LTC 111-2023 Construction Bond RefundDocuSign Envelope ID: 04900C49-D374-48FA-8E3E-4 BF7C52100A2
MIAMI BEACH
OF FIC E OF TH E C ITY M A N A G ER
LTC# LETTER TO COMMISSION
TO:
FRO M :
DA TE:
Honorable Mayor Dan Gelber~nd Memb rs of the City Commission
Alina T. Hudak, City Manage
March 6, 2023
SU B JEC T: Construction Bond Refund
The purpose of this L TC is to inform the Mayor and City Commission of Administration's
efforts to refund monies associated with construction bonds for roofing and pool projects
that were not claimed by either the property owner or applicant after the completion of the
project. The construction bonds at issue relate to projects dating back to 1989 through
2015. Construction bonds are a type of surety bond that protects against disruptions or
financial loss due to a contractor's failure to complete a project or failure to meet financial
obligations. Prior to 2015 the Building Department collected and processed refunds for
these construction bonds. In 2015, the City procedure changed to no longer require roofing
bonds, and the managing of the pool bonds was transferred to the Public Works
department. The Building Department has not collected construction bonds for any type
of projects since 2015.
The process for obtaining a refund is for either the owner or applicant to submit a bond
refund form to the City. During a review of the City's financial accounts, the Finance
Department reconciled a list of over 1,700 bonds between 1989-2015 that were never
reclaimed.
While we have received legal opinion that the bonds could be considered forfeited for not
being claimed within the time limitation, in good faith, the Administration is refunding all
eligible refunds to the property owners of record.
In order to disburse the monies being held, the Finance and Building Departments have
reached out to the property owners advising them that there are construction bonds still
being held by the City for roofing and pool permits, for which a refund was never
requested, and any eligible refunds would be refunded automatically.
The refund amount is in the range of $14.00-$8,000.00 per property and is based on the
amount originally paid by the property owner or applicant.
The Finance and Building Departments are in the process of verifying that the amounts,
names and addresses on the checks are correct, and estimate that the checks will be
issued and sent in the coming weeks.
If you have any questions, please feel free to contact Natasha Diaz, Building
Department-Assistant Director, at 305-673-7610 ext.26335 or at
natashadiaz@ miamibeachfl_gov.
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111-2023