2021/10/27 Council Agenda Packet

Federal Transit Administration Clauses bond. If the Bidder chooses to provide a Letter of Credit as its Performance Guarantee, the Bidder shall furnish with its bid, certification that an Irrevocable Stand -By Letter of Credit will be furnished should the Bidder become the successful Contractor. The Bidder shall also provide a statement from the banking institution certifying that an Irrevocable Stand -By Letter of Credit for the action will be providedif the Contract is awarded to the Bidder. The Irrevocable Stand -By Letter of Credit will only be accepted by the City of Everett if: 1. A bank in good standing issues it. The City of Everett will not accept a Letter of Credit from an entity other than a bank. 2. It is in writing and signed by the issuing bank. 3. It conspicuously states that it is an irrevocable, non -transferable, "standby" Letter of Credit. 4. The RECIPIENT is identified as the Beneficiary. 5. It is in an amount equal to 100% of the Contract value. This amount must be in U.S. dollars. 6. The effective date of the Letter of Credit is the same as the effective date of the Contract 7. The expiration date of the Letter of Credit coincides with the term of this Agreement. 8. It indicates that it is being issued in order to support the obligation of the Contractor to perform under the Contract. It must specifically reference the Contract between the City of Everett and the Contractor the work stipulated herein. The issuing bank's obligation to pay will arise upon the presentation of the original Letter of Credit and a certificate and draft (similar to the attached forms contained in Sections X and Y) to the issuing bank's representative at a location and time to be determined by the parties. This documentation will indicate that the Contractor is in default under the Contract. c. Payment Bonds A Labor and Materials Payment Bond equal to the full value of the contract must be furnished by the contractor to Recipient as security for payment by the Contractor and subcontractors for labor, materials, and rental of equipment. The bond may be issued by a fully qualified surety company acceptable to (Recipient) and listed as a company currently authorized under 31 C.F.R. part 223 as possessing a Certificate of Authority as described thereunder. 4. BUS TESTING (NOT APPLICABLE) The Bus Testing requirements pertain only to the purchase or lease of any new bus model, or any bus model with a major change in configuration or components to be acquired or leased with funds obligated by FTA. 5