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HomeMy WebLinkAboutLiberty Mutual Insurance Company dba The Ohio Casualty Insurance Company; 2019-11-26;TAKEOVER AGREEMENT THIS TAKEOVER AGREEMENT ("Agreement") has been entered into on ,Alove..""'berci't, , 2019, ("Effective Date") by and between the CITY OF CARLSBAD ("CITY") and THE OHIO CASUALTY INSURANCE COMPANY who is owned by LIBERTY MUTUAL INSURANCE COMPANY (hereinafter collectively "SURETY"). CITY and SURETY may hereinafter be collectively referred to as "Parties" and singularly as "Party." RECITALS A. WHEREAS, on or about June 6, 2018, CITY entered into a contract ("Contract") with Coastal Flo<?ring Services, Inc. ("Former Contractor") for construction of Contract No. 4738 Senior Center Floor Renovations ("Project"). A true and correct copy of the Contract is attached hereto as Exhibit "A" and incorporated herein by this reference; B. WHEREAS, SURETY issued a performance bond ("Bond") and a payment bond for Contract No. 070206857, with each bond penalty in the amount of $103,522.50. Attached hereto is a true and correct copy of the Bond as Exhibit "B;" C. WHEREAS, CITY represents the original Contract with Former Contractor was $103,522.50 and the adjusted Contract amount based on the issuance of Change Orders 1 in the amount of $13,699.00 and Change Order 2 in the amount $12,612.50 is $129,834.00. CITY has represented the value of Work completed through the Effective Date as $129,834.00. CITY represents CITY has made payments under the Contract in the amount of $100,263.00 to Former Contractor leaving an unpaid sum of $29,571.00. "Contract Balance"). CITY alleges these amounts are accurate and SURETY reserves the right to audit CITY's Contact accounting records and contest the amounts alleged. SURETY and CITY, as of the Effective Date, are not aware of any claims, liens, stop notices, assignments, or encumbrances against the Contract Balance; D. WHEREAS, the Contract scope of work was substantially completed by Former Contractor in or around August 2018, and CITY has been utilizing the rooms in which flooring was installed by the Former Contractor since that time; E. WHEREAS, on June 13, 2019, SURETY received written notice from CITY that the Contract was terminated due to Former Contractor refusing to correct deficient work in certain areas of the Project that did not comply with the technical specifications of the Contract and manufacturer's installation recommendations; F. WHEREAS, to fulfill its Bond obligations, SURETY desires to remedy the deficient work of Former Contractor on the Project and to complete or procure the completion of the Contract in accordance with the Contract documents and the Bond for the Project. The deficient work in need of correction consists of the removal of the Luxury Vinyl Tile ("LVT") flooring installed by the Former Contractor in the Multipurpose Room, Art Studio and Billiards Room only. The removed flooring in those areas will be replaced, after completing all preparatory work required in the Contract, with new L VT flooring matching what was previously installed and approved by the CITY. This scope of work is hereinafter referred to as "Corrective Work"; G. WHEREAS, SURETY is willing to exercise its election to complete or to procure the completion of the Contract as a measure of cooperation with CITY providing SURETY can be assured in doing so it will receive the Contract Balance pursuant to the terms of the Contract; H. WHEREAS, SURETY desires to arrange for the completion of the Contract and proposes to have the Corrective Work completed by a competent and qualified contractor approved by CITY; I. WHEREAS, CITY recognizes that, in procuring the completion of the Contract by a completion contractor, SURETY has conferred a benefit upon CITY in return for which CITY shall make payment of all such sums due or to become due under the Contract, including undisputed payments for claims of Former Contractor, if any, directly to SURETY; and J. WHEREAS, CITY has agreed that the remaining Contract Balance will be used for the completion of the Project and the Corrective Work subject to the terms and conditions of the Contract and this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the premises, and the good and valuable considerations and the mutual covenants set forth herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: I. The recitals set forth above are expressly incorporated herein by this reference. 2. SURETY undertakes to procure the performance of the Corrective Work subject to and in accordance with all of the terms and conditions of the Contract. Further, CITY has provided SURETY and its representatives an opportunity to review and access all known documents or documentation comprising the Contract. 3. CITY acknowledges that SURETY has a prior equitable right to receive all proceeds from the Contract as the work proceeds and for all sums upon completion of the work covered by the Contract, pursuant to the terms of the Contract and this Agreement. Accordingly, except as specifically set forth in this Agreement, CITY shall pay to SURETY, or its designee, all amounts to be paid by CITY under the Contract at the times and under the procedures according to the terms and conditions of the Contract, in accordance with payment terms of the Contract. 