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Zannp X. Rotbage
BRANCH OFFICE CLERK OF THE CIRCUIT COURT BRANCH OFFICE
3117 OVERSEAS HIGHWAY MONROE COUNTY P.O. BOX 379
MARATHON, FLORIDA 33060 500 WHITEHEAD STREET PLANTATION KEY, FLORIDA 33070
TEL. (305) 743-9036 KEY WEST, FLORIDA 33040 TEL. (305) 852-9253
TEL. (305) 294-4641
M E M O R A N D U M
To: Suzanne Hutton, Assistant County Attorney
From: Danny L. Kolhage, Clerk
Date: November 5, 1991
Subject: Contract with R. K. Exteriors -
Hurricane Shutters
It has been brought to my attention that there is an
irregularity existing with the subject contract documents.
According to the Notice of Calling For Bids that was pub-
lished, a 5% bid bond or certified check was called for
and the successful bidder was required to post performance
and payment bonds.
As you know, my office has held up the transmittal of the
contract that was approved for execution because we have
not been supplied with the performance and payment bonds
called for in the Notice. Your office has advised that
you do not feel these bonds are necessary; however, I feel
that this is an irregularity that must be dealt with by
the Board.
We would appreciate an early resolution to this problem.
Danny Ko ge, Clerk
DLK:RLC
cc: County Attorney
County Administrator
Public Safety Division Director
Emergency Management Director
File
t'r1Ul 4C IVU. 1 1544
R.K. Exteriors & Aluminum Products
183 Orlando Drive tavernier, RECEIVED
Florida 33070
(305) 852-154¢
November 14, 1991 NOV 14 1991
Monroe County Public Safety
5192 Overseas Highway
Marathon, Florida 33050
bear Mr. Paris,
Pursuant to our conversation IaAf- ueeeek, in rcgarda
to the Hurricane Shutters for Monroe County Schools,
and our inability to obtain a perforrance bond. According
the our insurance oompany (Johnson 'a) it i.s impo'36ibia
to obtain a performance bond uttict.c-s an individual or
business has access to liquid .s r,.sefs. ilnfot tunatcty,
most sm411 businesses, like oura dnv.c not hove that
kind of liquid assets. Although wa rare Monroe County
taxpaDera, who own property in Monroe Cot,nty, The eetuitb
in a house is not thr_
^Sdme av Ii714id aasete.. The, amount
of liquid assets needed to obtain a performance bond
,for Thirty Nine thousand Pollan, would have to acl•ual
that amount in liquid a.4tAe.fs. The BQfini.fion of liquid
assets (according t
9 o the i nNurattr.,a C.ampany that providoG
Performance bonds) would be mnnee`1 e.cjtlal to the amount
in a savings account or CD's.
We feel that a solution to the. problem would be
CIS follows: Since the bid j+ac 1 Ft rectuirad that caGh
school be quoted separately and we cc,mpl i ed a,ith t.1v
specifications. The CtuOtes are. ag
1) Sugarloaf Elementary¢oilows:
2) Stanley Switiik - $6,899.00
3) CG1ynn .Archer - $24,484 00
We were told that as each schnol urns completed that
we would bet able to 91,rbmif a bill artd collect for the
completed wot-h .
8n w4>. propo$e thia, that we put up a cettifEaLI c},Nc.lz (like the bid bond that ,..G put up fur ($1 , 965.00)
for the amount of Eight Tliotasnnd Six Huridt ed Liyht'y nett Tare and forty onv cents ($23,b:S6. ¢1), i)trn insle.ad
of 6ul,mi tfiny a bill I l nr: t►te' work on CacTt of the nc:hools
are done and comply=fed (in order aA li6ted abuvc) The
amottnf due to ue ran ba added to the morliesr boin-id
until all wnr-i+ hay been completed y he
We r.o.r•te:inl, hope that this proposal will be ttceeyfabIC
to the- (ward. Aa a faxp fyor we rnotald appreciate- the
opporfunity to be able to work for the Courttey. And uu
fa' --el that if this iF accaptable that we will Mill be
able to accomrnoclafe f}t4 wishes of the- $oarsj att.! by able: to contpl.etr� the
our ctbot,e wort- b,y tits and of the 41car- as
supplier Tear: e•:upplie9 on hand c;nl ,-st;dy for production.
