6-4-12: FAITHFUL PERFORMANCE BOND:

Upon the commencement of construction, the grantee shall provide a construction performance bond that will faithfully guarantee the payment of all labor and material costs incurred by it or its subcontractors during construction of the system. The performance bond will be issued by a company licensed to do business in the state of Idaho and in a form approved by the city attorney. In addition, the grantee shall maintain throughout the construction period, a corporate surety bond issued by a company licensed to do business in the state of Idaho and in a form approved by the city attorney in the principal sum of one hundred thousand dollars ($100,000.00), naming the city as an insured. The surety bond shall guarantee performance of each term and condition of a franchise agreement executed under this chapter and in the event of a breach of condition of the bond, the amount thereof shall be recoverable from the principal by the city for all damages resulting from failure of the grantee to well and faithfully perform and observe any provision of its franchise. (Ord. 676, 9-25-2012)