4. SURETY intends to relet the completion of the Contract for the Project to Haixan Flooring, Inc. dba Carpet Club, a licensed contractor, contractor's license no. 1032021 ("Completion Contractor")1• CITY consents to Completion Contractor completing the Corrective Work of the Contract. Completion Contractor shall be SURETY's representative with regard to completion of the Corrective Work. All documents pertaining to pay estimates, progress and final payments, shall be sent to: To Completion Contractor: Ina Reyes Carpet Club 518 W. Washington A venue Escondido, CA 92025 1 In the event SURETY does not hire Carpet Club as the Completion Contractor, then CITY shall cooperate with SURETY to find another completion contractor. Phone -760-740-9545 Email -ireyes@carpetclub.com With copies to: and Jason Stonefeld, Senior Surety Claims Counsel Liberty Mutual Insurance Company 1001 4th Ave. 37th Floor Seattle, WA 98154 Phone-206-473-6390 Email -jason.stonefeld@libertymutual.com Mike Tomeo Benchmark Consulting Services, LLC 16755 Von Karman Ave., Suite 200 Irvine, CA 92606 Phone -949-813-5863 Email -mtomeo@benchmark-consulting.com 5. CITY acknowledges that the Completion Contract between SURETY and Completion Contractor will call for the Completion Contractor to coordinate all Project activities with the CITY and CITY' s representative and to otherwise conduct itself as if Completion Contractor had a direct contract with CITY. Except as provided in Paragraph 6 below, SURETY shall have no responsibility to review or transmit any construction documents between the Completion Contractor and CITY. No Party to this Agreement shall look to SURETY for any opinion, comment, or position on any of the construction documents generated between the Completion Contractor and the CITY. SURETY has no opinion or comment for any content of any construction document between the Completion Contractor and the CITY or the CITY and the Completion Contractor with regard to the Corrective Work. 6. Completion Contractor shall enter into a contract for completion of the Project with the SURETY, and no contractual relationship, pursuant to this Agreement, shall exist between CITY and Completion Contractor. Completion Contractor shall provide all insurance and other documents required under the Contract, but shall not be required to provide payment and/or performance bonds, unless requested to do so by SURETY. Routine day-to-day operations and decisions as to the manner of performance of the Corrective Work shall be made by the Completion Contractor, subject to the terms and conditions of the Contract, provided, however, that the Completion Contractor has no authority to: (i) agree to any changes in the Contract or Corrective Work; (ii) agree to any Change Orders; (iii) agree to any backcharges or deductions of any nature; (iv) agree to any schedule changes; (v) agree to any adjustments in the Contract amount, Contract Balances, or Corrective Work; or (vi) agree to perform Warranty work of the Former Contractor or Corrective Work as a result of defect(s) in the work performed by the Former Contractor other than the Corrective Work described in Recital F. Any issues regarding the above items shall be resolved by the Parties under the terms of the Contract. The Corrective Work products/materials shall be approved by CITY in advance of use and will be proposed as a product submittal to CITY consistent with the Contract. The Corrective Work shall be scheduled in advance with CITY consistent with the Contract. The Corrective Work is subject to inspection and acceptance by CITY, as provided for in the Contract. A copy of all written communications by CITY directed to Completion Contractor shall be forwarded to SURETY on a current basis by email to SURETY and its construction consultant Benchmark Consulting Services, LLC ("Benchmark"). SURETY represents that Mike Tomeo with Benchmark has authority to act on behalf of SURETY under this Agreement. All communications concerning matters of Contract administration (i.e., contractual or other notices required by law, payments, Change Orders, extensions of time, delays, claims, among other matters) shall be communicated to Completion Contractor only in writing ( email is acceptable), with a copy forwarded to SURETY and Benchmark on a current basis via email. 7. In the event a dispute arises between CITY and Completion Contractor, CITY shall give SURETY written notice thereof within three (3) calendar days of such dispute, Saturdays, Sundays and legal holidays excluded. In the event the three (3) calendar days written notice period falls within any scheduled CITY recess or break, such notice period shall commence on the first date after the CITY returns from any scheduled recess or break. 8. SURETY reserves the right to terminate the Completion Contractor at any time, but within three (3) calendar days written notice to CITY, and promptly employ any other completion contractor acceptable to SURETY and approved by CITY. In the event the three (3) calendar days written notice period falls within any scheduled CITY recess or break, such notice period shall commence on the first date after the CITY returns from any scheduled recess or break. 9. Except as provided in this Agreement, it is expressly understood that neither Party hereto waives any rights or defenses it or they may have in favor of or against one another or anyone else. Nothing in this Agreement shall prejudice the rights of either Party to seek a judicial or other appropriate determination of its rights or defenses. 10. Unless and except to the extent expressly provided for to the contrary in this Agreement, this Agreement shall not be deemed or construed to be an admission or concession of liability of any kind or nature by either Party or waiver of any rights or claims of either Party in the Contract, and by entering into this Agreement the Parties recognize that any and all rights, defenses or claims which either Party may believe to have in relation to the Contract are in no way impaired or reduced by this Agreement and are fully reserved. 11. SURETY, who will have no employees on the Project, (except for occasional visits) shall have no obligation to furnish any insurance under the Contract. Benchmark shall be entitled to visit the Project and take any other action to the extent necessary to fulfill the requirements set forth in this Agreement. The Completion Contractor shall provide insurance coverage equivalent to that required under the Contract. Completion Contractor shall not commence work on the Project until it provides proof of insurance to CITY and any other forms or documents required under the Contract. 12. It is understood and agreed that SURETY, by entering this Agreement, is not acting as a contractor, but instead in its capacity as a performance bond surety. 