|
and the excess risks must be protected by coinsurance, reinsurance, or other
<br />methods in accordance with Treasury Circular 297, revised September 1, 1978 (31
<br />DFR Section 223.10, Section 223.111). Further, the surety company shall provide
<br />City with evidence satisfactory to City, that such excess risk has been protected in
<br />an acceptable manner.
<br />3.4.3. The City will accept a surety bond from a company with a rating of B+ or better for
<br />bonds up to $2 million, provided, however, that if any surety company appears on
<br />the watch list that is published quarterly by Intercom of the Office of the Florida
<br />Insurance Commissioner, the City shall review and either accept or reject the
<br />surety company based on the financial information available to the City. A surety
<br />company that is rejected by the City may be substituted by the Bidder or proposer
<br />with a surety company acceptable to the City, only if the bid amount does not
<br />increase. The following sets forth, in general, the acceptable parameters for
<br />bonds: Policy- Financial
<br />holder's Size
<br />Amount of Bond Ratings Category
<br />500,001 to 1,000,000
<br />B+
<br />Class I
<br />1,000,001 to 2,000,000
<br />B+
<br />Class II
<br />2,000,001 to 5,000,000
<br />A
<br />Class III
<br />5,000,001 to 10,000,000
<br />A
<br />Class IV
<br />10,000,001 to 25,000,000
<br />A
<br />Class V
<br />25,000,001 to 50,000,000
<br />A
<br />Class VI
<br />50,000,001 or more
<br />A
<br />Class VII
<br />3.4.4 For projects of $500,000.00 or less, City may accept a Bid Bond, Performance
<br />Bond and Payment Bond from a surety company which has twice the minimum
<br />surplus and capital required by the Florida Insurance Code at the time the invitation
<br />to bid is issued, if the surety company is otherwise in compliance with the
<br />provisions of the Florida Insurance Code, and if the surety company holds a
<br />currently valid certificate of authority issued by the United States Department of
<br />the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as
<br />may be amended from time to time. The Certificate and Affidavit so certifying
<br />should be submitted with the Bid Bond and also with the Performance Bond and
<br />Payment Bond.
<br />3.4.5 More stringent requirements of any grantor agency are set forth within the
<br />Supplemental Conditions. If there are no more stringent requirements, the
<br />provisions of this section shall apply.
<br />ARTICLE 4
<br />MISCELLANEOUS
<br />4.1 A. The term "Contract Documents" as referenced herein shall include "Contract
<br />Documents" shall mean this Contract (together with all exhibits, addenda, Contractor
<br />Service Orders and written amendments issued thereto). The Contract Documents shall
<br />also include, without limitation (together with all exhibits, addenda, and written
<br />amendments issued thereto), the Request for Qualifications (RFQ), instructions to bidders,
<br />340
<br />
|