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July 15, 2024 Page 43 City of San Leandro Post Collection in this Agreement may be construed as limiting in any way the extent to which the Contractor may 1650 be held responsible for payments of damages to Persons or property resulting from Contractor's or 1651 any Subcontractors’ performance of services. 1652 9.3 PERFORMANCE BOND 1653 Within seven (7) calendar days of the City’s notification to Contractor that the City has executed this 1654 Agreement, Contractor shall file with the City a bond, payable to the City and in a format approved by the 1655 City, securing the Contractor's performance of its obligations under this Agreement and such bond shall 1656 be renewed annually if necessary so that the performance bond is maintained at all times during the Term. 1657 The principal sum of the bond shall be eight-hundred eighty thousand one-hundred ninety-three dollars 1658 and twelve cents ($880,193.12). The bond shall be adjusted every three (3) years, commencing with Rate 1659 Period Three, to equal three (3) months of the prior Rate Period’s annual Gross Receipts. The bond shall 1660 be executed as surety by a corporation authorized to issue surety bonds in the State of California that has 1661 a rating of A or better in the most recent edition of Best’s Key Rating Guide, and that has a record of 1662 service and financial condition satisfactory to the City. 1663 In lieu of a performance bond, City and Contractor may agree that Contractor shall provide for the 1664 issuance of an irrevocable stand by letter of credit (the "Letter of Credit") by a bank approved by City in 1665 its sole discretion (the "Bank") for the benefit of City for at least the duration of the Contract Year for 1666 which the letter of credit is deposited. Such Letter of Credit shall be in the amount of two million dollars 1667 ($2,000,000) (the "Stated Amount"). Nothing in this Section 9.3 shall in any way obligate Authority to 1668 accept a letter of credit in lieu of the performance bond. 1669 The expiration date of the Letter of Credit must be sooner than the Term of this Agreement provided in 1670 Section 2.1 (the "Stated Expiration Date"), unless it provides that it will not be terminated, modified, or 1671 not renewed except after prior written notice by certified mail, return receipt requested, to City sixty (60) 1672 calendar days in advance of termination or failure to renew. The Letter of Credit may expire on the date 1673 on which the Bank receives a certificate from City saying that the Term has expired, or this Agreement has 1674 been terminated and Contractor owes City no money under this Agreement, or that Contractor has 1675 substituted an alternative letter of credit or other security document acceptable to City in City's sole 1676 discretion. The form of the Letter of Credit, including the procedures for and place of demand for payment 1677 and drawing certificate attached thereto, is subject to approval of City in its sole discretion, following the 1678 notice procedures defined in Section 12.9 below. The Letter of Credit must be transferable to any 1679 successor or assignee of City. 1680 The City shall have the right to draw against the faithful performance bond or the letter of credit in the 1681 event of an uncured default pursuant to Section 10.2. Within five (5) calendar days of receipt of notice 1682 from the City of such default, Contractor shall renew or replace such sums of money as needed to bring 1683 the faithful performance bond or letter of credit current. 1684 9.4 CORPORATE GUARANTY 1685 Concurrently with execution of this Agreement, Contractor shall furnish a Guaranty of its performance 1686 under this Agreement, in the form attached hereto as Exhibit E and incorporated herein by reference, 1687 properly executed by USA Waste of California, Inc. 1688 Docusign Envelope ID: C78C62DE-8589-496F-8F5A-DEC38EE5853C