13. Except as provided for herein, this Agreement is made without prejudice to either Party's rights to prosecute any claim or claims that arise from the Contract or this Agreement. Both Parties reserve the right to prosecute any of said claims for payment of all sums due or to become due or performance under the Contract or this Agreement. It is expressly understood by this Agreement that SURETY does not waive any rights it may have to funds payable under the Contract. Nothing in this Agreement shall prejudice the rights of SURETY to seek a judicial or other appropriate determination of its right to said funds. 14. Save and except for as provided by law and the terms of the Contract, CITY agrees that it will not acknowledge or honor any claim or charges against the Contract Balances by any alleged assignees, successors, creditors or transferee of Former Contractor, or any other party making claim to any of such proceeds or balances, without the consent of SURETY, except by order of a court of competent jurisdiction after due notice to SURETY. Subject to the limitations in Paragraph 18 of this Agreement, SURETY agrees to fully indemnify and defend the CITY from any and all claims, including stop notice claims, arising from the CITY taking the action set forth in this Paragraph or otherwise releasing payments to the SURETY or Completion Contractor in accordance with this Agreement and SURETY shall prov.ide and pay for legal counsel for the CITY as necessary. CITY agrees to approve an appropriate conflict waiver to allow counsel of SURETY'S choice to defend the CITY. However, under no circumstances shall tender counsel allow any consent judgment to be entered against the CITY without prior written approval of the CITY. 15. CITY agrees that SURETY's liability on its Bond and this Agreement shall not exceed SURETY's bond penalty of$103,522.50. CITY further agrees that all payments made by SURETY to any person or entity on account of the Corrective Work or Warranty work required by the Contract shall be deemed to be payment under SURETY's Bond and shall reduce 16. the penal sum of that Bond in an equal amount. THE PARTIES HERETO FURTHER AGREE THAT IN THE EVENT SURETY PAYS THE BOND PENALTY AMOUNT OF $103,522.50 LESS PAYMENTS MADE BY THE CITY AND RECEIVED BY THE SURETY FOR WORK PERFORMED ON THE PROJECT PURSUANT TO THIS AGREEMENT, THEN SURETY SHALL HA VE NO FURTHER OBLIGATIONS WHATSOEVER UNDER ITS BOND OR THIS AGREEMENT AND SUCH PAYMENT SHALL BE A FULL RELEASE OF ANY AND ALL OBLIGATIONS SURETY MAY HA VE UNDER ITS BOND OR THIS AGREEMENT [Mid-State Surety v. East Bethlehem Township, 2005 US. Dist. Lexis 15447] 17. In consideration of the work completed by or on behalf of SURETY under the Contract for the Project and for payments by SURETY under its Bond or bonds as set forth in this Paragraph, CITY hereby expressly subrogates SURETY to the extent and amount of payments by SURETY under its Performance Bond (net payments) and its Payment Bond payments actually made and only to the extent that any subcontractor, supplier or material provider of Former Contractor caused an increase in cost to complete the work then, to this extent only, the CITY assigns, conveys, sets over, and transfers to SURETY, any and all claims, causes of action, interests or demands, which CITY has, had, or may ever be entitled to assert against Former Contractor subject to the foregoing limitation and in connection with the Contract or Project, and expressly agrees that SURETY may pursue such subrogated or assigned rights, claims, interests, causes of action, demands and/or claims in any manner SURETY deems appropriate, including but not limited to matters pending in any bankruptcy proceeding, to the extent that SURETY in its sole discretion deems advisable. In the event SURETY elects to not pursue the rights assigned in this Paragraph, then the CITY shall have the right of first refusal to exercise such rights. The CITY shall give SURETY written notice of its election to exercise such rights and SURETY shall have five (5) business days to respond. A failure of response by SURETY shall be treated as approval of the CITY to so proceed. 18. The Parties herein agree to cooperate fully with each other to the end that the Contract may be completed efficiently, quickly and by the adjusted completion date set forth herein subject to any adjustments in accordance with the Contract. Time is of the essence as to each provision of this Agreement. 19. The Parties and their signatories hereto warrant that each has the power and authority to execute this Agreement. The Parties agree that if SURETY certifies any claim arising out of or relating to the Contract, the Project, or this Agreement, such certification will be deemed properly certified if made by an officer of SURETY. The Parties hereto have voluntarily executed this Agreement based on their independent investigation. 20. Save and except for those obligations which survive the completion of the Contract, if any such obligations exist, CITY and SURETY agree that completion of the "Corrective Work", shall satisfy and discharge SURETY's obligations under its Performance Bond and under this Agreement. 21. The provisions of this Agreement shall be applied and interpreted in a manner consistent with each other so as to carry out the purposes and intent of the Parties and the Contract, but, if for any reason any provision of this Agreement is unenforceable or invalid, such provision shall be deemed severed from this Agreement and the remaining provisions shall be carried out with the same force and effect as if the severed portion had not been a part of this Agreement. 22. This Agreement constitutes the entire agreement between the Parties and except as herein modified, all terms and conditions of the Contract, Performance Bond and Payment Bond shall remain unchanged and in full force and affect. 23. This Agreement shall extend to and be binding upon the Parties hereto and their respective successors and assigns. No rights shall accrue hereunder to or for the use of any other person, firm, corporation, or governmental entity other than the Parties hereto and their respective successors, assigns and reinsurers. 24. This Agreement is made and to be performed in San Diego County, California, and shall be governed by the laws of the State of California. 