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Contract & Performance BondTHIS AGREEMENT, made and entered into as of the 3rd day of June , 2016, by and between the City of Shorewood, a municipal corporation under the laws of the State of Minnesota, hereinafter called the "Owner ", and Pearson Bros. Inc , hereinafter called the "Contractor ". That in consideration of their mutual covenants and agreements as hereinafter set forth, the Owner for itself and the Contractor for itself, its successors, and assigns, covenants and agrees as follows, to wit: The Contractor agrees to furnish all the necessary materials, labor, use of tools, equipment, plant and every other thing necessary to perform the work designated and referred to in this Contract, including all Contractor's superintendence, and to furnish everything necessary for the completion of the improvement which is the subject of this Contract (except such things as the Owner has specifically agreed to provide, according to the Contract Documents); and agrees under penalty of a public contractor's corporate surety bond in the amount of One hundred eighty -two thousand, twenty and 00/100 Dollars ($182.020.00) to perform and complete the City of Shorewood, MN, portion of the work shown in the plans and drawings entitled "2016 Crack Fill & Seal Coat Project" prepared by WSB & Associates, Inc., and dated March 28, 2016, and to conform in all respects with the provisions and requirements of the General Conditions, Supplementary General Conditions and Specifications for said improvement. 2. The Contractor agrees that performance shall be in accordance with the terms, requirements and conditions of this instrument, and laws of the State of Minnesota, and the following documents. PROPOSAL by the Contractor, presented to the City Council of the Owner(s) on May 9, 2016, and accepted by the Owner (City of Shorewood) on May 9, 2016. CONTRACT DOCUMENTS for said 2016 Crack Fill & Seal Coat Project for the Cities of Shorewood, Victoria, and Minnetrista, dated March 28, 2016, referred to in the preceding paragraph of this Agreement and made a part of the aforementioned proposal. PLANS AND DRAWINGS for said 2016 Crack Fill & Seal Coat Project for the Cities of Shorewood, Victoria, and Minnetrista as identified in a preceding paragraph of this Contract and which are dated March 28, 2016. ANY ADDENDA to the plans, drawings, general conditions and specifications for said 2016 Crack Fill & Seal Coat Project for the Cities of Shorewood, Victoria, and Minnetrista which addenda were prepared by WSB & Associates, Inc. PUBLIC CONTRACTOR'S SURETY BOND in the principal sum of the amount bid. Each and all of the aforementioned Contract Documents are hereby incorporated into this Contract by specific reference and the terms and provisions thereof are and constitute a part of this Contract as though attached hereto or fully set forth herein. 3. The Owner agrees to pay the Contractor for the performance of this Contract and the Contractor agrees to accept in full compensation therefor, the sums set forth within the aforementioned proposal of the Contractor for each unit and each type of unit of work to be performed. It is understood and agreed that the said proposal is for the construction of said 2016 Crack Fill & Seal Coat Project for the Cities of Shorewood, Victoria, and Minnetrista on a unit price basis in accordance with the said proposal, and that sum of $182,020.00 as set out in said proposal for the City of Shorewood portion of the work is the sum of the unit prices, multiplied by the estimated quantities of the respective units of work listed therein. 2016 CRACK FILL & SEAL COAT PROJECT CONTRACT FOR CONSTRUCTION CITY OF SHOREWOOD, MN; CITY OF VICTORIA, MN; CITY OF MINNETRISTA, MN; WSB PROJECT NOS. 2925 -08, 2168 -11 and 2121 -73 PAGE 1 By signing this document I certify that I am an owner or officer of the company, and I swear under oath that: My company meets each of the minimum criteria of Minn. Stat. § 16C.285, subd. 3, the Responsible Contractor statute. Pursuant to Stat. § 16C.285, subd, 3(7), my company has obtained from all subcontractors and motor carriers with which it will have a direct contractual relationship a signed statement under oath by an owner or officer verifying that they meet all of the minimum criteria in subdivision 3 prior to execution of a construction contract with each subcontractor or motor