W. 78th Street Water Main Extension Project: Approve Bids and Awarding ContractCITY OF
CUMNSFN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
uilding Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
MEMORANDUM
TO: Todd Gerhardt, City Manager 0 FROM: Paul Oehme, Public Works Director /City Engineer
DATE: May 23, 2016
SUBJ: West 78th Street Water Main Extension Project No. 14 -07:
Award of Bid
PROPOSED MOTION
"The City Council approves a construction contract in the amount of
$220,596.06 to GM Contracting, Inc. for work to be performed on the above -
referenced project."
City Council approval requires a simple majority vote of the City Council
present.
BACHGROUND
Dogwood Road and Beacon Court area is built out and is at the end of a long water
main. During high flow events, such as hydrant flushing, this area has experienced
some water hammers that can cause hot water valves to open, leading to damage
inside the properties.
This project will provide a secondary connection into the city's water system for the
area, creating a loop. This loop connection will provide several benefits:
1. Minimize the water hammer problem by equalizing the water flow through the
loop.
2. Provide a redundant water source for the area. This will allow the city to
better maintain properties' water service during maintenance operations or
emergency water main breaks.
3. Improve water circulation in this area, which will reduce sediment settling in
the lines thereby improving the appearance of the water and reducing the
frequency of hydrant flushing required.
This project consists of the construction of approximately 2,100 LF of 10" HDPE
www.ci.chanhassen.mn.us (High Density Poly Ethylene) water main along West 78th Street from Beacon Court
to Trunk Highway 41 (see attached location map). MnDOT requires a 16" HDPE
casing pipe under Trunk Highway 41. The water main extension will provide a
second connection for water service in the Tanadoona Drive /Dogwood Road /Beacon
Court area.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Todd Gerhardt, City Manager
West 78th Street Water Main Extension Project No. 14 -07
May 23, 2016
Page 2
BIDS
Bids for the project were opened on Wednesday, May 4, 2015 at 2:00 p.m. Five sealed bids were
submitted. The bids received are as follows:
Bidder
Total Bid
GM CONTRACTING, INC.
$220,596.06
ELLINGSON DRAINAGE, INC.
$233,376.00
G.F. JEDLICKI, INC.
$39_4,725.00_
G.L. CONTRACTING INC.
$265,891.98
VALLEY RICH CO., INC
$240,876.00
The engineers estimate was $233,679.
GM Contracting, Inc. has completed previous projects for the City of Chanhassen, and their past
work has been acceptable.
The project has tentative start date in June 2016, and substantial completion date shall occur
within 25 working days. Final completion shall be no later than November 18, 2016. Staff will
notify the property owners in the area prior to the start of construction with a project time line.
This project was budgeted for 2016 in the CIP Project W -055. Funding for the project is
proposed from the water utility fund. The property owners along West 78th Street are not
planned to be assessed for the project.
ATTACHMENTS
1. Resolution.
2. CIP Page.
3. Project Area Map.
c: Stephanie Smith, Project Engineer
Kevin Crooks, Utility Superintendent
GM Contracting, Inc.
g: \eng \public \_2010 -2015 public projects \_2014 projects \14 -07 w 78th st watennain ext \conununication \160523_cc_award construction
contract.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: May 23, 2016 RESOLUTION NO: 2016 -XX
MOTION BY:
SECONDED BY:
A RESOLUTION ACCEPTING BIDS AND AWARDING A CONTRACT
FOR THE W. 78TH STREET WATER MAIN EXTENSION
(TH 41 TO BEACON COURT)
PROJECT NO. 14-07
WHEREAS, bids were received, opened and tabulated for the W. 78th Street Water Main
Extension Project. The following bids were received:
Bidder
Total Bid
Ellingson Drainage, Inc.
$233,376.00
G.F. Jedlicki, Inc.
$394,725.00
G.L. Contracting Inc.
$265,891.98
GM Contracting, Inc.
$220,596.06*
Valley Rich Co., Inc.
$240,876.00
*Low Bidder
AND WHEREAS, GM Contracting, Inc. submitted the lowest responsible bid with a total bid
amount of $220,596.06.
NOW THEREFORE, BE IT RESOLVED by the Chanhassen City Council:
The mayor and clerk are hereby authorized and directed to enter into a contract with GM
Contracting, Inc. in the name of the City of Chanhassen for the W. 780h Street Water Main
Extension Project according to the plans and specifications therefore approved by the City
Council and on file in the office of the city clerk.