25. This Agreement may be executed in several counterparts, each of which shall be deemed an original as against any Party who has signed it and all of which taken together shall constitute a single instrument. The Parties agree that original signatures on this Agreement may be transmitted by electronic email in pdf format and that such signatures shall be treated as original signatures for all purposes. 26. This Agreement has been fully negotiated by the Parties and their counsel and shall not be construed in favor of or against either Party, regardless of who may have drafted it or any of its terms. 27. In the event of litigation to enforce the te1ms of this Agreement, the prevailing party shall be entitled to its costs, including reasonable attorney's fees. WITNESS WHEREOF, the Parties hereto have hereunder set their hand as of the Date: ZJ.e NJN {q ~ ~~,tK, G1v ~ Name/Title APPROVED AS TO FORM: Celia Brewer, City Attorney By: Q . (b/ Deputy City Attorney; D LIBERTY MUTUAL INSURANCE COMPANY Jason Stonefeld, Senior Surety Claims Counsel Nov. 25,2019 To: From: Via: Memorandum Scott Chadwick, City Manager Michael O'Brien, Public Works Superintendent Elaine Lu key, Chief Operations Officer Ccicyof Carlsbad Re: John Maashoff, Public Works Manager i Paz Gomez, Deputy City Manager, Public Work Surety Takeover of Contract PWS18-89GS, Senio enter Floor Renovation Staff recommends the city enter into a Takeover Agreement with the Ohio Casualty Insurance Company, owned by Liberty Mutual Insurance Company (Surety), in response to the cancelation of the Senior Center Floor Renovation Contract, PWS18-89GS. The Surety is obligated to correct the failed work performed by the contractor. The amount of the Takeover Agreement matches the original bond issued against the contract, $103,522.50. Staff recommendation is based on the following summary: Summary • On June 6, 2018, Coastal Flooring Surfaces, Inc. (Contractor) was awarded a contract to replace flooring in various portions of the Senior Center. • The Contractor failed to install the flooring in conformance with the plans and specifications, which created a nuisance and impacted routine use of the rooms. • Staff, with authority granted by the City Manager, canceled Contract PWS18-89GS on June 13, 2019, and confirmed via letter to the Surety of its bond obligation to complete the Contract. • Negotiations with the Surety, Public Works staff and the Deputy City Attorney took place and all parties agreed to the terms of the Takeover Agreement. Next Steps Upon signature execution of the Takeover Agreement by the City Manager (anticipated Nov. 26, 2019), Public Works staff will engage the Surety's contractor to coordinate completion ofthe contracted floor work at the Senior Center. Staff will participate in the coordination of the corrective work with the Senior Center staff and patrons of the Senior Center. Attachments 1. Takeover Agreement 2. Cancel letter to Surety for Contract PWS18-89GS 3. Bond information for Contract PWS18-89GS cc: Celia Brewer, City Attorney Gary Barberio, Deputy City Manager, Community Services Public Works Branch, General Services Department, Facilities Division 405 Oak Avenue I Carlsbad, CA 92008 I 760-434-2996 t Scott Chadwick, City Manager Nov.25,2019 Page 2 Kyle Lancaster, Parks & Recreation Director Amanda Guy, Deputy City Attorney Brian Bacardi, Public Works Superintendent June 13, 2019 {'cicyof Carlsbad CERTIFIED MAIL NO: 94071106 9994 5041 4321 74 Jason Stonefeld Senior Surety Claims Counsel Liberty Mutual Surety, dba The Ohio Casualty Insurance Company 1001 4th Ave. 37th Floor Seattle, WA 98154 SUBJECT: Contract No. 4738, Senior Center Floor Renovations -Bond No. 070206857 Dear Mr. Stonefeld: The purpose of this letter is to provide formal written notice that the City of Carlsbad has terminated Contract 4738, Senior Center Floor Renovations with Coastal Flooring Surfaces, Inc. (Contractor) in accordance with contract General Provisions, Section 6.4 (Default by Contractor). City staff, as more fully described in the attached correspondence between the City and Contractor, have in good faith attempted to resolve the deficiencies with the Contractor, but the Contractor has remained unresponsive and unwilling to complete the contract work as specified. In accordance with the Contract, The Ohio Casualty Insurance Company shall, within five (5) days assume control and perform the Work as successor to the Contractor. Please contact me immediately to discuss your obligation to fulfill the remaining Contract requirements. I can be reached at the following numbers (760) 421-9158 (c) or (760) 434-2996 (o). Sincerely, L-~fl~c~o~ Michael O'Brien Public Works Superintendent Attachments: Contract No. 4738 Bond Documentation, Correspondence between the City and Contractor, dated November 15, 2018, December 3, 2018, January 8, 2019, April 8, 2019, and June 3, 2019 cc: Elaine Lukey, Chief Operations Officer Paz Gomez, Deputy City Manager, Public Works Amanda Guy, Deputy City Attorney John Maashoff, Public Works Manager Craddock Stropes, Senior Management Analyst Brian Bacardi, Public Works Superintendent The Ohio Casualty Insurance Company -Bond No. 070206857 62 Maple Ave., Keene, NH 03431 Public Works General Services I 405 Oak Ave., Carlsbad, CA 92008 I 760-434-2980 t BIDDER'S BOND TO ACCOMPANY PROPOSAL SENIOR CENTER FLOOR RENOVATIONS ([-)1 cop,/ CONTRACT NO. 4738 _. T KNOW ALL PERSONS BY THESE PRESENTS: That we, Coastal Flooring Surfaces, Inc. , as Principal, and The Ohio Casualty Insurance Company as Surety are held and firmly bound unto the City of Carlsbad, California, in an amount as follows: (must be at least ten percent (10%) of the bid amount) TenPercentoftheTota!AmountBid(l0%) for which payment, well and truly made, we bind ourselves, our heirs, executors and administrators, successors or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE FOREGOING OBLIGATION IS SUCH that if the proposal of the above- bounden Principal for: SENIOR CENTER FLOOR RENOVATIONS CONTRACT NO. 4738 in the City of Carlsbad, is accepted by the City Council, and if the Principal shall duly enter into and execute a Contract including required bonds and insurance policies within twenty (20) days from the date of award of Contract by the City Council of the City of Carlsbad, being duly notified of said award, then this obligation shall become null and void; otherwise, It shall be and remain in full force and effect, and the amount specified herein shall be forfeited to the said City. In the event Principal executed this bond as an individual, It Is agreed that the death of Principal shall not exonerate the Surety from its obligations under this bond. SIGNED AND SEALED, this ___ 12_th _______ day of ---"-'A=pr=il'------• 20 ...... 