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Thomas M. Sweeney <br />George F. Borer <br />Patrick J. Sweeney <br />Robin D. Tomney <br />Michael J. Budka <br />Sweeney, Borer & Sweeney <br />Professional Association <br />Attorneys at Law <br />Suite 1200 <br />386 North Wabasha Street <br />St. Paul, Minnesota 55102 <br />April 7, 1999 <br />VIA FACSIMILE $ND U S MAIL <br />Mr. Joel R. Hanson <br />City Administrator <br />515 Little Canada Road <br />Little Canada, MN 55117 <br />Re: 1999 Street Reconstruction and <br />Utility Improvements <br />Our File No. 9217 <br />Dear Joel: <br />Telephone <br />(651) 222.2541 <br />Facsimile <br />(651) 223-5289 <br />As we discussed on March 24, 1999, bids were received on <br />March 18, 1999, relative to the above described improvements. <br />Terry Maurer indicated that the City has 45 days to award, <br />pursuant to the bid specifications. <br />Minn. Stat. Sec. 429.041, Subd. 2., provides, in part, as <br />follows: ".... The council shall award the contract to the <br />lowest responsible bidder or it may reject all bids. ..." <br />It appears that North Valley, Inc. submitted the lowest of <br />the three bids. North Valley, Inc. is somehow related to Valley <br />Paving, Inc., which was the contractor on the 1995 street and <br />water main improvement projects relating to Jackson Street, Old <br />County Road C, Keller Parkway, Gilanderi Drive, Viking Drive, and <br />Lake Street. As the Council will recall, Valley Paving did not <br />finish the 1995 improvements in a timely fashion. The City <br />withheld $96,800.00 as liquidated damages. Valley Paving sued <br />the City for return of the withheld funds and $145,000.00 for <br />"impact damages ". Subsequent to commencement of the action, <br />Valley Paving made a settlement demand of $169,300.00 plus <br />interest. <br />RECEIVED APR 3 1999 <br />Page 2 <br />