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MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark T. Sokolow, City Attorney ~,,,,~~ ~a°'~~''/~
Date: September 2, 2009
Subject: P. O. No. 6027; Council Meeting September 8, 2009
Attached is P. O. No. 6027 amending Section 2-282 of
the Code of Ordinances as it pertains to payment and
performance bonds.
MTS:ts
Attachment
Copy to: Director of Finance
Purchasing Manager
z.po6027 memo
P. O. No. 6027
08/19/09 gt
ORDINANCE NO.
AN ORDINANCE AMSNDING SECTION 2-282 OF TH8
CODE OF ORDINANCE3 AS IT PERTAINS TO PAYMENT
AND PERFORMANCE BONDS
WHEREAS, Section 2-282 of the Code of Ordinances delineates
the City's requirements for payment and performance bonds which is
that payment bonds are required for public work projects in excess
of $25,000 and that performance bonds are required for public work
projects in excess of $100,000 which was the same requirements that
had been delineated in Section 2253.021(a) Government Code; and
WHEREAS, House Bill 2515 as delineated in Exhibit "A" amended
the state requirements to provide for a payment bond when the
project is over $50,000; and
WHEREAB, it is deemed in the best interest of the citizens of
Port Arthur to revise the requirements for payment bonds.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COIINCIL OF THE CITY
OF PORT ARTHIIR:
3ectioa 1. That the facts and opinions in the preamble
are true and correct.
Section 2. That Section 2-282 of the Code of Ordinances
is herein amended as follows:
"Sec. 2-282. Bonds.
If the public works contract exceeds $50,000.00, a payment bond
shall be furnished. If the contract exceeds $100,000.00, a
performance bond shall also be furnished in the amount of 100
percent of the contract price with corporate surety duly
authorized to do business in the State of Texas. Attorneys-in-
z.po6027
fact who sign bonds must file with each bond a certified copy of
their power of attorney."
1 I
be spread upon the Minutes of the City Council.
Section 4. That this being an Ordinance amending an
Ordinance which does not carry a penalty, and does not require
publication, it shall take effect immediately from and after its
passage.
READ, ADOPTED AND APPROVED on this day of
A.D., 2009, at a Council Meeting of the City Council of the City
of Port Arthur, Texas, by the following vote:
AYES: Mayor
City Council
NOES:
MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
z.po6027
APPROVED FOR ADMINISTRATION:
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EXHIBIT "A"
z.po6027
81(R) HB 2515 -Enrolled version - Bill Text
Page 1 of 2
H.B. No. 251
relating to certain requirements applicable to certain public
contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2253 .021(a), Government Code, is amended
to read as follows:
(a) A governmental entity that makes a public work contract
with a prime contractor shall require the contractor, before
beginning the work, to execute to the governmental entity:
(1) a performance bond if the contract is in excess of
$100,000; and
(2) a payment bond if_
(A) the contract is in excess of $25,000, and the
22
a municipality Or a
SECTION 2. Section 53.231, Property Code, is amended to
read as follows:
Sec. 53.231. LIEN. (a) A person who furnishes material
or labor to a contractor under a prime contract with a governmental
entity other than a municipality or a joint board created under
Subchapter D Chapter 22 Transportation Code, that does not exceed
$25,000 and that is for public improvements in this state and who
gives notice required by this subchapter has a lien on the money,
bonds, or warrants due the contractor for the improvements.
exceed $50 000 and that is for public improvements in tula 5~a~o a..~..
who gives notice required by this subchapter has a lien on the
money bonds or warrants due the contractor for the improvements.
SECTION 3. Section 53.234, Property Code, is amended to
read as follows: -
Sec. 53.234. TIME FOR NOTICE. The lien claimant must give
notice [ ^a^ `^ "'^ ^^~""''^" ^''1 not later
than the 15th day of the second month following the month in which
the labor was performed or the material furnished.
SECTION 4. The changes in law made by this Act to Section
2253.021(a), Government Code, apply only to a contract entered into
on or after the effective date of this Act. A contract entered into
before the effective date of this Act is governed by the law in
effect when the contract was entered into, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2009.
President of the Senate
Speaker of the House
I certify that H.B. No. 2515 was passed by the House on April
28, 2009, by the following vote: Yeas 147, Nays 0, 1 present, not
http://www.legisstate.tx.us/tlodocs/81 R/billtext/html/HB02515F.htm 8/3 I /2009
81(R) HB 2515 -Enrolled version -Bill Text
Page 2 of 2
voting; and that the House concurred in Senate amendments to B.B.
No. 2515 on May 29, 2009, by the following vote: Yeas 141, Nays 0,
1 present, not voting.
Chief Clerk of the House
I certify that H.B. No. 2515 was passed by the Senate, with
amendments, on May 26, 2009, by the following vote: Yeas 31, Nays
0.
Secretary of the Senate
APPROVED:
Date
Governor
http://www.legis.state.tx.us/tlodocs/81R/billtext/html/HB02515F.htm 8/31/2009