City Council Study Session Agenda and Packet 2008 05 27

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recycling. Misrepresentation bycontractor in records $1,500 pf;r incident. or reporting. Failure to make required reports on time. Failure to maintain clean and sanitary vehicles. $500.00 per incident. $250.00 per vehicle per occurrence. The above table is not an exclusive list of the acts or omissions.for which a penalty may be assessed. Also, the contract shall include provisions detailing those acts and omissions of the contractor which shall be considered violations or breaches of the contract. The contract will reserve to the City the right to exercise an,y and all remedies it may have with respect to these and other violations and breaches. Any schedule of penalties shall not affect the City's ability to terminate the contract for breach. 5.5 Contract Default Contractor shall provide a bond in the amount of $100,000 or equal to the cost of three month's service to the City, whichever is greater, to co~aer the City's costs in the event of contractor default. The contract for the. services will include a number of provisions protecting City interests in case of contractor default. These provisions may include requirements for surety interest in the contractor's equipment. The contract will also include provisions for successive levels of dispute resolution prior to litigation. 5.6 Force Majeure The contract will provide that neither party shall be liable to the other for any delay in, or failure of, performance where performance isprevented or delayed by acts of God, fire, explosion, accident, flood, earthquake, epidemic, war, riot, rebellion, restraints or injunctions, or other legal processes from which a party affected cannot reasonably relieve itself by security or otherwise. 5.7 Indemnification and Insurance The contractor shall be required to indemnify and hold harmless the City, its officers and its employees, from and against all liability, claims, and demands, on account of any injury, loss, or damage, which arise out. of or are connected with the contractor's performance of the contract, if such injury, loss, or damage, or any portion thereof, is caused by, or claimed to be caused by, the act, omission, or other fault of the contractor or any subcontractor of the contractor, or any officer, employee, or agent of the contractor or subcontractor, or any other person for whom the contractor is responsible. The contract shall include provisions for the contractor to defend against such claims. The contractor and any subcontractor of the contractor shall be required to carry at their own expense workers' compensation insurance, comprehensive general liability used in performance of the contract. The worker's liability insurance shall have limits of not less than $2,000,000 each occurrence and $4,000,000 aggregate. The vehicle liability 7