carrier. The undersigned agrees that, if it retains additional subcontractors on the project after submitting its verification of compliance, it shall obtain verifications of compliance from each additional subcontractor With which it has a direct contractual relationship and shall submit a supplemental verification confirming compliance with Minn. Stat. § 16C.285, subd. 3(7), within 14 days of retaining the additional subcontractors. Upon request, the undersigned shall submit to the contracting authority copies of the signed verifications of compliance from all subcontractors of any tier and all motor carriers providing for-hire transportation of materials, equipment, or supplies for a project. The undersigned understands that a failure to meet or verify compliance with the minimum criteria established for a "responsible contractor" as defined in Minn. Stat. § 16C.285, subd. 3, renders a bidder ineligible to be awarded a construction contract for the Project or to perform work on the Project. The undersigned understands that a false statement under oath verifying compliance with any of the minimum criteria shall make the undersigned, ineligible to be awarded a construction project and may result in termination of a contract awarded to the undersigned. A contracting authority shall not be liable for declining to award a contract or terminating a contract based on a reasonable determination that the contractor failed to verify compliance with the minimum criteria or falsely stated that it meets the minimum criteria. Date: (.01221ZO140 Contractor: 2016 CRACK FILL & SEAL COAT PROJECT SUPPLEMENTAL VERIFICATION CITY OF SHOREWOOD, MN; CITY OF VICTORIA, MN; CITY OF MINNETRISTA, MN; WSB PROJECT NOS. 2926-08,2168-11 and 2121-73 111870 DATE (MM /DDiYYYY) ACIO'R" CERTIFICATE OF LIABILITY INSURANCE 6/9/2016 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY 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 policy(ies) must 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 CONTACT NAME: Commercial Lines - 952- 242 -3100 PHONE ADC—t o Ezt Wells Fargo Insurance Services USA, Inc. E -MAIL ADDRESS: 400 Highway 169 South INSURER($) AFFORDING COVERAGE _ NAIC # _ St. Louis Park, MN 55426 INSURER A: Phoenix Insurance Company 25623_ _ INSURED INSURER B : Charter Oak Fire Insurance Co. 25615 Pearson Bros., Inc. -- - - - - -- - - - -- - - - - - -- -- NSURER C : Travelers Indemnity Company 25658 11079 Lamont Avenue NE INSURER D : Travelers Indemnity Co of America 25666 Hanover, MN 55341 INSURER E : COVERAGES CERTIFICATE_ NUMBER- 10559031 REVISION NUMRFR- See below THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH 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 ADDL SUBR POLICY NUMBER POLICY EFF MM /DDIYYYY POLICY EXP MM /DD /YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE X OCCUR „___„ CO 8F265909 PHX 05/11/16 05/11/17 EACH OCCURRENCE $ 1,000,000 - DAMAGE TO RENTED PREMISES Ea occurrence $ 500,000 MED EXP (Any one person) _ - - - _ $ 10,000 & ADV INJURY $ 1,000 000 _PERSONAL GENERAL AGGREGATE $ 2,000,000 GENT ___ AGGREGATE ATE LIMIT APPLIES PER POLICY [ X -� PRO- LOC PRODUCTS - COMP /OP AGG $ 2,000,000 _ $ X OTHER: $1000 per occur. PD Ded. B AUTOMOBILE LIABILITY 810 8F265909 COF 05/11 /16 05/11 /17 Ee BINED LIMIT $ 1,000,000 BODILY INJURY (Per person) $ ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS BODILY INJURY (Per accident) $ 11 X NON -OWNED HIRED AUTOS AUTOS _(p �accidentDAMAGE — 1 -$---_._.----------- $ X UMBRELLA LIAB X OCCUR CUP 8F265909 IND 05/11/16 05/11/17 EACH OCCURRENCE $ EXCESS LIAB CLAIMS -MADE AGGREGATE $ 5,000,000 DED X RETENTION $ 10,000 rD $ WO RKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETORIPARTNER /EXECUTIVE UB8F265909TIA 05/11/16 05/11/17 X S_T_A_T__U_T_E _J �RH E.L. EACH ACCIDENT 1 000,000 $ ' OFFICER /MEMBER EXCLUDED? (Mandatory in NH) N / A - - -- — - -- E.L. DISEASE - EA EMPLOYEE -- - - - - -- $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) RE:2016 CRACK FILL AND SEAL COAT PROJECT CITY OF SHOREWOOD AND WSB ENGINEERING is an Additional Insured with respects to the General Liability and Automobile Liability, only as required by written contract. CERTIFICATE HOLDER CANCELLATION CITY OF SHOREWOOD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 5755 COUNTRY CLUB ROAD ACCORDANCE WITH THE POLICY PROVISIONS. SHOREWOOD, MN 55331 AUTHORIZED REPRESENTATIVE The ACORD name and logo are registered marks of ACORD ©1988 -2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) MERCHANTS BON D I NG COMINP�_AN MsnCuAmT5o(NIumG[0mpxmr(,wUTxm.) 