1993-043-RES WHEREAS, the City Council of the City of Paris is desirous of affording fluoridated water to its citizens;

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of, or in connect~on with the performance of services by PERFORMING AGENCY under this contract to the extent allowed by law, and to the extent of damages permitted under Chapter 101 of the Texas Civil Practice and Remedies Code. PERFORMING AGENCY, by acceptance of funds provided through contract, agrees and ensures that personnel paid from these funds are duly licensed and/or qualified to perform the required services. ~CLB 14. Bondina Each person employed by PERFORMING AGENCY who handles funds under this contract, including persons authorizing payment of such funds, will be covered by the terms of a fidelity bond providing for indemnification of losses occasioned by: (1) any fraudulent or dishonest act or acts committed by any of PERFORMING AGENCY' s employees either individually or in concert with others, and/or, (2) failure of PERFORMING AGENCY or any of its employees to perform faithfully his/her duties or to account properly for all monies and property received by virtue of his/her position or employment. This fidelity bond will be in the amount of not less than Ten Thousand Dollars (SlO,OOO). In the event that PERFORMING AGENCY, being an independent contractor, maintains a self-insurance program that provides for the indemnification of losses as described in the above paragraph regarding fidelity bonds, then PERFORMING AGENCY will provide RECEIVING AGENCY a certified statement which summarizes its self- insurance plan. The certified statement will be submitted at the time this contract is submitted for approval. Any changes to said plan, which occur during the term of this contract period, will be reported to RECEIVING AGENCY. The self-insurance program should be based on the determination that the coverage can be provided at a cost no greater than the cost of obtaining equivalent coverage from an insurance company. ARTICLE 15. SusDension/Termination If PERFORMING AGENCY fails to comply with RECEIVING AGENCY's reporting requirements, the program objectives, or the contract award conditions, RECEIVING AGENCY may withhold payments. RECEIVING AGENCY will provide advance written notice to PERFORMING AGENCY which will identify the deficiency and RECEIVING AGENCY's intent to withhold payments if the deficiency is not corrected within a specific number of days. When the deficiency is corrected, RECEIVING AGENCY will release any withheld payments with no further action. If PERFORMING AGENCY fails to comply with the terms, conditions, or standards of this contract, RECEIVING AGENCY may suspend the contract and prohibit PERFORMING AGENCY from incurring additional obligations of funds pending either corrective action or termination. RECEIVING AGENCY will provide written notice to PERFORMING AGENCY at least thirty (30) days in advance of the suspension date. Such notice will detail the nature of noncompliance and specify a correction date. PERFORMING AGENCY may request a hearing on the proposed suspension if such request is made in writing within ten (10) days from any final notification of suspension. This contract may be terminated by either of the parties hereto for noncompliance by the other party. A party intending to terminate for noncompliance by the other party will provide written notice to the other party at least thirty (30) days prior to the intended date of termination. Such notice will include the reasons for the termination and will provide the other party an opportunity to rebut the reasons in writing. A hearing may be requested on the proposed termination if such request is made in writing within ten (10) days from any final notification of termination. By such termination, neither party may nullify obligations already incurred for performance or failure to perform prior to the date of termination. Such termination will not be an exclusive remedy but will be in addition to any other rights and remedies provided by law or under this contract. 9