2017 Sealcoat Project 17-02: Accept Bids and Award Contract l
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CITY OF CHANHASSEN
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9 S Chanhassen isa Community for Life-Providing for Today and Planning for Tomorrow
NH AS
MEMORANDUM
b
TO: Paul Oehme, Director of Public Works/City Engineer
FROM: Stephanie Smith, Project Engineer
DATE: March 13, 2017
SUBJ: 2017 Sealcoat Project No. 17-02: Accept Bids and Award Contract
PROPOSED MOTION
"The City Council approves a resolution accepting bids and awarding a contract for the 2017
Sealcoat Project to Pearson Brothers, Inc. for roadway sealcoating in the amount of$247,877.00."
City Council approval requires a simple majority vote of the City Council present.
BACKGROUND
Annually,the City has completed a sealcoat project to extend the life of its streets and parking lots. The
Pavement Management Program identified the streets,trails and parking lots in the project for
maintenance this year. Staff visited each street to visually review the pavement condition and confirm
sealcoating is required.
DISCUSSION
A sealcoat program is a cost-effective tool to protect the capital asset of a street and extend the life of the
street system. Sealcoating is the application of asphalt emulsion followed immediately with an
aggregate cover. Sealcoating of streets is beneficial because it can:
• Delay or eliminate further aging of pavement due to water and sun.
• Seals to provide a moisture barrier.
• Fills in raveled pavement areas.
• Enriches under-asphalt pavement.
• Seals cracks temporary or permanently.
• Performs minor leveling.
• Restores surface friction to improve wheel grip.
• Economically prolongs the life of existing pavements.
It is estimated that a sealcoat application extends the life of pavement from three to six years at a fraction
of the cost of street rehabilitation or bituminous overlay projects. It is, therefore, more cost effective to
sealcoat roadways when fewer pavement distresses are present versus letting the pavement deteriorate
until major, costly rehabilitation or reconstruction projects are required.
PH 952.227.1100• www.ci.chanhassen.mn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Paul Oehme
2017 Sealcoat Project: Accept Bids&Award Contract
March 13,2017
Page 2
This project will also include a double-chip seal for parking lots that are in greater distress. This
sealcoat technique provides additional aggregate to reinforce the distressed pavement surface.
As Bid Alternate#1, a sealcoat emulsion with sand will be utilized on the trails in this project. This
technique will result in a smoother surface for recreational use by bicycles and rollerblades.
BIDS RECEIVED
City staff solicited bids by advertising in the local newspaper and QuestCDN two weeks prior to the bid
opening. On February 23, 2017,three bids were received for the 2017 Sealcoat Project No. 17-02. Bid
amounts for the project are shown below:
Alternate#1 Grand Total
Base Bid Bid Bid
Allied Blacktop Company $262,120.55 $10,388.00 $272,508.50
Asphalt Surface Technologies $269,199.00 $15,900.00 $285,099.00
Corp.
Pearson Brothers, Inc.* $237,277.00 $10,600.00 $247,877.00
*Indicates low grand total bidder
Pearson Brothers, Inc. has completed previous projects in the city of Chanhassen. Their past work has
been acceptable.
Sealcoating activities will tentatively start in July 10, 2017 with a completion date of August 31, 2017
for streets and parking lots and a completion date of September 22, 2017 for trails. City staff will send
out notifications to all affected property owners prior to work commencing.
This project was budgeted for 2017 in the CIP Pavement Management(ST-018). The remaining funds
in this budget item are used for in-house projects such pothole patching, curb repairs, sidewalk repairs,
and other miscellaneous street and trail repairs.
Attachment: 1. Resolution
2. CIP Page
3. Project Maps
c: Charlie Burke, Street Superintendent
g:\eng\sealcoat\2017\communication\1 703 13_cc_award contract memo.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: March 13, 2017 RESOLUTION NO: 2017-XX
MOTION BY: SECONDED BY:
A RESOLUTION ACCEPTING BID AND AWARDING CONTRACT
FOR THE 2017 SEALCOAT PROJECT NO. 17-02
WHEREAS,pursuant to an advertisement for bids for the 2017 Sealcoat Project,three bids
were received, opened and tabulated according to law,and the following bids were received
complying with the advertisement:
Alternate #1 Grand Total
Base Bid Bid Bid
Allied Blacktop Company $262,120.55 $10,388.00 $272,508.50
Asphalt Surface $269,199.00 $15,900.00 $285,099.00
Technologies Corp.
Pearson Bros., Inc.* $237,277.00 $10,600.00 $247,877.00
*Indicates low grand total bidder
AND WHEREAS,it appears that Pearson Bros.,Inc. is the lowest responsible bidder.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Chanhassen:
1. The mayor and clerk are hereby authorized and directed to enter into a contract with
Pearson Bros., Inc. in the name of the City of Chanhassen for the 2017 Sealcoat Project No. 17-02
according to the plans and specifications on file in the office of the City Engineer.
2. The city clerk is hereby authorized and directed to return forthwith to all bidders the
deposits made with their bids, except that the deposits of the successful bidder and the next lowest
bidder shall be retained unto a contract has been signed.
Passed and adopted by the Chanhassen City Council this 27th day of March, 2017.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger, Mayor
YES NO ABSENT
Capital Improvement Program 2017 thru 2021 Department Street improvements
City of Chanhassen, MN Contact Paul Oehme
Project# ST-018 Type Maintenance
Useful Life 7-10 years
Project Name Pavement Management
Category Streets/Highways
Account#1 420-0000-4751 Account#3 Priority n/a
Account#2 Account#4
Description Total Project Cost: $4,120,000
This project will provide maintenance such as crack sealing,seal-coating,pothole patching,replacement of curb and gutter and sidewalk repairs for
City streets. Also included in this project are trails and City parking lot rehabilitations. Seal-coat projects will be determined annually based on
the pavement condition index as generated by the pavement management program. The street department uses this finding source to pay for
bituminous material for annual street patching.
Justification
This will provide a centralized funding mechanism that will help reduce the effect on General Fund operating expenditures.
Prior Expenditures 2017 2018 2019 2020 2021 Total
2,620,000 Maintenance 300,000 300,000 300,000 300,000 300,000 1,500,000
Total Total 300,000 300,000 300,000 300,000 300,000 1,500,000
Prior Funding Sources 2017 2018 2019 2020 2021 Total
2,620,000 Street Pavement Management 207,000 207,000 207,000 207,000 207,000 1,035,000
Total Tax Levy 93,000 93,000 93,000 93,000 93,000 465,000
Total 300,000 300,000 300,000 300,000 300,000 1,500,000
Budget Impact/Other
These improvements will cost effectively prolong the life of the street so major improvements such as reconstruction projects can be delayed.
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RECEIUED
APR 1 4 2017
FORM OF AGREEMENT
BETWEEN CITY OF CHANHASSEN AND CONTRACfBil OF CHANHASSEN
THIS AGREEMENT, made this l3th day of March,2017, by and between the CITY OF
CHANHASSEN, a Minnesota municipal corporation ("Owner") and PEARSON BROTHERS,
INC. ("Contractor"). Owner and Contractor, in consideration of the mutual covenants set forth
herein, agree as follows:
l. CONTRACT DOCUMENTS. The following documents shall be referred to as
the "Contract Documents", all of which shall be taken together as a whole as the contract
between the parties as if they were set verbatim and in full herein:
A. This Agreement;
B. Addendum No. 2 dated February 21,2077;
C. AddendumNo. I dated February 17,2017;
D. Specifications dated February 10,2017;
E. City of Chanhassen General Conditions of the Construction Contract;
F. Quote/Bid dated February 23,2017 for the 2017 Sealcoat Project 17-02.
In the event of a cont'lict among the provisions of the Contract Documents, the order in which
they are listed above shall control in resolving any such conflicts with Contract Document "Ao'
having the first priority and Contract Document'oF" having the last priority.
