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Lake Susan Hills Rehabilitation Project 17-01: Accept Bids and Award Contract; Assessment Hearing Y • CITY Of ClIANHASSEN % Chanhassen is a Community for Life-Providing forToday and Planning forTomorrow NH AS MEMORANDUM 6 - TO: Paul Oehme, Director of Public Works/City Engineer y FROM: Stephanie Smith, Project Engineer ')F2?S DATE: April 10, 2017 SUBJ: 2017 Street Rehabilitation Project No. 17-01: Accept Bids and Award Contract; Hold Special Assessment Hearing PROPOSED MOTION "The City Council adopts the attached resolution accepting the bids and awards the contract for the 2017 Street Rehabilitation (Lake Susan Hills Area) Project No. 17-01 to Northwest Asphalt, Inc. in the amount of$1,048,660.92. The City Council adopts the assessment roll and resolution for the 2017 Street Rehabilitation (Lake Susan Hills Area) Project No. 17-01." City Council approval requires a simple majority vote of the City Council present. BACKGROUND At the August 22, 2016 work session, staff reviewed with Council the proposed 2017 Street Rehabilitation in the Lake Susan Hills area. On September 12, 2016, the City Council authorized preparation of the feasibility study. On October 18, 2016, staff held an Open House for the proposed project. On October 24, 2016, the City Council accepted the feasibility study and ordered the public hearing. On November 28, 2016, the City Council held the public hearing and authorized the preparation of plans and specifications. On January 23, 2017, the City Council approved the plans and specifications and authorized advertisement for bids. PH 952.227.1100• www.cl.chanhassen.mn.us• FX 952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract;Assessment Hearing April 10,2017 Page 2 On February 27, 2017, the City Council called for the assessment hearing. On March 13, 2017, the Council revised the date of the assessment hearing to avoid schedule conflicts with local school districts. On April 5, 2017, staff held an open house for the project and discussed the proposed assessments. DISCUSSION Every year the City considers streets that are in poor condition to be rehabilitated or reconstructed. For the 2017 Street Rehabilitation Project, staff is proposing to rehabilitate approximately 1.9 miles of streets in the Lake Susan Hills neighborhood. The street segments within the proposed project were identified by the City's Pavement Management software in conjunction with site investigations. The proposed improvements generally consist of reclaiming r ' ; `" (7 r ! ca. the pavement surface and the aggregate base underneath the '�f lr b ��, .�� ��./. pavement. Atypical areas with insufficient base underneath 'taS�'�, � 6 the pavement will be reconstructed. Minor drainage r, ` �\';' ;:i :�_ J !rt. improvements and some draintile installation are also �; ?d, �,.; included within the project area. 1.016641100 44,1F4' For the municipal water system, etaitiieo gate valve and hardware replacements are proposed along 0.7 in0► l ; '; , with minimal hydrant t? mom' �OVA ar,:6\ i. 3 replacement. Sanitary sewer r-V 4 �! ens work proposed includes spot 311` Y .1°Nis ' ES P p P � � � It�7�: :`1 41 i7 repairs of damaged manhole ' ;!14 ;C ,� structures and inflow/infiltrationg�� .`, t,t. '�°!'"51 ' ';� ..,.. remediation within the age_P.^> . manholes. gyp, n5°` ' j'. aFP. �o' , .40 1 ^r The approximate 1.9 miles of streets in the project area were e , v,A4 7mi , constructed between 1989 and 1993. Sealcoats were , INVI " performed in 1993, 1997 and 2005. A non-structural overlay ;, '�� . ti ` .d,;,,; , was done on the northern leg of Lake Susan Hills Drive, , .n, - .w► Egret Court, Heron Drive and Ibis Court in 2002. All streets within the project are urban residential streets with concrete curb and gutter. Lake Susan Hills Drive, Flamingo Drive and Heron Drive have a 5-foot concrete sidewalk on one side. Pavement condition scores generated by the City's pavement management software were considered when determining street segments within the proposed rehabilitation area. Street segments are surveyed every three years and a score or Overall Condition Index (OCI) is assigned to the street segment. An OCI of 100 represents a new road. The streets within the Lake Susan Hills neighborhood were last surveyed in 2015, and the OCI ranged from 30.3 to 65.6. Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract;Assessment Hearing April 10,2017 Page 3 The proposed standard improvements include reclaiming the full depth of bituminous plus 4.5"-6.5" of the aggregate base of the street. The top four inches of reclaimed material will be removed and two, 2-inch lifts of asphalt are proposed to be installed. Select sidewalk panel replacement such as those associated with ADA ramp updates will be included with this project. Other sidewalk maintenance efforts such as grinding or jacking panels may be bid as a separate project and funded out of the annual maintenance fund. Hardware replacement is proposed on gate valves and will include the installation of zinc anode bags to forestall corrosion. Minimal hydrant replacement is proposed for this project. Sanitary sewer manholes with degraded concrete rings are proposed to have the rings replaced with this project. Infiltration barriers and sealed manhole covers are proposed for all sanitary structures to prevent future infiltration between rings, underneath the casting. The City's Public Works department will repair the infiltration between manhole joints in-house rather than with the proposed project. Approximately 1200 feet of draintile is proposed for installation at the back of curb in select areas, including the east side of Ibis Court, where there is a record of resident concerns about subsurface drainage in the project area. The four areas below show the proposed installation. 4414;,? \: _Z ly-.'' _ i -' Igrr!c* , x < '" 4tz,,4At. , . ri r b0 , }_ \ r t �,�• • � r.._ X • Flar1n9u 0r .3 - '..,,\ i -,-- — ilI A .0 . V ' .. I � � . ,/: K ' 1 L , : / i 1 \) , X ' 1 - T I ' , a , +/ , \\,, / \dr' , . - c.\ NNNeeeyyy `/ . { / r. - / �, . , ., „..