4.3. SR 09-26-1994 - Laserfiche WebLink

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. 5. . . the payment of premiums shall be filed with the City showing payment of premiums for at least one year in advance and on each renewal date provided therein. Performance Bond. (a) Bond. The Contractor shall execute and deliver to the City a performance bond in the sum of $100,000 conditioned upon the faithful performance of the Agreement. In addition, to further protect the City in the event the Contractor fails to properly perform under the Agreement, the Contractor shall pledge to the City all receivables collected by the City and not paid to the Contractor, and all receivables not yet collected by the City. This Agreement shall not become effective until such bond has been delivered to the City in form acceptable to the City Attorney and has been accepted by the City. Such bond shall be filed with the City Clerk within 10 days from the execution of this Agreement and shall remain in effect until the expiration of this Agreement. (b) Performance Guarantee. In lieu of providing a performance bond or bonds with the City of Elk River, the Contractor shall guarantee performance of this Agreement by delaying the billing of services to the City until the 15th day of the month following the month in which collection services were rendered by the Contractor. The City may withhold payment from the Contractor for failure to perform pursuant to this Agreement. (c) Remedv. In the event the Contractor fails to properly perform under this Agreement, the City may take whatever action is necessary to secure substitute garbage and refuse collection for the remainder of the Agreement term, and may use the proceeds of the bond and/or receivables mentioned above to pay for the difference between the rates provided by the Agreement and the actual cost of such substitute service subject to Section IV.E.10. (a) . 13 .