2. OBLIGATIONS OF THE CONTRACTOR. The contractor shall provide the
goods, services, and perform the work in accordance with the Contract Documents.
3. CONTRACT PRICE. Owner shall pay Contractor for completion of the Work
in accordance with the Contract Documents the amount of Two Hundred Forty-Seven Thousand
Eight Hundred Seventy-Seven Dollars and 00/100 (5247,877.00).
4. PAYMENT PROCEDURES.
A. Contractor shall submit Applications for Payment. Applications for
Payment will be processed by Engineer as provided in the General
Conditions.
B. Progress Payments; Retainage. Owner shall make 95Yo progress payments
on account of the Contract Price on the basis of Contractor's Applications
for Payment during performance of the Work.
l7588lvl
5.
C. Payments to Subcontractor.
(1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. $
471 .25, Subd. 4a, the Contractor must pay any subcontractor
within ten (10) days of the Contractor's receipt of payment from
the City for undisputed services provided by the subcontractor.
The Contractor must pay interest of I Yz percent per month or any
part of a month to the Subcontractor on any undisputed amount not
paid on time to the subcontractor. The minimum monthly interest
penalty payment for an unpaid balance of $ 100.00 or more is
$10.00. For an unpaid balance of less than $100.00, the Contractor
shall pay the actual penalty due to the subcontractor.
(2) Form IC-134 (attached) required from general contractor. Minn.
Stat. $ 290.92 requires that the City of Chanhassen obtain a
Withholding Affidavit for Contractors, Form IC-134, before
making final payments to Contractors. This form needs to be
submitted by the Contractor to the Minnesota Department of
Revenue for approval.
The form is used to receive certification from the state that the
vendor has complied with the requirement to withhold and remit
state withholding taxes for employee salaries paid.
D. Final Payment, Upon final completion of the Work, Owner shall pay the
remainder of the Contract Price as recommended by Engineer.
COMPLETION DATE/LIQUIDATED DAMAGES.
A. The Work for streets and parking lots must be completed on or before
August 31,2017 and trails must be completed on or September 22,2017
and be ready for final payment in accordance with the General Conditions.
B. Contract and Owner recognize that time is of the essence of this
Agreement and that Owner will suffer financial loss if the Work is not
completed within the times specified in Paragraph 5.A. above, plus any
extensions thereof allowed. The parties also recognize the delays,
expense, and difficulties involved in proving in a legal or arbitration
proceeding the actual loss suffered by Owner if the Work is not completed
on time. Accordingly, instead of requiring any such proof, Owner and
Contractor agree that as liquidated damages for delay (but not as a
penalty), Contractor shall pay Owner $ $500.00 for each calendar day
that expires after the time specified in Paragraph 5.A. for Completion until
the Work is complete.
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2
Daily costs are based on MnDOT Table 1807-1, "Schedule of Liquidated
Damages as follows:
TABLE I8O7.I
SCHEDULE OF LIQUIDATED
DAMAGES
Original Contract Amount Charge
Per Cal.
Day
($)
From More Than
($)
To and Including
($)
0 25,000 75
25,000 50,000 t25
50.000 100"000 250
100,000 s00.000 500
500.000 1.000.000 750
l,000,000 2.000.000 1.250
2.000.000 5"000.000 1.750
5.000.000 10,000,000 2,500
10,000,000 3,000
6.CONTRACTOR'S REPRESENTATIONS.
C.
Contractor has examined and carefully studied the Contract Documents
and other related data identified in the Contract Documents.
Contractor has visited the Site and become familiar with and is satisfied as
to the general, local, and Site conditions that may affect cost, progress, and
performance of the Work.
Contractor is familiar with and is satisfied as to all federal, state, and local
Laws and Regulations that may affect cost, progress, and performance of
the Work.
Contractor has carefully studied all: (1) reports of explorations and tests
of subsurface conditions at or contiguous to the Site and all drawings of
physical conditions in or relating to existing surface or subsurface
structures at or contiguous to the Site (except Underground Facilities)
which have been identified in the General Conditions and (2) reports and
drawings of aHazardous Environmental Condition, if any, at the site.
Contractor has obtained and carefully studied (or assumes responsibility
for doing so) all additional or supplementary examinations, investigations,
explorations, tests, studies, and data concerning conditions (surface,
subsurface, and Underground Facilities) at or contiguous to the Site which
may affect cost, progress, or performance of the Work or which relate to
A.
B.
D.
E.
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F.
G.
H.
J.
K.
any aspect of the means, methods, techniques, sequences, and procedures
of construction to be employed by Contractor, including any specific
means, methods, techniques, sequences, and procedures of construction
expressly required by the Bidding Documents, and safety precautions and
programs incident thereto.
Contractor does not consider that any further examinations, investigations,
explorations, tests, studies, or data are necessary for the performance of
the Work at the Contract Price, within the Contract Times, and in
accordance with the other terms and conditions of the Contract
Documents.
Contractor is aware of the general nature of work to be performed by
Owner and others at the Site that relates to the Work as indicated in the
Contract Documents.
Contractor has correlated the information known to Contractor,
information and observations obtained from visits to the Site, reports and
drawings identified in the Contract Documents, and all additional
examinations, investigations, explorations, tests, studies, and data with the
Contract Documents.
Contractor has given Engineer written notice of all conflicts, errors,
ambiguities, or discrepancies that Contractor has discovered in the
Contract Documents, and the written resolution thereof by Engineer is
acceptable to Contractor.
The Contract Documents are generally sufficient to indicate and convey
understanding of all terms and conditions for performance and furnishing
of the Work.
Subcontracts:
(2)
Unless otherwise specified in the Contract Documents, the
Contractor shall, upon receipt of the executed Contract Documents,
submit in writing to the Owner the names of the Subcontractors
proposed for the work. Subcontractors may not be changed except
at the request or with the consent of the Owner.
The Contractor is responsible to the Owner for the acts and
omissions of the Contractor's subcontractors, and of their direct
and indirect employees, to the same extent as the Contractor is
responsible for the acts and omissions of the Contractor's
employees.
(1)
l7588lvl
4
(3) The Contract Documents shall not be construed as creating any
contractual relation between the Owner, the Engineer, and any
Subcontractor.
(4) The Contractor shall bind every Subcontractor by the terms of the
Contract Documents.
7. WORKER'S COMPENSATION. The Contractor shall obtain and maintain for
the duration of this Contract, statutory Worker's Compensation Insurance and Employer's
Liability Insurance as required under the laws of the State of Minnesota.
8. COMPREHENSIVE GENERAL LIABILITY. Contractor shall obtain the
following minimum insurance coverage and maintain it at all times throughout the life of the
Contract, with the City included as an additional name insured on a primary and non-
contributory basis. The Contractor shall furnish the City a certificate of insurance satisfactory to
the City evidencing the required coverage:
Bodily Injury: $2,000,000 each occurrence
$2,000,000 aggregate products and
completed operations
Property Damage: $2,000,000 each occurrence
$2,000,000 aggregate
Contractual Liability (identifying the contract) :
Bodily Injury: $2,000,000 each occurrence
Property Damage: $2,000,000 each occurrence
$2,000,000 aggregate
Personal Injury, with Employment Exclusion deleted:
$2,000,000 aggregate
Comprehensive Automobile Liability (owned, non-owned, hired):
Bodily Injury: $2,000,000 each occurrence
$2,000,000 each accident
Property Damage: $2,000,000 each occurrence
9. WARRANTY. The Contractor guarantees that all new equipment warranties as
specified within the quote shall be in full force and transferred to the City upon payment by the
City. The Contractor shall be held responsible for any and all defects in workmanship, materials,
and equipment which may develop in any part of the contracted service, and upon proper
l7588lvl
5
notification by the City shall immediately replace, without cost to the City, any such faulty part
or parts and damage done by reason of the same in accordance with the bid specifications.
10. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless
from any claim made by third parties as a result of the services performed by it. In addition, the
Contractor shall reimburse the City for any cost of reasonable attorney's fees it may incur as a
result of any such claims.
11. MISCELLANEOUS.
C.
Terms used in this Agreement have the meanings stated in the General
Conditions.
Owner and Contractor each binds itself, its partners, successors, assigns
and legal representatives to the other party hereto, its partners, successors,
assigns and legal representatives in respect to all covenants, agreements,
and obligations contained in the Contract Documents.
Any provision or part of the Contract Documents held to be void or
unenforceable under any Law or Regulation shall be deemed stricken, and
all remaining provisions shall continue to be valid and binding upon
Owner and Contractor, who agree that the Contract Documents shall be
reformed to replace such stricken provision or part thereof with a valid and
enforceable provision that comes as close as possible to expressing the
intention of the stricken provisions.
Data Practices/Records.
(1) All data created, collected, received, maintained or disseminated
for any purpose in the course of this Contract is governed by the
Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any
other applicable state statute, or any state rules adopted to
implement the act, as well as federal regulations on data privacy.
(2) All books, records, documents and accounting procedures and
practices to the Contractor and its subcontractors, if any, relative to
this Contract are subject to examination by the City.
Software License. If the equipment provided by the Contractor pursuant
to this Contract contains software, including that which the manufacturer
may have embedded into the hardware as an integral part of the
equipment, the Contractor shall pay all software licensing fees. The
Contractor shall also pay for all software updating fees for a period of one
year following cutover. The Contractor shall have no obligation to pay for
such fees thereafter. Nothing in the software license or licensing
A.
B.
D.
E.
l7588lvl
6
agreement shall obligate the City to pay any additional fees as a condition
for continuing to use the software.
F. Patented devices, materials and processes. If the Contract requires, or the
Contractor desires, the use of any design, devise, material or process
covered by letters, patent or copyright, trademark or trade name, the
Contractor shall provide for such use by suitable legal agreement with the
patentee or owner and a copy of said agreement shall be filed with the
Owner. If no such agreement is made or filed as noted, the Contractor
shall indemnifu and hold harmless the Owner from any and all claims for
infringement by reason of the use of any such patented designed, device,
material or process, or any trademark or trade name or copyright in
connection with the Project agreed to be performed under the Contract,
and shall indemnify and defend the Owner for any costs, liability,
expenses and attomey's fees that result from any such infringement
G. Assignment. Neither party may assign, sublet, or transfer any interest or
obligation in this Contract without the prior written consent of the other
party, and then only upon such terms and conditions as both parties may
agree to and set forth in writing.
H. Waiver. In the particular event that either party shall at any time or times
waive any breach of this Contract by the other, such waiver shall not
constitute a waiver of any other or any succeeding breach of this Contract
by either party, whether of the same or any other covenant, condition or
obligation.
I. Goveming Law/Venue. The laws of the State of Minnesota govern the
interpretation of this Contract. In the event of litigation, the exclusive
venue shall be in the District Court of the State of Minnesota for Carver
County.
J. Severability. If any provision, term or condition of this Contract is found
to be or become unenforceable or invalid, it shall not affect the remaining
provisions, terms and conditions of this Contract, unless such invalid or
unenforceable provision, term or condition renders this Contract
impossible to perform. Such remaining terms and conditions of the
Contract shall continue in full force and effect and shall continue to
operate as the parties' entire contract.
K. Entire Agreement. This Contract represents the entire agreement of the
parties and is a final, complete and all inclusive statement of the terms
thereof, and supersedes and terminates any prior agreement(s),
understandings or written or verbal representations made between the
parties with respect thereto.
175881v1
7
L,Permits and Licenses; Rights-of-Way and Easements. The Contractor
shall procure all permits and licenses, pay all charges and fees therefore,
and give all notices necessary and incidental to the construction and
completion of the Project. The City will obtain all necessary rights-of-
way and easements. The Contractor shall not be entitled to any additional
compensation for any construction delay resulting from the City's not
timely obtaining rights-of-way or easements.
If the work is delayed or the sequencing of work is altered because of the
action or inaction of the Owner, the Contractor shall be allowed a time
extension to complete the work but shall not be entitled to any other
compensation.
PEARSON BROTHERS, INC.:
M.
CITY OF CHANHASSEN
f,rq< E. Pco.rr*|,ft*;*+
l7588lvl
W,AIA DocumentA3l zr*- 2o1o
Performance Bond
CONTRACTOR:
(Nanre, legal status and acldress)
Pearson Brothers, Inc.
11079 Lamont Avenue N.E.
Hanover, MN 55341
OWNER:
(Name, legal status and address)
City of Chanhassen
7700 Market Blvd.
Chanhassen, MN 55317
CONSTRUCTION CONTRACT
Date: March 13,2017
Bond No. MNC67596
SURETY:
(Name, legal status end principal place
of business)Merchants Bonding Company (Mutual)
P.O. Box 14498
Des Moines, lA 50306-3498
Signature:
Nanre
and Title:
This documenl has important legal
consequences. Consultation with
an attorney is encouraged with
respect to ils completion or
modiflcation.
Any singular reference to
Contractor, Surety, Owner or
other party shall be considered
plural where applicable.
AIA Document A312-2010
combines two separate bonds, a
Performance Bond and a
Payment Bond, into one form.
This is not a single combined
Performance and Paymenl Bond.
Arnount: Two Hundred Forty-seven Thousand Eight Hundred Seventy-seven And
No/l 00THS ($247,877.00)
Description:
(Name antl location) Prolect No. 17-02; 2017 Seal Coat ProJect
BOND
Date:March 30,2017
(Not earlier lhan Construclion Conlract Date)
Amount: Two Hundred Forty-seven Thousand Eight Hundred Seventy-seven And
No/l 00THS ($247,877.00)
Modifications to this Bond: E None E See Section l6
CONTRACTOR AS PRINCIPAL SURETY
Company:Contpany: (Corporate Seal)
Pearson Brothers, lnc.
Signature:
Narne
and Title: President
(Any ed4l1itral signatures appear on the last page of this Pe{ortnance Bond.)
(FOR INF-ORMITION ONLY - Name, address and telephone)
AGENT oT BROKER: OWNER,S REPRESENTATIVE:
Cobb Strecker Dunphy & Zlmmermann (Architect, Dngineer or rtther party:)
150 S. sth Street, Suite 2800
Minneapolis,MN 55402
lnit.AIA Documont A312rr - 2010. The American lnstitule ot Architects.
rney-in-Fact
ancl assigns to tlte Ou,nst'l'or the perlbrntancc o{'ths Construction Contract, wlrich is irrcorporatecl hcreirr by lefcrencc.
S 2 IJ'tlrc Cotttractot pct'l'orttrs Llte Construclion Contract, tlre Sulety and the Corrtractor slrall have rro obligati<lrr urrclcr
this Ilorrcl, exccl)t wlletl applicatrlc to participatc in a conl'crence as provided in Section 3.
