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CONSTRUCTION AGREEMENT GRIND I MIX I PAVE -2014 BETWEEN CITY OF MOSCOW, IDAHO AND HERCO, INC. THIS CONSTRUCTION AGREEMENT GRIND I MIX I PAVE - 2014 BETWEEN CITY OF MOSCOW, IDAHO AND HERCO, INC. (hereinafter "Agreement") dated this day of ri J , 2014, by and between the City of Moscow, Idaho, a municipal corporation of the sta'e of Idaho, 206 East Third Street, Moscow, Idaho, 83843 (hereinafter "City") and HERCO, Inc., P 0 Box 916, Lewiston, Idaho, 83501 (hereinafter "Contractor"); WITNESSETH: WHEREAS, pursuant to the invitation of City, extended through an "Advertisement For Bids", Contractor did, in accordance therewith, file with City a proposal containing an offer which was invited by said notice; and WHEREAS, City has determined that said offer was the lowest responsive bid; NOW THEREFORE, the parties to this Agreement, in consideration of the mutual covenants and stipulations set out, agree as follows: ARTICLE 1. CONTRACT DOCUMENTS The Contract Documents which comprise the entire agreement between City and Contractor concerning the work to be performed are this Agreement, pages one through five (1 through 5) and the following: I. Advertisement for Bids; 2. Project Specifications titled: GRIND I MIX I PAVE - 2014 CITY OF MOSCOW PROJECT NO. 102-014 3. Bid/Proposal of Contractor, dated April 8, 2014, physically attached to this Agreement; 4. The Engineering Plans; 5. Performance and Payment Bonds and Insurance Certificates, physically attached to this Agreement; 6. No Addendum issued prior to opening of bids, attached to this Agreement; 7. Change Orders which may be delivered or issued after the effective date of this Agreement. There are no Contract Documents other than those listed in Article l. This Agreement may only be amended by change order as provided in the General Conditions. GRIND / MIX /PAVE-2014 CITY AND HERCO, INC. PAGE I OF 5 2-DtL\- 2.2- ---PAGE BREAK--- ARTICLE 2. WORK Contractor shall complete the entire work as specified, indicated and required under the Contract Documents for City project (hereinafter "Project") titled: "GRIND I MIX I PAVE - 2014" ARTICLE3. CONTRACT TIME/SUBSTANTIAL COMPLETION The work to be performed pursuant to this Agreement shall start no earlier than July 7, 2014 and be substantially completed no later than August 15, 2014. The work shall be completed on or before twenty (20) calendar days from the commencement of work, unless adjustment of the contract time is made in accordance with the provisions of the Contract Documents. Contractor shall begin work in conformance with the Contract Documents and shall complete the work prior to the date of completion. ARTICLE 4. CONTRACT SUM City shall pay Contractor for completion of the Work in accordance with the Contract Documents in current funds the amount of One Hundred Fifty Six Thousand Five Hundred Eleven and Seventy Five One/Hundredths Dollars ($156,511.75) for Base Bid and No Alternates. Said Contract Sum shall be paid in accordance with the Contract Documents. ARTICLES. INDEPENDENT CONTRACTOR The parties warrant by their signature that no employer-employee relationship is established between Contractor and City by the terms of this Agreement. It is understood by the parties hereto that Contractor is an independent contractor and as such neither it nor its employees, agents, representatives or subcontractors, if any, are employees of City for purposes of tax, retirement system, or social security (FICA) withholding. ARTICLE6. SCOPE OF SERVICES Contractor shall perform all services required by the Contract Documents. All work shall be completed in accordance with the specifications and plans established for this Project. ARTICLE7. HOLD HARMLESS/INDEMNIFICATION In addition to other rights granted City by the Contract Documents, Contractor shall indemnify and save harmless the City, its officers, employees, and engineers, from all suits, actions, or claims of any character brought because of any injuries or damages received or sustained by any person, persons, GRIND I MIX I PA VE - 2014 CJTY AND HERCO. INC. PAGE 2 OF 5 ---PAGE BREAK--- or property on account of the operations of Contractor or its subcontractors; or on account of or in consequence of any neglect in safeguarding the work; or through use of unacceptable materials in constructing the work; or because of any act or omission, neglect, or misconduct of Contractor or its subcontractors; or because of any claims or amounts recovered from any infringements of