1 .... s __ Coastal Flooring Surfaces, Inc. (SEAL) The Ohio Casualty Insurance Company (SEAL) By: fo'~ (Sign ure) /risi1~ P~~, 8-(,ezroJcdi (Surety) '~ j)----S-- (Signature) David K. Mahler, Attorney-In-Fact (Print Name/Title) (Print Name/Title) (SEAL AND NOTARIAL ACKNOWLEDGEMENT OF SURETY -ATTACH A1TORNEY-IN-!=ACT CERTIFICATE) . APPROVED AS TO FORM: CELIA A. BREWER City Attorney By:_rfk;_~------ Deputy City Attorney l' • .,. Revised 7/19/17 Contract No. 4738 Page 17 of 127 Pages CALIFORNIA ALL-PURPOSE ACKNOWLEDGMINT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the Individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Mateo 0n z9pr, I~( c9u I l before me, ____ S...;;o_,_y_T~ry<--W_o.;..n..><g.:...., N_o_t_a_.ry.._P_u_b_ll_c ______ _, Date Here Insert Name and Title of the Officer personally appeared __ D_a_vi_d_K_._M_a_h_le_r ______________________ _ Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacltyQes), and that by his/her/their slgnature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Place Notary Sea/ Above I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. s;gnatu~ ~~ gMtu~Notary Public ---------------OPTIONAL ______________ _ Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ___________ _ Capaclty(ies) Claimed by Slgner(s) Signer's Name: ___________ _ Signer's Name: ____________ _ D Corporate Officer -Tltle(s): ______ _ □ Corporate Officer -Title(s): ______ _ D Partner -D Limited D General □ Partner -D Limited D General D Individual D Attorney in Fact □ Individual D Attorney In Fact D Trustee □ Guardian or Conservator D Trustee D Guardian or Conservator D Other: _____________ _ □ Other: _____________ _ Signer Is Representing: ________ _ Signer Is Representing: ________ _ 02014 National Notary Association· www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 ~ s THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except In the manner and to the extent herein 1taled. Certificate No. 8009961 Liberty Mutual Insurance Company The Ohio Casualty Insurance Company West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casually Insurance Company Is a corporation duly organized under the laws of the Slate of New Hampshire, lhal liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company is a corporation duly organized under the laws of the Stale of Indiana (herein collectively called lhe 'Companies"), pursuant lo and by authority herein set forth. does hereby name, constitute and appoint, David F. Drum!· David K. Mahler all of the city of Foster City . slate of CA each individually ii lhere be more than one named, ~s true and lawful attomey-in-facl to make, execute, seal, acknowledge and de~ver, for and on ils behalf as surety and as ils act and deed, any and all undertakings, bonds. recognizances and other surely obligations, in pursuance of these presents and shaU be as binding upon the Companies as If lhey have been duly signed by the president and attested by the secretary of the Companies In their own proper persons. IN WITNESS WHEREOF, lhis Power of Attorney has been subscribed by an authorized officer or official of the Companies and lhe corporate seals of the Companies have been affixed thereto this~ day of February . ~- The Ohio Casually Insurance Company Liberty Mutual Insurance Company West ,\merican Insurance Company By: _,;lb;==: ....,_7t.:.......,/4.-,.~~---- C STATE OF PENNSYLVANIA :t! ; COUNTY OF MONTGOMERY ss 0avid M. Carey.1ss1stan1 Secretary ! St On lhls 14th day of Februa,y , .1Q!!.. before me personally aPPe818d David M. Carey, who acknowledged himsell to be lhe Assistant Secretary of liberty Mutual Insurance u a, Company, The Ohio Casualy Company, and West American Insurance Company. 1111d that he. as 1uch, being auth01ized so to do. execute lhe foregoing instrument for Iha purposes 'o ..2 therein contained by signing on behalf of the corporations by himaeff as a duly authorized officer . ... nl a, > iii -:s -T" ~-, .2 l Cl)s oS C n1 -... a, .. gig: fli o.5: E • ... s 0 111 _._ "C >-= u nl C > a, 01::: zB IN WITNESS WHEREOF, I have hereunlo subscribed my name and affixed my notarial seal al King of Prus&ia. Pennsylvania. on the day and year first above written. COMMONWEALTH OF PENNSYLVANIA r N<llafial Seat 1 TorRH Pa..letlft, NOlory Pubic ' Upper Monon Twp .. Monlgomcry County My Comn1i11;on Expires March 28. 2021 By:~~ Teresa Pastella, Notary Public This Power of Attorney is made and executed pursuant to and· by authority of the following By-laws and Authorizations of The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in lull force and effect reading as follows: ARTICLE IV -OFFICERS -Section 12. Power of AHorney. Any officer or other olfrcial of the Corpora lion authorized for thal purpose in writing by the Chairman or the President. and subject lo such limitation as the Chairman or the President may prescnbe, shall appoinl such attorneys-in-fact. as may be necessary lo act in behalf of Iha Corporation lo make, execute, seal, acknowledge and deliver as surety any and au undertakings, bonds. recognizances and other surety obligations. Such attorneys-In-fact. subject lo the limitations set forlll in their respective powers of attorney, shan have full power to bind the Corporation by lhelr signature and execution of any such Instruments and 10 attach thereto the seal of !he Corporation. When so executed, such instruments shall be as binding as If signed by the President and allested to by lhe Secretary. Any power or authority granted to any representative or attorney-in-fact under the provisions of this article may be revoked at any time by the Board, lhe Chairman, lhe President or by the officer or officers granting such power or authority. ARTICLE XIII -Execution of Contracts -SECTION 5. Surety Bonds and Undertakings. Any officer of lhe Company authorized for lhal