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Well 32 Production WellCONTRACT FOR PUBLlC WORKS CONSTRUCTION WELL 32 PRODUCTION WELL - CONSTRUCTION PROJECT # 10014.e THIS CONTRACT FOR PUBLIC WORKS CONSTRUCTION is made this 29th day of December, 2016, and entered into by and between the City of Meridian, a municipal corporation organized under the laws of the State of ldaho, hereinafter referred to as "CITY", 33 East Broadway Avenue, Meridian, ldaho 83642, and POST DRILLING INC hereinafter referred to as "CONTRACTOR", whose business address is P O Box 588 Wei lD 83672 and whose Public Works Contractor License # is C-013426-CC-4.r INTRODUCTION WHEREAS, the Contractor is specially trained, experienced and competent to perform and has agreed to provide such services; NOW, THEREFORE, in consideration of the mutual promises, covenants, terms and conditions hereinafter contained, the parties agree as follows: TERMS AND CONDITIONS 1. Scope of Work: 1.1 CONTRACTOR shall perform and furnish to the City upon execution of this Contract and receipt of the City's written notice to proceed, all services and work, and comply in all respects, as specified in the document titled "Scope of Work" a copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference, together with any amendments that may be agreed to in writing by the parties. 1.2 All documents, drawings and written work product prepared or produced by the Contractor under this Agreement, including without limitation electronic data files, are the property of the Contractor; provided, however, the City shall have the right to reproduce, publish and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. lf any such work is copyrightable, the Contractor may copyright the same, except that, as to anyworkwhich is copyrighted bythe Contractor, the City reserves a royalty-free, non-exclusive, and irrevocable license to reproduce, publish and use such work, or any part thereof, and to authorize others to do so. 1.3 The Contractor shall provide services and work under this Agreement consistent with the requirements and standards established by applicable federal, state and city laws, ordinances, regulations and resolutions. The Contractor WELL 32 PRODUCTION WELL - CONSTRUCTION page 1 of 14 Project 100'14.E Whereas, the City has a need for services involving WELL 32 PRODUCTION WELL - CONSTRUCTION; and represents and warrants that it will perform its work in accordance with generally accepted industry standards and practices for the profession or professions that are used in performance of this Agreement and that are in effect at the time of performance of this Agreement. Except for that representation and any representations made or contained in any proposal submitted by the Contractor and any reports or opinions prepared or issued as part of the work performed by the Contractor under this Agreement, Contractor makes no other warranties, either express or implied, as part of this Agreement. 1.4 Services and work provided bythe Contractor at the City's request underthis Agreement will be performed in a timely manner in accordance with a Schedule of Work, which the parties hereto shall agree to. The Schedule of Work may be revised from time to time upon mutual written consent of the parties. 2. Consideration 2.1 The Contractor shall be compensated on a Not-To-Exceed basis as provided in Exhibit B "Payment Schedule" attached hereto and by reference made a part hereof for the Not-To-Exceed amount of $412,975.00. 2.3 Except as expressly provided in this Agreement, Contractor shall not be entitled to receive from the City any additional consideration, compensation, salary, wages, or other type of remuneration for services rendered under this Agreement including, but not limited to, meals, lodging, transportation, drawings, renderings or mockups. Specifically, Contractor shall not be entitled by virtue of this Agreement to consideration in the form of overtime, health insurance benefits, retirement benefits, paid holidays or other paid leaves of absence of any type or kind whatsoever. 3. Term: 3.1 This agreement shall become effective upon execution by both parties, and shall expire upon (a) completion of the agreed upon work, (b) or unless sooner terminated as provided in Sections 3.2, 3.3, and Section 4 below or unless some other method or time of termination is listed in Exhibit A. 3.2 Should Contractor default in the performance of this Agreement or materially breach any of its provisions, City, at City's option, mayterminate this Agreement by giving written notification to Contractor. WELL 32 PRODUCTION WELL - CONSTRUCTION Project 10014.E page 2 ol 14 2.2 The Contractor shall provide the City with a monthly statement and supporting invoices, as the work warrants, of fees earned and costs incurred for services provided during the billing period, which the City will pay within 30 days of receipt of a correct invoice and approval by the City. The City will not withhold any Federal or State income taxes or Social Security Tax from any payment made by City to Contractor under the terms and conditions of this Agreement. Payment of all taxes and other assessments on such sums is the sole responsibility of Contractor. 3.3 Should City fail to pay Contractor all or any part of the compensation set forth in Exhibit B of this Agreement on the date due, Contractor, at the Contractor's option, may terminate this Agreement if the failure is not remedied by the City within thirty (30) days from the date payment is due. 4. Liquidated Damages: Substantial Completion shall be accomplished within 120 (one hundred twenty) calendar days from Notice to Proceed. This project shall be considered Substantially Complete when the Owner has full and unrestricted use and benefit of the facilities, both from an operational and safety standpoint, and only minor incidental work, corrections or repairs remain for the physical completion of the total contract. Contractor shall be liable to the City for any delay beyond this time period in the amount of $250.00 (two hundred fifty dollars) per calendar day. Such payment shall be construed to be liquidated damages by the Contractor in lieu of any claim or damage because of such delay and not be construed as a penalty. Upon receipt of a Notice to Proceed, the Contractor shall have 150 (one hundred fifty) calendar days to complete the work as described herein. Contractor shall be liable to the City for any delay beyond this time period in the amount of $250.00 (two hundred fifty dollars) per calendar day. Such payment shall be construed to be liquidated damages by the Contractor in lieu of any claim or damage because of such delay and not be construed as a penalty. See Milestones listed in the Payment Schedule for Substantial Completion. 5. Termination: 5.1 lf, through anycause, CONTRACTOR, its officers, employees, oragentsfails to fulfill in a timely and proper manner its obligations underthis Agreement, violates any of the covenants, agreements, or stipulations of this Agreement, falsifies any record or document required to be prepared under this agreement, engages in fraud, dishonesty, or any other act of misconduct in the performance of this contract, or if the City Council determines that termination of this Agreement is in the best interest of CITY, the CITY shall thereupon have the right to terminate this Agreement by giving written notice to CONTRACTOR of such termination and specifying the effective date thereof at least fifteen (15) days before the effective date of such termination. CONTRACTOR may terminate this agreement at any time by giving at least sixty (60) days notice to CITY. ln the event of any termination of this Agreement, all finished or unfinished documents, data, and reports prepared by CONTRACTOR under this Agreement shall, at the option of the CITY, become its property, and CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily complete hereunder. 5.2 Notwithstanding the above, CONTRACTOR shall not be relieved of liability to the CITY for damages sustained by the CITY by virtue of any breach of this WELL 32 PRODUCTION WELL - CONSTRUCTION page 3 of 14 Project 10014.E Agreement by CONTRACTOR, and the CITY may withhold any payments to CONTRACTOR for the purposes of set-off until such time as the exact amount of damages due the CITY from CONTRACTOR is determined. This provision shall survive the termination of this agreement and shall not relieve CONTRACTOR of its liability to the CITY for damages. 6. lndependent Contractor: 6.1 ln all matters pertaining to this agreement, CONTRACTOR shall be acting as an independent contractor, and neither CONTRACTOR nor any officer, employee or agent of CONTRACTOR will be deemed an employee of CITY. Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City and therefore has no authority to bind or incur any obligation on behalf of the City. The selection and designation of the personnel of the CITY in the performance of this agreement shall be made by the CITY. 6.2 Contractor, its agents, officers, and employees are and at all times during the term of this Agreement shall represent and conduct themselves as independent contractors and not as employees of the City. 6.3 Contractor shall determine the method, details and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to City's control with respect to the physical action or activities of Contractor in fulfillment of this Agreement. lf in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction and supervision and control of the Contractor. 