$ 3ll'tlrete is no Owncr DelhLrlt urrclel the Corrstrucl.ion Cor:lract, the Surety's obligation unclcrthis llotrd shall arise
alier'
,1 the Ovtuer filst providcs noticc to thc Contractor arrd the Surcl-1, 111n1 lhc Owncr is consicicring dcclarirrg
a Conttnctol' Dcl'ault. Sttclt notice shall indicats whethcr the Owrrel is requcsling a corrl'et'cnce alnong
the O',vnet', Contractor and Surcty [o cliscuss the Contractor''s pcllbrrnarrcc. l1'thc Owner does not
tequcsl a conli:rence, the Surety may, rvithin live (5) busirrcss da1,5 o1r.t' rcceipt ol'lhe Owner's notice,
request suclr a cottfi:t'ence. Il'tlte Surely tintcly l'equests a conl'erence, the Ou,ncl shall attcnd. Urrlcss
tlte Orvnet'agrecs othcrwi.sc, any conference requested under this Section 3.1 shall be hcl<l within terr
(10) bLrsirress <lays ol'thc Surety's receil:t ol'the OrvrreL's notice. Il'the Owner, the Contraclol an<l thc
Sut'ely agree, the Contt'aclol shall be allor.r,ed a reasonable tirrle to perl=ornr the Corrstruction Corrtlaot,
bu[ sttch an agt'een]crlt shall not waivc the Owrrer's right, if an1,, sul:serlr.rently to declars a Contractor
Default;
'2 thc Owtter dcclares a Contractor Dclirult, tcrnrinatcs the Constrr"rctiorr Cryrtlact and rrotifies the Surety;
ancl
.3 the Otvner has agtcctl to pay tltc IJalancc o1'tlre Cotrtract Price in aocordatlce rvitlr the telrrrs o1'tlrc
Construc{iott Clorttract to lhe Sulety or lo a contractor'.selecte<l to 1:crl'orm tlre Constructiotr Contlact,
$4Failtrreotlthepirrtol'the Orvnertocornplywitlrtlrenoticelcrluircnrcntilr.Section3.l shall notconstitulcalailule
1o corttply rvith a cottclition prcceclent to tlre Sulcty's obligations" or release lhc Surety lionr its obligations, cxcopt to
tlrs extcnl the Surcty den'tonstl"tcs actual ple.iudice.
S 5 When the Orvtter has satisliccl tlts corttlitions ol'scctiorr 3, thc Surety shall ;rlonrl>tly arrd at thc Sulety's expensc
takc one ol'the lbllou,irrg actiorts:
$ 5.1 ALrange lor tltc Contraclor, with thc consent ol'tlrc Orvncl, to ;rcrlbrrrr arrcl corlplete the Clorrstruction Contt'act;
S 5.2 Urrdcrtakc to pet'fbt'ut and contplete the Construction Clorrtract itsell; through its agents ol itrdelrcrrclent
contractor.g;
S 5.3 Obtain bids or negotiatecl prol:o.sals li'onr quali{Lcd contl'acto,s acccptablc to (he Orvncr for a corrl.ract f'<lr
pct ftrrnrancc and corttplction oJ'the Clonstrurctiorr Contrac(, arrangc lbr a contlact to bc prepared I'ol excculion by thc
Orvner and a colttt'actor selcctecl u,ith the Orvner's cor)0ur'r'euce, to l>e seculc<i witlr perlbrrnatlce and lraynrcrrt bon<ls
exccttted [:y a clualiliecl surety equivalerl to thc boncls issued on tlre Constluotion Contract, at]d pay to thc Olvner thc
antount ol'datrtages as desclit:cd itt Section 7 in excess of'tlre lJalatrce of tlrc Con(racl Plicc inculrecl [:y the Ownel as
a rcsult ol'the Cloutractol Delault; or
5 5.4 Waivc ils riglrt to perlbrnt aucl cortt;llete, alrange l"ol completion, ol obtairr a new conlractol ancl with reasonablc
l)l'orl'r ptncss unclet' tlrc ci rcurnstances:
,1 Aficr investigntion, (letcrminc the antourtt ibr rvhich it nray be liable to the Ou,uer and, as soou as
;:racticat:le allcr the eullou,rt is detellniuccl, rnal<e 1:ayment to lhc Orvrrer; or.2 Delry liability in rvlrolc or in par( and rrotily the Owncr, citing tho l'easolls lbr clerrial.
$ 6 Il'the Sttrcty does trot ;rtoccccl as ploviclecl in Section 5 with reasorratrle plontptncss, the Sulety shall be clecnrccl to
bc in delirtrlt on tlris Ilorrd scven clays after lccei;rt ol'an aclrlitional rvlittcrr rrotice fionr tlre Ownel to the Surcty
dctnandir:g that thc Surety pellbrnr its obligations undcr this llond, arrcl the Owncr shall bc errtitled to errforcc any
retnedy available to the Otvner. Il'thc Surety proceeds as proviclcd in Seclion 5.4, and tlte Owncl tel:uses thc payrent
or thc Strrety has denisd liabilily, itt rvhole or in llar{., rvithout lirrthcr rroticc the Owrrcr shall bs entitlcd to enlblcc any
lerrtc,dy available to thc Orurer,
lnlt.AIA Document Ag121a - 2010, The American lnstitute of Architects.
2
ST ll'tlre Suletyelccts to actunder Section 5,1,5.2 or 5.3, thcn the responsibilitics o1'the Surcty to the Orvnershall not
bc greater than those oJ'tlre Contractol trncler thc Constluction Contract, ancl the lesponsibilitics ol'tlrc Owner to lhc
Sut'cty shall not lre gleater tlran those ol'tlte Orvnel under the Constt'uction Conllact. Sub.icct to the cornntitme ltt by thc
Orvner lo pay tho lJalancc oJ'the Contract Price, the Sulety is obligatcd, without duplication, lbr,1 thc lespoltsibilitics ol'the Contractor for correction ol"<tel'ectivc work and contplclion <ll'the
Constluction Conlract;
'2 adclitional tegal, dcsign 1>rol'essional and dclay costs resulting fl'on: thc Corttlactor's Delault, arrtl
resulting fi'om the aclions ol lailure to act ol'tlre Stu'ety undcl Section 5; ancl.3 liquidated datnages, ol if rro liquidated danrages arc specilied in the Construclion Contract, actual
clatrttrgcs caused by delaycd perlbrutance or norl-Jrcrfonnaucc ol"the Contlactor.
S B ll'the Stuety elects to act undcr Soction 5.1, 5.3 or' 5.4, the Surcty'.s liability is lirritecl to tlre amount ol'this llond,
$ 9't'lre Surety shall not be liable to the Ou,ucr or othels for obligations of the Colttlactor that are unrelated to thc
Constructiolt Contract, ancl tlte lSalancc ol'tlre Contract Pricc shall not be rcduced ol set ol'l'on account ol'any.suclr
trrtlclatccl <lbligatitlns. No riglrt ol'acliott shall accrue on lhis lltud lo any pcrson or enlit)/ other tharr the Owner or its
Irei[s, cxccutrlrs, adnrirrislrators, succosso|s arrd assigns.
5 10l'hc Surcty hereby waivcs ttoticc of any changc, including changcs o{'lintc, {o the Construction Contract or to
related subconlracts, purchase orders and other otrligations.