7!0. BOX 14498 DES MOINES, lOm/AJO306'3498 PHONE: (800) 678-8171 FAX: (515) 243-3854 (Name, legal status and address) Pearson Bros., Inc, 11O7Q Lamont Avenue NE Hanover, MN 55341 OWNER: (Nam legal status and address) City ofShorewood 5755 Country Club Road Shorewood, MN 55331 CONSTRUCTION CONTRACT Date: June 3.2O18 Bond No. MNC 67282 SURETY: (Name, legal status andPrincipal place of business) Merchants Bonding Company (Mutua|) 6?0OWostowo Pkwy, West Des Moines, 1A 50266 Amount: $182.020.00 One Hundred Eighty Two Thousand Twenty Dollars and 00100 DuocdDdoo: (Name and locution) 2O18 Crack Fill and Seal Coat Project -Sea|CoatVahnuaRuada. Shorewood, MN BOND Date: June 9.2O18 (Not earlier than Construction Contract Date) Amount: $182.020.00 One Hundred Eighty Two Thousand Twenty Dollars and 001OO Modifications to this Bond: El None El See Section 16 This document has important legal consequences. Consultation with wn attorney |o encouraged with respect tn its completion or modification, Any singular reference m Contractor, Surety, Owner o, other party shall baconsidered plural where applicable. This document combines two separate bonds, aPodonnanno Bond and oPayment Bond, into one form. This io not asingle combined Performance and Payment Bond. (C»poratuSeal) Merchants Bonding Company (Mutual my rns bu Name (Any additional signatures appear on the las/p/geofthis Peiformance Bomo0 (FOR D0FORAMZION ONL Y— Name, address and telephone) AGENT orBROKER: OWNER'S REPRESENTATIVE: Wells Fargo Insurance Services USA, Inc, (Architect, Engineer or other party.-) 4DU Hwy 16Q South, 8th Floor SV Louis Park, MN 55426 952-242-3500 VVB8 &Associab*s. Inc. 477 Temperance Street St. Paul, NlN 55101 Printed in cooperation with American Institute of Architects AAAJ. The language in this document conforms exactly to the language used in AIA Document A312-Performance Bond-201 0 edition. § 1 The Contractor and 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 when applicable to participate in a conference as provided in Section 3. § 3 If there is no Owner Default under the Construction Contract, the Surety's obiligation under this Bond shall arise after .1 the Owner first provides notice to the Contractor and the Surety that the Owner is considering declaring a Contractor Default. Such notice shall indicate whether the Owner is requesting a conference among the Owner, Contractor and Surety to discuss the Contractor's performance. If the Owner does not request a conference, the Surety may, within five (5) business days after receipt of Owner's notice, request such a conference. If the Surety timely requests a conference, the Owner shall attend. Unless the Owner agrees otherwise, any conference requested under this Section 3.1 shall be held within ten (10) business days of the Surety's receipt of the Owner's notice. 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; .2 the Owner declares a Contractor Default, terminates the Construction Contract and notifies the Surety; and .3 the Owner has agreed to pay the Balance of the Contract Price in accordance with the terms of the Construction Contract to the Surety or to a contractor selected to perform the Construction Contract. § 4 Failure on the part of the Owner to comply with the notice requirement in Section 3.1 shall not constitute a failure to comply with a condition precedent to the Surety's obligations, or release the Surety from its obligations, except to the extent the Surety demonstrates actual prejudice. § 5 When the Owner has satisfied the conditions of Section 3. the Surety shall promptly and at the Surety's expense take one of the following actions: § 5.1 Arrange for the Contractor, with the consent of the Owner, to perform and complete the Construction Contract: § 5.2 Undertake to perform and complete the Construction Contract itself through its agents or independent contractors: § 5.3 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 a 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 Section 7 in excess of the Balance of the Contract Price incurred by the Owner as a result of the Contractor Default; or § 5.4 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, make payment to the Owner; or .2 Deny liability in whole or in part and notify the Owner, citing the reasons for denial. § 6 If the Surety does not proceed as provided in Section 5 with reasonable promptness, the Surety shall be deemed to be in default on this Bond seven 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 Section 5.4 and the Owner refuses the payment 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. 