7. Sub-Contractors: Contractor shall require that all of its sub-contractors be licensed per State of ldaho Statute # 54-1901 8. Removal of Unsatisfactory Employees: The Contractor shall only furnish employees who are competent and skilled for work under this contract. lf, in the opinion of the City, an employee of the Contractor is incompetent or disorderly, refuses to perform in accordance with the terms and conditions of the contract, threatens or uses abusive language while on City property, or is othenivise unsatisfactory, that employee shall be removed from all work under this contract. 9. lndemnification and lnsurance: 9.1 CONTRACTOR shall indemnify and save and hold harmless CITY and it's elected officials, officers, employees, agents, and volunteers from and for any and WELL 32 PRooUcTION WELL - CONSTRUCTION page 4 of 14 Prolect 10014.E all losses, claims, actions, judgments for damages, or injury to persons or property and losses and expenses and other costs including litigation costs and attorney's fees, arising out of, resulting from, or in connection with the performance of this Agreement by the CONTRACTOR, its servants, agents, officers, employees, guests, and business invitees, and not caused by or arising out of the tortious conduct of CITY or its employe es. CONTRAC TOR shall maintain, and specificallv ao rees that it will maintain thro UO hout the term of this Aoree ment liabil itv tnsurance in which the CITY shall be named an additional insured in the minimum amounts as follow: General Liabilit y One Million Dollars ($1,000,000) per incident or occurrence, Automobile Liability lnsurance One Million Dollars ($1 ,000,000) per incident or occurrence and Workers' Compensation lnsurance, in the statutory limits as required by law.. The limits of insurance shall not be deemed a limitation of the covenants to indemnify and save and hold harmless CITY; and if CITY becomes liable for an amount in excess of the insurance limits, herein provided, CONTRACTOR covenants and agrees to indemnify and save and hold harmless CITY from and for all such losses, claims, actions, or judgments for damages or injury to persons or property and other costs, including litigation costs and attorneys' fees, arising out of, resulting from , or in connection with the performance of this Agreement by the Contractor or Contractor's officers, employs, agents, representatives or subcontractors and resulting in or attributable to personal injury, death, or damage or destruction to tangible or intangible property, including use of. CONTRACTOR shall provide CITY with a Certificate of Insurance, or other proof of insurance evidencing CONTRACTOR'S compliance with the requirements of this paragraph and file such proof of insurance with the CITY at least ten (10) days prior to the date Contractor begins performance of it's obligations under this Agreement. ln the event the insurance minimums are changed, CONTRACTOR shall immediately submit proof of compliance with the changed limits. Evidence of all insurance shall be submitted to the City Purchasing Agent with a copy to Meridian City Accounting, 33 East Broadway Avenue, Meridian, ldaho 83642. 9.2 lnsurance is to be placed with an ldaho admitted insurerwith a Best's rating of no less than A-. 9.3 Any deductibles, self-insured retention, or named insureds must be declared in writing and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles, self-insured retentions or named insureds; or the Contractor shall provide a bond, cash or letter of credit guaranteeing payment of losses and related investigations, claim administration and defense expenses. 9.4 To the extent of the indemnity in this contract, Contractor's lnsurance coverage shall be primary insurance regarding the City's elected officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City orthe City's elected officers, officials, employees and volunteers shall be excess of the Contractor's insurance and shall not contribute with Contractor's insurance except as to the extent of City's negligence. WELL 32 PRODUCTION WELL . CONSTRUCTION Project 10014.E page 5 of 14 9.5 The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 9.6 All insurance coverages for subcontractors shall be subject to all of the insurance and indemnity requirements stated herein. 9.7 The limits of insurance described herein shall not limit the liability of the Contractor and Contractols agents, representatives, employees or subcontractors. 10. Time is of the Essence: The parties hereto acknowledge and agree that time is strictly of the essence with respect to each and every term, condition and provision hereof, and that the failure to timely perform any of the obligations hereunder shall constitute a breach of, and a default under, this Agreement by the pa(y so failing to perform. 11. Bonds: Payment and Performance Bonds are required on all Public Works lmprovement Projects per the ISPWC and the City of Meridian Supplemental Specifications & Drawings to the ISPWC, which by this reference are made a part hereof. Contractor is required to furnish faithful performance and payment bonds in the amount oI 10O% of the contract price issued by surety licensed to do business in the State of ldaho. ln the event that the contract is subsequently terminated for failure to perform, the contractor and/or surety will be liable and assessed for any and all costs for the re-procurement of the contract services. 12. Warranty: All construction and equipment provided under this agreement shall be warranted for 2 years from the date of the City of lMeridian acceptance perthe ISPWC and the Meridian Supplemental Specifications & Drawings to the ISPWC and any modifications, which by this reference are made a part hereof. All items found to be defective during a warranty inspection and subsequently corrected will require an additional two (2) year warranty from the date of City's acceptance of the corrected work. 13. Changes: The CITY may, from time to time, request changes in the Scope of Work to be performed hereunder. Such changes, including any increase or decrease in the amount of CONTRACTOR'S compensation, which are mutually agreed upon by and between the CITY and CONTRACTOR, shall be incorporated in written amendments which shall be executed with the same formalities as this Agreement. WELL 32 PRODUCTION WELL - CONSTRUCTION Project 100'14.E page 6 of 14 14. Taxes: The City of Meridian is exempt from Federal and State taxes and will execute the required exemption certificates for items purchased and used by the City. ltems purchased by the City and used by a contractor are subject to Use Tax. All other taxes are the responsibility of the Contractor and are to be included in the Contractor's Bid pricing. 15. Meridian StormwaterSpecifications: All construction projects require either a Storm Water Pollution Prevention Plan (SWPPP) or an erosion sediment control plan (ESCP) as specified in the City of Meridian Construction Stormwater Management Program (CSWMP) manual. The CSWMP manual containing the procedures and guidelines can be found at this address: http://www.meridiancitv.oro/envi ronmental.aspx?id=1 361 8. Contractor shall retain all stormwater and erosion control documentation generated on site during construction including the SWPPP manual, field inspections and amendments. Prior to final acceptance of the job by the City the contractor shall return the field SWPPP manual and field inspection documents to the City for review. A completed Contractor Request to File Project N.O.T. with the EPA form shall be provided to the City with the documents. These documents shall be retained, reviewed and approved by the City prior to final acceptance of the project. 16, ACHD: Contractor shall be responsible for coordinating with the City to obtain appropriate ACHD permit(s) and will reimburse the City for fees, fines, or penalties City incurs due to Contractor's violation of any ACHD policy. City shall certify to ACHD that Contractor is authorized to obtain a Temporary Highway and Right-of-Way Use Permit from ACHD on City's behalf. The parties acknowledge and agree that the scope of the agency granted by such certification is limited to, and conterminous with, the term and scope of this Agreement. 17. Reports and Information: 17.1 At such times and in such forms as the CITY may require, there shall be furnished to the CITY such statements, records, reports, data and information as the CITY may request pertaining to matters covered by this Agreement. 