patent, trademark or copyright; or from any claims or amounts arising or recovered under the Workmen's Compensation Act or any other law, ordinance, order or decree. ARTICLES. CONFLICT OF INTEREST Contractor covenants that it presently has no interest and will not acquire any interest, direct or indirect, in the Project which would conflict in any manner or degree with the performance of its services hereunder. Contractor further covenants that, in performing this Agreement, it will employ no person who has any such interest. Should any conflict of interest arise during the performance of this Agreement, Contractor shall immediately disclose such conflict to the Project Engineer/Engineer and City. ARTICLE9. ENTIRE AGREEMENT, MODIFICATION AND ASSIGNABILITY This Agreement and the exhibits hereto (if any) contain the entire agreement between the parties, and no statements, promises, or inducements made by either party, or agents of either party are valid or binding unless contained herein. This Agreement may not be enlarged, modified or altered except upon written agreement signed by the parties hereto. Contractor may not subcontract or assign its rights (including the right to compensation) or duties arising hereunder other than as contemplated by the Contract Documents, without the prior written consent and express authorization of City. ARTICLE 10. ADHERENCE TO LAW REQUIRED All applicable local, state and federal statutes and regulations are hereby made a part of this Agreement and shall be adhered to at all times. Violation of any of these statutes or regulations by Contractor shall be deemed material and shall subject Contractor to termination of this Agreement for cause. No pleas of misunderstanding or ignorance on the part of Contractor will in any way serve to modify the provisions of this requirement. Contractor and its surety shall indemnify and save harmless City and its employees, agents, engineers and representatives against any claim or liability arising from or based on the violation of any such laws, codes, ordinances, or regulations, whether by Contractor, Contractor's employees, or its subcontractors. ARTICLE 11. LEGAL FEES In the event either party incurs legal expenses to enforce the terms and conditions of this Agreement, the prevailing party is entitled to recover reasonable attorney's fees and other costs and expenses, whether the same are incurred with or without suit. GRIND I MIX I PAVE-2014 CITY AND HERCO, INC. PAGE 3 OF 5 ---PAGE BREAK--- ARTICLE 12. JURISDICTION AND VENUE It is agreed that this AGREEMENT shall be construed under and governed by the laws of the State of Idaho. In the event of litigation concerning it, it is agreed that proper venue shall be the District Court of the Second Judicial District of the State of Idaho, in and for the County of Latah. ARTICLE 13. SPECIAL WARRANTY Contractor warrants that nothing of monetary value has been given, promised or implied as remuneration or inducement to enter into this Agreement. Contractor further declares that no improper personal, political or social activities have been used or attempted in an effort to influence the outcome of the competition, discussion, or negotiation leading to the award of this Agreement. Any such activity by Contractor shall make this Agreement null and void. ARTICLE 14. COMMUNICATIONS Such communications as are required by this Agreement shall be satisfied by mailing or by personal delivery to the parties at the following address: Contractor: HERCO, Inc. P 0 Box 916 Lewiston, Idaho 83501 ARTICLE 15. EXECUTION City: City Engineer City of Moscow 206 East Third Street P 0 Box 9203 Moscow, Idaho 83843 IN WITNESS WHEREOF, said Contractor and the City have caused this Agreement to be executed on the day and year first above written. Contractor: HERCO, Inc. By: ZX.u B · GRIND I MIX I PAVE - 2014 CITY AND HERCO, INC. City: PAGE 4 OF 5 ---PAGE BREAK--- State of Jdah 0 County of A.Jf{jJP.fCf ACKNOWLEDGMENT ) ) : ) dar of A-pyj J , 2014 personally. app ared l/MJ and known to me to be the f?rf'f:,ic1of1f and of HERCO, Inc., describ in the above document and acknowledged to me they e' cuted the same. (seal) GRIND/MIX/PAVE-2014 CITY AND HERCO, INC. c---f-tn.fda.ho My commission expires: ;3 PAGE 5 OF 5 ---PAGE BREAK--- INSCO INSURANCE SERVICES, INC. Underwriting Manager ror: Davllopa111 Suraty ancl lnda1Mlty Company Company of California 17780 Fitch, Suite 200 •Irvine, Colifomia 9261'4 • (949) 263-3300 PERFORMANCE BOND - PUBLIC WORK Bond No. 490583P $ 3,348.00 premium is for