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093-09 - Resolution - Contract with Ahearn Electric for Cedar Canyon Sanitary Sewer PumpIntroduced by: Public Works Director Requested by: Public Works Director Drafted by: Public Works Director Introduced: September 22, 2009 Adopted: September 22, 2009 RESOLUTION NO. 093-09 A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH AHEARN ELECTRIC, INC. FOR THE CEDAR CANYON SANITARY SEWER PUMP STATION EMERGENCY GENERATOR WHEREAS, the City of Port Orchard selected three (3) contractors from the City's 2009 Small Works Roster and requested cost proposals to provide a 30 KW Generator and 100 amp ATS; and WHEREAS, by September 4, 2009, the City of Port Orchard Public Works Department received cost proposal(s) from Ahearn Electric, Inc., Zorko Electric, Inc. and Rohwein Electric, Inc.; and WHEREAS, Ahearn Electric, Inc. was determined to be the lowest qualified bidder, submitting a proposal of $34,101.75 (including tax); now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council authorizes the Mayor to execute a contract (Exhibit A incorporated herein by reference) with Ahearn Electric, Inc. for the Cedar Canyon Sanitmy Sewer Pump Station Emergency Generator. PASSED by the City Council of the City of Pmt Orchard, SIGNED by the Mayor and attested by the Clerk in authentication of such passage this 22nd day of e tember 2009.-· /// CITY OF PORT ORCHARD SMALL WORKS CONSTRUCTION CONTRACT City of Port Orchard Contract No. COSS-09 THIS Agreement is made etJective as ofthe9d clay of SR p.± between CITY OF PORT ORCHARD, WASHINGTON 216 Prospect Street Port Orchard, Washington 98366 ("CITY") , 2odJ by and Contact: Mayor Lary Coppola Phone: 360.876.4407 Fax: 360.895.9029 and Ahearn Electric, Inc. ("CONTRACTOR") PO Box 4058 4843 Auto Center Way, SuiteD Bremerton, W A 98312 Contact: Brandy Raymond Phone: 360.373.1900 Tax ld No.:602034000 Fax: 360.377.9882 for the following Project: Cedar Canyon Sewer Pump Station Emergency Generator ("PROJECT") The City and Contractor agree as follows: 1. Contract Documents. The Contractor shall complete the Work described in the Contract Documents for the Project. The following documents are collectively referred to as the ''Contract Documents": a. This Agreement signed by the City and Contractor; b. Division 1 of WSDOT Standard Specifications tor Road, Bridge and Municipal Construction, 2000 edition, together with APW A Supplement (1-99), subject to specific provisions contained within the Public Works Terms and Conditions. c. The attached Special Provisions, Plans and Specifications; d. Written change orders or orders for minor changes in the Work issued after execution of this Agreement, c. Public Works Terms and Conditions; f. Insurance and Bonding Requirements; and City or Port Orchard and Ahearn Electric, Inc. SnHill \Yorks Contract Page 1 of 14 g. The bid proposal s ubmitted b y the Co n trac tor, except w he n incons is tent with Contract Documents a-f ; and The in te nt of the Contract Doc u ments is to include a ll items n ecessary fo r t he proper executio n a nd comple ti on of the Work b y the Co ntrac to r. These Contract Documents comp lement each othe r in desc ribing a compl et e work. A ny r equire m ent in one document binds as if s tat ed in a ll. T he Contracto r sha ll provide an y work o r 1i1ate ri a ls clearly implied in the Contract even if t he Contract does n o t mention it spec ifi c a ll y. 2. Date of Commencement and Substantial Completion Date. The date of commencement shall be September 23, 2009. T he Contractor sha ll su bstanti ally complete the Work not later than December l', 2009 subject t o adjus tment by c han ge order. fi bc~S q-1/ 31 -or. 'f?p4 &v~rott.:l-i6Y! w j ~ PtH-tt . lu.d nu--~n 1JlN~ wee{(S 3. The Contracto r sha ll do a ll wor k and furnis h a ll tools, mater ials, and equipment in acco rdance w ith the above describ ed Construction Contract D ocu m ents . The Contractor sh all p rovide a nd bear the expen se of a ll e quipme nt, wo rk, a nd labor of any so rt whatsoever that may be re quired for the tra nsfer of m ateri als and for co nstructi n g a nd comp let ing of the work provided for in these Con st ru ctio n Contract Documents, excep t those ite ms mentioned therein to be f urnis hed by the C ity . 4. Su bj ec t to additions and deducti ons by change order, the construction co ntract sum is the base bid amo unt of$34,101.75 (applicable sal es tax included). The constr uction contract s um shall include all items and serv ic es necessary for the proper execution and completion of the work. The C ity h ereby promises a nd agrees with the Contractor to employ, and does employ the Contractor to provide the m ateria ls and to do and cau se to be done the work described in the Constru ction Contract Documents and t o complete and finish the same according to the p lans a nd specifi cation s and the te rms and conditio n s he rein contai ned; and hereby contracts to pay for the same at the t ime and in th e maimer and up on the conditio n s pro vided fo r in this contract. 