A. Bid Bonds. The purchasing officer may require 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 from a bank with a branch in the Matanuska-Susitna Borough or the municipality of Anchorage. A condition of the bond shall be that, if the bidder receives the award, the bidder shall enter into a contract therefor with the city.

B. Performance and Payment Bonds. If a requirement for a performance and payment bond is included in the terms of the invitation to bid or request for proposals, the purchasing officer may require that any person awarded a city contract furnish such bond, issued by a company qualified by law to do business as a surety in the state. The bond shall be in an amount determined by the purchasing officer and in a form approved by the city attorney. Such bonds shall, at a minimum, guarantee the full and faithful performance of all contract obligations and payment for all labor and materials to be used under the contract.

C. Exceptions. In accordance with AS 29.25.010(a)(10), the purchasing officer may grant exceptions from bonds pursuant to AS 36.25.025. (Ord. 644 § 4, 2004)