17.2 Contractor shall maintain all writings, documents and records prepared or compiled in connection with the performance of this Agreement for a minimum of four (4) years from the termination or completion of this or Agreement. This includes any handwriting, typewriting, printing, photo static, photographic and every other means of recording upon any tangible thing, any form of communication or representation including letters, words, pictures, sounds or symbols or any combination thereof. WELL 32 PRODUCTION WELL - CONSTRUCTION Project 10014.E page 7 ot 14 18. Audits and lnspections: At any time during normal business hours and as often as the CITY may deem necessary, there shall be made available to the CITY for examination all of CONTRACTOR'S records with respect to all matters covered by this Agreement. CONIRACTOR shall permit the CITY to audit, examine, and make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. 19. Publication, Reproduction and Use of Material: 20. Equal Employment Opportunity: ln performing the work herein, Contractor agrees to comply with the provisions of Title Vl and Vll of the Civil Rights Act, Revenue Sharing Act Title 31 , U.S. Code Section 2176. Specifically, the Contractor agrees not to discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age, political affiliation, marital status, or handicap. Contractor will take affirmative action during employment or training to insure that employees are treated without regard to race, color, religion, sex, national origin, age, political affiliation, marital status, or handicap. ln performing the Work required herein, CONTRACTOR shall not unlawfully discriminate in violation of any federal, state or Iocal law, rule or regulation against any person on the basis of race, color, religion, sex, national origin or ancestry, age or disability. 21. Employment of Bona Fide ldaho Residents: Contractor must comply with ldaho State Statute 44-1002 which states that the Contractor employ ninety-five percent (95%) bona fide ldaho residents. 22. Advice of Attorney: Each party warrants and represents that in executing this Agreement. lt has received independent legal advice from its attorney's or the opportunity to seek such advice. 23. Attorney Fees: Should any litigation be commenced between the parties hereto concerning this Agreement, the prevailing party shall be entitled, in addition to any other relief as may be granted, to court costs and reasonable attorneys'fees as determined by a Court of competent jurisdiction. This provision shall be deemed to be a separate WELL 32 PRoDUCTION WELL - CONSTRUCTION page 8 of 14 Project 10014.E No material produced in whole or in part under this Agreement shall be subject to copyright in the United States or in any other country. The CITY shall have unrestricted authority to publish, disclose and othenirrise use, in whole or In part, any reports, data or other materials prepared under this Agreement. contract between the parties and shall survive any default, termination or forfeiture of this Agreement. 24. ConstructionandSeverability: lf any part of this Agreement is held to be invalid or unenforceable, such holding will not affect the validity or enforceability of any other part of this Agreement so long as the remainder of the Agreement is reasonably capable of completion. 25. Waiver of Default: Waiver of default by either party to this Agreement shall not be deemed to be waiver of any subsequent default. Waiver or breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach, and shall not be construed to be a modification of the terms of this Agreement unless this Agreement is modified as provided above. 26. Entire Agreement: This Agreement contains the entire agreement of the parties and supersedes any and all other agreements or understandings, oral of written, whether previous to the execution hereof or contemporaneous herewith. 27. Assignment: It is expressly agreed and understood by the parties hereto, that CONTRACTOR shall not have the right to assign, transfer, hypothecate or sell any of its rights under this Agreement except upon the prior express written consent of CITY. 28. Payment Request: Payment requests shall be submitted to City of Meridian through the City's project management software. The Project Manager will compare the invoice against the Payment Schedule in the Agreement for compliance. Upon approval that the work has been done and is in compliance with the Agreement, the Project Managerwill approve the pay request for processing. City of Meridian payment terms are Net 30 from the date City receives a correct invoice. Final payment will not be released until the City has received a tax release from the Tax Commission. 29. Cleanup: Contractor shall keep the worksite clean and free from debris. At completion of work and priorto requesting final inspection, the Contractor shall remove all traces of waste materials and debris resulting from the work. Final payment will not be made if cleanup has not been performed. WELL 32 PRODUCTION WELL - CONSTRUCTION Prolect'10014.E page I of '14 30. Order of Precedence: The order or precedence shall be the contract agreement, the Invitation for Bid document, then the winning bidders submitted bid document. 31. Compliance with Laws: In performing the scope of work required hereunder, CONTRACTOR shall comply with all applicable laws, ordinances, and codes of Federal, State, and local governments. 32. Applicable Law: This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Idaho, and the ordinances of the City of Meridian. 33. Notices: Any and all notices required to be given by either of the parties hereto, unless otherwise stated in this agreement, shall be in writing and be deemed communicated when mailed in the United States mail, certified, return receipt requested, addressed as follows: CITY CONTRACTOR City of Meridian POST DRILLING, INC Purchasing Manager Attn: Sherry Young 33 E Broadway Ave P O Box 588 Meridian, ID 83642 Weiser, ID 83672 208-489-0417 Phone: 208-585-3411 Email: officeO.Postdrillina,com Idaho Public Works License #C -013426 -CC -4 Either party may change their address for the purpose of this paragraph by giving written notice of such change to the other in the manner herein provided. 34. Approval Required: This Agreement shall not become effective or binding until approved by the City of Meridian. CITY OF PAST DI,LLIhI 1NG BY: BY: TAMMY deWtEgD, MAYOR SHE RY YOl7 Ice Prex ' ent Dated: % / 10 / a` L - WELL 32 PRODUCTION WELL - CONSTRUCTION Project 10014.E Dated: IQ - R 3 Fb page 10 of 14 Approved by Council: Attest: /I �V�4� C. JAY DLE , CITY CLERK Purchasing Approval BY: KEITH At T , Purchasing Manager Dated:: -7 Project Manager Dean Stacey WELL 32 PRODUCTION WELL - CONSTRUCTION Project 10014.E �rtVu{' �' jDlAN W S 'OAa EAL / Depa ent A, r al WA R N ST ART, Engineering Manager Dated:: I-L/zq //(, page 11 of 14 EXHIBIT A SCOPE OF WORK REFER TO INVITATION TO BID PW.l623.10014.E ALL ADDENDUMS, ATTACHMENTS, AND EXHIBITS included in the Invitation to Bid Package # PW-1623-10014.E, are by this reference made a part hereof. SPECIFICATIONS / SCOPE OF WORK All construction work shall be done in accordance with the 2012 version of the ldaho Standards for Public Works Construction (ISPWC), the 2013 City of lvleridian Supplemental Specifications to the ISPWC (and any Addendums). See separate attached documents: Technical Specifications for the Drilling, Construction, Development, and Testing of a New, Permanent, tVulti-level Monitoring Well at the City of tVeridian Well 32 Site by CH2M Hill Engineers dated October 17,2016 (36 pases) WELL 32 PRODUCTION WELL - CONSTRUCTION Project 10014.E a page 12 ol 14 Exhibit B MILESTONE / PAYMENT SCHEDULE A. Total and complete compensation for this Agreement shall not exceed $412,975.00. WELL 32 PRODUCTION WELL - CONSTRUCTION Project 100'14.E Milestone 1 Substantial Completion 120 Days from Notice to Proceed Milestone 2 Final Completion 150 Days from Notice to Proceed Contract includes furnishing all labor, materials, equipment, and incidentals as required for the WELL 32 PRODUCTION WELL - CONSTRUCTION per IFB PW-1623-10014.E NOT TO EXCEED CONTRACT TOTAL $412p25.00 Contract is a not to exceed amount. Line item pricing below will be used for invoice verification and any additional increases or decreases in work requested by city. The City will pay the contractor based on actual quantities of each item of work in accordance with the contract documents. Item No.Description Quantity Unit Unit Price 1 Perm itting/Mobilization/Demobilization/ Cleanup 1 LS $30,000.00 2 Furnish and install 24-inch surface casing and seal and complete the well head 55 LF $30,250.00 685 LF $'123,300.00323-inch direct mud rotary borehole drilling I LS $5,000.004Caliper loo of the 23-inch borehole LF $92,500 00 740 5 Furnish and install 17.4-inch pipe O.D. (18.7- inch coupler O.D.), 15.1-inch minimum 1.D., blank, Certa-Lok PVC Well Casing as supplied by CertainTeed Corporation or approved equivalent as determined and approved in writing by the City LF $25,725.00 735 6 Seal the annular space between the 23-inch borehole and PVC casing from ground surface to 710 feet bgs using a bentonlte/cement grout mix and from 710 to 735 feet bgs using % -inch bentonite chips (Baroid or approved equivalent). 