Miami-Dade Legislative Item
File Number: 073539
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File Number: 073539 File Type: Resolution Status: Adopted
Version: 0 Reference: R-173-08 Control: Board of County Commissioners
File Name: MANDATORY COLLECTION OF CONTRACT PENALTIES IN ALL CONTRACTS Introduced: 11/29/2007
Requester: NONE Cost: Final Action: 2/19/2008
Agenda Date: 2/19/2008 Agenda Item Number: 11A2
Notes: Title: RESOLUTION DIRECTING THE COUNTY MAYOR TO REQUIRE MANDATORY COLLECTION OF LIQUIDATED DAMAGES IN ALL CONTRACTS WHICH STIPULATE LIQUIDATED DAMAGES FOR NON-PERFORMANCE EXCEPT WHERE WAIVER OF LIQUIDATED DAMAGES HAS BEEN AUTHORIZED BY ORDINANCE
Indexes: CONTRACT
Sponsors: Carlos A. Gimenez, Prime Sponsor
  Sally A. Heyman, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 2/19/2008 11A2 Adopted P

Budget and Finance Committee 1/28/2008 2B Forwarded to BCC with a favorable recommendation P
REPORT: Assistant County Attorney Jess McCarty read the foregoing proposed resolution into the record. Commissioner Gimenez explained a number of County contracts stipulated liquidated damages for nonperformance reasons, and the County Administration would determine whether those stipulations were enforced. He noted the County Administration should enforce contract stipulations for liquidated damages; otherwise those provisions of the contract should not be included. He clarified in this proposed resolution the County Administration could waive liquidated damages through an ordinance approved by the County Commission. Hearing no other questions or comments, the Committee proceeded to vote.

County Attorney 11/29/2007 Assigned Budget and Finance Committee 1/15/2008

County Attorney 11/29/2007 Assigned David M. Murray 12/5/2007

Legislative Text


TITLE
RESOLUTION DIRECTING THE COUNTY MAYOR TO REQUIRE MANDATORY COLLECTION OF LIQUIDATED DAMAGES IN ALL CONTRACTS WHICH STIPULATE LIQUIDATED DAMAGES FOR NON-PERFORMANCE EXCEPT WHERE WAIVER OF LIQUIDATED DAMAGES HAS BEEN AUTHORIZED BY ORDINANCE

BODY
WHEREAS, entities under contract to provide goods or services to the County are expected to provide the contractual level of service established in the contract; and
WHEREAS, certain County contracts allow the County to collect stipulated liquidated damages from the contracting party in the event of contractual non-performance; and
WHEREAS, the language of many County contracts makes collection of these liquidated damages discretionary on the part of County staff; and
WHEREAS, if the County does not collect the liquidated damages, the County may not have received the level of service it expected from the contract; and
WHEREAS, collection of such liquidated damages should be mandatory in nature to avoid inconsistent results, except in certain unique circumstances; and
WHEREAS, consistent collection of such liquidated damages would encourage entities to abide by the terms of their contracts with the County,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that the County Mayor is hereby directed to include language requiring that the imposition and collection of liquidated damages shall be mandatory in all contracts in which liquidated damages for contractual
violations exist. The County Mayor can waive collection of such liquidated damages if in the best interests of the County and with the prior consent of the Board of County Commissioners made in accordance with the provisions of this resolution. When the Board of County Commissioners is requested to waive liquidated damages, the Mayor shall inform the Board of the contract requirement violated; the justification for the waiver; of any previous waivers under any contract between the County and the contractor; and a statement of whether future waivers under the contract are anticipated. The Mayor shall provide a report to the Board of County Commissioners on a quarterly basis on all liquidated damages collected. Where the County Manager or County Mayor has been delegated power by ordinance to waive the collection of liquidated damages or to extend contract time, this resolution shall not be applicable



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