purpose in writing by lhe chairman or the president, and subject to such limitations as lhe chairman or the president may prescribe. shall appoint such attorneys-In-fact. as may be necessary to act in behaff of lhe Company lo make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligalions. Such allomeys-in-facl subject lo lhe limitations set forlh in their respective powers of attorney, shall have full power to bind the Company by lheir signature and execution of any such instruments and to atlach lherelo the seal of lhe Company. When so executed such lnsuuments shall be as binding H If signed by the president and attested by lhe secretary. Certificate of Designation -The President of the Company, acting pursuant to the Bylaws of the Company, authorizes David M. Carey, Assistant Secretary to appoint such attomeys-in- fact as may be necessary lo acl on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undetlakings, bonds, recognizances and other surety obligations. Authorization -By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the Company, wherever appearing upon a certified copy of any power of attorney Issued by the Company in connection with surety bonds, shall be valid and binding upon lhe Company with lhe same lorce and eflecl as lhough manually alfixed. I. Renee C. Llewellyn, lhe undersigned, Assistant Secretary, The Ohio Casualty Insurance Company. Liberty Mutual Insurance Company, and West American Insurance Company do hereby certify that the original power of attorney or which the foregoing is a ruu, true and correct copy of the Power of Attorney executed by said Companies, Is In run force and elfect and has not been revoked. J '11 Ii · 1 r/ IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed lhe seals of said Companies this .f.a!__ day ol_-t-_...,F-''---7....-it-------, 20.JlJ__. By:___,<........JL---f---::~:-------- · slant Secretary 9701100 LMS_12873_022017 LABOR AND MATERIALS BOND Bond No. 070206657 Premium: Included WHEREAS, the City of Carlsbad, State of California, on April 25, 2016 has administratively awarded to Coastal Flooring Surfaces, Inc., a California corporation (hereinafter designated as the "Principal"), a Contract for: SENIOR CENTER FLOOR RENOVATIONS CONTRACT NO. 4738 In the City of Carlsbad, in strict conformity with the drawings and specifications, and other Contract Documents now on file in the Office of the City Clerk of the City of Carlsbad and all of which are incorporated herein by this reference. WHEREAS, Principal has executed or is about to execute said Contract and the terms thereof require the furnishing of a bond, providing that if Principal or any of their subcontractors shall fail to pay for any materials, provisions, provender or other supplies or teams used in, upon or about the performance of the work agreed to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same to the extent hereinafter set forth. NOW, THEREFORE, WE, COASTAL FLOORING SURFACES, INC., as Principal, (hereinafter designated as the "Contractor"), and The Ohio Casualty Insurance Company as Surety, are held firmly bound unto the City of Carlsbad in the sum of ONE HUNDRED THREE THOUSAND FIVE HUNDRED lWENTY lWO DOLLARS FIFTY CENTS ($103,522.60), said sum being an amount equal to: One hundred percent (100%) of the total amount payable under the terms of the contract by the City of Carlsbad, and for which payment well and truly to be made we bind ourselves, our heirs, executors and administrators, successors, or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if the Contractor or his/her subcontractors fail to pay for any materials, provisions, provender, supplies, or teams used in, upon, for. or about the performance of the work contracted to be done, or for any other work or labor thereon of any kind, consistent with California Civil Code section 9100, or for amounts due under the Unemployment Insurance Code with respect to the work or labor performed under this Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to section 13020 of the Unemployment Insurance Code with respect to the work and labor, that the Surety will pay for the same, and, also, in case suit is brought upon the bond, reasonable attorney's fees, to be fixed by the court consistent with California Civil Code section 9554. This bond shall inure to the benefit of any of the persons named in California Civil Code section 9100, so as to give a right of action to those persons or their assigns in any suit brought upon the bond. Surety 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 hereunder or the specifications accompanying the same shall affect its obligations on this bond, and it does hereby waive notice of any change, extension of time, alterations or addition to the terms of the contract or to the work or to the specifications. ft Q Revised 7 /19/17 Contract No. ~ Page 32 of 127 Pages Bond No. 070206857 In the event that Contractor is an individual, it is agreed that the death of any such Contractor shall not exonerate the Surety from its obligations under this bond. Executed by CONTRACTOR this r day of t"'\4 '( . 20 I~ utfa es /AJC- (print name here) (JO, Prcsid-er-d 1/yy, Dvv- (tiue and organizati&n of signatory) By: _ __,_Q__,;l,<'-:,,~.-◄ ,--~~~-~-- (sign here) DC),;~ D-c/Vt>-- (print name here) Ceo --~ e.u d-Af ~ (title and organization of sigtory) Executed by SURETY this __ 8t=h _____ day of May , 20 18 SURETY: The Ohio Casualty Insurance Company (name of Surety) 62 Maple Ave. Keene, NH 03431 (address of Surety) (206) 473-6200 (telephone number of Surety) By~ --.., C\·=>-. m .. -........_ (signature of Attomey-in-Fact) David K. Mahler (printed name of Attomey-m-Fact) (attach corporate resolution showing current power of attorney) (Proper notarial acknowledgment of execution by CONTRACTOR and SURETY must be attached.) (President or vice-president and secretary or assistant secretary must sign for corporations. If only one officer signs, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering that officer to bind the corporation.) APPROVED AS TO FORM: CELIA A. BREWER City Attorney By·~ ·--De__,~,cu::::11tyc-C..::it""'y :1.:A:1.tt"""'or~n~e"'y ~~..,____ ________ _ 0 Revised 7/19/17 Contract No. ~ Page 33 of 127 Pages ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California Courity of ____ L_os_A_ng_e_l_es ____ ~ on -=5_-_/_'7_-_.2_fJ_t_8-___ before me, __ s_e_ts_u_k_o_H_ir_a_k_o_N_ot_a_rv_pu_b_l_ic ____ _ (insert name and title of the officer) personally appeared N l)E-fJ 00'2.IAN DEN , who proved to me on the basis of satisfactory evidence to be the person~whose name(s( are subscribed to the within instrument and acknowle~d to me tha~ he/they executed the same in ~her/their authorized capacity~ and that by\li51her/their signature~n the instrument the perso~ or the entity upon behalf of which the personW,Scted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. WITNESS my hand and official seal. (Seal) !a SETSUKO HIRAKO i' ~ 00MM. ftn1157 NDT'ARY PUIUC • CHJl'ONM LOIANGELD 00UH1Y t !r COmm. !9!!' Nov. 11, IOlt -; BondNo.070206857 Premium: $3,106.00 FAITHFUL PERFORMANCE/WARRANTY BOND WHEREAS, the City of Carlsbad, State of California, on April 25, 2018 has administratively awarded to Coastal Flooring Surfaces, Inc., a California corporation (hereinafter designated as the "Principal"), a Contract for: SENIOR CENTER FLOOR RENOVATIONS CONTRACT NO. 4738 in the City of Carlsbad, in strict conformity with the contract, the drawings and specifications, and other Contract Documents now on file in the Office of the City Clerk of the City of Carlsbad, all of which are incorporated herein by this rf;ference. WHEREAS, Principal has executed or Is about to execute said Contract and the terms thereof require the furnishing of a bond for the faithful performance and warranty of said Contract; NOW, THEREFORE, WE, Coastal Flooring Surfaces, Inc., as Principal, (hereinafter designated as the "Contractor"), and The Ohio Casually Insurance Company , as Surety, are held and firmly bound unto the City of Carlsbad, in the sum of ONE HUNDRED THREE THOUSAND FIVE HUNDRED TWENTY TWO DOLLARS FIFTY CENTS ($103,522.50). said sum being equal to one hundred percent (100%) of the estimated amount of the Contract, to be paid to City or its certain attorney, its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors or assigns. jointly and severally, firmly by these· presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if the above bounden Contractor, their 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 any alteration thereof made as therein provided on their part, to be kept and performed at the time and In the manner therein specified. and In all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Carlsbad, its officers, employees and agents, as therein stipulated, then this obligation shall become null and void; otherwise it shall remain In full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety 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 there under or the specifications accompanying the same shall affect its obligations on this bond. and it does hereby waive notice of any change, extension of time, alterations or addition to the terms of the contract or to the work or to the specifications. ft ~, Revised 7/19/17 Contract No. 4738 Page 34 of 127 Pages Bond No. 070206857 In the event that Contractor is an individual, it is agreed that the death of any such Contractor shall not exonerate the Surety from its obligations under this bond. Executed by CONTRACTOR this _~f~J-"'-__ _ day of __ tvl~A_c/~----· 20 I 8" By:_·~---lZ----'---~- (sign he'4) /Li2tt;f Ip..,..., 1)€/VA (print name here) CFO ✓ Pr,~;d:<,:Jt.1~ k (Title and Organizati&n of Signatory) By: ___ Q...,.c~~""'""'e:~rl~Aw-• --- (sign here) Dor 1/4,1v 1)~tJ/i (print name here) Ce-0 -S lU t!-l--"<~ (Title and Organization of sig atory) Executed by SURETY this 8th day of _M_a~y __________ . 20_18 __ SURETY: The Ohio Casualty Insurance Company 62 Maple Ave. Keene NH 03431 (address of Surety) (206) 473-6200 (telephone number of Surety) By: ~ -:::::2::::::)c::::---q (signature of Attorney-in-Feet) David K. Mahler (printed name of Attorney-In-Fact) (Attach corporate resolution showing current power of attorney.) (Proper notarial acknowledgment of execution by CONTRACTOR and SURETY must be attached.) (President or vice-president and secretary or assistant secretary: must sign for corporations. If only one officer signs, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering that officer to bind the corporation.) APPROVED AS TO FORM: CELIA A. BREWER City Attorney By: __ ~---==..;;;,..~~----- Oeputy City Attorney l\ ..,. Revised 7/19/17 Contract No. 4738 Page 35 of 127 Pages ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California Los Angeles County of ___________ _, On -=5_-_/_1/_-_ _.2._0_{_3' __ before me, __ s_e_ts_u_k_o_H_lr_a_ko_N_o_t_a_ry_pu_b_l_lc ____ _ (insert name and title of the officer) I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. _(J ~ A jJ . . Signature_~_--=::;;._.. __ ...__...._ ___ ;._.._ (Seal) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the Identity of the individual who signed the document to which this certificate Is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of __ S_a_n_M_a_t_e_o ______ _ On /Y/4., .1 • 3', ctO 16 I oate before me, ____ S_o..._y_T_ry~W_o_n~g~, _N_ot_a~ry._P_u_b_l_ic _______ ..., Here Insert Name and Title of the Officer personally appeared _D_av_i_d_K_._M_a_h_te_r ______________________ _ Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same In his/her/their authorized capacity(ies), and that by his/her/their slgnature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ··••=••·····~ @ SOY TRY WONG J MIiiy Pul)lic -Calilo<nia : i San IAalP.0 Counly ~ CommiSSiOll # 2225478 I • • ,.,, Cor-.m e,:;:es !:c.!;. :210 i Place Notary Seal Above I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. re of Notary Public ---------------oPTIONAL--------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: ____________ Document Date: _______ _ Number of Pages: ___ Slgner(s) Other Than Named Above: ___________ _ Capacity(les) Claimed by Signer(s) Signer's Name: ___________ _ Signer's Name: ____________ _ D Corporate Officer -Title(s): ______ _ D Corporate Officer -Title(s): ______ _ D Partner -D Limited D General D Partner -D Limited D General D Individual D Attorney in Fact D Individual □ Attorney In Fact D Trustee D