2 § 7 If the Surety elects to act under Section 5.1, 5.2, or 5.3, 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. Subject to the commitment by the Owner to pay the Balance of the Contract Price, the Surety is obligated, without duplication, for .1 the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract: .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 Section 5: and .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. § 8 If the Surety elects to act under Section 5.1, 5.3 or 5.4, the Surety's liability is limited to the amount of this Bond. § 9 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, successors and assigns. § 10 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. § 11 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 a declaration of Contractor Default or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. 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 address shown on the page on which their signature appears. § 13 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 deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. When so famished, the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. § 14 Definitions § 14.1 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. § 14.2 Construction Contract. The agreement between the Owner and Contractor identified on the cover page, including all Contract Documents and changes made to the agreement and the Contract Documents. § 143 Contractor Default. Failure of the Contractor, which has not been remedied or waived, to perform or otherwise to comply with a material term of the Construction Contract. § 14.4 Owner Default. Failure of the Owner, which has not been remedied or waived, to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. § 14.5 Contract Documents. All the documents that comprise the agreement between the Owner and Contractor. § 15 If this Bond is issued for an agreement between a Contractor and subcontractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. § 16 Modifications to this bond are as follows: (Space is provided below for additional signatures of added parties, other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) Signature: Signature: Name and Title: Name and Title: Address: Address: STATE OF MINNESOTA COUNTY OF Wright On this 9th day of June, 2016 before me personally appeared Jack E. Pearson to me known, who being by me duly sworn, did say that he is the President of the PEARSON BROS., INC., the corporation described in and which executed the foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order. . ......... Public, MELISCATHERINEWALIIC�+ Notary NOTARY PUBLIC -MINNESOTA Notary Seal) My commission expires Jam 31, 2018 STATE OF MINNESOTA COUNTY OF HENNEPIN On this 9th day of June, 2016 before me personally appeared Amy M. Burns to me known, who being by me duly sworn, did say that (s)he is the aforesaid Attorney -in- Fact of the MERCHANTS BONDING COMPANY (MUTUAL), a corporation; that the seal affixed to the foregoing instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of said corporation by the aforesaid officer, by authority of its Board of directors; and the aforesaid officer acknowledged said instrument to be the free act and deed of said corporation. �i� Notary Public, v4 Id (Notary Sea-',) Yc BARBARA L RAEDEKE NOTARY PUBLIC • MINNESOTA MYCOMMISSIONSM011/31IMN ERCHANTS BONDING COMPANY, POWER OF ATTORNEY Know All Persons By These Presents, that MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC., both being corporations duly organized under the laws of the State of Iowa (herein collectively called the "Companies "), and that the Companies do hereby make, constitute and appoint, individually, Amy M Burns; Barbara L Raedeke; Conni L VanHorn; Daniel R Boerboom; Justin W Pool of St Louis Park and State of Minnesota their true and lawful Attorney -in -Fact, with full power and authority hereby conferred in their name, place and stead, to sign, execute, acknowledge and deliver in their behalf as surety any and all bonds, undertakings, recognizances or other written obligations in the nature