contra.ct term and is subject to adju&tment based on flnal Contract Price. KNOW ALL MEN BY THESE PRESENTS: That we, Herco Inc As and Developers Surety and Indemnity Company , a corporation duly authorized under the laws of the State of Iowa to become surety on bonds and undertakings, as Surety, are held and firmly bound unto the City of Moscow Idaho one hundred fifty six thousand, five hundred eleven dollars & 75/100 As Obliges in the full and sum of Dollars,($ 156,511.75 lawful money of the United States of America, to be paid to the said Obligee, successors or assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors, successors, administrators and assigns, jointly and severally, finnly by these presents. The Condition of the foregoing obllgatlon Is such that: whereas the above bounden Principal has entered into a oontract, dated April 23 , 2014 , with the Obligee to do and perform the following work, toűwit: YEAR Grind I Mix I Pave. 2014 as is more specifically aet forth In said contract, to which contract reference Is hereby made; Now therefore, If the said Principal shall well and truly pertorm the work contracted to be performed under said contract in accordance with the plans and specifications, then the above obllgatlon to be void, otherwise to remain in full force and virtue. No ol action shall accrue under this bond to or for the use of any person other than the Obligee named herein. Sealed with our seals and dated this 23rd day of A Čp črl_I 2014 VEIUI Herco Inc Developers Surety and Indemnity Company By DellaJ Allen Attomey·ln·F'aci , ll).1219(CAj ---PAGE BREAK--- POWER OF ATTORNEY FOR DEVELOPERS SURETY AND INDEMNITY COMPANY INDEMNITY COMPANY OF CALIFORNIA PO Box 19725, IRVINE, CA 92623 (949) 263-3300 KNOW ALL BY THESE PRESENTS that except as expressly limited, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, do each hereby make, constitute and appoint: *"*Della J. Allen, Cherie Ashby, Lisa Smith, Karol McBride, James M. Hewitt, jointly or severally• as !heir true end lawful Attomey{s)·in-FB1ll to make, execute, deliver and acknowledge, for and on behalf of said corporations, as sureties, bonds, undertakings and contracts of surety ship giving and granting unlo said Attorney(s)-in-Facl run pCJWer and aulhority la do and to perform every act necessary, requisite or proper to be done in connection !herewith as each of said corporations could do, but reserving to each of said corporations full power of substitution and revocatioo, and aU of the acts of said Attomey(s)·in-Fact, pursuant to these presents, are hereby ratified and confirmed. This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Boards of Directors of DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CAL IFORNIA, effective as of January 1st, 2008. RESOLVED, that a combination of any two of the Chairman of the Board, the President Executive Vice-President, Senior Vice-President or any Vice President of the corporations be, and lhal each of them hereby is, authorized to execute this Power of Attorney, qualifying the attorney(s) named in the Power of Attorney to execute, on behalf of the corporations, bonds, undertakings and conЭacts or sulelyship; and that the Secretary or any Assistant Secretary of either of the corporations be, and each of them hereby is, authorized to attest the execution of any such Power of Attorney; RESOLVED, FURTHER, that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporations when so affixed and in the fulure with respect to any bond, undertaking or contract of suretyship to which it is attached. By: Slate of California County of Orange On _ 3 before me, G= ry""P-=u"" bl"' ic Date Here Insert Name and Titte of the Officer personally appeared 0 ' · 200··0·1 GINA L. GARNER f COMM. I 2021213 "'""Ю·-·NOTARY Pl.lBUC CAl.fOllM ORAHQE COUlll'Y t8, I017 Place Notary Seal Above Daniel Youn and Gr g N. Okura'---- Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subsaibed to the within instrument and acknowledged to me thal hefshe.lthey executed the same fn hiS/her/lheir authorized capaclty(les), and that by hls/herllhelr signature(s) on the lnsbumen! the pl!!Son(s). or the entity upon behalf of which the person(s) acted, executed the instrumenl I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Gina L. Gamer, Notary Public CERTIFICATE The undersigned, as Secretary or Assistant Secretary of DEVELOPERS SURETY AND INDEMNITY COMPANY or INDEMNITY COMPANY OF CALIFORNIA, does hereby certify that the foregoing Power of Attorney remains in full fori:e and has not