We a"C"310 }tell„+ to' hear from t)ta boat-d r-:utir,.
s n G e{ P
/`/`,
Richard Lee KnodI
8P1277
OUNTY jo'�qNROE
0000,
KEY WESTDA 33040
(305)294-4641
M E M O R A N D U M
DATE: November 20 1991
TO: Danny Kolhage
Clerk
BOARD OF COUNTY COMMISSIONERS
MAYOR, Wilhelmina Harvey, District 1
Mayor Pro Tem, Jack London, District 2
Douglas Jones, District 3
A. Earl Cheal, District 4
John Stormont, District 5
FROM: Suzanne A. Hutton
Assistant County Attorney
RE: Contract with RK Exteriors - Hurricane Shutters
Subsequent to receipt of your memorandum dated November 5, 1991,
concerning the above -referenced contract, I have reviewed the
notice of calling for bids, the request for proposal specifica-
tions, and the forms completed by bidders in response to the
request for proposals connected therewith. Additionally, I have
discussed the matter with both Rob Wolfe and Randy Ludacer. The
controlling documents are the forms completed and signed by
bidders and the specifications contained in the document entitled
"Request for Bid" dated July 9, 1991. The documents which each
bidder completed detail the particular shutter specifications for
individual schools. Additionally, the documents contain an
agreement, established by signing and submittal of the bid, to
accept the terms and conditions of the specifications. There is
no provision in those documents for acceptance additionally of
the terms of the notice of calling for bids.
While the notice of calling for bids does provide that the
successful bidder who is awarded a contract shall be required to
post performance and payment bonds, there are two other signifi-
cant provisions in the notice. The first is the provision that
"each bid shall constitute an offer to the County as outlined
therein ..." which limits the offer to the terms of that bid or
proposal. That offer is what the BCC accepted by awarding the
contract. Had the BCC invoked the notice provision requiring
posting performance and payment bonds, such conditional award
would have been considered a counteroffer. This was not done to
MM
my knowledge, indicating that the BCC contracted for only those
terms contained in the two documents - the request for bids
specifications and the bids signed by the bidders.
Additionally, the notice of calling for bids has a provision that
the BCC may waive irregularities and informalities in any or all
bids. By accepting the offer of RK Exteriors and awarding the
contract thereto, the Board implicitly waived the requirement
contained in the notice of calling for bids.
The only language contained in the request for bids which could
possibly lead to the requirement of performance and payment bonds
is the language found in the insurance paragraph requiring the
contractor to furnish insurances as required "by Monroe County
Code, Monroe County Public Works Manual, all state and federal
statutes." There is, however, no provision in any of those
sources that a contract for the amount of the contract awarded to
RK Exteriors be accompanied by performance and payment bonds.
Accordingly, it is my opinion, which is affirmed by other members
of this office, that the contract already awarded does not
require the contractor to provide a performance or payment bond.
SAH/jeh
cc: Reggie Paros
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xvannp IL. R®lbage
BRANCH OFFICE CLERK OF THE CIRCUIT COURT BRANCH OFFICE
3117 OVERSEAS HIGHWAY MONROE COUNTY P.O. BOX 379
MARATHON, FLORIDA 33050 500 WHITEHEAD STREET PLANTATION KEY. FLORIDA 33070
TEL. (305) 743.9036 KEY WEST, FLORIDA 33040 TEL. (305) 852-9253
TEL. (305) 294.4641
M E M O R A N D U M
To: Suzanne Hutton, Assistant County Attorney
From: Danny L. Kolhage, Clerk
Date: December 3, 1991
Re: Contract with RK Exteriors - Hurricane Shutters
This memorandum is to up -date you on the situation con-
cerning the contract with RK Exteriors for the installation
of hurricane shutters which was the subject of your memoran-
dum of November 20, 1991.
I appreciate the comments included in your memorandum and it
is clear that there was some confusion between the documents
provided to the bidders for their formal response and the
notice of calling for bids that was published in the news-
papers.
Your comments do provide us with some direction in this mat-
ter; however, there are two points which still cause me some
concern. First, based upon my knowledge of the custom and
practice of the Board of County Commissioners over the
years, I can say with some confidence that in any case where
there was an irregularity or informality in any bid
response, that those matters were reported to the Board at
the time that the award was made and they were asked to
specifically either waive them or take some action to reject
the bid. You should also know that I have been in contact
with the Division Director in this matter, namely Reggie
Paros, and he fully intended for the performance bond
requirement to be included in the notice of calling for bids
and he remains firm that under the conditions which surround
the provision of this type of goods and services, that the
performance bond be provided by the bidder.
Regg