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HomeMy WebLinkAbout1243 Amending City Code Section 135.110 Bid Security BILL NO. 2013-066 ORDINANCE NO. Ja�3 AN ORDINANCE AMENDING CITY CODE SECTION 135.110 RELATING TO BID SECURITY AND PERFORMANCE/PAYMENT BONDS FOR CONSTRUCTION CONTRACTS BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI AS FOLLOWS: SECTION 1 - AMENDMENT OF SECTION 135.110 OF THE CITY CODE. Title I, Chapter 135, Section 135.110 of the Riverside City Code is hereby amended to read as follows (language to be added is underlined; language to be deleted contains a strikethrough): SECTION 135.110: BID SECURITY, PERFORMANCE /PAYMENT BONDS FOR CONSTRUCTION CONTRACTS A. Bid Security. Bid security, in the form of a bond provided by a surety company authorized to do business in Missouri or the equivalent in cash, shall be required for all competitive sealed bidding for construction contracts. Bid security shall be in an amount equal to at least five percent (5 %) of the amount bid. After bids are opened, they shall be irrevocable for the period specified in the invitation for bids. The bid security shall be forfeited to the City if the bidder to whom an award is made fails to enter into the required contract or fails to deliver a required performance or payment bond. B. Contract Performance And Payment Bonds. When a construction contract is awarded, the following bonds or security shall be delivered to the City and shall become binding on the parties upon execution of the contract: 1. A performance bond satisfactory to the City Attorney, executed by a surety company authorized to do business in Missouri and having a rating of at least "A —" A+" from A.M. Best's or "AA" :..: • :: ' ' • • - • , in an amount equal to one hundred percent (100 %) of the portion of the contract that does not include the cost of operation, maintenance and money, along with; and 2. A payment bond satisfactory to the City Attorney, executed by a surety company authorized to do business in Missouri and having o .,. rating of at least "A-" �- from A.M. Bests or- �- a- ' :: , for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of constriction work provided for in the contract. The bond shall be in an amount equal to one hundred percent (100 %) of the portion of the contract price that does not include the cost of operation, maintenance and money. 3. In lieu of a surety bond as provided in subsections 1 and 2, the following forms of securities may be delivered in an amount equal to one hundred percent (100 %) of the portion of the contract that does not include the cost of operation, maintenance and money : i) cash, or ii) an irrevocable letter of credit drawn on a local financial institution acceptable to and in a form approved by the City Attorney. 4, .. .. _ . - - thc execution of a contract for furnishing supplies or services for the best interests of thc City. 4. Return of bid surety. Bonds and checks shall be returned to the unsuccessful bidders after an award has been made or bids have been rejected. SECTION 2 — REPEAL OF ORDINANCES IN CONFLICT. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed. SECTION 3 — SEVERABILITY CLAUSE. The provisions of this ordinance are severable and if any provision hereof is declared invalid, unconstitutional or unenforceable, such determination shall not affect the validity of the remainder of this ordinance. SECTION 4 — EFFECTIVE DATE. This ordinance shall be in full force and effect from and after the date of its passage and approval. BE IT REMBERED that the above was read two times by heading only, PASSED AND APPROVED by a majors of the Board o Aldermen and APPROVED by the Mayor of the City of Riverside this r day of , 2013. hp.....),rkz., yor Kathleen L. Rose - ATTEST: ., Robin Littrell, City Clerk