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HomeMy WebLinkAboutPO 5261: PURCHASES/CONTRACTSINTER OFFICE MEMO TO: Mayor, City Council & City Manager From: Mark T. Sokolow, City Attorney /7~ ~~ Subject: P. O. No. 5261 - May 28, 2002 Council Meeting Date: May 23, 2002 Attached is P. O. 5261 which is an Ordinance amending Section 2-281 to 284 and to add Section 2-285 to the Code of Ordinances as it pertains to Purchases and Contracts. MTS/ts Attachment CC: Director of Public Works Senior Purchasing Assistant Director of Community Services P.O. No. 5261 05/23/02 ts OP, DINANCE NO. AN ORDINANCE AMENDING SECTION 2-281 TO 2- 284 AND TO ADD SECTION 2-285 OF THE CODE OF ORDINANCES AS IT PERTAINS TO PURCHASES AND CONTP, ACTS WHEREAS, the City Council of the City of Port Arthur has decided that it is in the best interests of the citizens of the City of Port Arthur to amend Sections 2-281 to 2-284 and to add Section 2-285 of the Code of Ordinances as it pertains to Purchases and Contracts. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR= Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the Code of Ordinances, City of Port Arthur, Texas, is hereby amended by amending Sections 2-281 to 2-284 and to add Section 2-285, which sections shall read as follows: "Sec. 2-281. Bid Security and Liquidated Damages. a) Bids for Public Works projects of $15,000 or more shall be accompanied by a bid guarantee of not less than five (5%) percent of the amount of the total bid which shall be a certified check or cashier's check payable without z.po5261 ] recourse to the City, or a bid bond with corporate security authorized to conduct business in the State of Texas. Such security shall be submitted with the understanding that it shall guarantee that the bidder will not withdraw his bid within sixty (60) days after the date of the opening of the bids; that if a bid is accepted, the bidder will enter into a formal contract with the owner, furnish bonds and insurance as may be required and commence work at the specified time. In the event of the withdrawal of the bid within such period, the failure to enter into the contract or carry out the work, the bidder shall be liable to the City for the bid and the amount the required work, bid and any other damages all, except the three (3) be returned when the award is made. executed, the checks of the two (2) difference between the amount specified in the for which the City may otherwise procure as well as the costs to re-advertise the incurred by the City. Checks of lowest responsible bidders, will When the contract is remaining unsuccessful bidders will be returned. The check of the successful bidder will be returned when a formal contract, bonds and insurance are approved and work has commenced within the time specified. b) The bidder to whom the award is made shall execute 2 and return the formal contract with the City and furnish performance and payment bonds, as described in Section 2-282 and required insurance documents within ten (10) days after the prescribed forms are presented to him for signature. Such period will be to the City within such period, for reasons, which, sole discretion of the City, justify an extension. extended only upon written presentation in the If the contract, bonds and insurance documents are not received by the City within such period, or if work has not been commenced within the time specified, the City may proceed to have the work required by the plans and specifications performed by any means at its command. c) The City, within ten (10) days of receipt of acceptable performance and payment bonds, insurance documents and contract, signed by the bidder to whom the contract was awarded, shall sign and return an executed copy of the contract to such party. Should the City not execute the contract within such period, the bidder, may by written notice to the City, payment withdraw his signed agreement. Sec. 2-282. Bonds. If the public works contract exceeds $25,000, a bond shall be furnished. If the contract exceeds $100,000.00, a performance bond shall also be the amount of 100 percent of the contract corporate surety duly authorized to do business furnished in price with in the State of Texas. each bond a certified copy of Sec. 2-283. Attorneys-in-fact who sign bonds must file with their power of attorney. Public work contracts of of $15,000 or less. The City Manager or his designee projects may solicit, by quotes, public projects expected performance bonds and payment bonds need unless the City Manager deems it as circumstance so requiring. Sec. 2-284. Federally funded projects. As to federally funded projects, the directives, work projects which include demolition to cost $15,000 or less. Bid security, not be required an exceptional follow federal guidelines, City will and advise as to the necessity for and the content bonds, payment bonds, contract grant terms as to the program. Sec. 2-285. of bid security, performance documents, loan terms and Budgeted items under $5,000; City Manger authorized to contract. Pursuant contracts, of the to Section 1, Article XV, municipal City Charter, the City Council confers upon the City Manager the general authority to contract for expenditure without further approval of the City Council for all budgeted items not exceeding $5,000, subject to the requirement that a monthly check register indicating all such expenditures be provided to the City Council." Section 3. That if any portion of this Ordinance shall, for any reason, be declared invalid by any Court of competent jurisdiction, the invalidity shall not affect the remaining provisions hereof. Section 4. That a copy of the Ordinance be spread upon the Minutes of READ, ADOPTED AND APPROVED on this __ caption of this the City Council. day of , A.D., 2002, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , City Council: NOES: ATTEST: OSCAR ORTIZ, MAYOR JAN STRODER, ACTING CITY SECRETARY APPROVED AS TO FORM.' MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER