AGENDA MARCH 9, 2011 5:00 PM 1. Meeting called to order 2. A ...

It is the responsibility of the Purchasing and Warehouse Manager to approve the return of bondsto unsuccessful bidders in a timely fashion after an award of purchase.Letters of Credit: this is a document issued by a bank authorizing the bearer to draw a specifiedamount from that bank or its agents. A letter of credit is often substituted for a performancebond unless prohibited by law, and is held until the fulfillment of all contract requirements. Theletter of credit must be irrevocable and made out to the Toho Water Authority.14.2 Waiver of Performance and Payment BondsThe Authority, at its discretion, may waive the performance and payment bond requirementwhen it is determined to be in the best interest of the Authority, unless otherwise prohibited byFlorida law. Section 255.05, Florida Statutes allows the performance and payment bond to bewaived for contracts of $200,000 or less. The Authority may determine to waive Bonds on acase by case basis.14.3 Acceptable Surety CompaniesWhen the contract amount of a project does not exceed $500,000 and when public funds areutilized for the project, a person, the Authority is required by law to accept, as surety for theproject, bid bonds, performance bonds, labor and materials payment bonds, or any other suretybonds which are issued by a surety company which fulfills each of the following provisions:A. The surety company is licensed to do business in the State of Florida;B. The surety company holds a certificate of authority authorizing it to write suretybonds in this state;C. The surety company has twice the minimum surplus and capital required by theFlorida Insurance Code at the time the invitation to bid is issued;D. The surety company is otherwise in compliance with the provisions of the FloridaInsurance Code; andE. The surety company holds a currently valid certificate of authority issued by theUnited States Department of the Treasury under 31 U.S.C. ss. 9304-9308.Surety companies will tenders proof of that compliance. All contract and bond requirements byState Law should be signed by a Florida Resident Insurance Agent.14.4 Insurance RequirementsPrior to commencing work, the contractor shall procure and maintain at the contractor’s owncost, for the duration of the contract and any extensions insurance against claims for injuries topersons or damages to property which may arise from or in connection with the performance ofthe work or services hereunder by the contractor, contractor’s agents, representative, employeesor subcontractors and any other insurance coverage required by the IFB or RFP.47|Page