03 - Laserfiche WebLink

City of Pleasanton Article 9. Indemnity, Insurance, Bond Franchise Agreement with Pleasanton Garbage Service City of Pleasanton Page 115 June 7, 2022March 8, 2018 exceeding the amount of any deductibles or self-insured reserves is made by any third Person 4044 against the Contractor or any Subcontractor on account of any occurrence related to this 4045 Agreement, the Contractor shall promptly report the facts in writing to the insurance carrier and to 4046 the City. 4047 C. If Contractor fails to procure and maintain any insurance required by this Agreement, the City may 4048 take out and maintain, at the Contractor's expense, such insurance as it may deem proper and 4049 deduct the cost thereof from any monies due to the Contractor. 4050 D. The Commercial General and Automobile Liability insurance required by Sections 9.5.2 and 9.5.4.A 4051 shall be written on an "occurrence", rather than a "claims made" basis, if such coverage is 4052 obtainable. If it is not obtainable, Contractor must arrange for a thirty-six (36) month "tail coverage" 4053 to protect the City from claims filed after the expiration or termination of this Agreement relating 4054 to incidents which occurred prior to such expiration or termination. 4055 9.6 Performance Bond 4056 Within five (5) Business Days of the City’s notification to Contractor that the City has executed this 4057 Agreement, Contractor shall file with the City a bond, payable to the City, securing the Contractor's 4058 performance of its obligations under this Agreement and such bond shall be renewed annually if necessary 4059 so that the performance bond is maintained at all times during the Term. The City will accept an annual 4060 performance bond; however, neither non-renewal (or cancellation, if applicable) by the surety, nor failure 4061 or inability of Contractor to file a replacement bond in the event the surety exercises its right to not renew 4062 the bond, shall itself constitute a loss to the City recoverable under the bond or any extension thereof. If 4063 any conflict or inconsistency exists between the surety's obligations or undertakings as described in the 4064 bond and this Agreement, then the terms of the bond shall prevail. The principal sum of the bond shall 4065 be One Million Dollars ($1,000,000) unless the Agreement is assigned in which case the principal sum of 4066 the bond may be increased by the City to Seven Million Dollars ($7,000,000) and thereafter the principal 4067 sum of the bond may be adjusted every three (3) years, commencing with Rate Period Three, to equal 4068 three (3) months of the annual Gross Rate Revenues. The bond shall be executed as surety by a 4069 corporation authorized to issue surety bonds in the State of California, that has a rating of A-XII or better 4070 in the most recent edition of Best’s Key Rating Guide, and that has a record of service and financial 4071 condition satisfactory to the City. The bond shall be in the form attached as Exhibit K. 4072