§ 5.28.310. Bonds.

A.

The mayor may require in the specifications that persons submitting bids pursuant to this chapter accompany their bids with a bid bond in an amount and in a form acceptable to the purchasing officer. The bond shall be issued by a company qualified by law to do business as a surety in the state, or shall be in the form of a cashier's check, cash deposit or irrevocable letter of credit. A condition of the bond shall be that if the bidder receives the award, he shall enter into a contract therefor with the borough.

B.

If a requirement for a performance and payment bond is included in the terms of the invitation to bid, the mayor may require that any person awarded a borough contract furnish such bond, issued by a company qualified by law to do business as a surety in the state. The purchasing officer may allow in lieu of a surety bond, at least 2 individual sureties, each who justify in a sum equal to the amount of the bond. The bond shall be in an amount determined by the purchasing officer and in a form approved by the borough attorney. Such bonds shall, at a minimum, guarantee the full and faithful performance of all contract obligations and the payment of all labor and materials to be used under the contract.

C.

The mayor may grant a contractor exemption from bonds required by AS 36.25.010 and this chapter pursuant to the authority and conditions of AS 36.25.025. On projects where this exemption will be permitted, a bidder who seeks the exemption must submit the request and necessary information in advance of the bid, within a time specified in the bid instructions or request for proposal.

(Ord. No. 87-29, § 1(part), 1987)