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(b) The City of Eugene shall not be liable, either directly or indirectly, in any dispute arising out of the substance or procedure of Contractor's drug testing program. Nothing in this drug testing provision shall be construed as requiring Contractor to violate any legal, including constitutional, rights or any employee, including but not limited to, selection of which employees to test and the manner of such testing. The City shall not be liable for Contractor's negligence in establishing or implementing, failure to establish or implement a drug testing policy, or for any damage or injury caused by Contractor's employees acting under the influence of drugs while performing work covered by this contract. These are Contractor's sole responsibilities and nothing in this provision is intended to create any third party beneficiary rights against the City. 3. ORS 279C.510 Demolition contracts to require material salvage; lawn and landscape maintenance contracts to require composting or mulching. 3.1. If this public improvement contract includes demolition, the contractor shall salvage or recycle construction and demolition debris, if feasible and cost-effective. 3.2. If this public improvement contract includes services for lawn and landscape maintenance the contractor shall compost or mulch yard waste material at an approved site. 4. ORS 279C.515 Conditions concerning payment of claims by public officers, payment to persons furnishing labor or materials, and complaints. 4.1. If the Contractor fails, neglects or refuses to make prompt payment of any claim for labor or services furnished to the contractor or a subcontractor by any person in connection with this contract as the claim becomes due, the City may pay such claim to the person furnishing the labor or services and charge the amount of the payment against funds due or to become due the Contractor by reason of the contract. 4.2. If the Contractor or a first-tier subcontractor fails, neglects or refuses to make payment to a person furnishing labor or materials in connection with the contract within 30 days after receipt of payment from the City or the Contractor, the Contractor or first-tier subcontractor shall owe the person the amount due plus interest charges commencing at the end of the 10-day period that payment is due under ORS 279C.580(4) and ending upon final payment, unless payment is subject to a good faith dispute as defined in ORS 279C.580. The rate of interest charged to the Contractor or first-tier subcontractor on the amount due shall equal three times the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank in the Federal Reserve district that includes Oregon on the date that is 30 days after the date when payment was received from the contracting agency or from the Contractor, but the rate of interest may not exceed 30 percent. The amount of interest may not be waived. 4.3. if the Contractor or a subcontractor fails, neglects or refuses to make payment to a person furnishing labor or materials in connection with the public improvement contract, the person may file a complaint with the Construction Contractors Board, unless payment is subject to a good faith dispute as defined in ORS 279C.580. 4.4. The payment of a claim in the manner authorized in this section does not relieve the Contractor or the contractor's surety from obligation with respect to any unpaid claims. 5. ORS 279C.830 Public Works Bond 5.1 A contractor or subcontractor, unless exempt under ORS 279C.800 to 279C.870, shall file with the Construction Contractors Board a public works bond with a corporate surety authorized to do business in this state in the amount of $30,000. The bond must provide that'the contractor or subcontractor will pay claims ordered by the Bureau of Labor and Industries to workers performing labor under Public Works projects. Before permitting a subcontractor to start work on a Public Works project, the contractor shall verify the subcontractor has also filed a public works bond with the Construction Contractors Board. 5.2 Before starting work on a contract for a Public Works project, the contractor shall provide the.City with a written statement certifying contractor and any subcontractor have filed a public works bond as required above. 6. ORS 279A.120 Nonresident Contractors. 6.1. As used in this section, "nonresident contractor" means a contractor that: (A) has not paid unemployment taxes or income taxes in the state of Oregon during the 12 calendar months immediately preceding submission of the bid for the contract, (B) does not have a business address in this state and (C) stated in the bid for the contract that it was not a "resident bidder' under ORS 279A.120. 6.2. If the Contractor is a nonresident contractor and the contract price exceeds $10,000, the Contractor shall promptly report to the Department of Revenue on forms to be provided by the Department of Revenue the total contract price, terms of payment, length of contract and such other information as the Department of Revenue may require before the Contractor may receive final payment on the public contract. The City may not award a Public Improvement contract or a Public Standard Contract Provisions--Page 2 (Revised December 2005)