75 LF $9,000.0071s-inch direct mud rotary borehole drilling 1 LS $7,800.00Borehole geophysical survey and caliper log of the 15-inch borehole8 LF $14,400.0090Furnish and lnstall stainless steel wire-wrap well screen assembly9 90 LF $4,s00.00Furnish and lnstall Premier Silica Sand filter10 page '13 of 14 MILESTONE DATES/SCHEDULE PRICING SCHEDULE Contract Pricing Schedule pack 11 Furnish and lnstall stainless steel packer 1 LS $6,s00.00 12 Furnish, install, operate, and remove test pump 1 LS $12,000.00 13 Well Development 120 HR $36,000.00 14 Test Pumping HR $6,000.00 Video log I LS $1,500.00 to Disinfection 1 LS $3,500.00 17 Rig time 20 HR $5,000.00 WELL 32 PRODUCTION WELL - CONSTRUCTION Project 10014.E page 14 of 14 t3 BID RESULTS Si g n e d Bi d B o n d Li c # Su b s We l l D r i l l L i c e n s e X X X X X Attest: Amie Rose, Finance DUE DATE & TIME: December 6, 2016 2:30 BID NUMBER: PW-1623-10014.e BID NAME: Well 32 Production Well - Construction BID AMOUNT $412, 975.00 Opened by: Sandra Ramirez, Purchasing VENDOR Post Drilling Bondl2217343 AIA Document A312 Performance Bond Any Singular reference to Contractor, SUrety, Owner or other party Shall be considered pluralwhere applicable SURETY (Name and Principal Place oI Business)CONTRACTOR (Name and Address) Post Ddlling, lnc. P.O. Box 588 Weiser, lD 83675 North American Specialty lnsurance Company 650 Elm Street Manchester, NH 03101 OWNER (Name and Address): City of Meridian Purchasing Dept. 33 E. Broadway Ave. Ste. '106 Meridian, lD. 83 2 CONSTRUCTION CONTRACT Date: December 27, 2016 Amount: $412,975.00 Description (Name and Location): Well 32 Production Well-Construction BOND Date (Not earlier than Conslruction contract Date) Anrount: $412,975.00 Mgd]fiaaton s to this Bond: December 27, 2016 X None -CONTRAETGR+S PRINCIPAL I&rr,any, - SURETY Company North American Specialty lnsu Signature: Name and itle: Ma aqure E See Page 3 (Corporate Seal) (€,DrilliPost Signature Name and Title. SrrFcrJ'/au (Any additional signatures (Corporate Seal) Urce 0Pes, oerrt r on page 3) p6, appea (FOR INFORMATION ONLy - Name, Address and Telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other party): Post lnsurance P.O. Box 8447 Boise. lD 83707 N/A -ln-Faci ArA DOCUT'IEI{T A3l?. PERFORMANCE BOND AND PAYMENT BOND. 9ECEMBER 1s84 ED. . AIA O THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEWYORKAVE,, N.W,, WASHINGTON, O C,20006 THIRD PRINTING. MARCH 1987 A312-1984 1 Ir THE AMERICAN INSTITUTE OF ARCHITECTS I I The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors. admrnislralors, suc@ssors and assigns to the Orr,/ner for the performance of the Construction Contract, whach is incorporated herein by reference. 2 lf the Contactor performs the Construction Contract, the Surety and the Conlractor shall have no obligation under this Bond, except to parlicipate in conferences as provided in Subparagraph 3.1. 3 lf there is no Owner Default, the Surety's obligation under lhis Bond shall arise after. 3.1 The Owner has notified the Contractor and the Surety at its address described in Paragraph '10 below that the Owner is considering declaring a Contractor Default and has requesled and attempted to anange a conler€nce with the Contractor and the Surety to be held not later than fifteen days after receipt of such notice to discuss methods ot performing the Construclion Contract. lf the Owner, the Contraclor and the Surety agree, the Contractor shall be allowed a reasonable time to pertorm lhe Construction Contrac-t, but such an agreemenl shall not waiye the Owner's right, if any, subsequently to declare a Contractor Default: and 3.2 The Owner has declared a Conkactor Default and formally terminated the Contractor's right to complete the contract. Such Contractor Default shall not be declared earlier than twenty days aner the Contractor snd the Surety have rec€ived notice as provided in Subparagraph 3.1; and 3.3 The Owner has agreed to pay the Balance of the Contract Price to the Surely in accordance with the lerms of the Construction Contract or lo a contracior selecled to perform the Construction Contracl in accordance with the lerms of the contracl with the Owner. 4 When the owner has satislied the conditions ot Paragraph 3, the Surety shall promptly and at the Surety's expense take one or lhe following actions. 4.1 Anange lor lhe Contraclor. with consent oI the O\.,mer, to perform and complete the Construction Contrad: or 4.2 Undertake to perform and complete the Construction Contract itself, through its agents or through independent contractorst or 4.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contracl for performance and completion ol lhe Construction Contract. arange for a conlract to be prepared lor execulion by lhe Orrner and the contractor selected with the Owne/s concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construclion Contract, and pay to lhe Owner the amount of damages as described in Paragraph 6 in excess of the Balance of lhe Contra6t Price incurred by the Owner resulting kom the Contractor's default; or 4.4 Waive its right to perform and complele, arrange lor completion, or obtain a new conlractor and with reasonable p.omplness under the circumstances: .l After investigation, determine the amount for which it may be liable to the Owner and, as soon as practic€ble after the amount is determined, tender payment therefore to the Owner; or .2 Deny liability in whole or in part and notiiy the Owner citing reasons therefore. 5 lf the Surety does not proceed as provided ln Paragraph 4 with reasonable promptness, lhe Surety shall be deemed to be in defaull on this Bond fifteen days after receipt of an additional writlen notice Aom the Owner to the Surety demanding that the Surety perform its obligations under this Bond, and the Ov,/ner shall be enlitled to enforce any remedy available to the Owner. lf the surety proceeds as provided in Subparagraph 4.4, and the Owner refuses lhe payment lendered ot lhe Surety has denied liability, in whole or in part, without further notice the Owner shall be enlilled to enforce any remedy available to the Owner. 6 After the Owner has terminated the Contracto/s right to complete the Construction Contract, and it the Surety elecls to act under Subparagraph 4.1, 4.2, ot 4.3 above, then the responsibilities of the Surety lo the Owner shall not be greater than those of the Contractor under the Construclion Contract, and the responsibilities of the Owner to the Surety shall not be greater than those ol the Owner under the Construction Contract. To the limil of lhe amount of this Bond, but subject to commitment by the Owner o, ihe Balance ot the Contract Price to mitigalion of cosls and damages on lhe Construction Contract, the Surety is obligated without duplication for: 6.1 The responsibililies of the Contractor lor correction of defective work and completion of the Construction Contracl; 6.2 Additional legal, design professional and delay costs resulling ftom the Conlractor's Defaull, and resulting from the adions or failure lo act of the Surety under Paragraph 4; and 6.3 Liquidated damages, or if not liquidaled damages are specified in the Construction Contrad, actual damages caused by delayed performance or non- pertormance of the Contraelor. 7 The Surety shall not be liable to the Owner or others lor obligations of the Contractor that are unrelated to the Construction Contracl. 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 eniity other than lhe Owner or its heirs, executors, administrators or successors. 8 The Su.ety hereby waives nolice ol any change, including changes of time, to the Conslruclion Contracl or to related subcontracts, purchase orders and other obligations. 9 Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiciion in the location in which the work or part of the work is located and shall be instituted within two years after Contractor Default or within two years atter the Contraclor ceased working or within two years after the Surety r€fuses or fails to perform its obligations under this Bond, whichever occurs firsl. lf the provisions o{ this Paragraph are void or Prohibited by law, the minimum period of limitation available lo sureties as a defense in the jurisdiction of the suit shall be applicable AIA DOCUMENTA3'12. PERFORMANCE aOND ANO PAYMENT AONO. DECEMBER 1984 ED .AIAO THE AMERICAN INSTITUTE OF ARCHITECTS lT35 NEWYORKAVE,, N W, WASHINGTON D,C 20006 THIRD PRINTING. MARCH 1987 A312-1984 2 1O Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on lhe signature page. 1l When this Bond has been lumished to comply with a statulory or other legal requiremenl in the location where lhe constructign was to be performed, any provision in this Bond conflicting with said slatutory or legal requiremenl shall be deemed deleted herefrom and provisions conforming to such statutory or olher legal requirement shall be deemed incorporated herein. The intenl is that lhis Bond shall be construed as a statutory bond and not as a common law bond. ,I2 DEFINITIONS 12.1 Balance of the Contract Paice: The total amount payable by the Owner to lhe Coniractor under the Construction Contract atter all proper adjustments have been made, including allowance to the Contractor of any amounts received or to be received CONTRACTOR AS PRINCIPAL Company:(Corporate Seal) Signature Name and Title Address: by the Owner in settlement oI insurance or other ciaims for damages to which lhe Contractor is entitled, reduced by all valid and proper payments made to or on behall of the Contractor under the Conslruction Contract. 