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~I~~ING ~ ~ASSO(I~AT~S iauc liaaru Memo TO: Honorable Mayor and City Council Members FROM: Lee Elfering, City Engineer DATE: June 9, 2010 RE: 2010 Street and Utility Improvements Project The City opened bids for the 2010 Street and Utility Improvement project on March 17, 2010 with the low bid being submitted by Tower Asphalt, Inc. After tabulation of all the bids and meetings with the residents directly affected by the project, the City Council authorized award of the project in early April and Contract documents were sent to Tower Asphalt for execution. Prior to the Contracts being executed we received a call from Hardrives, Inc. indicating that they had purchased Tower Asphalt, Inc. and all of its rights and obligations and asked that the Contracts be executed under the Hardrives name. We verified the purchase and assumption of obligations with the Tower Asphalt, Inc representative and asked that written documentation be provided. This information was reviewed by the City Attorney and found to be satisfactory to honor the Contractor's request to execute the Contracts under the name of Hardrives, Inc. Typically the assumption of any rights of a Contract to a third party would require written approval of both the original parties, i.e. the City and the successful low bid Contractor. However, because there was no Contract executed by Tower Asphalt, Inc. prior to their purchase by Hardrives, Inc., there were no rights or obligations for the City to authorize assumption of and therefore the Contracts were executed under the Hardrives name. While no requirement exists for the execution of an assumption of the Contract rights and obligations, staff feels it would be beneficial for the City Council to authorize executing the attached agreement to document why the Contracts were executed with Hardrives Inc. instead of the low bid Contractor. If you have any questions concerning this information, please call me at (763) 780-0450. 10062 Flanders Court NE -Blaine, MN 55449 - Ph: (763) 780-0450 Fax (763) 780-0452 Memo-060910-CC (Assignment)