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CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA RESOLUTION NO, 2006-030 WHEREAS, the City of Lake Elmo and Chris Riley Utilities, Inc. (the "Contractor"), entered into an agreement on or about W Rol 2005, regarding the 4-1 construction of certain items related to the City's Water System Interconnect Project, Phase 1; and WHERE-AS, the City and Chris Riley Utilities, Inc., entered into an agreement on or about 1W. 20 7 2005, regarding the construction of certain items related to the'{ City's W ter System Interconnect Project, Phase 111; both agreements being referred to erein as the "Contracts", and WHEREAS, in November 2005, the City agreed to extend the completion date for Phase 111; 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 111; and KC had some contact wit the Surety which has WHEREEAS the City Staff ha I W acknowledged the receipt of the claim on the performance bonds; and )WHEREAS, the City Council has received a report from the City Staff concerning the matters stated above. NOW, THEREFORE, BE IT RESOLVED, I The City Council hereby confirms and ratifies the action taken by the City Staff as set forth in the City Engineer's letters dated March 15, 2006, which letters initiated the termination of the Contracts as referred to above. 2. The City Council hereby authorizes and directs the City Staff to initiate or continue action with respect to the City's claim on the performance bonds. 3. If the Surety determines that it mill not complete the performance on the Contracts, the City Council hereby authorizes and directs the City Staff, if necessary, to take whatever steps are required to advertise for bids pursuant to Minn. Stat. §429, or otherwise, to undertake and finish the work necessary to complete Phase I and Phase III of the City's Water System Interconnect Project. CADocuments and Setfing,*nmftty\Loca1 SettingATernporary Internet Fi1es\01.KDVesv I - 2006.doe