Item 6 - Ordinance Amending Section 3.28.070(G) of Municipal Code for Alternative Methods of Public Contract Security (2) (� fk AGENDA REPORT
cis .'`PR,-
CITY OF POWAY
IN THE COJ..
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Manag.\3 J
INITIATED BY: Kay D . Jimno, Director of Administrativ Services
Douglas A. Milton, Purchasing Manag
DATE: April 22 , 1986
SUBJECT: Ordinance Amending Section 3 . 28 . 070 (G) of
Municipal Code for Alternative Methods of
Public Contract Security
1
ABSTRACT
1 •
It is necessary for the City of Poway to adopt an ordinance amending
Section 3 . 28 . 070 (G) of the Poway Municipal Code to authorize alterna-
tive methods of contract security in lieu of surety bonds .
BACKGROUND
I
Presently, 'bidders on public works contracts are required to post
surety bonds securing performance, material and labor. Staff has
concluded that bidders should be permitted to supply other more cost
effective forms of security to assure faithful performance and payment
of labor and materials in public works contracts .
FINDINGS
It has been determined that security should be posted in the form of
a surety bond, a letter of credit drawn on an institution located in
San Diego County and approved by the City Attorney, or a cash deposit.
RECOMMENDATION
It is recommended that the City Council introduce and hold first read-
ing of the attached ordinance amending Section 3 . 28 . 070 (G) of the
Municipal Code to allow for alternative methods of security for public
works contracts . and set second reading for April 29, 1986 .
JLB:KDJ:DAM: jt
Attachment: Ordinance Amending Poway Municipal Code
ry ACTION: Mel istpealing, set second for 4-29-86
J Seibert, Dep y City Clerk
a` l lof 2 APR 221986 ITEM 6
d
410 . 410
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA
AMENDING THE PCWAY MUNICIPAL CODE
SECTION 3.28.070(G) PROVIDING FOR
ACCEPTANCE OF LETTER OF CREDIT OR CASH
DEPOSIT IN T.TFI1 OF SURETY BONDS
WHEREAS, The City Council has determined that bidders on capital improvement
projects should have the option of selecting frau more than one type of perfor-
mance security; and
WHEREAS, the City Council desires to specify the types of acceptable perfor-
mance securities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PCWAY DOES ORDAIN:
Section 1: Section 3.28.070(G) of the Poway Municipal Code shall be amended
to read as follows:
3.28.070(G) The City shall have authority to require a performance bend
and labor and materials security before entering a contract in such amount
as it finds reasonably necessary to protect the best interests of the City.
If the City requires security, the form and the amount of
the bend security shall be described in the notice inviting bids. The
notice inviting bids may provide thatIsecurity may be posted in the form of
a surety bond, a letter of credit drawn on an institution located in San
Diego County and approved by the City Attorney, or a cash deposit.
EFFECTIVE DATE: This ordinance shalil take effect and be in force thirty
(30) days after the date of its passaged and before the expiration of fifteen
(15) days after its passage, it shall be published once with the names and mem-
bers voting for and against the same in the Poway News Chieftain, a newspaper of
general circulation published in the City of Poway.
Introduced and first read at a regular meeting of the City Council of the
City of Poway held the 22nd day of April, 1986, and thereafter PASSED AND
ADOPTED at a regular meeting of said City Council held the day of
, 1986, by the following roll call vote:
AYES: CO()NCTTMFMRERS:
NOES: COUNCTIMFMRERS:
ABSENT: OCUNCI MFMRERS:
Carl R. Kruse, Mayor
Marjorie K. Wahlsten, City Clerk
o/Creditl
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(2 of 2 APR 22 1986 ITEM 6