thereof, subject to the limitation that any such instrument shall not exceed the amount of: FOUR MILLION ($4,000,000.00) DOLLARS and to bind the Companies thereby as fully and to the same extent as if such bond or undertaking was signed by the duly authorized officers of the Companies, and all the acts of said Attorney -in -Fact, pursuant to the authority herein given, are hereby ratified and confirmed. This Power -of- Attorney is made and executed pursuant to and by authority of the following By -Laws adopted by the Board of Directors of the Merchants Bonding Company (Mutual) on April 23, 2011 and adopted by the Board of Directors of Merchants National Bonding, Inc., on October 24, 2011. "The President, Secretary, Treasurer, or any Assistant Treasurer or any Assistant Secretary or any Vice President shall have power and authority to appoint Attorneys -in -Fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof. The signature of any authorized officer and the seal of the Company may be affixed by facsimile or electronic transmission to any Power of Attorney or Certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship obligations of the Company, and such signature and seal when so used shall have the same force and effect as though manually fixed." In Witness Whereof, the Companies have caused this instrument to be signed and sealed this 11thday of March , 2015. CQ�.o °. MERCHANTS BONDING COMPANY (MUTUAL) , j.• ry' ` q RPO,9'."f MERCHANTS NATIONAL BONDING, INC. -�� 2:03 •" 1933 : c. it •. ya /., �1r. By yy1 �Q �Y STATE OF IOWA �r`'w �+ ".. � • President COUNTY OF POLK ss. r. r' " ".r "� ° ° ` ° ° On this 1lthday of March . 2015, before me appeared Larry Taylor, to me personally known, who being by me duly sworn did say that he is President of the MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC.; and that the seals affixed to the foregoing instrument is the Corporate Seals of the Companies; and that the said instrument was signed and sealed in behalf of the Companies by authority of their respective Boards of Directors. In Testimony Whereof, I have hereunto set my hand and affixed my Official Seal at the City of Des Moines, Iowa, the day and year first above written. �P�IA <s WENDY WOODY v Commission Number 784654 z Its 7 My Commission Expires June 20, 2017 Notary Public, Polk County, Iowa STATE OF IOWA COUNTY OF POLK ss. I, William Warner, Jr., Secretary of the MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC., do hereby certify that the above and foregoing is a true and correct copy of the POWER -OF- ATTORNEY executed by said Companies, which is still in full force and effect and has not been amended or revoked. Ir„Witness Whereof, I have hereunto set my hand and affixed the seal of the Companies on this -I& day ofl:r, ,,,-,,.. -.. ``++ �- • d- : 1933 �: Secretary POA 0014 (7/14)x'/+' ° "•*�°,4+ W� 3 ,: BONDING s MERCHANTS BONDING COvIPANY ('MUTUAL) P.O. BOX 14498, DES MOINES, IOWA 50306 -3498 PHONE: (800) 678 -81.71 FAX: (515) 243 -3854 Payment Bond Bond No. MNC 67282 CONTRACTOR: (Nam, I egal status and address) Pearson Bros., Inc. 11079 Lamont Avenue NE Hanover, MN 55341 OWNER: (Nave, I egal status and address) City of Shorewood 5755 Country Club Road Shorewood, MN 55331 CONSTRUCTION CONTRACT Data June 3, 2016 SURETY: (Name, legal status and principal place of business) Merchants Bonding Company (Mutual) 6700 Westown Pkwy, West Des Moines, 1A 50266 Amount: $182,020.00 One Hundred Eighty Two Thousand Twenty Dollars and 00/100 Description: (Name and Iocation) 2016 Crack Fill and Seal Coat Project -Seal Coat Various Roads, Shorewood, MN BOND Data June 9, 2016 (Not earlier than Construction Contract Date) Amount: $182,020.00 One Hundred Eighty Two Thousand Twenty Dollars and 00/100 Modifications to this Bond: ®None El See Section 18 This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. This document combines two separate bonds, a Performance Bond and a Payment Bond, into one form. This is not a single combined Performance and Payment Bond. SURETY ...... Company: (Corporate l) , °gym':....... - Merchants ond`rng Company (Mutual) Name my M, u f 6s •.,��,,. ...