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 until a contract has been signed.
Passed and adopted by the Chanhassen City Council this 23`d day of May, 2016.
ATTEST:
Todd Gerhardt, City Manager
Denny Laufenburger, Mayor
YES NO ABSENT
Capital Improvement Program 2016 thru 2020
City of Chanhassen, MN
Project # W -055
Project Name 78th Street Watermain Loop Improvements
Department
Water System Improvements
Contact
Paul Oehme
Type
Improvement
Useful Life
Category
Utilities
Account #1 700 -7025 Account #3 Priority n/a
Account #2 Account #4
Description Total Project Cost: $250,000
This project will extend an 8" watermain on 78th Street from TH 41 west to the Arbor's development,
Justification I
The Arbor's development is fully built out and water for this area is served by a trunk watermain on Tanadoona Drive. This development has a
long service area which is currently not looped. During high flow events such as hydrant flushing this area can experience water hammers that can
cause hot water heater valves to open. This can lead to damage in the properties. To eliminate the water hammer problem the best solution is to
loop the watermain to TH 41.
Expenditures 2016 2017 2018 2019 2020 Total
Construction 250,000 250,000
Total 250,000 250,000
Funding Sources 2016 2017 2018 2019 2020 Total
Water Utility Fund 250,000 250,000
Total 250,000 250,000
Impact/Other
`lIR
LOCATION MAP
#14 -07 West 78th Street Water Main Extension
;�: .
i �4 y
FORM OF AGREEMENT
CITY OF CHANHASSEN AND CONTRACTOR
N\Ay 11 2016 BETwEEN
ENGNEERIT{G
THIS AGREEMENT, made this 23'd day of May,2076, by and between the CITY OF
CFIANHASSEN. a Minnesota municipal corporation ("Owner") and GM CONTRACTING,
lNC. ("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. Specifications dated April 21,2016.:
C. City of Chanhassen General Conditions of the Construction Contract;
D. Quote/Bid dated MaY 4,2016.
In the event of a conflict among the provisions of the Contract Documents, the order in which
the,v- are listed above shall control in resolving any such conflicts with Contract Document "A"
having the first priority and Contract Document "D'' 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 Twenty Thousand Five
Hundred Ninetl'Six and 06/100 ($220,596.06).
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 957o progress payments
on account of the Contract Price on the basis of Contractor's Applications
for Payment during performance of the Work.
FOR THE
MAIN EXTEN
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C. Payments to Subcontractor.
5.
(l) 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 % 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 Depanment 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. Substantial completion must occur on or before November 1,2016. The
final completion date in no case shall be later than November 18,2016.
Once the contractor has begun work on-site, substantial completion shall
occur within 25 working days. Failure to comply with this completion
date shall result in the deduction of liquidated damages (See Section 58
below).
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 fbr 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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6.
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
r00.000 500.000 500
500,000 r.000.000 750
r,000,000 2.000,000 I,250
2.000.000 5,000,000 1,750
5.000.000 10,000,000 2,500
r0,000,000 3.000
CONTRACTOR'S REPRESENTATIONS.
A. Contractor has examined and carefully studied the Contract Documents
and other related data identified in the Contract Documents.
B. 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.
C. Contractor is tamiliar with and is satisfred as to all federal, state, and local
Laws and Regulations that ma1,'aftbct cost. progress. and performance of
the Work.
D. Contractor has carefully studied all: (l) reports of explorations and tests
of subsurface conditions at or contiguous to the Site and all drau'ings 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 a Hazardous Environmental Condition, if any, at the site.
E. Contractor has obtained and carefully studied (or assumes responsibility
lbr doing so) all additional or supplementary examinations, investigations,
explorations, tests, studies, and data conceming conditions (surt'ace,
subsurface, and Underground Facilities) at or contiguous to the Site which
may aflect cost, progress, or performance of the Work or which relate to
l7588lvl
F.
G.
H.
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 generalnature 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 uritten 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 sufticient to indicate and convey
understanding of all terms and conditions for performance and fumishing
of the Work.
Subcontracts:
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.
J.
K.