Guardian or Conservator D Trustee D Guardian or Conservator D Other: _____________ _ D Other: _____________ _ Signer Is Representing: ________ _ Signer Is Representing: ________ _ @2014 National Notary Association• www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 ui Ji THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. This Power of Attorney limits the acts of those named herein, and they have no authority lo bind the Company except In the manner and to the extent herein stated. certificate No. 8051337 Liberty Mutual Insurance Company The Ohio Casualty Insurance Company West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: Thal The Ohio Casually Insurance Company is a corporation duly organized under the laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duty organized under the laws of the State ol Massachusetts. and West American Insurance Company is a corporation duly organized under the laws of the Slate of Indiana (herein coffectively called the ·companies"), pursuant to and by authority herein set forth, does hereby name, constitute and appoint, David F. Druml· David K. Mahler all of the city of Foster City • state of CA each indiYiduaRy if there be more than one named, Its true and lawful attorney-in-fact to make, execute, seal, acknowledge and deliver, for and on ils behall as surety and as its act and deed, any and all undertakings. bonds, recognizances and other surety obligations, In pursuance of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and allesled by the secretary of the Companies in their own proper persons. IN WITNESS WHEREOF. this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Compallies have been affixed therelo this 30th day of March 2018 The Ohio Casually Insurance Company Liberty Mutual Insurance Company West .lynerican Insurance Company By: _;/l✓-7;'----. h~:r --- ss David M. Carey. Assistant Secrelary C STATE OF PENNSYLVANIA ..r [!! COUNTY OF MONTGOMERY :a§ f!! a, On this 30th day of March 2018 • before me personally appeared David M. Carey, who acknowledged himself lo be lhe Assistant Secretary or Liberty Mutual Insurance u Cl) Company, The Ohio Casually Company. and Weal American Insurance Company, and that he, as such, being authorized so to do, execute the foregoing instrument for the purposes o ..:! therein contained by signing on behalf of the corporations by hlmseff as a duly aulhorized officer. '-Ill Cl) > t:-CI) Ill -.:I c· Ill Q_ -~ ... Cl) 0 o.s C (!! ai"-0> II) Ill f!! t.s o.5 E ~ ... .s o E "C >, :: u Ill C > Cl) .... t:: 0 ::s f.) IN WITNESS WHEREOF. I have hereunto subscribed my name and affixed my notarial seal at King of Prussia, Pennsylvania, on the day and year first above written. ,;," P-'a,-COMMONWEALTH OF PENNSYLVANIA t/j'--i 'l-r,; ..,.0""~, ~<< Nolllrilll S,tAI f// ~' ti ..J-.1 / ~ J' ~ 'P' TQteuPn51olla, Notary Public By: L~---::----'fl4,U.,.Uµ---cc-------- 1Jjlpor Meri°" Twp .. Montgomory Cou,uy Teresa Pastella, Notary Public My Commlssic,n E~p,ms Mmch 28. 2021 MemlJor. Pconsytvaflkl Aswcilltion of Nolor101 This Power of Attorney is made and execuled pursuant to and by authority of the following By-laws and Authorizations of The Ohio Casually Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolull0ns are now in full force and effect reading as follows: ARTICLE IV -OFFICERS -Section 12. Power of Attorney. Any officer or other official of the Corporation authorized for thal purpose in writing by the Chairman or the President, and subject lo such limitation as lhe Chairman or the President may prescribe, shaH appoint such attorneys-in-fact. as may be necessary to act in behaH of the Corporation to make, lll(ecute. seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys-in-fact, subject to the fimitations set forth in their respective powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so executed. such inslruments shall be as binding as if signed by the President and attested to by the Secretary. Any power or authority granted to any representative or attomey-in-facl under the provisions of this article may be revoked at any lime by the Board. the Chainnan, lhe President or by the officer or officers granting such power or authority. ARTICLE XIII -Execution of Contracts -SECTION 5. Surely Bonds and Undertakings, Any officer of lhe Company aulhorized for that purpose in writing by the chairman or the president, and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys-In-fact. as may be necessary to act in behalf of the Company to make, execute. seal, acknowledge and deliver as surety any and an undertakings, bonds, recognizances and other surety obligations. Such attorneys-in-fact subjecl to the limilations set ~rth in their respective powers of altorney, shaft have full power to bind the Company by their signalure and execution of any such instruments and to altach thereto lhe seal of the Company. When so executed such lnslrumenls shall be as binding as If signed by the prasldenl and allested by the aecretary. Certificate of Designation -The President of the Company, acting pursuant lo the Bylaws of the Company. authorizes David M. Carey, Assistant Secretary to appoint such attomeys-ln- fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obigations. · Authorization -By unanimous consent of lhe Company's Board of Directors, the Company consents that lacslmile or mechanically reproduced slgnalure of any assistant secretary of the Company, wherever appearing upon a certified copy of any power of attqrney issued by the Company in connection with surety bonds, shall be valid and binding upon lhe Company with the same force and effect as though manually affixed. I, Renee C. Llewellyn. the undersigned, Assistant Secretary, The Ohio Casualty Insurance Company. Liberty Mutual Insurance Company. and Wesl American Insurance Company do hereby certify Iha! the original power of attorney or which the foregoing Is a full, true and correct copy or the Power of Attorney execuled by said Companies, Is In full force and effect and has not been revoked. 1h IN TESTIMONY WHEREOF. I have hereunto set my hand and affixed the seals or said Companies this~ day of __ -L.:...IJ.J"":::.-.,_-------. 20_fL_. LMS_12873_022017 ~su,.., /!-~1,Sr+··~I?~-:~ ;~ 53 of 100