12.2 Construction Contracl: The ag.eement between lhe Owner and the Contractor identified on the signature page, including all Contract Documents and changes thereto '12.3 Contractor Default: Failure of the Contractor, which has neither been remedied nor waived, to perform or otherwise to comply with the terms of the Conslruction Conlracl. '12.4 Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by lhe Conslruclion Contract or to perform and complele or comply with the other terms thereol. (Space is provided below for additional signatures of added parties. other than those appearing on the crver page.) SURETY Company (Corporate Seal) Name and Title Address: AIA DOCUIIENT A312. PERFORMANCE BON0 AND PAYMENT BONO. DECEMBER 1gEa ED.. AtAO THEAMERICAN INSIITUTE OF ARCIiITECTS, 1735NEWYORKAVE,N.W WASHINGTON, O C 20006 THIRD PRINTING . MARCH 1987 A312-1984 3 MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: Signature: THE AMERICAN INSTITUTE OF ARCHITECTS Bond# 2217343 AIA Document 4312 Payment Bond Any singular reference to Contractor, Surety, Owner or other party shall be considered Plural where applicable CONTRACTOR (Name and Address) Post Drilling, lnc. P.O. Box 588 Weiser, lD 83675 OWNER (Name and Address): City of Meridian Purchasing Dept. 33 E. Broadway Ave. Ste. 106 Meridian, lD. 83 2 CONSTRUCTION CONTRACT Date: December 27, 2016 Amount $412,975.00 . Debrcription (Name and Location): Well 32 Production Well-Construction . . BONQ_ SURETY (Name and Principal Place of Business) North Amelican Specialty lnsurance Company 650 Elm Skeet Manchester, NH 03101 tate {lioteddier than Construction Contract Date): December 27, 2016 lAirou.at: $412,s75.00 -tv16difi;ltiona'to this Bond: D None CONTRACTOR AS PRINCIPAL Company:(Corporate Seal) SURETY Company X See Page 6 (Corporate Seal) n-Fact Post Drilling, ln Signature Name and SAEerry (Any additional sig North American S Ity lnsuran mpalr Signature: Name and le: Mary aquier ,J ures a Sr o€,\,-f 6) (FOR TNFORMATION ONLY - Name, Address and Telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect, Engineer or other party): Post lnsurance P.O. Box 8447 Boise, lD 83707 N/A AIA DOCU ENT A312. PERFORMANCE aOND AND PAYMEiT BOND. DECEMaER 1984 ED. . AIA O THEAN'ERICAN INSTITUTE OF ARCHITECTS, I735 NEWYORKAVE., N W., WASHINGTON. D C,20006 lHlRo PRINTING. iTARCH 1987 A312-1984 4 Ix -/:..: I The Contractor and the Surety, jointly and severally, bind lhemselves, their heirs, executors, administrators, suc@ssors and assigns to the Owner to pay for labor, materials and equipment fumished Ior use in the pedormance of the Construction Contract, which is incorporated herein by reference. 2 With respecl to the Owner, this obligation shall be null and void if the Contractor: 2.1 Promptly makes paymenl, directly or indirectly, for all sums due Claimants, and 2.2 Defends, indemnifies and holds harmless the Owner from claims, demands, liens or suits by any person or enlity whose daim, demand, lien or suit is for lhe payment for labor, materials or equipment fumished lor use in the performance of the Construction Contract, provided the Owne, has promptly notilied the Contraclor and the Surety (at the address described in Paragraph 12t ol any claims, demands, liens or suits and tend€red defense of such claims, demands, liens or suits to the Contraclor and the Surety, and provided there is no Owner DeIaull. 3 With respect to Claimants, this obligation shall be null and void if the Contraclor promptly makes payment, directly or indirectly, for all sums due. 4, The Surety shall have no obligation to Claimants under this Bond until: 4.1 Claimants who are employed by or have a direct contract with the Contractor have given notice to the Surety (at the address described in Paragraph 12) and sent a copy, or notice thereof, to the Owner, stating that a claim is being made under this Bond and, y,/ith substantial accuracy, the amount ot the claim. 4.2 Claimants who do not have a direct contract with the Contraclor: .'l Have fumished written notice lo the Contractor and sent a copy, or notice thereof, lo lhe Owner, wilhin 90 days after having last performed labor or lasl furnished materials or equipment included in th€ claim stating, with substantial accufacy, the amount ol lhe claim and lhe name of the parly to whom the malerials were furnished or supplied or for whom the labor was done or performedi and .2 Have eilher received a rejection in whole or in part from the Contractor, or not received wilhin 30 days of lumishing the above notice any communic€tion from the Contraclor by which the Contraclor has indicated the claim will be paid directly or indirectly; and .3 Not having been paid within the above 30 days, have sent a written notice to the Surety (at the address described in Paragraph 12) and sent a copy, or notice lhereof, to the Owner, stating lhat a claim is being made under this Bond and enclosing a copy of the previous writlen notice fumished to the Conlraclor. 5 lf a notice required by Paragraph 4 is given by the Owner to the Contractor or to lhe Surety, that is sufficienl compliance. 6 When the Claimant has satisfied the conditions of Paragraph 4, the Surety shall promptly and at the Surety's expense take the lollowing actions: 6.1 Send an answer to the Claimanl, with a copy to the Owner, within 45 days after receipt of the claim, stating the amounts that are undisputed and the basis for challenging any amounts that a.e disputed. 6-2 Pay ot arrange for payment of any undisputed amounts. 7 The Surety's total obligation shall not exceed the amount of this Bond, and lhe amounl of lhis Bond shall be credited for any payments made in good iaith by the Surety. 8 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construciion 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 {unds earned by lhe Contracto. in lhe performance of the Construction Contracl are dedicated to satisfy obligations of the Contractor and the Surety under this Bond. subject to the Owner's priority to use the funds for lhe completion of the work. 9 The Surety shall not be liable lo the Owner, Claimants or others for obligations of the Conlractor thal are unrelated to the Construction Contracl. The Owner shall nol be liable for payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligations to make payments to, give notices on behaf ol or otherwise have obligations to Claimants under this Bond. 10 The Surety hereby waives nolic€ of any change. including changes oI time, to the Construction Conkact or to related subcontracls, purchase orders and other obligations. 1l No suit or aclion shall be commenced by a Claimant under this Bond other than in a courl of compelent jurisdiction in the location in which the work or part ol the work is located or after the expiration of one year trom the date (1) on which the Claimant gave the notice required by Subparagraph 4.1 or Clause 4.2.3, ot (21 on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction Contract, whichever of (1) or (2) firsl occurs. lI the provisions of this Paragraph are void ff prohibiled by law, the minimum period ol limitation available to surelies 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 lhe address sholyn on the signature page. Aclual receipt of notice by Surety, the Owner or the Contractor, however accomplished, shall be sufficient complaance as of the date received at the address shown on the signature page. t3 When this Bond has been tumished to comply with a statutory or olher legal requiremenl in the location where the construction was to be performed, any provision in this Bond conflicting with said slatutory or legal requiremenls shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shalI be deemed incorporated herein. The intent is that this AIA OOCUiIEXI A312 . PERFORi'ANCE BOND AND PAYMENT BONO . DECEMBER 1984 ED . AIA @ THE A!'ERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE., N,W , WASHINGTON, D,C 2OCO6 THIRD PRINTING . MARCH 19a7 A312-1984 5 Bond shall be construed as a statutory bond and not as a common law bond. 1,1 Upon request by any person or enlity appearing to be a potential beneliciary of this Bond, the Contractor shall promplly fumish a copy of this Bond or shall permlt a copy to be made. I5 DEFINITIONS 15.1 Claimant: An individual or enlity having a direct contracl with lhe Contractor or wilh a subcontractor of the Contractor to furnish labor, materials or equipment Ior use in the pertormance of the Contracl. The intent of this Bond shall be to include withoul limitation in the terms 'laboI, materials or equipment'that part of water, gas, power, light, heal, oil. gasoline, telephone service or rental equipment used in the Construction Contracl, architeclural and engineering services required lor performance of the wo.k oI the Contractor and the Conlractor's subcontractors, and all other items for which a mechanic's lien may be asserted in the iurisdiction where lhe labor, materials or equipment were turnished. 