(l)
(2)
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 shallobtain 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 thc
fbllowing minimum insurance coverage and maintain it at all times throughout the life of the
Contract, i.l'ith 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: 52,000,000 each occurrence
52,000.000 aggregate
Contractual Liability (identiffing the contract):
Bodily Injury: 52,000,000 each occurrence
Property Damage: $2.000,000 each occurrence
S2.000,000 aggregate
Personal Injury, with Ernployment Exclusion deleted:
$2,000.000 aggregate
Comprehensive Automobile Liability (owned. non-owned, hired):
Bodily Injur,v: 52,000,000 each occurrence
S2,000,000 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
Cit),. 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
l T5titl lr I
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 specitications.
10. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless
fiom any claim made by third parties as a result of the services pertbrmed by it. In addition, the
Contractor shall reimburse the Citl- for any cost of reasonable attorney's fees it may incur as a
result of any such claims.
I I. MISCELLANEOUS.
A.
B.
Terms used in this Agreement have the meanings stated in the General
Conditions.
Owner and Contractor each binds itsell 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.
C.
D. Data Practices/Records.
(1) All data created, collected, received. maintained or disseminated
tbr any purpose in the course of this Contract is govemed 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 f'ederal 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.
E. Software License. If the equipment provided by the Contractor pursuant
to this Contract contains software, including that w'hich 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 fbr 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
I 75ll8l v I
6
F.
agreement shall obligate the City to pay any additional lees as a condition
for continuing to use the software.
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 indemnifr 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 indemni$ and def'end the Owner for any costs, liability,
expenses and attorney's fees that result from any such infringement
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.
Waiver. In the particular event that either party shall at any time or times
waive any breach of this Contract by the other, such rvaiver shall not
constitute a r,'u'aiver of any other or any succeeding breach of this Contract
by either party, w'hether of the same or any other covenant. condition or
obligation.
Goveming LawA/enue. The laws of the State of Minnesota govem 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 Can'er
County.
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.
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.
G.
H.
J.
K.
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t..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 willobtain all necessary rights-of-
way and easements. The Contractor shall not be entitled to any additional
compensation for any construction delay resulting lrom 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 Ow'ner, the Contractor shall be allowed a time
extension to complete the work but shall not be entitled to any other
compensation.
M.
HANHASSE
odd Gerhardt, Cit-'" Manager
I75tt8lrI
8
PERTORMANCE BOND
Bond No.: 106513134
cflomHAEsEN
MAY 2 7 2016
Box 736
SURETY (Name and Addross of Prinoipal Place ofBusincss):
Travelers Casualty and Surety Company of America
One Tower Souare
Lake Crystal, MN 56055 Hartford, CT 06f 83-6014
OWNER fName and Address)
Citv of Chanhassen
7700 Market Boulevard
Chanhassen, MN 55317
CONSTRUCTION CONTRACT
Date; May 23rd.2016
4msun1; 9220,596.06 (Two Hundred Twenty-Thousand Five Hundred Ninety-Six and 06/100 Dollars)
Description (Narne and Location):W. 78th Street Water Main Extension Proiect 14-07
Chanhassen, MN
BOND
Date (Not earlier than Construction Contract Date):May 24th,2016
6,noun1. g220,596.06 (Two Hundred Twenty-Thousand Five Hundred NineW-Six and 06/100 Dollars)
Modification to this Bond Form: None.
SURETY
Traveters Casuatty and Surery Company of,tlii""
CONTRACTOR AS PRINCIPAL SURETY
(Seal)(Seal)
Bidder's Name and Corporate Seal Surety's Name and Corporate Seal
By:
Any singular reference to Contractor, Surety, owner or other party shall be considered pt,FNqhSFSl$lS.&EPT'
CONTRACTOR (Name and Address):
GM Contracting, Inc.
By:
Signature and Title
GC-59
Signature aud Title
CONTPJ,CTOR AS PRINC]PAL
GM Cont."cting, Inc. (S.ut)
Blda;b N.^r ,rd C"qr"rate Seal
L The Contractor and the Surety, jointly and scverally, bind themselves, tbeir heirs, executors, administrators, successors and
assigns to the Owner for the performance of the Construction Conh'act, which is incorporated herein by reference'
2. IftheConlractorperformstheConstructionContract,thesuretyandtheContractorshallhavenoobligationunderthisBond,
except to participate in conferences as provided in Subparagraph 3. l.