$ 11 Arll' ploccecling, lcgal or ecluitatrle, undcr'ilris Bolrcl rna1, bc instilutccl in arry cour.t ol"conrpctent.iurisdictior: irr
the location irt which the rvot'k ol part ol'thc rvork is located ancl shall be institutecl within Luo years aflet.a deqltrrtrtiorr
ol'Conllactor Del'ault ol u,ithitt tu,o yeals aftcr the Clorlr'nctor ccasecl workirrg or rvilhirr lwo year.s afler the Suretl,
tcl'uscs or lirils t<t llct'fi:rm its obligatiotts uncler this llond, rvhichever occurs t'irst. lt'the pt'ovisions ol'this lraragralllr
atc voicl or prohibited by law, thc nrinirnunr 1>eriod ol'linritation availablc to surctics as a defunse in the.iur.isdiclion ol'
the suit shall be a1:plicablc.
S 12 Noticc to thc Surety, the Ou,rrelot'thc Contractor shall be nrailcd or cleli'r,clc<l to the atlclress shown otr the pagc
on rvhich their signattrrc appeals.
S 13 Wherr this lloncl ltas bcett lirrnished t<l contply rvith a statutory or other lcgtl rcquirenrcnt in thc location rvhcre
thc constructioll was 1o be perl'ornted, any plovisiorr irr this llorrcl conllicting u,ith .saicl statutory ol legal retluircnrent
shall bc deemcd cleletecl hcrcfronr and pr<lvisions conlbrming to snch statutot'y or ol.her legal requircnrent shall lle
clccnrctl ittcor;:oratecl herein. Wherr so llmishcd, thc intent is thattlris lloncl shall be corrstluecl as a statutory bond and
not irs il conlnron law boncl.
S 14 Definitions
S 14,1 Balance of the Contract Price. Tlre total amount ;:a1,ablc lry the Orvncr to tlre Contractor.rrncler the Corrstr.uctiorr
Contract after all pt'oper acllr.rsturents havc l:ecrt nracle, irrcluding allowauce to the Contractol ol'arry arnour:ts r.coeive<l
ot' ttl lrc receivcd by the Owrrcr in settlement ol'iu.sulance or otlrer clainrs ftlr darnagcs to u,hich thc Contractor is
crltitlccl, reducecl by all valid ancl 1>roltcr l)a),n'lellts n]ade to or on lrehall'ol:thc Contractor unrler thc C]orrstructiorr
Clontlact.
S'14.2 Construction Contract, 1'he agreement lretween thc Owncr ancl Contractor identillecl orr the cover page.
including all Contract Docunreuls attd changcs rnadc to thc agreeurcut and the Corltract Docurrrents.
S 14.3 Contractor Default. Irailule ol'the Contractor', u,lrich has not bcen rcmediccl ol waived, to pclfolm or otherwise to
contply with a matcrial ternr ol'tlre Construction Contract.
S 14.4 0wner Default. l'ailut'c ol'thc Orvner, which ltas not bccn rcnredicd or rvaived, to pay the Contractor as requirccl
urrcler the Coustruction Conll"ct or to pcrl'olnr and courplcte or comply rvitlr the other rrraterial terms ol'the
C'onstruction Contract.
S 14,5 Contract Documents, All tlre docuntents that comprisc tlrc agrecnrcut trclrvccrr thc Orvncr ancl Corrtr.ackrr.
S 15 ll'this lStlncl i.s issuccl I'or an agl'ecnlcnt lrctrvcen a Contractor and subcontragtol', the tcl'nt Coltr.lctor.irr this l]oncl
shall bc dccnrcd to bo Sttbcontractor and tlre terrn Owner shall [:c clecmed to lre Corrtr.act<1r..
AIA Oocumont A312te - 2010. The Anlericail tnstiluto of Architects.
3
S 16 Modifications to this bond are as follows:
(Space is provided below.[or additional sig,lcttures of added parties, other than lhose appearing on the eaver page.)
CONTRACTORAS PRINCIPAL SURETYCornpany: (Corporate Seal) Cornpany: (Corporcne Seal)
Signature:
Narne and Titlc:
Address
Signature:
Name and Title:
Address
CAUTION: You chould slgn an orlginal AIA Contract Document, on which this texi appoars in REO. An original assurc$ that
changes wlll not be obscurod.
lnit. AIA Document A312rs - 2010. The American lnstituto of Architects.
I
4
WAIA DocumentA3lz'M - 2o1o
Payment Bond
CONTRACTOR:
(Name, legal stalus crycl acldrc.rs)
Pearson Brothers, lnc.
11079 Lamont Avenue N.E.
Hanover, MN 55341
OWNER:
(Name, legal slalus and addrass)
City ol Chanhassen
7700 Market Blvd.
Chanhassen, MN 55317
CONSTRUCTION CONTRACT
Date:March 13,2017
Bond No. MNC67596
SURETY:
(Nanrc, legal stalus and prittcipal place
of busines.s) Merchants Bonding Gompany (Mutual)
P.O. Box 14498
Des Moines, lA 50306-3498
Signature :
Narne
and Title:
v//
is,/attorneY'in'Fact
This document has important legal
consequences. Consultation with
an attorney is encouraged with
respect to its completion or
modification.
Any singular reference to
Contractor, Surety, Owner or
other party shall be considered
plural where applicable.
AIA Document A312-2010
combines two separate bonds, a
Performance Bond and a
Payment Bond, into one form.
This is not a single combined
Performance and Payment Bond.
Amount: Two Hundred Forty-seven Thousand Eight Hundred Seventy-seven And
No/l 00THS ($247,877.00)
Dcscription:
(Name ancl location) Project No. 17-02; 2017 Seal Coat Project
BOND
Datc; March 30,2017
(Not earlier than Conslruction Contract Date)
Arnount: Two Hundred Forty-seven Thousand Eight Hundred Seventy-seven And
No/l 00THS ($247,877.00)
Moditlcations to this Bond: B None E See Scction l8
CONTRACTOR AS PRINCIPAL SURETY
Conrpany: (Corporate Seol) Company:(Corltorate Seal)
jng Company (Mutual)
shua R. Lr
and Title: President
(lny additional siElnalures appear on the last page of this Pa.yment Bond.)
(FOR INI;ORMATION ONLY * Nonrc, address and telephone)
AGENT or BROKER:OWNER'S REPRESENTATIVE:
Cobb Strecker Dunphy & Zimmermann (lrchitcct, Eng,ineer or olher party:)
150 S.sth Street, Suite 2800
Minneapolis,MN 55402
Narne Ja6li E. Ptiarson
lnit.AIA Documont A312ru - 2010. The American lnstitute of Architacls.
Signaturc:
S 1The Contractor tnd Surct),,.iointly and severnlly, bind thcnrsclves, their heirs, cxccutos, adntinistmto$, succcssors
and assigns to the Ou,ner to l)ay lbr labor, rratcrials and cquipnlcnt ,irnislred lbr use in tbe pcfl'orfiance ol'lhs
Conslruclion Contract, wlrjch is incorpolated hereirr lry refbre,)ce, subiccl lo the following Le ]ls,
$ 2 I1'thc Conl.lactol plnntptly nrakcs paymcnt ofall sums due to Clainrants, and dclends, inricmnilles aud holds
halntlcss thc Ownet linm claims, dcmands, licns o[ suits by nny person ot cntity scekiDg payrr]cnt IoI Iabor', uraterials
or equipnlent I'ulnishcd for usc in the pel,brn]ancc ofthc Couslruclion Cor)tr"ct, thcn the SuIcty and thc Clonttactor
shall have no obligation urdcr this Bond.