„,. ,. ...., ,,, \\4:\\\AA, r a —.0"...:V---N-- - " / j Q G,. , - . - yuis or • Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract; Assessment Hearing April 10,2017 Page 4 Approximately 25 feet of drainage structure replacement is proposed to address problems observed in drainage structures during inspection. Stormwater work consists of replacement of existing structures and shall not alter the hydraulic function of stormwater this neighborhood. Staff has examined what permitting will be required for this project. As there is minimal additional impervious surfaces that will be created, this project would not trigger any of the Federal or State surface water regulations. A permit from the Riley-Purgatory-Bluff Creek Watershed District is required for the construction. The proposed minor water main and sanitary sewer repairs would not require a permit from the MN Department of Health or the MN Pollution Control Agency. Because Lake Susan Hills Drive has two intersections with Powers Boulevard (CSAH 17), a work in right-of- way permit is required from Carver County. BID ALTERNATES Three bid alternates were included with the street project to obtain better prices of scale from contractors. Bid Alternate#1 consists of replacing approximately 1,000 feet of damaged curb in the Trappers Pass neighborhood and situational draintile installation. This work is proposed to be funded by the Revolving Assessment Fund and the Surface Water Fund, and not included in the assessment amounts. Power Hill Park is the neighborhood park for Lake Susan Hills. Bid Alternate#2 consists of a 1.5" overlay of the Power Hill Park driveway and basketball court, as well as expanding ` 4:.,,A�frI ` the parking lot so the dimensions are consistent with City Code ` , , �04 • requirements for parking lots. This work is proposed to be ^,', << � funded by the Revolving Assessment Fund and not included in #" the assessments. �`. Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract;Assessment Hearing April 10,2017 Page 5 "I';, Bid Alternate#3 consists of reconstructing the , . .. parking lots and driveways at Fire Station#2 j . ., , ;.; A.. located on Minnewashta Parkway. Concrete `� valley gutter is proposed to keep stormwater in f f' the gutter line and protect the new parking lot - , t , pavement. This work is on a shortened construction schedule to minimize the duration , , of the closure of the Fire Station. The Contractor will coordinate work with the Fire ;.. / j Chief to ensure fire protection is uninterrupted. / This work is proposed to be funded by the Revolving Assessment Fund and not included in "` the assessments. c c f N ` f POLICY DECISION/ACTION TO BE CONSIDERED Prior to the completion of the assessment hearing, any property owner who wants to object to their assessment must file a signed written objection or they waive their right to appeal. The Council may accept or modify the assessment amount as presented. ASSESSMENT HEARING PROCEDURE Staff will provide a brief explanation of the work along with the proposed assessment amount. Any issues that the City Council wishes to discuss regarding the project financing is appropriate during the public hearing portion of the project. Public testimony should be received for the project. The property owners should be reminded that if they wish, they must file a written objection with the City either prior to or during the actual project hearings. Objections after the public hearing are invalid. An assessment objection is a request by the property owner for the Council to review the assessment amount. Staff may have an immediate response to individual comments. If the City Council feels an objection cannot be addressed immediately, the objection should be received and referred to staff for investigation. The remaining assessment roll should be adopted in order for the process to stay on schedule. At the next City Council meeting, a report will be presented to Council regarding all objections. If there are no objections filed, or if Council feels staff's investigation will not result in any changes being made to the assessment roll, a motion by the City Council to adopt the assessment roll as prepared is needed for the project. Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract;Assessment Hearing April 10,2017 Page 6 ASSESSMENT OBJECTIONS Objections may be filed up to and at the public hearing. At the time of this submittal, no written objections have been received. If any written objections are received in the interim prior to the Council meeting, they will be provided to the Council at the public hearing. Staff comments and recommendations will also be provided at the public hearing. The City Council may choose to adopt staffs recommendation or revise the assessment roll. If additional objections are filed either prior to or at the hearing, they should be received and if necessary referred to staff for investigation and resolution. PROJECT COST, ASSESSMENTS AND FUNDING Per the City's Assessment Policy, forty percent (40%) of the street costs are proposed to be assessed to the benefiting property owners; the City's street fund will pay for the remaining 60% of the street costs. One hundred percent (100%) of the utility costs are proposed to be paid for by the associated utility enterprise fund. Funding for this project was budgeted for in the 2015 CIP. The following is a breakdown of the project estimates and proposed funding for the project: Improvement Funding Source Project Cost Amount Budgeted Streets Assessments/Revolving $ 935,700.88 $1,260,000 Assessment Fund Stormwater Surface Water Utility $ 38,596.92 $ 50,000 Fund Water Water Utility Fund $ 58,203.05 $ 75,000 Sanitary Sewer Sewer Utility Fund $ 101,798.12 $ 180,000 $1,134,298.97 $1,565,000 The total project costs include 5% for construction contingency and indirect costs such as soils testing and $33,205.00 for construction inspection and as-built surveying by an engineering consultant. The Project Cost includes the work for Bid Alternates #1-3. The Revolving Assessment Fund and the Surface Water Utility Fund are proposed to fund the Alternates' construction costs. The cost of the Bid Alternates are not be included in the calculations for assessments. Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract;Assessment Hearing April 10,2017 Page 7 Unit assessments are proposed, meaning each parcel determined to be a benefitting property at the time the assessment roll is approved will pay the same amount. Preliminary estimated assessments are detailed below: Total Street Cost of Base Bid: $825,713.99 40% assessed: 40% of$825,713.99 =$330,285.60 Number of assessable units: 187 Proposed unit assessment: $330,285.60= 187 units = $1,766.23/unit Preliminary assessment: $2,400.00 Terms for the assessments proposed are at equal annual installments over eight(8) years at an interest rate of 6.00%. Staff held a neighborhood open house on April 5, 2017 to discuss the final project design and assessment amounts with the residents. BID OPENING/AWARD OF CONTRACT Bids were received, opened and read out loud on Thursday, February 16, 2017 at 2:00 p.m. Seven bids were received. The lowest responsible bidder is Northwest Asphalt, Inc. with a bid amount of $1,048,660.92. The bids have been tabulated and checked for errors and are summarized below: Alt#1 Alt#2 Alt#3 Trappers Power Hill Fire Station Bidder Base Bid Pass Park No 2 Grand Total Northwest Asphalt $944,521.97 $40,553.00 $14,261.40 $49,324.55 $1,048,660.92 Valley Paving $983,977.89 $48,202.93 $14,034.82 $44,507.74 $1,090,723.38 GMH Asphalt $998,495.44 $46,592.83 $14,627.21 $46,145.90 $1,105,861.38 Chard Tiling and $1,027,598.40 $48,432.00 $14,555.70 $48,445.30 $1,139,031.40 Excavating Park Construction $1,163,030.20 $67,964.50 $13,635.50 $53,705.20 $1,298,335.40 Company Bituminous Roadways, $1,175,008.45 $62,628.00 $16,470.50 $64,302.60 $1,318,409.55 Inc. C.S. McCrossan Const. $1,235,853.05 $61,224.00 $19,103.50 $63,077.20 $1,379,257.75 Engineer's Estimate $1,165,829.50 $61,875.00 $27,830.00 $42,246.00 $1,297,780.50 Northwest Asphalt worked on the City's street rehabilitation project in 2016. Northwest Asphalt's work, ability to manage a project like this, and customer service delivery has been acceptable. Paul Oehme 2017 Street Rehabilitation Project: Accept Bids and Award Contract;Assessment Hearing April 10,2017 Page 8 Three bid alternates were included with the street project to obtain better prices of scale from contractors. Bid Alternate #1 consists of replacing damaged and settled curb and gutter areas in the Trappers Pass neighborhood. Bid Alternate#2 consists of a 1.5" overlay of the Power Hill Park driveway and basketball court. Bid Alternate#3 consists of reconstructing both parking lots and driveways at Fire Station#2. Staff recommends awarding Bid Alternate #1, 2, and 3 to Northwest Asphalt. The cost of the bid alternates are not included in the assessments. SCHEDULE The following schedule is proposed contingent upon City Council approval to proceed with the project: Construction Start June, 2017 Substantial Completion August, 2017 Attachments: 1. Resolutions 2. CIP Sheets 3. Resident Communication CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: April 10, 2017 RESOLUTION NO: 2017-22 MOTION BY: SECONDED BY: A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE 2017 STREET REHABILITATION (LAKE SUSAN HILLS AREA) PROJECT NO. 17-01 WHEREAS, pursuant to an advertisement for bids for 2017 Street Rehabilitation (Lake Susan Hills area) Project No. 17-01, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Alt #1 Alt #2 Alt #3 Trappers Power Hill Fire Station Bidder Base Bid Pass Park No 2 Grand Total Northwest Asphalt, Inc. $944,521.97 $40,553.00 $14,261.40 $49,324.55 $1,048,660.92 Valley Paving $983,977.89 $48,202.93 $14,034.82 $44,507.74 $1,090,723.38 GMH Asphalt $998,495.44 $46,592.83 $14,627.21 $46,145.90 $1,105,861.38 Chard Tiling and $1,027,598.40 $48,432.00 $14,555.70 $48,445.30 $1,139,031.40 Excavating Park Construction $1,163,030.20 $67,964.50 $13,635.50 $53,705.20 $1,298,335.40 Company Bituminous Roadways, $1,175,008.45 $62,628.00 $16,470.50 $64,302.60 $1,318,409.55 Inc. C.S. McCrossan Const. $1,235,853.05 $61,224.00 $19,103.50 $63,077.20 $1,379,257.75 Engineer's Estimate $1,165,829.50 $61,875.00 $27,830.00 $42,246.00 $1,297,780.50 WHEREAS, Northwest Asphalt, Inc. is the lowest responsible bidder with a total bid awarded of $1,048,660.92; NOW THEREFORE, BE IT RESOLVED by the Chanhassen City Council: 1.The mayor and clerk are hereby authorized and directed to enter into a contract with Northwest Asphalt in the name of the City of Chanhassen for 2017 Street Rehabilitation (Lake Susan Hills area) Project No. 17-01 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. 1 th Passed and adopted by the Chanhassen City Council this 10 day of April, 2017. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT 2 29 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: April 10, 2017 RESOLUTION NO: 2017-23 MOTION BY: SECONDED BY: A RESOLUTION ADOPTING ASSESSMENT ROLL FOR THE 2017 STREET REHABILITATION (LAKE SUSAN HILLS AREA) PROJECT NO. 17-01 WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for the improvement of: Egret Court Mallard Court Flamingo Drive Merganser Court Heron Drive Pelican Court Ibis Court Tern Court Kingfisher Court Thrush Court Lake Susan Hills Drive NOW THEREFORE, BE IT RESOLVED by the City Council of Chanhassen, Minnesota: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of eight (8) years, the first of the installments to be payable on or before the first Monday in January, 2018, and shall bear interest at the rate of 6.00 percent (6.00%) per annum. This assessment will appear on the first property tax statement for 2018. To the first installment shall be added interest on the entire assessment from October 2, 2017 until December 31, 2018. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city treasurer, except that no interest shall be charged if the entire assessment is paid by October 2, 2017; and the owner may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. If the property owner decides not to prepay the assessment before the date given above, the rate of interest that will apply is 6.00 percent (6.00%) per year. The right to partially prepay the assessment is not available. 1 4. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. th Passed and adopted by the Chanhassen City Council this 10 day of April, 2017. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT 2 • 1 Capital Improvement Program 2017 thru 2021 Department Street Improvements il City of Chanhassen, MN Contact Paul Oehme Project# ST-012 Type Improvement Useful Life Unassigned I Project Name Annual Street Improvement Program Category Streets/Highways Account#1 601-xxxx-4751 Account#3 Priority n/a Account#2 Account#4 j Description Total Project Cost: $30,680,000 Annual project to rehabilitate and reconstruct streets in the City. Current 5-year plan shows the following neighborhood areas: 2017-Minnewashta Manor area and Lake Susan Hills Drive area MSA-Park Road and Park)?lace 2018-Orchard Lane area MSA-Lake Drive East and Dakota Ave(Highway 5 to Lake Drive East) 2019-Choctaw area,Kurvers Point area and 96th Street MSA-Minnewashta Parkway overlay and trail 2020-Chan View area MSA-Lake Lucy Road(Highway 41 to Galpin Blvd)and trail 2021 -Stone Creek area and Ches Mar Drive Justification The City uses a Pavement Management System to monitor the condition of the City streets. While proper preventative maintenance extends the life of the street and is cos effective,a street will eventually deteriorate to a point that further maintenance is no longer cost effective. Rehabilitation projects extend the life of the street. In cases when utilities or poor sub grade needs to be replaced or where streets have deteriorated to a point where rehabilitation will no longer be practical,reconstruction of the street is necessary. A feasibility study is written to considerthe merits of the project and scope of work. Prior Expenditures 2017 2018 2019 2020 2021 Total 16,405,000 Construction 4,375,000 2,700,000 2,300,000 3,800,000 1,100,000 14,275,000 I Total Total 4,375,000 2,700,000 2,300,000 3,800,000 1,100,000 14,275,000 Prior Funding Sources 2017 2018. 2019 2020 2021 Total 16,405,000 Assessment/RevolvIng 3,275,000 1,600,000 1,100,000 3,300,000 1,100,000 10,375,000 Assess Fund Total MSA 1,100,000 1,100,000 1,200,000 500,000 3,900,000 Total 4,375,000 2,700,000 2,300,000 3,800,000 1,100,000 14,275,000 Budget Impact/Other I This project may decrease maintenance costs. , r, I ,I I, _ I I 88 p I ICapital Improvement Program 2017 thru 2021 Department Water System Improvements City of Chanhassen, MN Contact Paul Oehmc Project 41 W-024 Type Improvement Project Name Useful Life Unassigned Watermain Replacement Category Utilities IAccount#1 700-7025-4751 Account#3 Priority lila#2 Accgunt#4 Description Total Project Cost: $5,220,000 IReplacement of existing water main lines in coordination with the reconstruction of the City street projects or minor fixes of water distribution system for street rehabilitation projects. I 1 Justification The City considers the condition of the existing utilities in the process to select streets for rehabilitation in an effort to realize cost savings by consolidating these projects and also to avoid potential cuts in recently improved streets.If significant repairs are necessary to the existing water main,replacement may be the most cost effective option. Given the highly corrosive soils in the City,water main replacement is an ongoing 1 project in the City. I Prior Expenditures 2017 2018 2019 2020 2021 Total 3,325,000 Construction 75,000 770,000 100,000 850,000 100,000 1,895,000 ii Total Total 75,000 770,000 100,000 850,000 100,000 1,895,000 I Prior Funding Sources 2017 2018 2019 2020 2021 Total 3,325;000 Water Utility Fund 75;000 770;000 100;000 550,000 100,000 1,895;000 Total Total 75,000 770,000 100,000 850,000 100,000 1,895,000 • I Budget Impact/Other These projects will decrease maintenance costs. 0 0 II 1 II II 111 Capital Improvement Program 2017 thru 2021 Department Surface Water Management City of Chanhassen, MN Contact Paul Oehme Project# SWMP-019 Type Improvement Useful Life Unassigned Project Name Street Improvement Projects Storm Water Mgmt Category SWMP Account#1 720-7025-4751 Account#3 Priority n/a Account#2 Account#4 Description Total Project Cost: $2,685,000 An annual amount set aside for storm water management infrastructure construction or expansion associated with street improvement projects undertaken by the engineering and public works departments. Justification Street improvement projects frequently require construction or expansion of storm water management infrastructure in order to comply with federal,state and local regulations,as well as protecting existing and proposed development adjacent to the projects. Prior , Expenditures 2017 2018 2019 2020 2021 Total 1 1525,000 Construction 500,000 250,000 80,000 250,000 80,000 1,160,000 Total Total 500,000 250,000 80,000 250,000 80,000 1,160,000 Prior FundingSources 2017 2018 2019 2020 2021 Total 1,525,0001 Surface Water Utility Fund 500,000 250,000 80,000 250,000 80,000 1,160,000 Total Total 500,000 250,000 80,000 250,000 80,000 1,160,000 Budget Impact/Other Inventory,inspection and maintenance of new infrastructure will be required. Citywide.No map i I I 0 I (P t 98 I Capital Improvement Program 2017 thru 2021 Department Sanitary Sewer Improvements City of Chanhassen, MN Contact Paul Oehme 1 Project# SS-014 Type Improvement Useful Life Unassigned Project Name Sanitary Sewer Replacementcategory Utilities Account#1 701-7025-4751 Account#3 Priority n/a Account#2 Account#4 Description 1 Total Project Cost: 52,110,000 Replacement or rehabilitation of existing sanitary sewer lines in conjunction with the reconstruction of the City street. 1 Justification 1 The City considers the condition of the existing utilities in the process to select streets for rehabilitation in an effort to realize cost savings by consolidating these projects. r I Prior , Expenditures 207 2018 2019 2020 2021 Total 1300;000 Construction 210,000 250,000 50,000 250,000 50;000 810,000 1 Total Total 210,000 250,000 50,000 250,000 50;000 810,000 Prior Funding Sources 2017 2018 2019 2020 2021 Total I 1,300;000 Sewer Utility Fund 210;000 250,000 50,000 250,000 50;000 810,000 Total Total 210,000 250;000 50,000 250,000 50,000 810,000 Budget Impact/Other This project will decrease maintenance costs. Y 1 I I I I 1 80 I Resident Communications On March 24, 2017,the Engineering Department received a call from Sheryl Ruby,resident at 1520 Lake Susan Hills Drive. She doesn't think that road conditions warrant construction. She was one of the first owners here and believes the road should be repaired not rehabilitated. She thinks that street repairs should be included in property taxes. FORM OF AGREEMENT BETWEEN CITY OF CHANHASSEN AND CONTRACTOR FOR 2017 STREET REHABILITATION PROJECT NO. 17-01 THIS AGREEMENT, made this 10th day of April, 2017, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("Owner") and NORTHWEST ASPHALT, INC. ("Contractor"). Owner and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. 