3. If there is no Owner Default, the Surety's obligation under this Bond shall arise after:
3. t . The Owner has notified the Contractor and the Surety at its address described in Paragraph I 0 belorv, that the Owner is
considering declaring a Contractor Defautt and has requested and attelnpted to arrange a conference with the Contractor
and the Surety to be held not later than fifteen days after receipts of such notice to discuss methods of perforning the
Construction Contract. Ifthe Otvner, the Conftactor and the Surety aglee, the Contractor shall be allowed a teasonable
tirne to perlonl the Construction Contraot, but such an agr€ement shall not rvaive the Owner's right, ifany, subsequently
to declare a Contractor Default; and
3.2. The Owner has declared a Contractor Default and formally terminated the Contractor's right to complete the contract.
Such Contractor Default shall not be declared earlier than twonty days after the Contractor and the Surety have received
notice as provided in Subparagraph 3,1; and
3.3. TheOwnerhasagreedtopaytheBalauceoftheContractPricetotheSuretyinaocordancerviththetennsofthe
Construction Contract or to a contractor selected to perform the Construction Contract in accordance with the terms of
the contraot with the Owner.
4. When the Orvnerhas satisfied the conditions ofParagraph 3, the Surety shall promptly and at the Surety's expense take one
of the following actions;
4.1. Arrange for the Contractor, rvith consent of the Owner, to perform and complete the Construction Contract; or
4.2. Undertake to perform and complete the Construction Contract itself; through its agents or through independent
contractors; or
4.3, Obtain bids or negotiated proposals from qualified contractors acceptable to the Orvner for a contract for performance
and completion oi the Construction Contract, arrange for a contract to be prepared for execulion by the Owner and the
contractor selected with the Owner's concurrence, to be secured rvith performance and payment bonds exccuted by a
qualificd surety cquivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of
du,nug.r as described in Paragraph 6 in excess ofthe Balance ofthe Contract Price incurred by the resulting fiom the
Contracto/s default; or
4.4. Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable
promptncss under the circumstances:
l. After investigation, determine the amount for tvhich it may be liable to thc Orvner and, as soon as practicable after
the anrount is determined, tender payment therefore to the Owner; or
2. Deny liability in rvhole or in part and notiff the Owner citing reasons therefore.
5. If the Surety does not proceed as provided in Paragraph 4 with reasonable promptness, the Surety shall be deemed to be in
default o1 this Bold fifteen days after receipt ofal additional written notice frorn the Orvner to the Surety denranding that
the Surety perfonn its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the
Owner. Iithe Surety proceeds as provided in Subparagraph 4.4, and the Owner refuses the payment tendered or the Surety
has denied liability, in whole or in part, without further notice the Owler shall be entitlcd to enforco any rernedy available to
the Owncr.
6. AftertheOtvnerhasterminatedtheContractor'srighttocornpletetheConstructionContract,andiftheSuretyelectedtoact
underSubparagraph4.l,4.2,or4.3 above,thentheresponsibilitiesoftheSuretytothcOwnershallnotbe greaterthanthose
of thc Contractor under the Construction Contract, and the responsibilities of the Owner io the Surety shall not be greater
than those of the Orvner under the Construction Contract.. To the timit of the amount of this Bond, but subject to
commitment by the Owner of the Balance of the Contract Price to mitigation of costs and damages on the Conshuction
Contract, the Surety is obligated without duplication for:
6,1, The responsibilities ofthe Contractor forconection ofdefective rvork and cornpletion ofthe Construction Contract:
6.2. Additional legal, design professional and delay costs resulting from the Contracto/s Default, and rcsulting from the
actions or failure to act of the Surety under Paragraph 4; and
6.3. Liquidated damages, or if no liquidated damages are specified in the Construction Contract, actual damages caused by
delayed performance or non-performance of the Contractor'
7. The Swety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction
Contract, ind the Balance ofthe Contract Price shall not bc rcduced or set offon account ofany such unrelated obligations.
No right of action shatl accnre on this Bond to any person or entity other tltan lhe Owrer or its heirs, executors,
adnrinistrators, or succ€ssors.
8. The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related
subcontractors, purchase orders and other obligations.
9. Any proceeding, tegal or equitable, under this Boud may be instituted in any court of contpetent jurisdiction in the location in
which the work or part of the work is located and shall bo instituted within two years after Contractor Default or within two
ycars afterthe Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. Ifthe provisions of
GC-60
this Paragraph are void or prohibited by larv, the minimum period oflimitation available to sureties as a defense in the
jurisdiction ofthe suit shall be applicable.
10. Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the signature page.
I l. When this Bond has been furnished to comply with a staNtory or other legal requirernent in the location rvhere the
construction was to be performed, any provision in this Bond conflicting rvith said statutory or legal requirement shall be
deemed incorporatcd herein. The intent is that this Bond shall be construed as a statutory bond and tlot as a common law
bond.
12. DEFINITIONS
12,l.Balance ofthe Contract Price: Thc total amount payable by the Owner to the Contractor under the Construction
Contract after all proper adjustments have been made, including allowance to the Contractor ofany amounts receivcd or
to be received by the Owner in settlernent of insurance or other claims for damages to which the Contractor is entitled,
reduced by all valid and proper paynrents made to or on behalfofthe Contractor under the Conshuction Conhact.
l2,2.Constnrction Contract: The agreernent between the Owner and the Contractor identified on the signature page,
including all Contract Documents and changes thereto.
l2.3.Contractor Default: Failure of the Contractor, rvhich has neither been remedied nor waived, to perfonn or
othenvise to comply with the terms of the Construction Contraot,
12.4.Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as
required by the Construction Contract or to perform and complete or comply with the other ternrs thereof,
GC.61
Bond No.: 106513134
PAYMENT BOND
Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable.
CONTRACTOR (Name and Address):
GM Contracting, Inc.
Box 736
Lake Crystal, MN 56055
OWNER (Name and Address):City of Chanhassen
7700 Market Boulevard
Chanhassen, MN 55317
CONTRACT
Darc; May 23rd,2016
Amount: $220,596.06 (Two Hundred Twenty-Thousand Five Hundred Ninety-Six and 06i100 Dollars)
Description (Name and Location): W. 78th Street Water Main Extension Project 14-07
Chanhassen, MN
BOND
Date (Not earlier than Contract Date): May 24th'2016
Arnount: $220,596.06 (Two Hundred Twenty-Thousand Five Hundred Ninety-Six and 06/100 Dollars)
Modifications to this B<lnd Fotm: None
Surety and Contractor, intending to be legally bound hereby, subject to the terms printed on the reverse side hereof,
do each cause this Performance Bond to be duly executed on its behalfby its authorized officer, agent or
representative,
CONTRACTOR AS PRINCIPAL
Company: GM Contracting, Inc. (Corp. Seal)
v;rle.n|'
(Space is provided below for signatures ofadditional parties, ifrcquired')
CONTRACTOR AS PRINCIPAL
Company: (Corp. Seal)
SURETY (Name and Address of Principal Place
Of Business):
Travelers Casualfy and Surety Company of America
One Tower Square
Hartford, CT 06183-6014
SUREry
Company:
Si
(Corp, Seal)
Name and Title:-Name and Title:
EJCDENo. l9l0-28-4, (1996 Edition)
Originally prepared through thejoint efforts oflhe Surety Association ofAnrerica, Engiueers Joint Contract Documenls Committee, tlte
Associated General Contraclors of America, and the American InstiNte of Architccts.
and Surery c[c#&r:r'1? America
Power of Attomey)
GC-62
I . The CONTRACTOR and the Surety, jointly and severally, bind themselvos,
iheir heirs, execrtors, adminislrator, successors and assigns to the OWNER to
pay for labor, rnaterials and equipment fumished for usE in the psrformance of
the Contract, which is incorporated herein by refcrencc.
2. With respect to lhe OWNER, this obligation shall be null and void if lhe
CONTRACTOR:
2,1 Promptly makes payment, directly or indireclly, for all sums due
Claimants,6nd
2.2 Defends, indemnifies and holds harmless the OWNER from all claims,
demands, liens or suits by any person or entity tvho fumished labor, materials or
equipment for usc in thc perfornrance ofthe Contract, provided the OWNER has
pronptly notificd thc CONTRACTOR and the Surety (at the addrcsses dcscribed
in paragraph I 2) ofany claims, demands, liens or suits and tendered defense of
such claims, demands, liens or suits to the CONTRACTOR and the Surety, and
provided therc is no OWNER Default.
3, With respect io Claimants, this obligation shall bc null and void if lhe
CONTMCTOR pronptly nakes paymcnt, directly or indireclly, for all sunrs
due.