been revoked and, furthermore, that the provisions of the resolutions or the respective Boards of Directors of said corporations set forth in the Power of Attorney are in force as of the date of this Certificate. This Certificate is executed in the City of Irvine, California, this day or('Ŋ\ By : Ɨ9hk Mark J. Lansdon, Assistant Secretary ID-1380(Rev.05/13) ---PAGE BREAK--- INSCO INSURANCE SERVICES, INC. Underwriting Manager for: Develope"' Surety •nd Indemnity Company Indemnity Company of Callfomla 177'i'll Fitch, Suite 200 - Irvine, California 92614 - (949) 26Ь3300 PAYMENT BOND - PUBLIC WORK Bond No. 490583P Premium included in Performance bond KNOW ALL MEN BY THESE PRESENTS, That Harco Inc ,as Principal, and Developers Surety and Indemnity Company , a corporation authorized to transact a general surety business in the State of e 1 a!11'mnia, as Surety, are held and firmly bound unto owa th_e_C_i""' ty_o_ f o_s_c _ow_ld_ a_h_o _ _ , as Obligee in the sum of one hundred fifty six thousand, five hundred alavan dollars and 751100 Dollars($ 156 511.75 ) for the payment whereof, in lawful money of the United states, said Principal and Surety bind themselves, their heirs, administrators, successors and assigns, jointly and severally, firmly by these presents. The Condition of the foregoing obligation is such that: whereas, the above bounden Principal has entered into a co ntract, dated Aprll 23 2014 .with the obllgee to do the following work, to wit: 'tEAR Grind I Mix I Pave -2014 Now, therefore, If the above bounded contractor, person, company or corporation, or his or its sub-contractor, fails to pay any claimant named In Section 3181 of the CIVIi Code of the State of California, or amounts due under the Unemployment Insurance Code, with respect to work or labor performed by any such claimant, that the Surety on this bond will pay the same, In an amount not exceeding the aggregate sum specified in this bond, and a lso, In case suit is brought upon this bond, a reasonable attorney's fee, which shall be awarded by the court to the prevailing party In said suit, and attorney's fees to be taxed as costs In said suit. This bond shall inure to the benefit of any person named in Section 3181 of the Civil Code of the State of California so as to give a right of action to them or their assigns In any suit brought upon this bond. This bond Is executed and filed to comply with the provisions of the act of Legislature of the State of California as designated in Civil Code, Sections 3247-3252 inclusive, and all amendments thereto . Signed and Sealed this 2_3_ rd_ day of AÍp_n_'I 2014 Herco Inc ID 121d(CAJ(REV 1101) Developers Surety and Indemnity Company By (o 00 .!ntc:vo-o= Q..g_r> Della J Allan YEAR Surety Altomey-ln-Fac1 ---PAGE BREAK--- POWER OF ATTORNEY FOR DEVELOPERS SURETY AND INDEMNITY COMPANY INDEMNITY COMPANY OF CALIFORNIA PO Box 19725, IRVINE, CA 92623 (949) 263-3300 KNOW ALL BY THESE PRESENTS lhat except as expressly limiled, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, do each hereby make, consUtute and appoint: ***Della J. Allen, Cherie Ashby, Lisa Smith, Karol McBride, James M. Hewitt, jointly or severally*** as lheir true and lawful Attomey(s)·in-F act. to make, execute, deliver end acknowledge, for and on behalf of said corporations, as surelies, bonds, undertakings and conlracts of surety ship giving and granling unto said Attomey(s)·in·Fact run power and aulhorily to do and lo perform every act necessary, requisite or proper lo be done in connection therewith as each of said corporations could do, but reserving to each of said corporaɟons run power of subslilution and revocation, and all of the acls of said Attomey(s)-in-Fact, pursuant to lhese presents, are hereby ratified and confirmed. This Power of Attorney is granted and is signed by facsimile under and by authority of lhe following resolufions adopted by lhe respective Boards of Directors of DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, effective as of January 1st, 2008. RESOLVED, lhat a combination of any two of the Chairman of the Board, the President, Executive Vice-Presidenl, Senior Vice-Presidenl or any Vice President of lhe corporations be, and that each of them hereby is, authorized to execute this Power of Attorney, qualifying the attorney(s) named in the Power of Attorney to execute. on behalf of the corporations. bonds, undertakings and contracts of suretyship; and that the Secretary or any Assistant Secretary of either of the corporations be, and each of them hereby is, aulhorized