S 3 Il'thcrc is mr Owncr Dcfault under lhc Consr'uclion Contract, the Surety's obligation to thc Owuel ur)der this Bond
shall atisc after Lhe Otvner has promptly r)olilied lhe Conhactor ar)d the Sursty (at the addtrss dcsc bcd in Scction l3)
ol'claitns, detnands, lierrs or suil.s against the Owr)er or thc Owncr''s pl'opcrly by any peffion or cntity scaking payD)enl
for Iabor, materials or cquipnrent funrishcd tbI use ir thc pcrlbrmance of lhe Construction Contract aud tet)dered
defense ofsuch clairns, derrands, liens or suils lo thc Contracter and the Surcty.
S 4 Whcn thc Ownet has satisfied lhe conditioos in Scc(ion 3, thc Surcty shall promplly and al lhe Sur!t),'s cxpcnse
defcncl, iuclcnrnify nnd hold harnless the Owner against a thly tendcrcd claim, denland, licn ot.suit.
$ 5 Thc Surety's obligations to a Claintant rnld$ this Bond shull arisc ullcr.the loltowilg:
$ 5.1 Clairnalts, rvho do not have a dircct contract wil'h thc Contlactor,
.l have funished a wdltcn notice olnon-payn]cllt to thc Contnctor, slating with substantial accuracy lhc
all)ourlt clair)rcd and lhe [an]c ol'thc pady [o whon] lfie malorials wcrc, or cquiltrncnt was, l'ulnishsd or
suPplicd or lbr whonr thc labor was donc ol pcliilrrred, rvilhin nincty (90) days aller having lasl
Per,bn)led latror or last liurrished matcrials o[ cquiprncrrt includcd iu lhe Clair]ll and.2 havc serrt a Clainr 1() thc Surcty (at thc addrcss describcd irr Scction l3).
$ 5.2 Clainrant.s, r,.4:o ale entployed b1, or have a dircct co[tlact with thc Contractor', havc scnt a Claim to thc Sutct), (at
the address desclibed in Section l3).
S 6 ll'a noticc of notl-ptynlcrll requ ircd by Scction 5. I . I is givcn by thc Owncr to thc Contraclor, that is su t'l'icier)t to
saLis,i n Clainrnnt's obligalion to lll nish a writtcn rlotice o,'r)on-payolcnt uldcr Scclion 5.1 . l.
S 7 Whcn a Clairnanl has satisfied the coDditions o,'scctions 5.1 or 5.2, whichever is applicablc. thc Surety shall
pfonrptly and at the Surety's cxper)se takc thc l'ollowing actions:
$ 7.1 Send an answer to thc Clairrant, with a copy to the Owner, within sixly (60) days alicr leccipt ol'thc Clairn,
s(atir)g lhc auloulls that nrr undisputcd and thc basis fol challcngilg any arroutlts that ale disputcd: aDd
$ 7.2 ltay ol anangc lbr paynrcnt ol'any undisputcd amourts.
S 7,3 Thc Sulcty's lhilure to discharge its obligations undcr Sectior) ?.1 or Scction 7.2 shall not be dcenrcd to
coustitutc a \vaivcl' ol'defenses thc Sulety or Contmctor lnay have ol acclrirc ns to a Claill], cxccpl as to undisputed
amotlnts for \Yhich thc Sutcty and Claitnarrt havc reached agrccmcnt. li howeycr, thc Surcty lhils to discharge its
obligations undo Section 7.1 or Sectiot] 7.2, thc Surcty shnll indenlDil'y the Clainrat)t for the rcflsonable attorncy's
l'ees the Claimant irrcurs relcaller to recovcr any suurs foulrd lo be due and owilg to ll.]e Clainlant.
S 8 Thc Sursly's total obligation shall !)oL excccd the anrour)t ofthis Bond, plus thc an'lourrI ofrcilsonablc attorncy's
1'ecs pmvidcd trndcr Section ?.3, and thc arlouDt ofthis Bond shall lre crcdiled tbr at]y payn'tctrls nrade in good faith
by the Surety.
S 9 Anloults o\ve(l by lhe Owllsr to thc Contlaclor under the CoDstruction CoDtract shall bc uscd for [hc perlbrmancc
ofthe Consttuclior'r CoDtract and to satisfy claims, il'any, unclcl any conslruction pcrforrnancc borrd. lly thc
Contr achr fu rishiDg and the Owncl acceptiDg this llor)d, they agrcc that all funds carned by the Conllactor in thc
pelfolntancc of the Constlllctiolr Co[tract arc dcdicated to snlisfy obligations olthe Cotrtlacto! ard Suraty undcr this
Bolrd, subject to thc Owner''s pliolity to uso thc funds for the completion ol'thc wor.k.
AIA Documcnt Al12rN - 20r0. The Anrerican lnstilute oJ Archilocts.
6
5 10 Thc Sulcty shall not be liablc to thc Owner, Cluinlan(s ol others for obligations oi'thc ContlactoI that arc
unrolated to the Constlttcliorl Contracl. Thc Ou,ner shall not be Iiablc for the payrncnr 01'any costs or expcnscs ol an1,
Claimant undcr this llond, and shall havc ur)der this Bor)d r)o obligotioo to make payr)lcnts to, or give nritice on behllf
ol', Claimants or othelrvise havc any obligations to Clainrants under this llond.
$ 11 Thc Strrcty hereby waives notice ol'any change, inoludirrg changcs ol'tinlc, to lhc Coltstt ucl.ion Conlract ol to
rclated subcoDtEcts, pulchasc ordem and othsr obligations,
$ 12 No suil ol actiott shall bo conrncnccd by n Clainrant uldcr l.his Ilond other than in a court ol'compctent
.itrLisdiction in the stale in u4rich thc prqject that is thc sub.iect o1'the Consttuction Conrlact is locatcd or al'ler the
expiratioD ol'onc ycor 1'r'onl thc datc ( l) 0rr rvhich thc Clainra[t scnt a Clainl to lhe Surcly pursuant to
Scctiot) 5. 1.2 or 5.2, or' (2) on which thc last Iabor or service was perlormcd by anyonc or lhc last materials or
cquipnlcnt wero l'r.r tished by anyone undcr thc Constl.r.lction Contract, whichevcr of(l) or (2) tilst occurs. lfthc
plovisions ol'this Paragt al>h arc void or lrohibited by larv, thc minimunr poriod of linritation availabls to sureties as a
del'ense in thejurisdiction ofthc suit shsll bc applicablc.
5 13 Noticc and Clair)1s to thc Sulety, thc OwneI or lhc Contractol shall bc nraited or delivercd to thc address shown
on thc page on which thcir sigrlatu|c appears. Actual rcceipt o1'rotice or Clainrs, howcvo acconrplishcd, shall be
sufl'icicnt conlpliance as ofthe date rcccivcd.
S 14 Whcn this Bond has becn fulDished to contply with a st0tutor), or.othcr legal rcqujr,erncnt in the hcalion whcre
thc coDsll uctiol was to lte ;:ct lblnred, any proyisior) in this l]or)d conflicting with said statutory or legol rcquircment
shall be dcemcd deletcd hcrcli om and provisiorrs conlorming 10 such statutory or othcr legsl rcquirenrcnt shall bc
,tot is lt conlnlon law bond,
$ l5 Upon rcclttest by aDy pcruon or cntity appearing to be a potcntial bcncficiary ol this Bond, rhe C'ontmctor ar)d
Owncr slrall proDrptly furnish a copy o,'lhis llord or shall permit a copy to bc nladc.