4. Thc Surcty shall havc no obligation to Claimants under this bonduntil:
4. I Claimants rvho arc crnployed by or have a direct contract with the
CONTRACTOR lrave givcn notice to the Surety (at thc addrcssss dcscribed in
paragraph 12) and sent a copy, ofnotice thereof, to the OWNER, stating that a
claim is being made under this Bond and, with substantial accuracy, lhe amount
ofthe clainr.
4.2 Claimants rvho do noi have a direct conlr0ot with IheCONTRACTOR:
l. Have fumished vritten nolice to the CONTRACTOR and sent acopy,
or notice thereof, to lhe OWNER, vithin 90 days after having last performed
labor or last furnished materials or equipment included in the clairn stating, with
substantial accuracy, the anrount ofthe claim atrd tho name ofthe party to who
the materials are fumished or supplied or for tvhom the labor tvas done or
formed; and
2. Have cither received a rejection irr tvhole or in part from the
CONTRACTOR, or nol received rvithin 30 days of fumishing the abovenotice
any cornmunicalion fronr thc CONTRACTOR by which tbe CONTRACTOR
had indicated thc clainr rvill be paid dircctly or indirectly;and
3. Not having been paid rvithin the above 30 days, havc serrt a tvritlen
notice to the Surely and sent a copy, or notice thereof, to the OWNER, stating
that a claim is being made under this Bond and enclosing a copy ofthe previous
rvritten notice firmished to theCONTRACTOR.
5. If a notice required by paragraph 4 is given by the OWNER tothe
CONTRACTOR or to the Surety, that is sufficientcotnpliancc.
6. Wheu the Claimant has satisfied the conditions ofparagraph 4, theSurety
shall promptly and at the Surety's expense take the follorvingactions:
6.1 Send an nnsrver to the Cl8imant, with s copy to the OWNER, within 45
days alier receipt ofthe clahn, stating lhe amounts that are undisputed and the
basis for challenging any amounts that are disputed.
6,2 Pay or arrangc for payrncnl of any undisputcd aurounts.
7. Tlre Suroty's total obligation shall not cxcccd thc anrount of this Bond, and the
amount oflhis Bond shall be credited for arry payurents rnade in good faith by the
Surety.
8. Amounts orved by the OWNER to the CONTRACTOR undet the Contract
shall be used for the performance of the Contr0ct and to satisry clsims, if any,
undor any Perfornrancc Bond. By thc CONTRACTOR fumishirrg and the
OWNER accepting this Bond, they agree that all funds earned by the
CONTRACTOR in thc perfornrancc ofthc Contract arc dcdicatcd to satisfy
obligations ofthe CONTRACTOR and th€ Surcty undcr this Borrd, subject tothc
OWNER's priority to use the funds for the completion of the Work.
(FOR INFORMATION ONLY-Name, Address, and Telephone)
AGENT oTBROKER: OWNEIUS REPRESENTATIVE (ENGINEER OT
other party)
9. The Surety shall not be liable lo the OWNER, Claimants or others for
obligations of the CONTRACTOR that aro unrelated to lhc Contract. The
OWNER shall not be liabte for paymcnt ofaly costs or expenses of any
Claimant under this Bond, and shall have under this Bond no obligations to
make payments to, givo notices on behalfo{ or othenvise have obligations
to Claimants undcr this Bond.
I 0. The Surety hercby rvaives notice of any chango, including changes of
time, to the Contract or to related Subcontracls, purchase orders and other
obligations.
I L No suit or action shall be commenced by the Claimant under this Bond
other th0n in a court ofcompetentjurisdiction in lhe location in which the
Work or part ofthe Work is locatcd or aftcr the expiration ofonc ycar from
the date (l) on rvhich the Claimant gave the noticc rcquired by paragraph
4,1 or paragraph 4 .2.3, or Q) on which lhe last labor or service rvas
performed by anyone or the tast materials or equipment rvcre furnished by
anyone under the Construction Contract, rvhichcvcr of(l) or (2) first
occurs. Ifthe provisions ofthis Paragraph are void or prohibited by law,
the mininunr period of limitation availabl€ to sureties 8s a def€nse in the
jurisdiction ofthe suit shall be applicable.
12. Notice to the Surety, the OWNER or lhe CONTRACTOR shall be
mailed or delivered to the addresses shown on the signahrre Page. Actual
recoipl of notica by Surety, thc OWNER or the CONTRACTOR,horvever
accomplished, shall be sufficient compliance as of the datc reccived at the
address shorvn otr the siSnahre page.
13. When this bond has been furnished to comply with a statutory ot' other
Iegal requirement in the location rvhere the Contract was to bo perfomed,
any provision in this Bond conflicting with said statutory or lcgal
requirernent shall be deettred deleted here from and provisious confirnling
to such ststutory or other legal requirement shall be deemed incorporated
herein. The intent is, that this Bond shall be construed as a statutory Borrd
and not as I common larvbond.
14, Upon request ofany person or entity aPPearing to be a potential
benoficiary of this Bond, the CONTITACTOR shall Promptly furnisha
copy oflhis Bond or shall pcrmit a copy to bcmadc.
15. DEFINITIONS
l5.l Clainrant: An individual or cntity having a direct corrtract rvith
the CONTRACTOR or rvith a Subcoulraclor of the CONTRACTOR lo
furnish labor, materials or equipment for use in the performance of the
Contract. The intent ofthis tsond shall be to include lvithin limitation in
the terms "labor, materials or equipment" that part oflvoter, gas' power,
light, heat, oil, gasoline, lelephone service or rentaI equipment used in the
Contract, architectural and engineering services required for performance
of the Work of the CONTRACTOR and lhe CONTRACTOR's
Subcontractors, and all other itetns for which a tnechanic's lien nray be
asserted in thejurisdiction rvhere the labor, materials or equipment lvere
furnished.
15.2 Contract: The agreement between the OWNER and the
CONTRACTOR identified on the signature page, including all Contraoi
Documents and changes thereto.
15.3 OWNER Default: FailurE of thc OWNER, rvhich has ueitlter
been remedied nor waived, to pay the CONTRACTOR as required by the
Contractor or to perform and complote or comply lvith the othor terurs
thereof.
GC.63
CORPORATE ACKNOWLEDGM ENT
State of llrnoesota
County of Blue Earth
on this 2 't aay d {l7ct / Aolv-,before me appeare d 5 t,. /lo'o ?'t
to me personally known, who, being by m6 duly sworn, did say that he/she islhe lJ-rc-,,,1't. *
of GM Gontractinq. lnc. , a corporation, that the seal affixed to the
foregoing instrument is the corporate seal of said corporation, and that said instrument wag executed in
behalf of said corporation by authority of its Board of Directors, and that said I t e ilo.o*n
acknowledged said instrument to be the free act and deed of said corporation.
Notary Public
My commission expires l- 9r*202D
SURETY ACKNOWLEDGMENT
State of Minnesota
County of Hennepin
On this 24lh day of May 2016 , before me appeared Jack Cedarleaf ll
to me personally know, who being by me duly sworn, did say that (s)he is the Attorney-in-Fact ol
Travelers Casualtv and Suretv Companv of America , 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 Cedarleaf II acknowledged said instrument to be the free act and deed of said corporation.
M
MELINDA C BLODGETT
NOTAHY PUBLIC. MINNESOTA
MY COMMIS$ON EXPIRES o1/31/18
Notary Public Washinqton
)
)ss
)
SS
Iffi',s$[ffi County,
My commission expires 1/31/2018
WARNIt.' -HIS POWER OF ATTORNEY IS INVALID WITHOUT THE B'- BORDER
TRAVELE
\/ PowER OFATTORNEY
Farmington Casualty Company
Fidelity and Guaranty Insurance Company
Fidelity and Guaranty Insurance Underwriters, Inc.
