01 - 2006 Full Resolutions Book - Laserfiche WebLink

Home Browse Search

CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA RESOLUTION NO. 2006-0.3 R WHEREAS, the City of Lake Elmo and Chris Riley Utilities, Inc. (the "Contractor"), entered into an agreement on or about r i 1 5 , 2005, regarding the construction of certain items related to the City's Wa er System Interconnect Project, Phase I; and WHEREAS, the City and Chris Riley Utilities, Inc., entered into an agreement on or about 5 eF_+_ ZO , 2005, regarding the construction of certain items related to the City's Water System Interconnect Project, Phase III; both agreements being referred to herein as the "Contracts"; and WHEREAS, in November 2005, the City agreed to extend the completion date for Phase III; and WHEREAS, the City Staff sent the Contractor a Notice of Termination of the Contracts on March 15, 2006, a copy of which was also sent to Travelers Casualty and Surety Company (the "Surety"), which was listed as the surety under the performance bond given with respect to both Phase I and Phase III; and WHEREAS, the City Staff has contacted the Surety and has entered into negotiations with the Surety for a Takeover Agreement pursuant to which the Surety would essentially become responsible for the completion of the work on the Project. A copy of the current draft of the Takeover Agreement is attached hereto as Exhibit A; and WHEREAS, the City Council has received a report from the City Staff concerning the matters stated above. NOW, THEREFORE, BE IT RESOLVED, 1. The City Council hereby authorizes the Mayor and City Staff to execute the Takeover Agreement in substantially the same form in which it has been presented to the City Council subject, however, to non -substantive changes which have been approved by the City Staff and City Attorney's office. ADOPTED by the Lake Elmo City Council this 41h day of April, 20 . an Johnson, Mayor CADocuments and Settin-s\slumby\Local Settings\Temporary Internet Fi1es\0LK9\resv2 - 2006.doc