S I6 Delinitions
S 16.'l Claim. A writtcn sta(cmcnl by thc Claimallt including ar a rninil]rurrr:
.1 the nanrc ofthc Claimant;
.2 thc ntnrc of lhc l)c$on for whom Lhc labor was donc, or n]aterials or equipt)rent lil )ishedi.3 a coPy ol'the agrccnlenl or purchasc oftler pu$uart to \rhich labor, nratcrials or cquiptnc[t \!as
I'ulnislrccl lbl trsc in thc pcrfolnrancc olthc Consuuctio.! Cotltracl;.4 a briefdescription ol'the labor, nrarcrials or cquipnlcnt lirrnishcd;.5 thc datc on wltich thc Clairant last pelhrnrcd labol ol last lirrrrishcd nratcrials or eqaiprrcnl for usc in
the Pcrlbrnla[cc oflhe Conslruc{ioll Conll"ct;
.6 thctotal amount eamcd by l.hc Cluimanl fol labor, n]atcri lsorequipment furnished ssoitheriatcof
the Clainrt
.7 the total anouut ol'prcvior.rs payneDts receivcd by the Claimant; and.8 the total an')out)t duc and unpaid to tlre Clainrant lb| labor, ma(erials ol cquipDlent fumishcd as ofthe
dale ol'lhc Clailn.
S 16.2 CIaimant. At) indiYidual or cr)tity havirtg a dircct contract with the Cor)tlactol or with a slbcontrBctor ofthc
Claimanl also includcs any individual or cntity thn( hrs rightMly asscltcd a clairn uldcr an applicablc nreclranic's licn
or sinlilar statutc against the rcal propeny upon whicll thc Projcct is localcd. The intent olthis lloncl shall bc to
itlcludc wilhout linritation in lhe tcrns "labor, rn0te als or equ ipnlcnt" that pa{ ol'watcr, gas, porver', light, hcat,oil,
gasoline, lele;:hotle scrvicc or lental cquiprnent used iD the Constructior) Contract. architcctural and cngilcerirg
sctvices lequircd fol llefolnancc ol'thc rvork ol'the Contr"slor and the Contractor's sllbcoDtractors, ond all othcr
ilcll)s for \ 4tich a olcchanic's licn rnay bc asscrled ir thc.iurisdictioD \,,4tcre the labor, matcri*ls or cquipDtct)t werc
,'ul.l)ishcd.
S 16.3 Constructi0n Contract. The agfec,)ronl belwccn thc O\vner and Contrflctol'idcntilicd on thc covcr pagc,
includirrg all conl.ract Docurnenls aDd all ch0ngcs nradc to the agreerncnt and thc contmct Documents.
lrrit.AIA Document A312rs - 2010. The Americen tnslitnte otArchitocts,
7
S 16.4 Owner Default. Failure of the Owner, which has not been rernedied or waived, to pay the Contractor as required
undet'the Construction Contract or to perforrn and cornplete or comply with the other material terrns of the
Constluction Contract.
S 16.5 Contract Documents. All the docurnents that comprise the agreernent betweerr the Owner and Contractor,
S 17 lf this Bond is issued fbr arr agreement between a Contractor and subcontractor, the ternr Contractor in this Bond
shall be cleenred to be Subcontractor and the terrn Owner shall be deerned to be Contractor.
S 18 Modifications to this bond are as follows:
(Space is provided below for adclitional signatures of added parties, other than those appem'ing on ite cover page.)
CONTRACTORAS PR]NCIPAL SURETYCompany: (Corporate Seal) Company: (Corporate Seal)
Signature:
Nanre and Title:
Address
Signature:
Name and Title:
Address
CAUTION: You shoultt sign an original AIA Contract Document, on which this text appea6 in RED. An original assurss that
changes will not be obscursd,
lnit. AIA Documsnt A312il - 2010. The American lnstitule of Archilects.
8
CORPORATE ACKNOWLEDGM ENT
State of Minnesota
County of.
)ss
)
on this ll4 day of Ant, I ZplT,before me appeared Jack E.Pearson
to me personally known, who, being by me duly sworn, did say that he/she is the President
of Pearson Brothers. lnc. ,a corporation, that the seal affixed to the
foregoing instrument is the corporate seal of said corporation, and that said instrument was executed in
behalf of said corporation by authority of its Board of Directors, and that said Jack E. Pearson
acknowledged said instrument to be the free act and deed of said corporation.
My commission expi
SURETY ACKNOWLEDGMENT
State of Minnesota
County of Hennepin
On this 30th day of March 2017 , before me appeared Joshua R. Loftis
to me personally know, who being by me duly sworn, did say that (s)he is the Attorney-in-Fact of-
Merchants Bondinq Companv (Mutual), a corporation, that the seal
affixed to the foregoing instrument is the corporate seal of said corporation and that said instrument was
executed in behalf of said corporation by authority of its Board of Directors; and that said
Joshua R. Loftis acknowledged said instrument to be the free act and deed of said corporation.
SS
{.h MET.INDA c BLoDGETT
: -ti'..i. t NoTAHYpUBLtC-M|NNESoTA; i.".-..f../ vulrv- rrrrrt,rLuvr^
:'i. r:r:;/ MY C0MMISS|oN EXPIBES ol8ll
:M:flj cATHrr,rr ro*.,
,r[3HI'.','.X;,I'Hl1;A,r,
1131120',18
Notary Public Washington
MEncHnNrF..
Bond No. MNC67596BONDING COMPANY*
POWER OF ATTORNEY
Know All Persons By These Presents, that MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING,
lNC., both being corporations of the State of lowa (herein collectively called the 'Companies') do hereby make, constitute and appoint,
individually,
Brian J Oestreich; Craig Remick; Jerome T Ouimet; John E Tauer; Joshua R Loftis; Kurt C Lundblad:
R C Bowman: R Scott Egginton: R W Frank; Ted Jorgensen
their true and laMul Attomey(s)-in-Fact, to make, execute, seal and deliver on behalf ofthe Companies, as Surety, bonds, undertakings
and otherwritten obligations in the nature thereol subject to the limitation that any such instrument shall not exceed the amount of:
FIFTEEN MILLION ($15,OOO,OOO.OO) DOLLARS
This Power-of-Attomey is granted and is signed and sealed by facsimile undor and by authority ofthe following By-Laws adopted by the
Board of Directors of Merchants Bonding Company (Mutual) on April 23, 2011 and adoptod by the Board of Directo.s of Merchants
National Bonding, lnc., on Octobor 24, 201'1.
'The President, Secretary, Treasurer, or any Assistant Treasurer or any Assistant Secrotary or any Vice Presidenl shall have power and
authority to appoint Attorneys-in-Fact, and to authorize them to execute on behalfol the Company, and attach the seal of the Company
thereto, bonds and undertakings, r€cognizances, contracts oI indemnity and other writings obligatory in the nature th€reof. '
"The signature ol any authorized officer and the sgal of tho Company may bo afllxed by facsimile or electronic transmission to any Pow€r of
Attorney or Certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship
obligations ofthe Company, and such signature and sealwhen so used shall have the same rorce and effect as though manually fixed."
ln connection with obligations in favor of the Florida Department of Transportation only, it is agreed that the power and authority hereby given
to the Attomey-in-Fact includes any and all consents forths release of rotained psrcentagos and/or final estimates on gngineoring and
construction conkacts required by the State of Florida Department of Transportation. lt is ,ully understood that consenting to the State ofFlorida
Departmenl of Transportation making payment of the final estimate to the Contractor and/or its assignee, shall not relieve this surety company
of any of its obligations under its bond.
ln connection \,vith obligations in favor of the Kentucky Departmont ol Highways only, it is agraed that the power and authority hereby given
to the Attorney-in-Fact cannot be modified or revoked unless prior wdtten personal notice of such intent has b€en given to the Commissioner-
Department of Highways of the Commonwaalth of Kentucky at least thirty (30) days prior to the modification or revocation.
ln Witness Whereof, the Companies have caused this instrument to be signed and sealed this 2nd day of February 2017
MERCHANTS BONDING COMPANY (MUTUAL)
MERCHANTS NATIONAL BONDING, INC.