St. Paul Fire and Marine Insurance Company
St. Paul Guardian Insurance Company
\,/
St. Paul Mercury Insurance Company
Ttavelers Casualty and Surety Company
T[avelers Casualty and Surety Company of America
United States Fidelity and Guaranty Company
^-,R5J
Attorney-In Fact No.230689 certincateNo. 0 06736 623
KNOW ALL MEN BY THESE PRESENTS: That Farmington Casualty Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance
Company, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers Casualty and Surety Company of America, and United States
Fidelity and Guaranty Company are corporations duly organized under the laws of the State of Connecticut, that Fidelity and Guaranty Insurance Company is a
colporation duly organized under the laws of the State of Iowa, and that Fidelity and Guaranty Insurance Underwriters, Inc., is a corporation duly organized under the
laws of the State ofWisconsin (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint
John E. Tauer, R. W. Flank, Craig Remick, Rachel Thomas, Nicole Stillings, Joshua R. Loftis, Brian J. Oestreich, Sandra M. Doze, Jerome T. Ouimet,
D. R. Dougherty, Jack Cedarleaf II, Kurt C. Lundblad, Melinda C. Blodgett, R. C. Bowman, R. Scott Egginton, Ted R. Jorgensen, Emily Keiser, and
Lin Ulven
of the City o1 Minneapolis , State of Minnesota , their true and lawful Attorney(s)-in-Fact,
each in their separate capacity if more than one is named above, to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and
other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of
contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law.
IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and their corporate seals to be hereto affixed, this
duu of April . 2016
I lrh
Farmington Casualty Company
Fidelity and Guaranty Insurance Company
Fidelity and Guaranty Insurance Underwriters, Inc.
St. Paul Fire and Marine Insurance Company
St. Paul Guardian Insurance Company
St. Paul Mercury Insurance Company
Ttavelers Casualty and Surety Company
Ttavelers Casualty and Surety Company of America
United States Fidelity and Guaranty Company
@ @ffiffiffi,a, @ffi ffi
State of Connecticut
City of Hartford ss.
On this the 1 lth aay or APril , 2016 , before me personally appeared Robert L. Raney, who acknowledged himselfto
betheSeniorVicePresidentofFarmingtonCasualtyCompany, FidelityandGuarantylnsuranceCompany,FidelityandGuarantylnsuranceUnderwriters,Inc.,St.Paul
Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers
Casualty and Surety Company ofAmerica, and United States Fidelity and Guaranty Company, and that he, as such, being authorized so to do, executed the foregoing
instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer.
W\o/wu c. 3rfia'-t*
- *r" a. ,'.*",ra ^" il',rt*
By:
In Witness Whereof, I hereunto set my hand and official seal.
My Commission expires the 30th day of June, 2016.
58440-8-12 Printed in U.S.A.
POWER OF ATTORNEY IS INVALID WITHOUTTHE .\ORDER
This Power of Attomey is granted uhder and by theauthority of the following resolutions adopted by the Boards oI Directors of Farmington Casualty Company, i,iaeUry
and Guaranty Insurance Company, Fidelity and Guaranty Insurance Underwriters, Inc., St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance
Company, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers Casualty and Surety Company of America, and United States
Fidelity and Guaranty Company, which resolutions are now in full force and effect, reading as follows:
RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice
President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attomeys-in-Fact and Agents to act for and on behalf
of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the
Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any
of said officers or the Board of Ditec111s.at any time may remove any such appointee and revoke the power given him or her; and it is
FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may
delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy
thereof is filed in the office of the Secretary; and it is
FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conrlitional undertaking
shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice
President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duty attested and sealed with the
Company's seal by a Secretary orAssistant Secretary; or (b) duly executed (under seal, ifrequired) by one or moreAttorneys-in-Fact andAgents pursuant to the power
prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is
FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President,
any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any
certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries orAttorneys-in-Fact for purposes only ofexecuting and attesting bonds
and undertakings and other writings obligatory in the nature thereof, and any such Power of Attomey or certificate bearing such facsimile signature or facsimile seal
shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on
the Company in the future with respect to any bond or understanding to which it is attached.
I, Kevin E. Hughes, the undersigned, Assistant Secretary, of Farmington Casualty Company, Fidelity and Guaranty Insurance Company, Fidelity and Guaranty Insurance
Underwriters, Inc., St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, Travelers Casualty and
Surety Company, Travelers Casualty and Surety Company ofAmerica, and United States Fidelity and Guaranty Company do hereby certify that the above and foregoing
is a true and colrect copy of the Power ofAttomey executed by said Companies, which is in full force and effect and has not been revoked.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said,Compani., ,hi, 24th
ou, of
May t6
,20 _
@@ffiffi€rB*#@@ffi
To verify the authenticity of this Power ofAttorney, call l-800-421-3880 or contact us at www.travelersbond.com. Please refer to the Attorney-In-Fact number, the
above-named individuals and the details of the bond to which the power is attached.
THIS POWER OF ATTORNEY IS INVALID WI
b(.