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 14, 2017; C. Addendum No. 1 dated February 10, 2017; D. Specifications dated February 1, 2017; E. City of Chanhassen General Conditions of the Construction Contract; F. Bid dated February 16, 2017. In the event of a conflict 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 "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 One Million Forty -Eight Thousand Six Hundred Sixty and 92/100 ($1,048,660.92). 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 95% progress payments on account of the Contract Price on the basis of Contractor's Applications for Payment during performance of the Work. 1758810 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 1 '/2 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. 5. COMPLETION DATE/LIQUIDATED DAMAGES. A. The Work must be completed and ready for final payment in accordance with the General Conditions by October 6, 2017. 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 $ 1,250.00 for each calendar day that expires after the time specified in Paragraph 5.A. for Completion until the Work is complete. Daily costs are based on MnDOT Table 1807-1, "Schedule of Liquidated Damages as follows: 1758810 TABLE 1807-1 SCHEDULE OF LIQUIDATED DAMAGES Original Contract Amount From More Than To and Including M M Charge Per Cal. Day M 0 25,000 75 25,000 50,000 125 50,000 100,000 250 100,000 500,000 500 500,000 1,000,000 750 1,000,000 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. 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 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. D. 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 a Hazardous Environmental Condition, if any, at the site. E. 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 any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific 3 175881v1 means, methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. 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. G. 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. H. 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. K. Subcontracts: (1) 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. (2) 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. (3) The Contract Documents shall not be construed as creating any contractual relation between the Owner, the Engineer, and any Subcontractor. 4 175881vI (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 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 »sssivl 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. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. 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. C. 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. D. 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. E. 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 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 6 1758810 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 indemnify 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 attorney'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. Governing LawNenue. 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. 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 7 1758810 compensation for any construction delay resulting from the City's not timely obtaining rights-of-way or easements. M. 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. CITY OF CHANHASSEN NORTHWEST ASPHALT, INC.: BY: 4BY: yr De y auuf`e�nbur Ier,'Maayyor, BY: Todd Gerhardt, City Manager »5881v] BOND NO. 30010051 PERFORMANCE BOND Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): SURETY (Name and Address of Principal Place of Business): Northwest Asphalt, Inc. 1451 Stagecoach Road Shakopee, MN 55379-2797 OWNER (Name and Address) City of Chanhassen 7700 Market Blvd. Chanhassen, MN 55317 CONSTRUCTION CONTRACT Date: April 10, 2017 Amount: $1,048,660.92 Western Surety Company 333 S. Wabash Ave. Chicago, IL 60604 Description (Name and Location): 2017 Street Rehabilitation Project No. 17-01 BOND Date (Not earlier than Construction Contract Date): April 17, 2017 Amount: $1,048,660.92 Modification to this Bond Form: None. CONTRACTOR AS PRINCIPAL SURETY Northwest Asphalt, Inc. (Seal) Western Surety Company (Seal) Bidder's Name and Corporate Seal Surety'snd Corpora a Seal By: By: — Michael B. Pfeiffer, Signature bn Signature -ana Title Sandra M. Doze, President Attorney -in -Fact CONTRACTOR AS PRINCIPAL Bidder's Name and Corporate Seal By: Signature and Title SURETY (Seal) (Seal) Surety's Name and Corporate Seal M GC -59 Signature and Title I. The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner for the performance of the Construction Contract, which is incorporated herein by reference. 2. If the Contractor performs the Construction Contract, the Surety and the Contractor shall have no obligation under this Bond, except to participate in conferences as provided in Subparagraph 3.1. 3. If there is no Owner Default, the Surety's obligation under this Bond shall arise after: 3.1. The Owner has notified the Contractor and the Surety at its address described in Paragraph 10 below, that the Owner is considering declaring a Contractor Default and has requested and attempted 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 performing the Construction Contract. If the Owner, the Contractor and the Surety agree, the Contractor shall be allowed a reasonable time to perform the Construction Contract, but such an agreement shall not waive the Owner's right, if any, 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 twenty days after the Contractor and the Surety have received notice as provided in Subparagraph 3.1; and 3.3. The Owner has agreed to pay the Balance of the Contract Price to the Surety in accordance with the terms of the Construction Contract or to a contractor selected to perform the Construction Contract in accordance with the terms of the contract with the Owner. 