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CITY OF ARDEN HILLS, MN CONTRACT FOR THE COLLECTION OF RESIDENTIAL RECYCLABLE MATERIALS Page 15 12.4.7 The annual work plan shall include initiatives to improve the City’s recycling program. These initiatives may include (but are not limited to) expansion of materials collected, voluntary expansion to businesses, effective education of residents - with measurement, community involvement, outreach to low participating communities, and outreach using electronic communications including e-mail reminders and apps. 13 Default and Termination 13.1 If the work to be done under this Contract is abandoned by the Contractor; or if this Contract is assigned by it without the written consent of the City Council; or if the Contractor is adjudged bankrupt; or if a general assignment of assets is made for the benefit of the Contractor’s creditors; or if a receiver is appointed for the Contractor of any of its property; or if, at any time, the City determines that the performance of the work under this Contract is being unnecessarily delayed or that the Contractor is violating any of the conditions of this Contract, or that it is executing the same in bad faith or otherwise not in accordance with the terms of this Contract, then the City may serve written notice upon the Contractor and its surety of the City’s intention to terminate this Contract. 13.2 Unless within twenty-one (21) days after the servicing of such notice, a satisfactory arrangement is made for continuance, this Contract shall terminate and the Contractor and its surety shall be liable to the City for all costs. 13.3 The City May Withhold Payments or Performance Bond In the event of Contractor’s default under the terms of this Contract, all payments due the Contractor shall be retained by the City and applied to the completion of the Contract and to damages suffered and expense incurred by the City by reason of such default, unless the surety on the performance bond shall assume the Contract, in which event all payments remaining due the Contractor at the time of default, less amounts due the City from the Contractor and less all sums due the City for damages suffered and expense incurred by reason of such default shall be due and payable to such surety. Thereafter, such surety shall receive monthly payments equal to those that would have been paid to the Contractor had such Contractor continued to perform the Contract. 13.4 Liquidated Damages 13.4.1 The imposition of liquidated damages is not a penalty, but recognition of the difficulty of ascertaining the damage resulting from certain types of performance breaches. The assessment of liquidated damages shall be at the reasonable discretion of the City and shall be in lieu of other remedies, if imposed. 13.4.2 The City may deduct the full amount of any liquidated damages from any payment due to the Contractor, but any liquidated damages not so deducted shall remain the obligation of the Contractor and be payable to the City on demand. 13.4.3 The City may assess liquidated damages in lieu of other remedies available to the City for breach of the Contract or violation of the City’s ordinances. Failure to impose liquidated damages for lack of performance shall not constitute a waiver of the City’s other rights and/or remedies under either the Contractor or the City’s ordinances or any subsequent failure of performance.