��r< and Title: Attorney-In-Fact (Any additional signatures appear on the last page of this Payment Bond.) (FOR I NFORMATI ON ONLY -- Nara, address and telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE: Wells Fargo Insurance Services USA, Inc. (Architect, Engineer or other party:) 400 Hwy 169 South, 8th Floor WSB & Associates, Inc. St Louis Park, MN 55426 477 Temperance Street 952- 242 -3500 St. Paul, MN 55101 Printed in cooperation with American Institute of Architects (AIA). The language in this document conforms exactly to the language used in AIA Document A312- Payment Bond -2010 edition. § 1 The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner to pay for labor, materials, and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference, subject to the following terms. § 2 If the Contractor promptly makes payment of all sums due to Claimants, and defends, indemnifies, and holds harmless the Owner from claims, demands, liens or suits by any person or entity seeking payment for labor, materials or equipment furnished for use in the performance of the Construction Contract, then the Surety and the Contractor shall have no obligation under this Bond. § 3 If there is no Owner Default under the Construction Contract, the Surety's obligation to the Owner under this Bond shall arise after the Owner has promptly notified the Contractor and the Surety (at the address described in Section 13) of claims, demands, liens or suits against the Owner or the Owner's property by any person or entity seeking payment for labor, materials or equipment furnished for use in the performance of the Construction Contract and tendered defense of such claims, demands, liens or suits to the Contractor and the Surety. § 4 When the Owner has satisfied the conditions in Section 3., the Surety shall promptly and at the Surety's expense defend, indemnify and hold harmless the Owner against a duly tendered claim, demand, lien or suit. § 5 The Surety's obligations to a Claimant under this Bond shall arise after the following: § 5.1 Claimants, who do not have a direct contract with the Contractor, .1 have furnished a written notice of non - payment to the Contractor, stating with substantial accuracy the amount claimed and the name of the party to whom the materials were, or equipment was, furnished or supplied or for whom the labor was done or performed, within ninety (90) days after having last performed labor or last furnished materials or equipment included in the Claim; and •2 have sent a Claim to the Surety (at the address described in Section 13). § 5.2 Claimants, who are employed by or have a direct contract with the Contractor, have sent a Claim to the Surety (at the address described in Section 13). § 6 If a notice of non- payment required by Section 5. 1.1 is given by the Owner to the Contractor, that is sufficient to satisfy a Claimant's obligation to furnish a written notice of non - payment under Section 5.1.1. § 7 When a Claimant has satisfied the conditions of Sections 5.1 or 5.2, whichever is applicable, the Surety shall promptly and at the Surety's expense take the following actions: § 7.1 Send an answer to the Claimant, with a copy to the Owner, within sixty (60) days after receipt of the Claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed: and § 7.2 Pay or arrange for payment of any undisputed amounts. § 7.3 The Surety's failure to discharge its obligations under Section 7.1 or Section 7.2 shall not be deemed to constitute a waiver of defenses the Surety or Contractor may have or acquire as to a Claim, except as to undisputed amounts for which the Surety and Claimant have reached agreement. If, however, the Surety fails to discharge its obligations under Section 7.1 or Section 7.2, the Surety shall indemnify the Claimant for the reasonable attorney's fees the Claimant incurs thereafter to recover any sums found to be due and owing to the Claimant. § 8 The Surety's total obligation shalt not exceed the amount of this Bond, plus the amount of reasonable attorney's fees provided under Section 7.3, and the amount of this Bond shall be credited for any payments made in good faith by the Surety. § 9 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construction Contract and to satisfy claims, if any, under any construction 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 Construction Contract are dedicated to satisfy obligations of the Contractor and Surety under this Bond, subject to the Owner's priority to use the funds for the completion of the work. § 10 The Surety shall not be liable to the Owner, Claimants or others for obligations of the Contractor that are unrelated to the Construction Contract. The Owner shall not be