4. When the Owner has satisfied the conditions of Paragraph 3, the Surety shall promptly and at the Surety's expense take one of the following actions: 4.1. Arrange for the Contractor, with 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 Owner for a contract for performance and completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and the contractor selected with the Owner's concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Paragraph 6 in excess of the Balance of the Contract Price incurred by the resulting from the Contractor's default; or 4.4. Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable promptness under the circumstances: 1. After investigation, determine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is determined, tender payment therefore to the Owner; or 2. Deny liability in whole or in part and notify 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 on this Bond fifteen days after receipt of an additional written notice from the Owner to the Surety demanding that the Surety perform its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the Owner. If the 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 Owner shall be entitled to enforce any remedy available to the Owner. 6. After the Owner has terminated the Contractor's right to complete the Construction Contract, and if the Surety elected to act under Subparagraph 4.1, 4.2, or 4.3 above, then the responsibilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner under the Construction Contract.. To the limit 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 Construction Contract, the Surety is obligated without duplication for: 6.1. The responsibilities of the Contractor for correction of defective work and completion of the Construction Contract: 6.2. Additional legal, design professional and delay costs resulting from the Contractor's Default, and resulting 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 Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contract, and the Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations. No right of action shall accrue on this Bond to any person or entity other than the Owner or its heirs, executors, administrators, orsuccessors. 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, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after Contractor Default or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of GC -60 this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the 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. 11. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 12. DEFINITIONS 12.1. Balance of the Contract Price: The 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 of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction Contract. 12.2.Construction Contract: The agreement between the Owner and the Contractor identified on the signature page, including all Contract Documents and changes thereto. 12.3.Contractor Default: Failure of the Contractor, which has neither been remedied nor waived, to perform or otherwise to comply with the terms of the Construction Contract. 12.4.0wner 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 terms thereof. GC -61 BOND NO. 30010051 PAYMENT BOND Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): Northwest Asphalt, Inc. 1451 Stagecoach Road SURETY (Name and Address of Principal Place Of Business): Shakopee, MN 55379-2797 Western Surety Company 333 S. Wabash Ave. OWNER (Name and Address): Chicago, IL 60604 City of Chanhassen 7700 Market Blvd. Chanhassen, MN 55317 CONTRACT Date: April 10, 2017 Amount: $1,048,660.92 Description (Name and Location): 2017 Street Rehabilitation Project No. 17-01 BOND Date (Not earlier than Contract Date): Apri117, 2017 Amount: $1,048,660.92 Modifications to this Bond Form: 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 behalf by its authorized officer, agent or representative. CONTRACTOR AS PRINCIPAL Company: Northwest Asphalt, Inc. (Corp. Seal) Signature: '/ _ Name and Title: Michael B. Pfei dent SURETY Company: Western Surety Company (Corp. Seal) be&Signature: Name and Title: Sandra M. Doz torney4n-Fact (Attach Power of Attorney) (Space is provided below for signatures of additional parties, if required.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corp. Seal) Company: Signature: Signature: Name and Title: Name and Title: (Corp. Seal) EJCDE No. 1910-28-A (1996 Edition) Originally prepared through the joint efforts of the Surety Association of America, Engineers Joint Contract Documents Committee, the Associated General Contractors of America, and the American Institute of Architects. GC -62 1. The CONTRACTOR and the Surety, jointly and severally, bindthemselves, (FOR INFORMATION ONLY—Name, Address, and Telephone) their heirs,executors, administrator, successors and assigns to the OWNER to AGENTor BROKER: OWNER'S REPRESENTATIVE (ENGINEER or pay for labor, materials and equipment furnished for use in the performance of other party) the Contract, which is incorporated herein by reference. 9. The Surety shall not be liable to the OWNER Claimants or others for 2. With respect to the OWNER, this obligation shall be null and void if the obligations of the CONTRACTOR that are unrelated to the Contract. The CONTRACTOR: OWNER shall not be liable for payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligations to 2.1 Promptly makes payment, directly or indirectly, for all sums due make payments to, give notices on behalf of, or otherwise have obligations Claimants, and to Claimants under this Bond. 2.2 Defends, indemnifies and holds harmless the OWNER from all claims, demands, liens or suits by any person or entity who furnished labor, materials or equipment for use in the performance of the Contract, provided the OWNER has promptly notified the CONTRACTOR and the Surety (at the addresses described in paragraph 12) of any claims, demands, liens or suits and tendered defense of such claims, demands, liens or suits to the CONTRACTOR and the Surety, and provided there is no OWNER Default. 3. With respect to Claimants, this obligation shall be null and void if the CONTRACTOR promptly makes payment, directly or indirectly, for all sums due. 4. The Surety shall have an obligation to Claimants under this bonduntil: 4.1 Claimants who are employed by or have a direct contract with the CONTRACTOR have given notice to the Surety (at the addresses described in paragraph 12) and sent a copy, of notice thereof, to the OWNER stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the claim. 