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Committee approves substituted ordinance raising bonding caps, loosening inspection mandate for utility projects
Summary
The Transportation, Energy and Utilities Committee approved a substituted ordinance that raises certain contractor bond minimums, limits surety requirements for large projects to a fixed cap, removes a construction/engineering inspection requirement, and adds notice and bond-replenishment language. The substitute passed 7-0.
The Transportation, Energy and Utilities Committee approved a substituted ordinance March 4 that changes bonding and notice requirements for private construction work in Jacksonville and removes a previously proposed construction and engineering inspection mandate.
The substitute, approved unanimously, raises the small-project minimum bond in the ordinance language from $5,000 to $10,000, retains a requirement for large projects tied to cost-to-construct in concept but applies an industry-negotiated cap on large-project surety bonds, removes the construction and engineering inspection requirement and adds additional notice requirements and a requirement that the surety be replenished if drawn upon.
Edward Linsky, of the council auditor’s office, explained the scope of the substitute to the committee, saying the industry had produced language that "reduced it down to, the maximum of $50,000 bond, a surety bond for large projects, and then also removed the construction and engineering inspection, and then made a couple of additional changes to the, notice requirements." Linsky also said the substitute added a statement that a surety bond would need to be "replenished" through the year if it were drawn upon.
Councilmember Gay, the bill sponsor, thanked participants for reaching an agreement. "This is a win for the community," Gay said, describing the change as a response to residents’ frustrations about incomplete restoration following private work.
Carlo Fassi of TECO Peoples Gas External Affairs thanked the committee and industry stakeholders for negotiating the changes and said the company had committed previously to work on permitting reform.
The committee first took a voice vote to approve the rule substitute and then took a ballot vote on the bill as substituted. The committee recorded seven yeas and zero nays; the record shows the ordinance approved as substituted.
The ordinance package aims to increase resident notification and financial assurance for restoration while capping certain contractor surety obligations at an amount negotiated with industry. The measure will proceed per the council’s legislative process for enacted ordinances.