liable for the payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligation to make payments to, or give notice on behalf of Claimants or otherwise have any obligations to Claimants under this Bond. § 11 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. § 12 No suit or action shall be commenced by a Claimant under this Bond other than in a court of competent jurisdiction in the state in which the project that is the subject of the Construction Contract is located or after the expiration of one year from the date (1) on which the Claimant sent a Claim to the Surety pursuant to Section 5.1.2 or 5.2. or (2) on which the last labor or service was performed by anyone or the last materials or equipment were fizrished 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. § 13 Notice and Claims to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the page on which their signature appears. Actual receipt of notice or Claims, however accomplished, shall be sufficient compliance as of the date received. § 14 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 deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. When so furnished, the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. § 15 Upon request by any person or entity appearing to be a potential beneficiary of this Bond, the Contractor and Owner shall promptly furnish a copy of this Bond or shall permit a copy to be made. § 16 Definitions § 16.1 Claim. A written statement by the Claimant including at a minimum: .1 the name of the Claimant; .2 the name of the person for whom the labor was done, or materials or equipment furnished; .3 a copy of the agreement or purchase order pursuant to which labor, materials or equipment was furnished for use in the performance of the Construction Contract: A a brief description of the labor, materials or equipment furnished: .5 the date on which the Claimant last performed labor or last furnished materials or equipment for use in the performance of the Construction Contract: .6 the total amount earned by the Claimant for labor, materials or equipment furnished as of the date of the Claim: .7 the total amount of previous payments received by the Claimant; and .8 the total amount due and unpaid to the Claimant for labor, materials or equipment famished as of the date of the Claim. § 16.2 Claimant. An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to fumish labor, materials or equipment for use in the performance of the Construction Contract. The term Claimant also includes any individual or entity that has rightfully asserted a claim under an applicable mechanic's lien or similar statute against the real property upon which the Project is located. The intent of this Bond shall be to include without limitation in the terms "labor, materials or equipment" that part of water, gas, power, light, heat, oil. gasoline, telephone service or rental equipment used in the Construction 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. § 16.3 Construction Contract. The agreement between the Owner and Contractor identified on the cover page, including all Contract Documents and all changes made to the agreement and the Contract Documents. § 16.4 Owner Default. Failure of the Owner, which has not been remedied or waived, to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. § 16.5 Contract Documents. All the documents that comprise the agreement between the Owner and Contractor. § 17 If this Bond is issued for an agreement between a Contractor and subcontractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. § 18 Modifications to this bond are as follows: (Space is provided below for additional signatures of addedparties, other than those appearing on the coverpage.) CONTRACTOR AS PRINCIPAL. SURETY Company: (Corporate ,Seal) Company: (Corporate Seal) Signature: Name and Title. Address: Signature: Name and Title: Address: N STATE OF MINNESOTA COUNTY OF Wright On this 9th day of June, 2016 before me personally appeared Jack E. Pearson to me known, who being by me duly sworn, did say that he is the -President of the PEARSON BROS., INC., the corporation described in and which executed the foregoing instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order. Notary Public, :j" . MSC HALLICR ISSA CATHERINE (Notary Seal) NOTARY PUBLIC •MINNESOTA My Commission Expires J ant31,2018 ACKNOWLEDGMENT OF CORPORATE SURETY COUNTY OF HENNEPIN On this 9th day of June, 