4.2 Claimants who do not have a direct contract with theCONTRACTOR: 1. Have furnished written notice to the CONTRACTOR and sent atopy, or notice thereof, to the OWNER within 90 days after having last performed labor or last furnished materials or equipment included in the claim stating, with substantial accuracy, the amount of the claim and the name of the party to who the materials are furnished or supplied or for whom the labor was done or formed; and 10, The Surety hereby waives notice of any change, including changes of time, to the Contract or to related Subcontracts, purchase orders and other obligations. 11. No suit in action shall be commenced by the Claimant under this Bond other than in a court of competentjurisdiction in the location in which the Work or part of the Work is located or after the expiration of one year from the date (1) on which the Claimant gave the notice required by paragraph 4.1 or paragraph 4.2.3, or (2) on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction Contract, whichever of (1) or (2) first occurs. If the provisions of this paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 12. Notice to the Surety, the OWNER or the CONTRACTOR shall be mailed or delivered to the addresses shown on the signature page. Actual receipt of notice by Surety, the OWNER or the CONTRACTORhowever accomplished, shall be sufficient compliance es of the date received at the address shown on the signature page. 13. When this bond has been furnished to comply with a statutory or other legal requirement in the location where the Contract was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted here from and provisions confirming to such statutory or other legal requirement shall be deemed incorporated herein. The intent is, that this Bond shall be construed as a statutory Bond and not as a common lawbond. 2. Have either received a rejection in whole or in part from the 14. Upon request of any person or entity appearing to be a potential CONTRACTOR or not received within 30 days of furnishing the abovenotice beneficiary of this Bond, the CONTRACTOR shall promptly famisha any communication from the CONTRACTOR by which the CONTRACTOR copy of this Bond or shall permit a copy to bemade. had indicated the claim will be paid directly or indirecdy;and 15. DEFINITIONS 3. Not having been paid within the above 30 days, have sent a written notice to the Surety and sent a copy, or notice thereof, to the OWNER stating that a claim is being made under this Bond and enclosing a copy of the previous written notice furnished to the CONTRACTOR. S. If a notice required by paragraph 4 is given by the OWNER tothe CONTRACTOR or to the Surety, that is suffncientcompliance. 6. When the Claimant has satisfied the conditions of paragraph 4, theSurety shall promptly and at the Surety's expense take the followingactions: 6.1 Send an answer to the Claimant, with a copy to the OWNER within 45 days after receipt of the claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed. 6.2 Pay or arrange for payment of my undisputed amounts. 15.1 Claimant: An individual or entity having a direct contract with the CONTRACTOR or with a Subcontractor of the CONTRACTOR to furnish labor, materials or equipment for use in the performance of the Contract. The intent of this Bond shall be to include within limitation in the terms "labor, materials or equipment" that pan of water, gas, power, light, heat, oil, gasoline, telephone service or rental equipment used in the Contract, architectural and engineering services required for performance of the Work of the CONTRACTOR and the CONTRACTOR's Subcontractors, and all other items for which a mechanic's lien may be asserted in the jurisdiction where the labor, materials or equipment were furnished. 15.2 Contract: The agreement between the OWNER and the CONTRACTOR identified on the signature page, including all Contract Documents and changes thereto. 7. The Surety's total obligation shall not exceed the amount of this Bond, and the 15.3 OWNER Default: Failure of the OWNER which has neither amount of this Bond shall be credited for any payments made in good faith by the been remedied not waived, to pay the CONTRACTOR as required by the Surety. Contractor or to perform and complete or comply with the other terms thereof. 11. Amounts owed by the OWNER to the CONTRACTOR under the Contract shall be used for the performance of the Contract and to satisfy claims, if any, under any Performance Bond. By the CONTRACTOR furnishing and the OWNER accepting this Bond, they agree that all funds earned by the CONTRACTOR in the performance of the Contract are dedicated to satisfy obligations of the CONTRACTOR and the Surety under this Bond, subject to the OWNER's priority to use the funds for the completion of the Work. GC -63 CORPORATE ACKNOWLEDGMENT State of Minnesota ) )ss County of Scott ) On this r \day of 'X'O before me appeared Michael B. Pfeiffer to me personally known, who, being by me duly sworn, did say that he/she is the President of Northwest Asphalt, Inc. , 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 Michael B. Pfeiffer acknowledged said instrument to be the free act and deed of said corporation. l!!!!!✓✓!