15.3 Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. Name and Title Address: When the claimant has satisfied the conditions of Paragraph 4, and has submitted all supporting documentation and any proof of claim requested by the Surety, the Surety shall, within a reasonable period of time, but not more than 120 days, notify the Claimant of the amounts that are undisputed and ihe basis for challenging any amounts that are disputed, including but not limited to, lack of substantiating documentation to support the claim as to entitlement or amount, and the Surety shall, within a reasonable time, but not more than 120 days, payor make arrangements for payment of any undisputed amount; provided, however, that the failure of the Surety to timely discharge of its obligations under this paragraph or to dispute or identify any specific defense to all or any part of a claim shall not be deemed to be an admission of liability by the Surety as to such claim or otherwise constitute a waiver of the Contractor's or Surety defenses to or right to dispute such claim. Rather, the Claimant shall have the immediate right, without further nolice, to bring suit against Surety to enforce any remedy available to it under this Bond. MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: Paragraph 6 of this Bond is deleted in ils entirety and replaced with the following provision (Spac,e is provided below for additional signatures o, added partaes, other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL Company:(Corporate Seal) SURETY Company (Corporate Seal) Signature Signature Name and Title Address: AIA oocUI$Et{T A312. PERFoRMANCE BoND AND PAYI',ENT BON0 . DECEMBER 1s84 Eo. . AIA @ THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE,, N,W., WASHINGTON, O,C 2OOOA THIRD PRINTING. MARCH 1987 A312-1984 5 15.2 Construction Contract: The agreement belween the Owner and the Contractor identified on the signalure page, including all Contract Documents and changes therelo. NAS SURETY GROUP NORTH AMERICAN SPECIALTY INSURANCE COMPANY WASHINGTON INTERNATIONAL INSURANCE COMPANY GENERAL POWER OF AT'TORNEY KNOW ALL MEN BY THESE PRESENTS, THAT North Americar Sperialty Insuranc. Company, a corporation duly organized and existing under laws ofrhc Stale ofNcw Harnpshirc, and having its principal ollice in the City of Manchcster, New Hampshire, and Washington Int.malional Insurance Company, a corporation organized and existing under the laws ofthe State ofNew Hampshire and having its principal offic€ in thc City of Schaumburg, Illinois, each does hereby makq constitute and appoint: TERRY S. ROBB, WILLIAM F, POST, and MARY J.{QUIER I()INTLY OR SEVERALLY Its true and lawful Attomey(s)-in-Fact, to make, execute. seal and deliver, for and on its behalfand as its act and deed, bonds or other writings obligatory in the oature ofa bond on behalfofeach of said Companies, as surety. on contmcts ofsutetyship as are or may be re4uired or permitted by law, reguiation, contract or olherwise, provided that no bond or undenaking or contract or suretyship executed under this authority shall exceed the amount of: FIFIY MILLION ($50,000,000.00) DoLLARS This Power of Attomey is granted and is signed by facsimile undet and by lhc authority ofthe following Resolutions adopted by the Boards of Directors ofborh No(h Am€rican Sp€cialty lnsurance Company ard Washington lntcmational lnsurdnce Company at mectings duly callcd and h€ld on fie qi of May, 20 t 2r ..RESOLVED, that any two ofthe P.esidents, any Managing Dircctor, any Scnior Vice President, any Vice Presiden! any Assistanl Vice hesident. the Secretary or any Assistant Secretary be, and each or any ofthem hereby is authorized to execute a Power ofAttorney qualifying the attomey ramcd in the given PowciofAttorney to executc on behalfofthe Company bonds, undertakings and all contracts of surety, and that each or any ofthem hcrebtis aurhorized to attest to the execution ofany such Power ofAttorney ard to attach thel€in the sesl ofthe Companyi and it is FURTHER RESOLVED, thar $e signature ofsuch ollcers and the seal ofthe Company may be aJlixed to any such Power of Attomey or to any cedificate relating thercto by facsimile, and any such Power of Attomey or certificate bearing such facsimile signatures or facsimil€ scal shall be binding upon the Company lvhen so arlixe-d and in the futurc with rcgard to an, bgnd, undcrtaking or contract of surety lo which it is attached." SEAL tl) Sid.n P. Atrd.m'! Sdior Vh. Pr6ld.nr ol wr.hi.86 trldn.tlodl ln$dn.. CooD..) & Sdior Vt. ?BiLtt ol lioro Arsi.. SF.lrlly 16ro,.. CdP.ol ,no*, ^. P,L"-o.o,- & S.Dio. Vic. P6id.nt olNorrh Aa..ion S0.citlly Intuntre CoEp.ty IN WITNESS WHEREOF, North Anrerican Specialty Insurance Company and Washington International Insurance Company have caused their omcial seals to be hereunto affixed, and these presents to be signed by their authorized offic€rs this ?a(Lday of-September 2015 North Amaricrn Speciak}_ lnsuranca Company Washington Inlerrational Insurrnce Company Srate oflllinois County of Cook On this 22ndday of Septemb€r , 20_!1, beforc me, a Notary Public personally appeared Steven P. Anderson , Scnior Vicc Presidenl of Washington lntemational Insumnce Company and S€nior Vice President ofNonh American Sp€cialt-y Insurance Company and MichaelA. lto. Senior Vice Prcsident ofwashinglon Intemarional Insumnce Company and Senior Vice President ofNorth Americar: Specialty Insurance Company, personally known to me, who bcingby me duly sworn, acknowledged that thcy signed the above Po*er of Attorney as officers ofand acknowledged said instrument !o be the voluntary act and deed oltheir respective companies M Kenny, N.rtery P{t,lie t, Jeffrev Goldberg . the duly elected No(h America! Specialt-v lnsurance Company and washington Intemational lnsurance Company, do hcrcby certi& thar thc abovc and foregoing is a true and correct copy ofa Power of Atiomey given by said North American Specialty Insumnce Company and Washington Intemational lnsurance Company, $/hich is still in full force aod effecl. IN WITNESS WHEREOF, I have s€t my hsnd and affixed the seals of the Companies this -3L day of December , 20 l6 ,//,2"2-b SEAL * OFFICIAL SEAL M IGNI{Y NOTARY PI.tsI.JC, SIATE OF [XIO6 MY @MldSSloN qPAES 12rS42017 kttrcy Gddb.,8. Vie P6& & A$iqr Si.,a.ry oa wrdrntb rtl'.didl l','lJm C6F.y r ldr A'qisn SFnlry h$rc Cmr.ny ssi DATE (MTIOUYYYY) 12/21/2OL6 BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE REPRESENTATIVE OR PRODUCE& AND THE CERTIFICATE HOLDER' LTERLYCATE TH SHTEOLOER.CETHE RTIFICAGHTSRIUNFERSNNOLDANcoFORMAINONTIONTTEOFRrsTEEOISSUASCERTItcATHIS ESPOLICITHEBYFFORDEDEcovEEGTHENTENDEXORNVELYTIVEORND,NOT FFI RMAERTIFI UT HORIZEDURENSETHsUISNGBETWEENR{S),CONTRACT th€ torms and conditions of the poll certlflcat€ holdor in li€u of $uch end MPORTANT: toISROGoTINWAIVED,I Us B bjectustmondbeorsediestheUrNsREDisholderacv(polithcrtificat€nrer tohts th€d notislh6atecertili rigstatentn€ndorsement.ncortatnaequpolici A]-yshi.a Ganb]e (208) 336-5600 ag.Ilble0Postins 141.8 4A Mutual PFODUCER Post Insulenc€ Servicea, Ilrc. 2?l? W. Bannock st. P.O. Box 8447 Boise ID 83?07 293state Insurance FundB:IdahoNSUREO Post Dlilling Inc. 90 Box 588 rD 83572wei ser aiQo"CERTIFIGATE OF LIABILITY INSURANCE CERT IFICATE NUMBER:2016 /201't CAN CELLATION REVISION NUMAER: o 1988-20'14 ACORD RATION. All rlghts resorved COVERAGES CERT IFICATE HOLOER LIMIIS THAT STAN CYPOLI ER L)loFORABOVETHEtRNAMEDDTOETHSUINBVEENUEDLOW8EtRANCENSUSTEOLIETHPOLICoESTCERTIISTHISoTOTHICHISWTHESPECTUIllENToocORTHoERANONTRACTCNCOtoNDITOFORTERi/IENTNGctREOUREIVNOT\A4THDINTEDrcA TO L TE STHEINSUISLBJCTEBRIDEHtsEIHOLDSCCIESEDORDETHENSUCPENBESSUORDRTtcATECEBYDlMSCLAREDUENECDVEEBSLmrrHOWNSoNSsLrHcPOEStclSoNDcoNtTtoLEXCsUON 1,000,000sEACH OCCUFRENCEx 250.00O 10 .00 0sx1.000,000sPERSO$AL 8 ADV IN-](]RY 3,0oo,oo0SGENERAL AGGREGATE 3,000,000 3 1/ | /20111/l /2A16 PROOLrC'S - COiTP/OP AGG x47 632x COMMEiCIAI GEN ERAL LIABILITY x GEN L AGGREGATE L MII APPLIES PER: x ce1194: CG12'11 JECI !oc cG?30 A 1.000,000s SAOOILY INJUFY (P€r PeM) IBOOILY INJURY (Per a..'d€nl)x sxxs 7 /1/2Ot1 x AUTOMOBILE LIAAILITY AUrcS HIREO AUICTS SCHEOULEO AUTOS A 000 02€ACH OCCURFENCEx AG6REGATE OCCUR 000 00021/1/2OL11/1/20!6x41632 xAEXC€SS UAB xx 000 01E,L EACIIACCIDENT 00 000IE L OSEASE . EA€MPIOY 1 0EL 1/ A/ 2076636811 WORXERS COMPEIISAIICN AND EMPLOYEiS LNAIUTY ANY PROPRI€TOR/PARINER/EXECUTIVE Of IICER/MEMBER EXCLUOEO' B s.n.dde. Nv b..trch.d ll moE tp&e 13 Gqolr'dl OESCftPTTON OF OPERANO S I LOCANONS ' VEHICLES (A@RD 101, Addtio..r R.roa. RE: weII 32 Production well - construction SHOULDANYOF THE ASOVE DESCRIBEO POLICIES BE CAI{CELLED BEFORE iiii'Eipiiiarror,i oaie neaeor, NoncE tlrlLl aE DEUvERED rN ACCOROANCE WITH THE POLICY PROVISIONS. -&-rq-bz*- AUTHORIZEO REPRESEI{TATIVE yshia Gamble/AG city of l'!e.idj'an At6: Meridian citlr Accountiog 33 E. Bloadway Awe. !,!eridiaD, fD 83642 ACORO 25 (201,{Jo1} lNS025/201ao1l The AcoRo name and logo are registered marks of AcORo CORPO A+ DOES I s Post Dnlling lnc. Policy #X47632 ADDITIONAL INSURED. OWNERS, LESSEES OR CONTRACTO.RS - AUTO- ill;ic $;$J's WiEN nrqurneD'rN CoNsrRUcrloN AGREEMENT wlrH ibu - pnrurnnv IND NoNcoNrRlBuroRY cG-7194(5-13) This endorsement modilies insurance provided under the following: COMIVIERCIAL GENERAL LIABILITY COVERAGE PART 1. Section ll ' Who ls An lnsured is amended to include as an additional insured: a. Anv person or organization for whom you- are performing oferations when you and irin'p"rton oi organization have agreed in writino in a contrait or agreemenl thal such purso'n o, organization be added as addi' iional insured on Your Policy: and b. Any other person or organization. you are required to add as an additional insured unter ttre contracl or agreement described in Paragraph a above Such oerson or organization is an additional iniured onry with r;spect to liability fot bodily'iniurv. oroierlv damage ot personal and ad- i'rai"iing iiiui raused, in whole or in part' by: a. Your acts or omissions, or b. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured A oerson's or organization s status as an addi- iiofiii- rnsureo u-nder this endorsement ends ei] yorr operations for that additional insured are completed. 2. With respect to the insurance afforded to these-' "JJitionir insureds, the following additional ex- clusions aPPIY: This insurance does not aPPIY to: ^. Bdilv iniury, propeny damage ot porsonal ina 'aav6rtising inlury atising out of the ren- derino of. or the failure to render, any pro- fessidnal architectural, engineering or sur- veying services, including: (1) The preparing, approving or failing to' PrePare or aPProve maPs' shoP drawings, opinions, reports, surveys' neto oieis, change orders or drawings and specilications; or (2) Supervisory, inspection, architectural or engineering activities b. Bodily iniury ot prcperty damage occurring afler: 11l All work. including materials, parts or" eouioment furnishad in conneclion with such work. on the project (other than iervice, maintenance or repairs) to.be oerformed bv or on behalf of the addi- ionat insureolsl at the location ol the mvered operitions has been complet- edi or l2l That oortion ol your work out of which' ' the i;jury or damage arises has been DUt to its intended use by any person or organization olher than another con- tracto-r or subcontraclor engaged in Per- forming operations for a principal as a Part of the same Proiecl' 3. The insurance provided by this endorsement is primary and noncontributory' Post DnllLng lnc Pol cY #x47632 ACU'ry ENHANCEMENTS - GENERAL LIABILITY This endorsement modifies insurance provided under lhe following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM A. Extended Nonowned Watercraft Exclusion q Exception (2Xa) of Coverage A.- Bodily lnlury and Properly Damage Liabillty ls replaced bY the foltowing: (a) Less lhan 51 feet long; and B. lncreased Bail Bond Amount The limit shown in paragraph 1b of Supplemen' tary piyments ' Coverages A and B is in- deased to $1,000. C. lncreased Reasonable Expenses lncurred by the lnsured The limit shown in paragraph 1d of Supplemen- taty i"y*"nt. - boveiages A and B is in- creased to $350. D, NowlY Acquired Organizations Item 3a of Section ll - Who ls An lnsured is replaced bY the following: a. Coveraqe under this provision is atforded-' ontv uniit the 18oth day atter you acquire.or iorir the organization or the end of the policy period, whichever is eariierl E. Tenants Legal LiabilitY Paraqraphs (1), (3) and (4) of the O-amage to Proo;rtv Exclusion under Section l- uoverages oo 'not'appfy b properly damage (other than Oir"s" by fire) t6 piemises, including the-con- i"niiti ir*, premises, rented to you for a period of 8 or more consecutive days' The most we will pay under this coverage for .lamaoes because ol propelty damago lo any one p-remises is $10.000 A $250 deductrble applies. F. Knowledgo of Claim or Suit The following is added to para-graPh 2: P'Jilt in the Evena of Occurrence, Offense' Ularm.or Srit ot-S*ti"n lV - Commercial General LiabiF ity Conditions: Knowledge of an occurrence, claim or suit by vour aqint servant or employee shall not.in itself 6nstitute knowledge of the Nameo ln- i'ri"o ,"r"ii an officer of the Named lnsured trai receiuea such notice from the agent' ser- \anl ot emqloYee. G. Unintentlonal Failure to Disclose Hazard The followinq is added to the Representatrons Conditron under Section lV - Commercral uen- eral Liability Conditions: Based on our dependence upon your. repre- sentations as to existing hazards' il unrnlenlron- lrrvli, .-n"rrJ t"il to dlsclose all such hazards cG-7301(4{8) at the inception date of your policy' we will not ieiect coverage under this Policy based solely on such failure. H. Waiver of Subrogatlon for Written Contracts The following is added to the Transfer of Rights oi 'nu.ou"w Against Others to Us Condition ,nO"i S""t6" li ' Commercial General Liability Conditions: We waive any righl of recovery we ry-l-F: aoainst a person or organization because oI "Iriili ri ui" make for inlury or damage arising 5ii li ,tri o"soing op6raiions ot your work done under a contract with that person or or- oantation and inctuded in the products-cofi- "oleted oDerations hazard fhe waiver apoles 6nt, io a perton or organization with whom you irri"'i *iitt"^ contraEl or agreemenl in which vou are required to waive rights ot recovery i"i", ti,i. policy. Such mntracl or agreement irui nave oeen executed prior to the occur' renca causing iniury or damage' l. Liberalization The following is added to Section lV - Commer- cial General Liability Conditions: lf we adoot anv revision that would broaden the ;;;t;;';;d, this policv wilhout additional iiem,u"m witnin 45 days prior to or during the io'iiir-o"rioo, the broadened coverage will im- heoiatbtY aPPIY to this PolicY' J. Broadened Bodily lniury The Definition of Bodity lniu4l is amended to include mental anguish' K. Electronic Data Liabiliry 1. The following paragraph is added to Section lll - Limits of lnsurance: Subiect lo paragraph 5 above, $10'000-is tt",o.r *i wili piy under Coverage A for'o,irr,,u ar-"gd because of all loss of 'eleZtronic dara arising out of any one occur- rence. 2. The following definition is added to Section V - Definitions: "Electronic data" means information' facts ol oaor"mt stored as or on' created or ,aui o-n o, transmitted to or from computer iinwiri ancruoing svstems and gPp!f]'.of i6iili,"l, i,u,o oi n6ppv disrs' gD-Tol'l:l taoes. d;ives, cells, data processing devrces oi anv other media which are used wm "te"tr6n,"rtty controlled equipment 3. For the purposes of this coverag-e' the d.efl-- "ition of't'tpeiy damage" in Section V - Oetinrtions is reptaced by the following; " ProPetTY d a mag e' means: (conirn\)ed nen Fge) Post Drilling lnc PolicY *X47632 ACU'IY ENHANCEMENTS . BUSINESS AUTO cA.7247(9-09) This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM A. Temporary Substitute Vehicle Physical Dam- age The following is added to item C Certain Trail- eis, Mouite Equipment and Temporary Substi- tute Autos under Section I - Covered Autos: lf Physical Damage Coverage is provided by this ioverage Form, any aulo you do not own while used with permission of its owner as a temoorary substitute for a covered auto you o*iitttrt'it out of service because of its break- Oo*n. ,epair, servicing, /oss or destruction is a covered auto for Physical Damage Coverage B. Who ls an lnsured The following are added to Who Is an lnsured under Section ll - Liability Coverage: 1. NewlY Acquired Organizations Anv oroanization you newly acquire or form' otn'er inan a partnership, joint venture or limited Iiability company' and over which vou maintain -ownership or maiority interest' ivitf quafify as a Named lnsured if there is no oinet iimit"r insurance available to that organizalion. However: a. Coverage under this provision is afford- ed onli until the 180th daY afler You acquire or form the organizalion or the end of the policy period, whichever is earlier; b' This coverage do€s not apply to bodly injury ot priperty.darnage thal occurred b6roie you acquired or lormed the or- ganization; c. No person or organization is an lnsured witfl respect to the conduct of any cur- rent or past partnership, joint venture or limited liabiiity company that is-not shown as a Nimed lnsured in the Oec- larations. 2. EmPloyees as lnsureds Any employee of yours is an 'nsured while using a covered auto you do not own' hire or borrow in your business or your personal affairs' C. lncreased Supplementary Payments 'l . The limit shown in paragraph A2a(2) ol Section ll - Liability Coverage is increased to $3,000. 