Laserfiche WebLink
change of coverage of insured or additional insured shall be effective until after thirty <br />(30) days prior written notice by certified mail thereof has been given to City. <br />Contractor shall give City prompt and timely notice of any claim made or suit <br />instituted. <br />9.5 Faithful Performance Bond <br />The Contractor shall, prior to the initial date of the term of this Agreement, execute and <br />file with the Clerk of the Council a surety bond in the penal sum of two -million, five - <br />hundred thousand dollars ($2,500,000), similar to the form provided in Exhibit 5, <br />conditioned upon the faithful performance of this Agreement by the Contractor and its <br />subcontractors, if any. Said bond may be written for a term of one year, and may <br />thereafter be renewed by certificate, provided however, that the Contractor agrees to <br />maintain such bond or bonds in force for the complete term of this Agreement. The <br />bond shall contain the original notarized signature of an authorized officer of the surety <br />and affixed thereto shall be a certified and current copy of his power of attorney. <br />9.6 Faithful Performance Letter of Credit <br />In addition to a faithful performance bond as noted in Section 9.5 above, Contractor <br />shall furnish an irrevocable letter of credit in the amount of five -hundred thousand <br />dollars ($500,000), from a financial institution acceptable to the City and in a form <br />acceptable to the City Attorney as security for the performance of this Agreement (the <br />"LOC"). The LOC shall be the sole responsibility of Contractor, and shall remain in <br />force until released in accordance with Section 9.9. Alternatively, Contractor may <br />furnish an irrevocable letter of credit in the amount of three -million dollars ($3,000,000) <br />in lieu of the separate letter of credit of $500,000 and separate performance bond of <br />$2,500,000 described in Section 9.5. <br />9.7 Forfeiture of Performance Bond <br />In the event Contractor shall for any reason become unable to, or fail in any way to, <br />perform as required by this Agreement, City may declare a portion or all of the <br />performance bond which is necessary to recompense and make whole the City, forfeited <br />to the City. Upon partial or full forfeiture of the performance bond, Contractor shall <br />restore the performance bond to its face amount within 30 days of the City's <br />declaration. Failure to restore the performance bond to its full amount within 30 days <br />shall be a material breach of the Agreement. <br />March 9, 2020 6041 L03 City of Santa Ana - DRAFT <br />