NUMB:
981569
VERS:
ORIGINAL
REF:
XXBY:
THE CHAIR
TITLE:
A charter ordinance relating to performance guaranties for department of public works contracts. (DPW)
SECS:
7-14-3 rc
ANLS:
- Analysis -
This charter ordinance modifies requirements for department of public works (DPW) contractors to provide performance guaranties for contracts, as required by 1997 Wisconsin Act 237. The charter ordinance increases from $500 to $10,000 the minimum contract amount for which a performance bond is required.
The current charter authorizes the DPW commissioner to accept several different financial guarantees for contracts under $25,000, including such items as personal indemnities, promises to pay and bank deposits. The charter ordinance deletes the commissioner's options and instead requires, for all contracts between $10,000 and $25,000, either a letter of credit or a performance bond of 50% of the contract price.
BODY:
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 7-14-3 of the charter is repealed and recreated to read:
7-14. Duties when Common Council Orders Public Works.
3. PERFORMANCE BOND. a. All contracts involving $10,000 or more for performance of labor or furnishing materials when the same pertain to any public improvement or public work shall contain a provision for the payment by the prime contractor of all claims for labor performed and materials furnished, used or consumed in making the public improvement or performing the public work.
b. Such contracts whose cost exceeds $10,000 in cost but does not exceed $25,000, shall not be made unless the prime contractor gives either an irrevocable letter of credit or a performance and payment bond or bonds issued by a surety company licensed to do business in the state of Wisconsin. Such bond shall carry a penalty of not less than 50% of the contract price, and shall be conditioned for the faithful performance of the contract and the payment to each person entitled thereto of all the claims for labor performed and materials furnished under the contract to be used or consumed in making the public improvement or performing the public work as provided in the contract and this section. No assignment, modification or change of the contract, or change in the work covered thereby, or any extension of time for the completion of the work may release the sureties on the bond or bonds.
c. Such contracts exceeding $25,000 in cost shall not be made unless the prime contractor gives a performance and payment bond or bonds issued by a surety company licensed to do business in the state of Wisconsin. Such bond shall carry a penalty of not less than the contract price, and shall be conditioned for the faithful performance of the contract and the payment to each person entitled thereto of all the claims for labor performed and materials furnished under the contract to be used or consumed in making the public improvement or performing the public work as provided in the contract and this section. No assignment, modification or change of the contract, or change in the work covered thereby, or any extension of time for the completion of the work may release the sureties on the bond or bonds.
Part 2. This is a charter ordinance and shall take effect 60 days after its passage and publication, unless within such 60 days a referendum petition is filed under s. 66.01(5), Wis. Stats., in which event this ordinance shall not take effect until submitted to a referendum and approved by a majority of the electors voting thereon.
LRB:
APPROVED AS TO FORM
____________________________
Legislative Reference Bureau
Date: _____________________
CATT:
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
___________________________________
Office of the City Attorney
Date: _____________________
ZDPT:
Department of Public Works
DFTR:
99028-1
CW
2/1/99