2016 before me personally appeared Amy M. Burns to me known, who being by me duly sworn, did say that (s)he is the aforesaid Attorney-in- Fact of the MERCHANTS BONDING COMPANY (MUTUAL), a corporation; that the seal affixed to the foregoing instrument is the corporate seal of said corporation, and that said instrument was signed and sealed on behalf of said corporation by the aforesaid officer, by authority of its Board of directors; and the aforesaid officer acknowledged said instrument to be the free act and deed of said corporation. Notary Public BARBARAL�AAE[)EKE N Oj Afly pUBLIC, - MINNESOTA MY COMMISSION EXPRIS 01/3112020 MERCHANTS BONDING COMPANYTM POWER OF ATTORNEY Know All Persons By These Presents, that MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC., both being corporations duly organized under the laws of the State of Iowa (herein collectively called the "Companies "), and that the Companies do hereby make, constitute and appoint, individually, Amy M Burns; Barbara L Raedeke; Conni L VanHorn; Daniel R Boerboom; Justin W Pool of St Louis Park and State of Minnesota their true and lawful Attorney -in -Fact, with full power and authority hereby conferred in their name, place and stead, to sign, execute, acknowledge and deliver in their behalf as surety any and all bonds, undertakings, recognizances or other written obligations in the nature thereof, subject to the limitation that any such instrument shall not exceed the amount of: TOUR MILLION ($4,000,000.00) DOLLARS and to bind the Companies thereby as fully and to the same extent as if such bond or undertaking was signed by the duly authorized officers of the Companies, and all the acts of said Attorney -in -Fact, pursuant to the authority herein given, are hereby ratified and confirmed. This Power -of- Attorney is made and executed pursuant to and by authority of the following By -Laws adopted by the Board of Directors of the Merchants Bonding Company (Mutual) on April 23, 2011 and adopted by the Board of Directors of Merchants National Bonding, Inc., on October 24, 2011. "The President, Secretary, Treasurer, or any Assistant Treasurer or any Assistant Secretary or any Vice President shall have power and authority to appoint Attorneys -in -Fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings obligatory in the nature thereof. The signature of any authorized officer and the seal of the Company may be affixed by facsimile or electronic transmission to any Power of Attorney or Certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship obligations of the Company, and such signature and seal when so used shall have the same force and effect as though manually fixed." In Witness Whereof, the Companies have caused this instrument to be signed and sealed this 1lthday of March , 2015. rr „rr rtlMirrii�•� • • • o .• • .............. ••�G C• MERCHANTS BONDING COMPANY (MUTUAL) *, ` ' _ �O•'pEiPO,p ' •9 MERCHANTS NATIONAL BONDING, INC. : ,GO "I;. • Cl) 9� ro x' -:ti3 1933 C: By STATE OF IOWA -`�a, rt *t + +`�t °• COUNTY OF POLK ss. ,, " "'rr str +y'' • ° • • • ° • President On this I I th day of March 2015, before me appeared Larry Taylor, to me personally known, who being by me duly sworn did say that he is President of the MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC.; and that the seals affixed to the foregoing instrument is the Corporate Seals of the Companies; and that the said instrument was signed and sealed in behalf of the Companies by authority of their respective Boards of Directors. In Testimony Whereof, I have hereunto set my hand and affixed my Official Seal at the City of Des Moines, Iowa, the day and year first above written. �PRtA�S WENDY WOODY p Commission Number 784654 ° °l° My Commission Expires f June 20, 2017 Notary Public, Polk County, Iowa STATE OF IOWA COUNTY OF POLK ss. I, William Warner, Jr., Secretary of the MERCHANTS BONDING COMPANY (MUTUAL) and MERCHANTS NATIONAL BONDING, INC., do hereby certify that the above and foregoing is a true and correct copy of the POWER -OF- ATTORNEY executed by said Companies, which is still in full force and effect and has not been amended or revoked. In Witness Whereof, I have hereunto set my hand and affixed the seal of the Companies on this (i6k day of CNIti r+ tr r frrrr Y'a • • • • • QRPOA' d}t tip ' " ', ® co 1933 : C' Secretary �U3 :rte- •y''• •�ti. POA 0014 (7/14)d •;�; y ;� �b�idy... `�a °•• +'fAirrFiirrsitll�At`