✓ - State of Minnesota ) ss County of Hennepin Notary PublicL�'�i My commission expires SURETY ACKNOWLEDGMENT County, Mi iyi d I- L' K On this 17th day of April 2017 , before me appeared Sandra M. Doze to me personally know, who being by me duly sworn, did say that (s)he is the Attorney -in -Fact of Western Surety Company , 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 Sandra M. Doze acknowledged said instrument to be the free act and deed of said corporation. r r LIN ULVEN f: NOTARY PUBLIC - MINNESOTA My Commission Expires January 31, 2020 es x Notary Public Ramsey County, Minnesota My commission expires 1/31/2020 Western Surety Company POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know All Men By These Presents, That WESTERN SURETY COMPANY, a South Dakota corporation, is a duly organized and existing corporation having its principal office in the City of Sioux Falls, and State of South Dakota, and that it does by virtue of the signature and seal herein affixed hereby make, constitute and appoint R. Scott Egginton, John E. Tauer, Kurt C. Lundblad, Craig Remick, Jerome T. Ouimet, R. W. Frank, Nicole Stillings, Rachel Thomas, Joshua R. Loftis, Brian J. Oestreich, Melinda C. Blodgett, Sandra M. Doze, Lin Ulven, Ted Jorgensen, R. C. Bowman, Individually of Minneapolis, MN, its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature - In Unlimited Amounts - and to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said Attorney, pursuant to the authority hereby given, are hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the By -Law printed on the reverse hereof, duly adopted, as indicated, by the shareholders of the corporation. In Witness Whereof, WESTERN SURETY COMPANY has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 9th day of January, 2017. ...N5RET} WESTERN SURETY COMPANY ��°?�� PONq" 0l.. s 'P aul T. Bruflat, Vice President State of South Dakota ss County of Minnehaha I On this 9th day of January, 2017, before me personally came Paul T. Bruflat, to me known, who, being by me duly sworn, did depose and say: that he resides in the City of Sioux Falls, State of South Dakota; that he is the Vice President of WESTERN SURETY COMPANY described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporation and that he signed his name thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporation. My commission expires J. MOHR MMAWPUBM June 23, 2021 90Uf1OAK J. Mohr, Notary Public CERTIFICATE I, L. Nelson, Assistant Secretary of WESTERN SURETY COMPANY do hereby certify that the Power of Attorney hereinabove set forth is still in force, and further certify that the By -Law of the corporation printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said corporation this 17th day of April 2017 . WESTERN SURETY COMPANY iX sem+`}�.Sf q1•,• i J' '�, pF �Tdl L. Nelson, Assistant Secretary Form F4280-7-2012 Authorizing By -Law ADOPTED BY THE SHAREHOLDERS OF WESTERN SURETY COMPANY This Power of Attorney is made and executed pursuant to and by authority of the following By -Law duly adopted by the shareholders of the Company. Section 7. All bonds, policies, undertakings, Powers of Attorney, or other obligations of the corporation shall be executed in the corporate name of the Company by the President, Secretary, and Assistant Secretary, Treasurer, or any Vice President, or by such other officers as the Board of Directors may authorize. The President, any Vice President, Secretary, any Assistant Secretary, or the Treasurer may appoint Attorneys in Fact or agents who shall have authority to issue bonds, policies, or undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds, policies, undertakings, Powers of Attorney or other obligations of the corporation. The signature of any such officer and the corporate seal may be printed by facsimile. CERTIFICATE OF LIABILITY INSURANCE Fo�-_( n 17 D� THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFe iRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the pollcy(ies) must have ADDITIONAL INSURED provisions or be endorsed, If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Cobb Strecker Dunphy & Zimmermann 150 South Fifth Street CONT NAMEACT Angie Ward PHONE , 612-349-2432 FAX 612-349-2490 EDDA'L .award@csdz.com Suite 2800 Minneapolis MN 55402 INSURERS AFFORDING COVERAGE NAIC li INSURER A;Re ent Insurance Com an 24449 12/112016 INSURED NORTASPH INSURER a :General Casualty Company of Wiscons 24414 Northwest Asphalt, Inc. 1451 Stagecoach Road Shakopee, MN 55379-9024 INSURERC:The Builders Group j INSURER D:Charter Oak Fire Insurance Company 25615 INSURER E ; INSURER F P91icy Form/XCU COVERAGES CERTIFICATE NUMRFR- 1590567679 DCvle1^1,11-Il rRS.=rl THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTiMTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT VViTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE INSD. WVD POLICY NUMBER POLICY EFF MMIDD/YYYY POLICY EXP MMIDD/YYYY I LIMITS A X COMMERCIAL GE NERAL LIABILITY CLAIMS-MADEX❑ OCCUR CC11293283 12/112016 12/112017 EACH OCCURRENCE $1,000,000 EYAMAGE TO RENTED—— PREMISES (Ea occurrence) $300,000 X MED EXP (Any one person) $10,000 Contr Liab Per P91icy Form/XCU PERSONAL & ADV INJURY $1,000,000 X AGGREGATE LIMIT APPLIES PER: RO POLICY 7 JjECT El LOC GENERAL AGGREGATE $2,000,000 GEN'L PRODUCTS-COMPIOP AGG $2,000,000 OTHER. A AUTOMOBILE X� LIABILITY ANY AUTO CBA1293263 12/1/2016 12/112017 ZOVETNED-SINGLE LIMIT $ Ea accident)1,000,000 BODILY INJURY (Per person) $ X OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON O MED AUTOS ONLY X AUTOS ONLY — BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ Per accident B X 1 UMBRELLA LAB X OCCUR CCU1293283 12/1/2016 12/1/2017 EACH OCCURRENCE $10,000,000 EXCESS LIAB CLAIMS -MADE f AGGREGATE $10,000,000 DED X RETENTION $ 10,000 1 $ C WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETORIPARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? 7 NIA 090001363 12/1/2016 121112017 X ISTATUTE OERH E.L. EACH ACCIDENT $1,000,000 E.L DISEASE - EA EMPLOYEE $1,000,000 (Mandatory In NH) If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $1,000,000 D 1Installation Fitr-Completed Value Awned Equipment •ACV Leased or Rented Equip - ACV ( OT6609G469358COF18 1 1 12/1/2016 I 12/1/2017 (Ded: Ded: $5,000 Limit: $400,000 $5,000 Limit: See Below Ded: $5,000 Limit: $750,000 DESCRIPTION OF OPERATIONS/ LOCATIONS /VEHICLES (ACORD 101, Additional Remarks Schedule, maybe attached It more space Is required) 2017 Street Rehabilitation Project 17-01 Additional Insured only if required by written contract with respect to General Liability applies on a primary basis and the Insurance of the Additional Insured shall be Non -Contributory: City of Chanhassen The following supersedes the cancellation wording Should any of the above described policies be cancelled before the expiration date, 30 Days written notice (10 Days for Non -Payment) will be delivered to the certificate holder. City of Chanhassen 7700 Market Boulevard PO Box 147 Chanhassen MN 55317 ILLvLI SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. TIVE I- U 19BU-2015 ACORD CORPORATION, All rights reserved. ACORD 25 (2016103) The ACORD name and logo are registered marks of ACORD