§ 2-308. Payment and performance bonds and insurance.

(a)

When a contract is estimated to exceed one hundred thousand dollars ($100,000.00) for the construction of a public building, for the prosecution and completion of a public work or for repairs upon a public building, or other public work as provided in F.S. § 255.05, as amended, or when the purchasing administrator deems it to be reasonably necessary to protect the best interests of the city, the following bonds shall be executed and delivered to the city's purchasing division and shall become binding on the parties upon the execution of the contract:

(1)

A performance bond satisfactory to the city, executed by a corporate surety authorized to do business in the state of Florida as a surety in an amount equal to one hundred (100) percent of the price specified in the contract and conditioned that the contractor shall perform the contract in the time and manner prescribed in the contract; and

(2)

A payment bond satisfactory to the city, executed by a corporate surety authorized to do business in the state of Florida as a surety in an amount equal to one hundred (100) percent of the price specified in the contract and conditioned that the contractor shall promptly make payments to all persons who supply labor, materials or commodities used directly or indirectly in the performance of the work provided for in the contract.

(3)

In lieu of a performance bond and payment bond the city may accept cash, money order, certified check, cashiers check, or irrevocable letter of credit in the amount of one hundred (100) percent of the contract price. Such alternate form of security shall be for the same purpose and shall be subject to the same conditions as a performance bond and payment bond.

(4)

Authority to require additional bonds. Nothing in this section shall be construed to limit the authority of the purchasing administrator to require a performance bond or other security in addition to those bonds in circumstances other than those specified in this policy.

(b)

Insurance. The successful bidder shall be required to obtain, at its own expense, all minimum insurance coverages required under the terms of the bid documents and contract and to submit at a minimum, copies of all insurance certificates to the city for approval. No work under the contract may be commenced until the required insurance has been obtained and proof of such insurance has been approved.

(Ord. No. 91-180, § 12, 1-21-92; Ord. No. 94-130, § 9, 6-7-94; Ord. No. 2013-102, § 7, 3-6-13)