2. The limit shown rn paragraph A2a(4) of Section ll - Liability Coverage is rncreaseo to $300. D. Fellow EmPloyee Coverage The Fellow Employee Exclusion contained in secton ri - Liabiiity-Coverage does nol apply' E. TransPortation ExPenses The Transportation Expenses Coverage Exten' sion is rePiaced bY the following; We will also pay up to $50 per day to a maxi- mum of $t,S0O ior lemporary transportation. ex- oana" i*u""0 by you beiause of the total iheft ol a mvered auto of the private passenger ;t- liaht kuck tvpe. we will Pay only for those ioreieo artos ii:r which you carry either c-om- oi.nu"ii* or Specified Causes of Loss cov- ;;;;; W" will pav for temporary transporlation ",,otnt". ,ncrtied du'ing the period beginning 48 hours afier the theft and ending. regardless oi ine poticy's expiration, when the covered iuto is ieturned to use or we pay for its loss' F. The following are added to Coverage Exten-" .ion. rnOet Section lll - Physical Damage Cov- erage: '1. Accidental Airbag Discharge We will pay to rePtace an airbag thal de- pioys wittrolt the car being involved in an iccident Ttris coverage applies only to a covered auto which You own' 2. Loan/Lease GaP Coverage ln the event of a total loss lo a covered aulo of the private passenger ot light truck type, we wiil pay any unpaid amount due on the lease or loan, less: a. The amount paid under the Physical- Oamage Coverage Section of the poli- cy; and b. AnY: (1) Overdue lease/toan paymenls at the time of the /ossl (2) Financial penalties imposed under a lease for excessive use' abnor- mal wear and tear or high mileage; (3) Security deposits not returned by the lessor: (41 Costs for extended warranties'' Credit Life lnsurance, Health' Ac- cident or Disability lnsurance pur- chased with the loan or lease' and (5) carry-over balances from previous loans or leases' 3. Hired Auto Physical Damage Coverage lf hired aufos are covered au'os for Liability Coveraoe, lhen the Physical Damage Cov- erages-provrded under lhrs Coverage Form tor -any aulo you own are extended to aulos (conlinued oext Pag€) Posl Dralling lnc. Policy #X47632 We will not pay, under this coverage' lor either anY electronic equipmenl or acces' sories us;d with such electronic equipment thal is: a. Necessary for the normal operation of the coveied aulo or lhe monitoring of the covered aulo's operating system; or b. Both: (1) An integral part of the same unit' housing anY sound reProducing equipment disigned solelY for the reProduction of sound if the sound reProducing equiPment is Perma- nently installed in the covered auto; and (2) Permanently installed in the open- ino of the dash or console normally uied oY ttre manuracturer for the installation of a radio. Limit of lnsurance Wth respect to coverage under this cov- eraoe. ttie Limit of lnsurance provision of Phy"sical Damage Coverage is replaced by the following: a. The most we will pay for all /oss to audio, visual or data electronic equip- ment and any accessories used with this equipment as a result of any one accident is lhe lesser of: l1) The actual cash value of the damaged or stolen Property as of the time of the /oss; (2) The cost of repairing or replacing the damaged or stolen Properly with other ProPefi of like kind and quality; or (3) $1,ooo. b. An ad.lustment for depreciation and Dhvsical condition will be made in de' ier'mining actuat cash value at the time of the loss. c. lf a reoair or replacement results in bet- ter than like kind or quality, we will not pay for lhe amount of the betterment' Deductible a. lf /oss to lhe audio, visual or data elec- tronic equipment or accassories used with this' equipment is the result of a loss to the covered auto under this Coverage Form's Comprehensive or Collision Coverage, then for each cov- e@d auto our obligation to pay for, re- Dair, return or replace damaged or sto' ien orooertv will be reduced by the ap- olicable deductible shown in the Dec- iarations. Any Comprehensive cover- age deductibie shown in the Declara- tions does not apply to /oss to a'rdio ,Lrat or data 'eiectronic equiPment caused by llre or lightning. lf ,oss to the audio, visual or data elec- tronic equipment or accessories used *it, tt 's equipment is the result ot a toss to tha covered aulo under this Cor"tuo" Form's SPecified Causes of Loss C-overage, then for each covered aufo our obligalion lo pay for, repair, return or replace damaged or stolen pioperty will be reduced by a $100 de- ductible. lf loss occurs solely to the audio, visual or data electronic equipment or acces- sories used with this equipment, then for each covered auto our obligation to oav for. reoair, return or rePlace bamageO or stolen property will be re- duced by a $100 deductible. ln the evenl that there is more lhan one aoolicable deductible, only the highest JLbrctiote will apply. ln no event will more than one deductible aPPlY. 8. Original Equipment Manufacturer EleG- tronic EquiPment Coverage ln addition lo the coverage provided above' *e *itt "tso pay, with respect to a covered rois. the actual- loss sustained to electronic eo.riomenl oermanently installed in the loca- tion'orovidbo for such equipment by the orioinal manufacturer of lhe aulo but only witih respect to a covered aulo. Deductible A deductible applies to this coverage' Refer to paragraph L Deductible Applicable to o.ioinat touioment Manufacturer Electronic Eo,lioment. Fuel in Vehicle and Miscella- netus Equipment Used With Covered Ve- hicle Coverages. 9. Rental Reimbursement, Business lncome and Extra Expense Coverage Limits The most we will pay for all /oss for each covered aulo involved in any one accident for Rental Reimbursement' Business ln- come and Extra Expense combined is $10,000. Coverage a. Rental Reimbursemenl Coverage ('l) We will pay lor expenses incuned bv vou during lhe Peiod of rcstora' ti6n for the rental ol an auto made necessary because of a covered loss to a covered aulo used in Your business. The loss must be caused bY a cause of loss covered under b c d (conlinued next Page) Post Drilling lnc Policy #x47632 Section lll - Physical Damage Coverage para- graph D Deduciible is replaced by the follow- ing: 1. For each covered auto, our obligation to pay for, repair, return or replace damaged br'stoten iroperty will be reduced by the applicable deductible shown in the Declara- tibhs. Any Comprehensive Coverage de- ductible shown in the Declarations does not apply to /oss caused by flre or lightning. 2. For oombinations of tractor' truck, semi- trailer or trailers when attached together by coupling devices at the time of loss, one deductible will aPPlY. a. lf more than one auro of the combina- tion is damaged or stolen, the largest applicable deductible shown in the Dec- larations will aPPlY. b. lI only one auto of the combination is damaged or slolen, the deductible shown in the Declarations for that aufo will apply. 3. The deductibles will not apply to /oss caused by a collision of a covered auto with any other auto insured bY us. 4. lf the insured chooses lo have a damaged windshield or other glass repaired inslead of replaced, no deductible will apply to the loss. H. Knowledge ot Claim or Suit The following is added to the Duties in the Event of Ac;ident, claim, Suit or Loss con- dition: Knowledge of an accident, claim, suil or /oss bv an adent ot employee of any insured shall n6t in ltsitf constilute knowledge of the insured unless your partners, executive oflicers, direc- tors, managers, members or a person who has- been desig-nated by them to receive reports of accidents, claims, suifs or /oss shall have re- ceived such notice from the agent ot employee' L Waiver of Subrogation for Written ContracB The following is added to the Transfer of Rights of Recovery Against Others to Us Condition: We waive any right of recovery we may have- against a person or organization because ol oivments we make for bodily iniury ot propedy 'damage arising out of your use of a covered auto which occurs while under a contract with that person or organization. The waiver applies only to a person or organization with whom you have a written contract or agreement requiring you lo waive the righl of recovery under this iolicy. The wrillen contract or agreemenl must have been executed prior to the accldenl caus- ing bodily iniury or propefty damage. J. Worldwide Coverage Territory for Hired Autos The following is added lo paragraph 87 of Sec- tion lV - Business Auto Conditions: With respect to aulos hired for 30 days or less' the coverage territory is extended to includa all oarls of th6 world tt the insured's responsibility io oav damaqes is determined in a suit in the uniteo stateJ ot America (including its territor- ies and possessions), Puerto Rico or Canada or in a settlement we agree to. K. Mental Anguish Coverage The Definition oI bodily iniury is amended to include mental anguish. L. Oeductible APplicable to Original Equipm.elt Manufacturei Electronic Equipment, Fuel in Vehicle and Miscellaneous Equipment Used With Covered Vehicle Coverages 1. lf loss to property covered by lhese exten- sions is the iesuil of a /oss to lhe covered aulo under this Coverage Form's Compre- hensive or Collision Coverage, then for each covered aulo our obligation to pay for, reoair. return or replace damaged or stolen orboertv will be reduced by the applicable beduai'Ute shown in the Declarations' Any Comprehensive Coverage deductible shown in the Oeclarations does not apply to /oss to property covered by an extension caused by fire or lightning. 2. lf loss to property covered by lhese exten- sions is the iesuit ol a /oss to the covered auto under lhis Coverage Form's Specilied Causes of Loss Coverage, then for each covered aufo our obligation lo pay for, re- oair. return or replace damaged or stolen bropery will be reduced by a $100 deduct- ible. 3. ln the event that there is more than one applicable deductible, only the highest de- du;tible will apPly. ln no evenl will more than one deductible aPPIY. M. Coverage Extensions Definltions 1. "8us,ness ,hcome" means the: a. Net income (Net profit or loss before income taxes) that would have been earned or incurred if no /oss would have occuned; and b. Continuing normal operating expenses incurred, including Payroll 2. "Extn expense" means those expenses you- incur to ivoid or minimize the suspension of business and to continue your business op- erations. 3.'Liaht lruck" means a truck with a gross veiicle weight of 10,000 pounds or less 4. "Miscellaneous equipmenf' means hand (continu€d n€xt Pag€)