"4 v?'4-
STATE OF IOWA
COUNTY OF DALLAS ss.
SM ol\thO 0lrr^g,/
President
On this 2nd day of February , 2017 , before me appeared Larry Taylor, to me personally known, who being by me sworn did say that
h€ is President of the MERCHANTS BONDING COMPANY (MUTUAL and MERCHANTS NAIONAL BONDING, lNC.; and that the seals afflxed
to the foregoing instrument are lhe Corporate seals of the Companies; and that the said instrument was signed and sealed in behalf of the
Companies by authority of their respectiv€ Boards of Directors.
oz
o,a
\:
SAMANTHA OLLINGER
Commission Number 795451
My Commission Expires
April 5,2019
Notary Public
(Expiration of notary's commission
does not invalidat€ this instrumont)
l, William Wamer, Jr., Secretary ot the MERCHANTS BONDING COITPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, lNC.,
do hereby certify that the above and toregoing is a true and conect copy ofthe POWER-OF-ATTORNEY executed by said Companies,
which is still in fullforce and effect and has not been amended or revoked.
ln Witness Whereof, I have hereunto set my hand and aflixed the seal of the Companies on this 30lh day of March ,2017
./e*-ZZ*-4
g)$i,1iryi4
=j* -a- b':'i.{: ' i=
=ri 2O0J io-t'.9"'=-'tj,tJ
$l$flf,i,l;j
=j s -o- biii.{: : =,.1'.. eoor .io-
"".1# ;*'olllJ
POA 0016 (6/15)
Secretary
,)RD CERTIFICATE OF LIABILITY INSURANCE DATE (MM'DD/YYYY}
3128t2017
THls CERTIFIGATE ls lssuED As A MATTER oF TNFoRMATToN oNLy AND coNFERS No RlcHTs upoN THE cERTtFtcATElrouen. rnrs
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVEMGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE |SSUING TNSURER(S), AUTHORTZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: lf the certificate holder is an ADDITIONAL II{SURED, the policy(ies) must have ADDITIONAL TNSURED provisions or be endoeed.
lf SUBROGATION lS WAIVED, subject to the terms and conditions of the policy, certain policies may rcquire an endorcement. A statement on
this certifacate does not confer rights to the certlflcate holder ln lieu of such endorcement(s),
PROOUCER
Cobb Strecker Dunphy & Zimmermann
150 South Fifth Street
Suite 2800
Minneapolis MN 55402
fiXilli" vickiKrokum
fiPl"l ,*" 612-349-2481 lfal
E*tfl!... vkrokum@csdz. com
INSURER(S) AFFORDING COVERAGE NAIC #
lNsuRER A :Phoenix lnsurance companv 25623INSURED PEARBROI
Pearson Brothers lnc
1 1079 Lamont Ave NE
Hanover MN 55341
tNsuRER B 'charter oak Fire lnsurance companv 25615
tNsuRER c:Travelers lndemnity Companv of Amer 25666
INSURER D:
INSURER E :
INSURER F
THlSlsTocERTlFYTHATTHEPoLlclESoFlNSUMNcELlSTEDBELowHAVEBEENlSsUEDToTHElNSU
INDICATED. NOTWTHSTANDING ANY REOUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WTH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSUMNCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONSAND CONDITIONS OF SUCH POLICIES. LIMITS SHOIAJN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTR TYPE OF INSURANCE wvD POUCY NUMBER LIMITS
X i coMMERCIAL GENERAL LIABILITY
Ia*,rr-roo.,x,oaa*f-I Contr Liab Per
DTCO8F265909PHX15 5t11t2016 5111t2017 EACH OCCURRENCE $1,000.000
DAMAGE TO RENTED
PREMISFS lFa trnffan.e\$500,000
MED EXP (Any one DeBon)$ 1 0,000
x Policv FormD(CU PERSONAL & ADV INJURY $ 1,000,000
GEI{.1AGGREGATE LIMIT APPLIES PER:
lro,-,"' [xl5ry; [-lro"
I orxen,
GENERAL AGGREGATE $2,000,000
PRODUCTS . COMP/OP AGG $2,000,000
B AU'1IOMOBILE LIABILITY
] rNveuro
IOVVNED I ISCHEDULED
I AUTOS ONLY I { AUTOSIHIRED Tfi NON-oW!ED
I AUTOS ONLY I ^ | AUrOS ONLY
lComp: $1oo I x lcott' st,ooo
DT81 08F265909COF16 511112016 511112017 VItsINEIJ SINGLE LIMI
accident)$t,ooo,ooo
x BODILY INJURY (Per person)$
BODILY INJURY (Per accident)$
x TOPERTY DAMAGE
er aeident)$
x Hired Car Phys Dmge $ACV of Vehicle
c UMBRELI.A UAB
EXCESS LTAB
x l occun
]"*,r.-r^o.
DTSMCUP8F2659O9IND16 5t11t2016 st1112017 EACH OCCURRENCE $5,000,000
x AGGREGATE $5,000,000
DED X lnEreurroNsto,ooo
YI'ORKERS COMPENSATION
AND EMPLOYERS'LIABLIN
N/A
DTHUB8F26590916 5t11t2016 5t1112017 x H.
rUTE
ANY PROPRIETORYPARTNER/EXECUTIVE T_-]
f,FF|CER/MEMBER EXCLUDED? I I
lMandrtory ln NH) .
t Yes. dossibe undernf caPrffr6N 6E 6PFPATTnNq brtu
E.L. EACH ACCIOENT $ 1,000,000
E.L. DISEASE. EA EMPLOYET $1,000,000
E.L. OISEASE - POLICY LIMIT $1,000.000
A Prop/Bldg+ConUBlkUSpecial Form
Owned EquiPsched/Special Form
Leased-Rented Equip/Special Form
DTCO8F265909PHX16 5111t20't6 5t1'.U2017 Limit See Belo r
Limit $1,739,000
Limit $250,000/item
Ded: $1,000 / RC
Ded: $1,000 / ACV
Ded: $1,000 / ACV
DESCRIPflON OF OPERATIoI{S , LOCAIONS , VEHICLES (ACORD I 01 , Addltml Rsmrks Schedule, my De att ched lf mE 3p.e ts .rqulrcd,
2017 SEAL COAT PROJECT
Additional lnsured only.if required by written contract with respect to General Liability applies on a primary basis and the lnsurance of the
Additional lnsured shall be Non-Contributory: Certificate Holder, Project Owner and Otners as reqdired by written contract.
CERTIFICATE HOLDER CANCELLATION
City of Chanhassen
7700 Market Blvd
PO Box 147
Chanhassen MN 55317
SHOULD AIIIY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE wlLL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
tr;ffi'^ffs*,nq
@'t988-2015 ACORD CORPOMTION. Atl rights reserved.
ACORD 25 (2016/03)The ACORD name and logo are registered marks of ACORD