5. The Contractor agrees to comp ly w ith a ll s tate a nd fe der a l l aws re latin g to t he employment of labo r and wage rates to b e p a id . T h e Contrac tor agrees to f urni sh ins urance of the types and th e amounts set forth in the Con s truction Co ntr ac t Documents. 6. The Contractor agrees to repair a nd replace a ll prop erty of the C ity and all p ropert y of others damaged by himself, hi s employees, a nd s ub-contractors. 7. T he Contractor for himself and for his heirs, executors, administrators, s uccesso r s, a nd assig ns , d oes here by agree t o the fu ll performance of a ll the covenants herein upon the part of the Contractor. 8. It is further provided that n o li ab ility sh all a ttac h to the City of Port Orchard by reason of en tering into thi s Construction Contract, except as expressly p rov ided herein. Cit y of Port Orc hard a nd Ahea rn E lec tri c, In c. Sma ll Wo rks Contract Pa ge 2 of 14 IN WITNESS WHEREOF, the parties hereto have caused t hi s contract to be duly execute d on the date first written above. CITY OF PORT ORCHARD __,..--....--.. APPROVED AS TO FORM: City of Port Orc ha rd and Ah ea rn E lectric , In c . Sma ll Wo rks Cont ract Page 3 of 14 By: __________ _ Its: ___________ _ --- CERTIFICATE AS TO CORPORATE PRINCIPAL I , So.:.ra lt CS+ee.;\e... (Corporate Officer (No t Contract S igne 1)) certify that I am the CEO (Corporate Title) of the corporation named as Contractor in the Agreement attached hereto ; that '"SQ..a{l Mu \dorm , (Contract Signer) who s igned said Agre e m ent on behalf of the Contractor, was then £'< c...s·s d t A&t (COJ]Jorate Title) of said corporation; that said Agreement was duly signe d for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers. r fficer signature (not contract s igner) Sa.ta k S~e/\ e... Printed c.,f() Title State of \A)a.sk~vtcAroA.) Co unty of (hd~p--w-) -S.vv()..'".ll'{l'-"a""'i¥-l,,..__~-\:.P\:~t...c;t!..~1 ..... e_:..-______ , (c01 1J..orate officer (not contract signe;)) being duly sworn, de poses and says that he/she is (..!,(-0 (Corporate Title) of A \r\taM G\e.c,br\CL ~ (Name ofCorporation) Subscribed and sworn to before me thi s 6-tk. day of 0(\Aob.e.r , C it y of Port Orchard and Ahearn E lectric , Inc. Small Works Contract Page 4 of 14 Q\n<Wl \l'>...,... me.. ~..A.J• \\i a.vn.~ Notaf/Public (Print) · 1 My commission expires -q. 11 D /1 I CITY OF PORT ORCHARD PUBLIC WORK PROJECT TERMS AND CONDITIONS The following terms and conditions shall be used in conjunction with the Standard Specifications for Road, Bridge and Municipal Construction, 2000 edition, together with the APW A Supplement (Section 1-99), as issued by the Washington State Department of Transportation and American Public Works Association, Washington State Chapter, hereinafter referred to as the "standard specifications". The standard specifications, except as they may be modified or superseded by these provisions, shall govern all phases of work under this contract, and they are by reference made an integral part of these specifications and contract as if herein fully set forth. When the provisions of the standard specification conflict with the terms and conditions as contained herein, the terms and conditions shall prevail. 1. BID PRICE: The bid price(s) shall include all necessary permits, and fees and items of labor, material, equipment, tools, overhead and compensation, supplies, taxes, utilities and other incidentals necessary to complete the work in a fully functional and operational state. All prices including bid prices are in US funds. 2. DEFINITIONS: The term "City" means Port Orchard, Washington, "successful bidder" means the apparent lowest and best responsible bidder to whom an award is made, and "Contractor" means the successful bidder who has satisfied the requirements for the award and who receives a contract executed by the City. "Bidder" means the person, firm or corporation that has made an offer in response to the invitation to bid. 3. LICENSING AND REGISTRATION: The Contractor must have a Washington State certificate of registration per chapter 18.27 RCW; a current state unified business identifier number; and if applicable, industrial insurance coverage for the bidder's employees working in Washington, an Employment Security Department mtmber, and a state excise tax registration number. In addition, the bidder must not be disqualified from bidding on any public works contracts under RCW 39.06.010 or 39.12.065(3). 4. PUBLIC WORK REQUIREMENTS: This project constitutes a public work under state law. Bidders are warned to take into consideration statutory legal requirements, particularly, the payment of prevailing wages and fringe benefits, payment and performance bonds and sales tax implications in making their bids. It is the sole responsibility of the bidder to insure that the appropriate labor classification(s) are identified and that the applicable wage and benefit rates are taken into consideration when preparing their bid according to these specifications. The Contractor shall complete and file State of Washington, Department of Labor & Industries, Statement of Intent to Pay Prevailing Wages and Affidavit of Wages Paid forms and shall familiarize itself with their requirements. The Contractor shall also be responsible for and pay all costs pertaining to the processing of these forms. 5. INSURANCE REQUIREMENT: The successful bidder will furnish insurance as stipulated in the Attachment entitled "Insurance Requirements." 6. RECEIPT OF ADDENDA: All official clarifications or interpretations of the bid documents will be by written addenda only. ·7. PROJECT COMPLIANCE: In compliance with the request for quotation, Bidder hereby proposes to perform all work for this project in strict accordance with the contract documents, at City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 5 of 14 the prices bid and within the time set forth therein with the understanding that time is of the essence in the performance of this contract. 8. TAXES: Proposals shall include all applicable taxes except sales tax which is a separate bid item. It shall be the bidder's responsibility to furnish Federal Excise Tax Exemption Certificate, when applicable. 9. ERROR IN EXTENSION: Unit price, when used, shall govern in case of extension error. I 0. PERMITS AND FEES: The contractor shall furnish all permits, inspection fees, and fees required in the performance of this contract, including those charged under RCW 39.12.070 by the Department of Labor and Industries works for the approval of statements of intent to pay prevailing wages and the certification of affidavits of wages paid, etc. The Department may also charge fees to persons or organizations requesting the arbitration of disputes under RCW 39.12.060. The Contractor is responsible for all fees resulting from these statutes. 11. CONTRACT: The Contract, when properly signed, will be the only form which will be recognized by the City as an award. The executed contract supersedes all previous communications and negotiations, except as referenced herein, and constitutes the entire agreement between the City and Contractor (parties), except as provided herein. The Contractor shall not make any changes, alterations, or variations in the terms of the contract without the written consent of the City. No terms stated by the Bidder in its proposal shall be binding on the City unless accepted in writing by the City. The successful bidder may not assign the Contract resulting from this invitation to bid without the City's prior written consent. No waiver by the City of a breach of any provision of the terms and conditions outlined in the invitation to bid shall constitute a waiver of any other breach of such provision or of any other provisions. 12. COMPLIANCE WITH LAWS AND REGULATIONS: The Contractor warrants full compliance with all applicable local, state or federal laws and regulations and agrees to indemnify and defend the City against any loss, cost, liability or damage, including reasonable attorney's fees, by reason of successful bidder's violation of this paragraph. 13. INDEMNIFICATION: All services to be rendered or performed under contract will be rendered or performed entirely at the Contractor's own risk. The Contractor expressly agrees to indemnify and hold harmless the City and all its officers, agents, employees or otherwise from any and all claims, including but not limited to reasonable attorney fees, demands, losses and liabilities to or by third parties arising from, resulting from or connected with the express or implied obligations of the Contractor, its agents or employees under this contract to the fullest extent permitted by law. The Contractor's duty to indemnify the City shall not apply to liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of the City, its agents or employees. The Contractor's duty to indemnify the City for liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the concurrent negligence of (a) the City, its agents or employees, and (b) Contractor, its agents or employees shall apply only to the extent of negligence of the Contractor or its agents or employees. Contractor's duty to defend, indemnify and hold the City harmless shall include, as to all claims, demands, losses and liability to which it applies, the City's personnel-related costs, reasonable attorney's fees, court costs and all other claim-related expenses. The Contractor's indemnification shall specifically include all claims for loss liability because of wrongful payments under the Uniform Commercial Code, or other statutory or contractual liens or rights or third parties, including taxes, accrued or accruing as a result of this contract or work performed or materials furnished directly or indirectly because of this contract. Contractor further agrees that this duty to indemnify City applies regardless of any provisions in City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 6 of 14 RCW Title 51 to the contrary, including but not limited to any immunity of Contractor for liability for injuries to Contractor's workers and employees, and/or Worker's Compensation; and Contractor hereby expressly waives any such immunity. 14. TERMINATION: This Contract may be terminated in whole or in part, without penalty, under the following conditions: 1) by mutual written agreement; 2) by the City for breach by the Contractor of any of the obligations or requirements set forth in the contract documents which would, at the option of the City, require the Contractor to assume liability for any and all damages, including the excess ofre-procuring similar products or services; 3) for convenience of the City; or 4) by the City for non-appropriation of funds. 15. TERMINATION BY THE CITY WITHOUT CAUSE: Notwithstanding any other provisions contained herein, the City, without cause, may terminate the contract between the parties by providing notice to the Contractor. Upon termination under this section: 1) All remaining obligations of the parties are discharged, but any right based upon breach or performance occurring prior to termination survives; 2) If the reasonable costs of performance incurred by the Contractor prior to termination exceed the amount paid by the City to the Contractor on the Contract Sum, the City shall reimburse the Contractor in the amount of such excess; 3) If the amount paid by the City to the Contractor on the Contract Sum exceeds the reasonable costs of performance incurred by the Contractor prior to termination, the Contractor shall reimburse the City in the amount of such excess; 4) Any funds obtained or retained by the Contractor as provided in subsections 2) or 3), above, shall constitute full payment and consideration for the services performed by the Contractor prior to termination. 16. COMPLIANCE WITH TERMS: The City may at any time insist upon strict compliance with these terms and conditions, not withstanding any previous custom, practice, or course of dealing to the contrary. 17. PAYMENT: Contractor shall maintain time and expense records and provide them to the City along with monthly invoices in a format acceptable to the City for work performed to the date of the invoice. All invoices shall be paid by the City within 45 days of receipt of a proper invoice. If the services rendered to not meet the requirements of the Contract, Contractor will correct or modify the work to comply with the contract. City may withhold payment for such . work until work meets the requirements of the Contract. City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 7 of 14 CITY OF PORT ORCHARD INSURANCE REQUIREMENTS Contractor shall furnish and maintain all insurance as required herein (or by attachment) and comply with all limits, terms and conditions stipulated therein (or by that attachment), at their expense, for the duration of the contract. Any exclusions must be pre-approved by the City. Work under this contract shall not commence until evidence of all required insurance and bonding is provided to the City. The Contractor's insurer shall have a minimum A.M. Best's rating of A-and shall be licensed to do business in the State of Washington. The insurance policy or policies will not be canceled, materially changed or altered without forty five ( 45) days prior notice submitted to the City. The policy shall provide and the certificate shall reflect that the insurance afforded applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the company's liability. The policy shall be endorsed and the certificate shall reflect that the insurance afforded therein shall be primary insurance and any insurance or self-insurance carried by the City shall be excess and not contributory insurance to that provided by the contractor. REQUIRED COVERAGE: The insurance shall provide the mnumum coverage as set forth below, all coverage $1,000,000.00 per occurrence with no deductible. GENERAL LIABILITY INSURANCE: The Contractor shall have Commercial General Liability with limits of $1,000,000.00 per occurrence and at least $2,000,000.00 in the annual aggregate, which includes general aggregate, products, completed operation, personal injury, fire damage and medical expense. ADDITIONAL INSURED ENDORSEMENT: General Liability Insurance must state that the City of Port Orchard, it's officers, agents and employees, and any other entity specifically required by the provisions of the Agreement will be specifically named additional insured(s) for all coverage provided by this policy of insurance and shall be fully and completely protected by this policy from all claims. Language such as the following should be used "CITY OF PORT ORCHARD, ITS OFFICERS, AGENTS AND EMPLOYEES ARE NAMED ADDITIONAL INSURED AS RESPECTS TO PROJECT NUMBER (insert project number here)." PROOF OF BUSINESS AUTOMOBILE INSURANCE: The Contractor shall have Business Automobile Liability with limits of$1,000,000.00 combined single limit. WORKERS COMPENSATION: If applicable, the Contractor shall show proof of Worker's Compensation coverage by providing its State Industrial Account Identification Number. Provision of this number will be the Contractor's assurance that coverage is in effect. PROOF OF INSURANCE: The Contractor shall not commence work, nor shall the Contractor allow any subcontractor to commence work on any subcontract until a Certificate of Insurance, meeting the requirements set fm1h above, has been provided to the City. Upon request, the Contractor shall forward to the City the original policy, or endorsement obtained, to the Contractor's policy currently in force. City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 8 of 14 FAILURE OF COVERAGE: Failure of the Contractor to fully comply with the above insurance requirements during the term or the contract shall be considered a material breach of contract and cause for immediate termination of the contract at the City's discretion. Alternatively the City may procure and maintain, at the Contractor's sole expense, insurance to the extent deemed proper up to the amount of the required coverage(s). The City may offset the cost of such insurance against payment due to the Contractor under this contract. City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 9 of 14 CITY OF PORT ORCHARD DECLARATION OF OPTION FOR PERFORMANCE BOND OR ADDITIONAL RETAINAGE (CONTRACTS UNDER $35,000 ONLY) Note: This form must be submitted at the time the Contractor executes the Contract. The Contractor shall designate the option desired by checking the appropriate space . The Contractor elects to: ____ ( 1) Furnish a performance bond in the amount of the total contract sum. An executed performance bond on the required form is included with the executed contract documents. i (2) Have the City retain, in lieu of the performance and payment bonds, fifty percent (50%) of the total contract amount for a period of thirty days after date of final acceptance, or until receipt of all necessary releases from the department of revenue and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later. RCW 39.08 .010 . In choosing option 2 , the Contractor agrees that if the Contractor, its heirs, executors, administrators , successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract, and shall faithfully perform all the provisions of such contract and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions and agreements of any and all duly authorized modifications of the Contract that may hereafter be made, at the time and in the manner therein specified, and shall pay all laborers, mechanics, subcontractors, and materialmen, and all persons who shall supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, on his or her part, and shall defend, indemnify, and save harmless the City of Port Orchard, Washington, its officers and agents from any claim for such payment, then the funds retained in lieu of a performance bond shall be released at the time provided in said option 2; otherwise, the funds shall be retained until the Contractor fulfills the said obligations . C ity of Port Orchard and Ahearn Electric, Inc. Small Work s Contract Page 10 of 14 CITY OF PORT ORCHARD PERFORMANCE BOND Know all men by these presents: That whereas the City of Port Orchard, State of Washington has awarded to ~~~~--cc-~~~~~~~--c-(Contractor) hereinafter designated as the "Principal" a contract for the construction of the project designated ~~~~~~~~~~~~~~~-' Project No. Port Orchard, Washington all as hereto attached and made a part hereof and whereas, said principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract: NOW, THEREFORE, we, the principal, and ---:--~--:---o:-:---:---::-::---::c-----: (Surety), a corporation, organized and existing under and by virtue of the laws of the State of :-:-c-~-:-::c--c--c-~-:-' duly authorized to do business in the State of Washington, as surety, are held and firmly bound unto the City of Port Orchard, Washington, in the sum of: -:-::---------:-:::----:-:::----.,----------Dollars ($ _______ _;Total Contract Amount lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by those presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bonded principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the said contract, and shall faithfully perform all the provisions of such contract and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions and agreements of any and all duly authorized modifications of said contract that may hereafter be made, at the time and in the manner therein specified and shall pay all laborers, mechanics, subcontractors, and material men, and all persons who shall supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, on his or their part, and shall indemnify and save harmless the City of Port Orchard, Washington, their officers and agents from any claim for such payment; and shall further save harmless and indemnify said City of Port Orchard, Washington, from any defect or defects in any of the workmanship entering into any part of the work or designated equipment covered by said contract, which shall develop or be discovered within one (1) year after the final acceptance of such work, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect; provided that the liability hereunder for defects in materials and workmanship for a period of one (l) year after the acceptance of the works shall not exceed the sum of: --c-_______________________ Dollars ($ _______ ____,Total Contract Amount And the said surety, for value received, hereby further stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page ll of 14 obligation on this bond, and it does hereby waive notice of any change, extension of time, alterations or additions to the terms of the contract or the work or to the specifications. The Surety hereby agrees that modifications and changes may be made in the terms and provisions of the aforesaid Contract without notice to Surety, and any such modifications or changes increasing the total amount to be paid the Principal shall automatically increase the obligation of the Surety on this Performance Bond in a like amount, such increase, however, not to exceed twenty-five per cent (25%) of the original amount of this bond without the consent of the Surety. IN WITNESS WHEREOF, the said principal and the said surety have caused this bond and two (2) counterparts thereof to be signed and sealed by their duly authorized officers this __ _ day of , 20 __ Principal By ___________ ___ Signature Printed Title ATTEST: (if corporation) Surety By ___________ ___ Signature Printed Title Name and Address of local office/agent of Surety Company is: By-------------- Title Approved As To Form: City Attorney City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 12 of 14 CITY OF PORT ORCHARD PAYMENT BOND Know all men by these presents: That whereas the City of Port Orchard (City or Owner), State of Washington has awarded to (Contractor) hereinafter designated as the "Principal" a contract for the construction of the project designated -c------=---=--c----cc---c--' Project No. Port Orchard, Washington all as hereto attached and made a part hereof and whereas, said principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract: NOW, THEREFORE, we, the principal, and ------c---.,.-c---,---,----,-c------c (Surety), a corporation, organized and existing under and by virtue of the laws of the State of :-:-:---:-::---:--:--------:-'duly authorized to do business in the State of Washington, as surety, are held and firmly bound unto the City of Port Orchard, Washington, in the penal sum of: -,------------------------Dollars ($ _______ __/Total Contract Amount lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by those presents. THE CONDITION OF THIS OBLIGATION is such that Whereas, the Principal entered into a certain Contract with the Owner, dated the of , __ , a copy of which is hereto attached and made a part hereof for the construction of: NOW, THEREFORE, if the Principal shall promptly make payment to all persons, firms, subcontractors, and corporations furnishing materials for or performing labor in the prosecution of the work provided for in such Contract, and any authorized extension or modification thereof, including all amounts due for materials, lubricants, oil, gasoline, coal, and coke; repairs on machinery, equipment, and tools consumed or used in connection with the construction of such work; and all insurance premiums on said work, and for all labor, performed in such work whether by subcontractor or otherwise, then this obligation shall be void; otherwise to remain in full force and effect. By: Witness as to Surety Attorney-in-Fact Address Address NOTE: Date of Bond must not be prior to date of Contract, . If Contractor is Pa1inership, all Pminers should execute bond. IMPORTANT: Surety companies executing bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the state where the project is located. City of Port Orchard and Ahearn Electric, Inc. Small Works Contract Page 13 ofl4 DECLARATION OF OPTION FOR MANAGEMENT OF STATUTORY RETAINED PERCENTAGE Note: This form must be submitted at the t ime the Contractor executes the contract. Contractor shall designate the option desired by checking the appropriate space. Mo n ies reserved under p rovis ions ofRCW 60.28, at the o pti on ofthe Co nt ractor , sha ll be: 'l., ( 1) Reta in ed in a fund by the Owner. ____ (2) Deposited by the Owner in an inter est-bearing account in a bank , mutua l savin gs bank o r savin gs and loan associati on . ____ (3 ) Pl ace d in escrow w ith a ba nk o r tru s t company by the Owner.* W hen the m o ni es rese r ved are to be pl aced in es crow, the Owner w ill issue a check r epr ese nting the s um of the monies rese r ve d pay abl e to t he ba nk or trus t compan y an d the Contractor jointl y. Suc h check shall be con ve rted into bonds and securities chosen by the Contractor and approved by the Owner and the bo nds and securities he ld in escrow. T he Contractor in choosing option (2) or (3) agrees to assum e f ull responsibi li ty to p ay all costs which m ay acc ru e from escro w service s, brok er age c harges o r both, a nd fur th er agrees to assume a ll risk s in co tmectio n with t he investm ent of t he re ta ined percentages m securi ties . *Fo r the convenie nce o f th ose Co ntr actors choos ing opt ion (3) a City approved Form of Escrow Agreement is ava ilab le upon requ est. The Co nt ractor is no t req uired t o use thi s Esc row Agreement form, howeve r, alternative fo rms will need to be ap proved prior to execution by the C it y. Cit y of Port Orc hard and Ahea rn Elec tri c, In c. Sma ll Wo rks Co ntr act Page 14 of 14