to attest the execulion of any such Power of Attorney; RESOLVED, FURTHER, thal the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such Power of Attorney Of certificate bearing such facsimile signatures shall be valid and binding upon the corporations when so affixed and in the future with respect to any bond, undertaking or conlract of surelyship to which it is attached. IN WITNESS WHEREOF, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA have severally caused these presents to be signed by their respective officers and attested by their respeclive Secretary or Assislanl Secretary this May 23, 2013. By: Daniel Young, Senior Vice-President Ml Slate of California County of Orange On before me, _ ar"'n"' bl'"" Oate Here Insert Name and liHe of lhe Officer GINA L. GARNER COMM. #-2021213 NOTARY Pueuc CALl:ollM ORAHOI COIMV 18.111 7 Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be lhe person(s) whose name(s) is/are subscribed to the wtthin instrument and acknowledged to me 11\at he/shelthey exet11ted lhe same in his/her/lheir authorized · capacily(ies), and that by his/her/their signature(s) on the Instrument the person(s), or the enHty upon behalf of which the person(s) acted, executed the instrument. - I oerlify under PENALTY OF PERJURY under the laws of the Stale of California lhal Iha foregoing paragraph is true and correct. WITNESS my hand and official seal. Gina L. Gamer, Notary Public CERTIFICATE The undersigned, as Secretary()( Assistant Secretary of DEVELOPERS SURETY AND INDEMNITY COMPANY or INDEMNITY COMPANY OF CALIFORNIA, does hereby oeitily that the foregoing Power or Attorney remains in full force and has not been revoked and, furthermore, that the provisions of the resolutions of the respective Boards of Directors of said corporations set forth in the Power of Attomey are in force as of the date of lhis Certificate. This Certificate is executed In the City of Irvine, California, this°?) day of , \ , Ű By: Mark J. Laosdon, Assistanl Secretary I0-1380(Rev.05/13) ---PAGE BREAK--- HERCINC-01 DALLEN ACC>RD" CERTIFICATE OF LIABILITY INSURANCE I DA TE ŭ 4/23/2014 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 pollcy(les) musl be endorsed. If SUBROGATION IS WAIVED, subject lo lhe terms and conditions of lhe policy, certain policies may require an endorsement. A statement on this does not confer rights to the certificate holder In lieu of such endorsement(s). PRODUCER Stonebraker McQuary 616 5th St. PO!!luA9 Clarkston, WA 99403 INSURED Herco, Inc. PO Box 916 Lewiston, ID 83501 COVERAGES CERTIFICATE NUMBER· ŲXMi:?Ů r-7gNJo E.i1:(509) 758°5529 iiOOlss: INSURfR(Sl AFFORDING COVERAGE 1NsuRER A: Ohio Casualty Ins Co _ 1NvuR1•1u1, West American Ins Co 1NSURERc: Navigators Insurance Company 1NsURERD: State Insurance Fund INSURERE: INSURERF: Ir*+-Nol: (509) 758-5311 NAICI 24074 44393 37129 REVISION NUMBER: - - THIS IS TO CERTIFY THAT THE POLICIE S OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED_ NOTWITHSTANDING NlY 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 I S SUBJECTTO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAIO CLAIMS. TYPE OF INSURANCE INSR GEl'ERAL LIABILITY A x COMMERCIAL GENERAL LIABILITY I CLAIMS-MADE OCCUR P GEN'LAGGREGATE LIMI 11\PPLIES PER I POLICY lxl y'?j nLOC Al/TOMOBILE LIABILllY - B x ANY AUTO - JILL O'M'IED SCHEDULED - AUTOS x AUTOS x NON-0'1'.NEO HIREO,U..UTO;s AUTOS , _ x UMBRELLA LIAB I OCCUR c EXCESSLIAB CLAIMS-MADE OED I I RETENTION$ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY D YIN At-fl PROPRIETORIPARTNEf11EJ DV INJ..IRY 1,000,000 GENERAL AGGREGATE $ 2,000,000 2,000,000 PIWllUCTS - COMP/OP AGG $ $ "'L'-L"ll' $ 1,000,00¸ BODIL IN,URY (Porpar>an) $ BODILY INJ..IRY (Per aocident) $ rX'.~1Li:r•11c'"- f $ F.ACH OCCURRENCE $ 1,000,000 AGGREGl\fE $ 1,000,000 • x I fOlH- ER E L EACH ACCIDENT $ 500,000 EL DISEASE· EA EMPLOYEE $ 500,000 EL DISEASE - POLICY LIMJT $ 500,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHCLES !Attach ACORD 101, Additional Rem1rk1 Sch1dulo, Ir moro 1p•co l1 roqulrocl) The City of Moscow Idaho is addiilional insi.ed on general liability as respects work performed by insured for the Grind/MixJPave -2014 project. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF TlfE ABOVE DESCRIBED POLICIES BE CANCl!LLED BEFORE THE EXPIRATION DAlE TlfEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITlf THE POLICY PROVIGIONG. AUTHORIZED REPRESENTATIVE City of Moscow PO Box 9203 z11-{0J-A--t-- Moscow ID 83843 ® 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD