.
37 �D
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1 PurchasinQ aQent shall mean an individuai desi ated by the manaser of the contract and
2 analvsis services section to carrv out the purchasing and contracting functions assipned to the
3 section.
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Ketainage shall mean the difference between the amount earned by the contractor on a
city contract and the amount paid on the conh by the city.
Section 2
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Section 83, Bidders' and Contractors' Bonds, of the Saint Paul Administrarive Code is hereby
amended to read as follows:
Sec. 83.02. Bonds required.
(a) A bid bond or equivalent financial securiry in the amount of five (5) percent of the bid
price shall be required and must accompany all bids in each of the following cases:
(1)
�Z)
For the making of any local improvement.
For the construction of any public building or structure whatsoever.
(3) In any other case where �3se a 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.
(b) A performance bond to the city shall be required for a contract in the amount of more
than seventy-five thousand dollars ($75,000.00) with the city for the doing of any public
work for the use and benefit of the city to complete the contract according to its terms,
and conditioned on saving the city hannless from ali costs and chazges that may accrue on
account of complering the specific work.
(c) Where a performance bond is required, the bond or ' an
inevocable bank letter of credit in the same amount as rec�uired for the bond and subject
to the same conditions as the bond shall be in an amount not less than the consideration of
the contract which it is given to secure and shall be properly executed and acknowledged.
A payment bond shall be required for a contract in the amount of more than seventy-five
thousand dollars ($75,000.00) for the doing 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 payment, as they become due, of all just claims for the labor and
materials.
(d) For contracts that require a performance bond from a contractor doing a public work
project of under frRy seventy-five thousand dollars{$59;66�66j ($75.000.00�, the city
may permit the contractor to provide, in place of the performance bond, an inevocable
bank letter of credit in the same amount as required far the bond and subject to the same
conditions as the bond.
(e) Where labar 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 execurion of an agreement
and must be included in the written agreement.
n-I�t�.
(� Norivithstanding any other provision of the Administrative Code to the contrary, the bond ����
monetary value requirement provisions in this Section, which are identical to the
Minnesota statutory provisions, shail be as provided in the said Minnesota statutory
provisions.
Section 3
Section 83, Bidders' and Contractors' Bonds, of the Saint Paul Admuristrative Code is hereby
amended to read as follows:
Sec. 83.04. Bond provisions.
Every bidder required to fiirnish a bid bond or equivalent financial security under this
chapter shall, if the contract is awarded to the bidder and within the time prescribed in secrion
83.05, execute and deliver a perforxnance bond to the city in the proper form, conditioned for the
faithful performance of the contract. A surety or guarantee 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 shall be filed with the office of
financial services
Section 4
That this ordinance revision shall take affect and be in force ilurty (30) days after its passage,
approval and publication.
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Shee
t.�
OLt-�34
DepartmenUoffice/council: Date InAiate[t:
Mo -�aY�so�� ,��-� Green Sheet NO: 3010316
ConWCt Person 8 Phone: Deoartrnent SeM To Person Initial/Date
Reyne Rofuth � 0 a or's Office
266-8710 qujgn 1 a or's Office
Must Be on Council Agenda by (Date): Number 2 ou cii
Fw
Routing
Order
Total # of Signature Pages _(Clip All Locations for Si9nature)
Action Requested:
Changes to Administrarive Ordinance, Chapter 83.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Mswer the Following Questions:
Planning Commission 1. Has this
person/firtn ever worked under a contract for this departrnenY?
CIB Committee Yes No
Cihl Service Commission 2. Has this personlBrm ever been a city employee?
Yes No
3. Does this persoNfirm possess a skifl not normally possessed by any
curren[ dty employee? � �
Yes No
Exptain alI yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): � -
Admiuistrarive Ordinance Code changes to Chapter 83. See Attached.
AdvantageslfApproved:
See above.
Disadvanta5les If A.pproved:
None.
Disadvantages If Not Approved:
Changes not made.
Total Amount of � CastlRevenue Budgeted:
Transadion: �.�,, �? �n��.ar c�
Funding Source: Activify Number. -
Financial Information: 3R c3 qq (}Rt
{ExPlain) a93�4a� G c� �P9U°t