Label
Amending TMC 187.09, 187.28 & 187.27(b)
Finance/Law
B. Benner (x1194)/E. Granata (x1034)
Title
Amending Toledo Municipal Code ("TMC") Sections 187.09 and 187.28 pertaining to bond requirements; amending TMC subsection 187.27(b) to reduce allowable payment period.
Body
SUMMARY & BACKGROUND:
This Ordinance amends Toledo Municipal Code Section 187.09 and 187.28 for the purpose of reducing required bid bonds for contracts not exceeding seventy-five thousand dollars ($75,000) and permitting the waiver of surety bonds for projects let pursuant to Code Section 188.07, the Small Business Reserve Program, and to require the surety bond cover performance and payments for benefit of subcontractors consistent with Ohio Revised Code requirements. The Ordinance also amends TMC Subsection 187.27(b) to reduce the contractor payment period to 30 days.
Summary
NOW, THEREFORE, Be it ordained by the Council of the City of Toledo:
SECTION 1. That the existing Toledo Municipal Code ("TMC") Section 187.09 which reads as follows:
187.09 Deposit to guarantee bid
Every bidder shall submit with any bid in an amount less than forty thousand dollars ($40,000) a bid guaranty in the amount of five percent (5%) of the bid, but in no event less than forty dollars ($40.00) nor more than one thousand dollars ($1,000). Any bidder submitting a bid in the amount of forty thousand dollars ($40,000) or more shall submit a bid guaranty in the amount of five percent (5%) of the bid, subject to a maximum amount of two hundred thousand dollars ($200,000). The bid guaranty may be a bid bond or a certified check or cashier's check on a solvent bank. The bid guaranty shall provide that if the bid is accepted, the bidder shall enter into a proper contract with the City in accordance with the bid, plans, details, specifications and bills of material. If the bidder fails to enter into a proper contract and the City awards the contract to the next lowest bidder, the bidder and the sure...
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