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CITY OF LAKE ELMO <br />WASHINGTON COUNTY, MINNESOTA <br />RESOLUTION NO. 2006-030 <br />WHEREAS, the City of Lake Elmo and Chris Riley Utilities, Inc. (the <br />"Contractor"), entered into an agreement on or about , 2005, regarding the <br />construction of certain items related to the City's Water System Interconnect Project, <br />Phase I; and <br />WHEREAS, the City and Chris Riley Utilities, Inc., entered into an agreement on <br />or about , 2005, regarding the construction of certain items related to <br />the City's Water System Interconnect Project, Phase III; both agreements being referred <br />to herein as the "Contracts"; and <br />WHEREAS, in November 2005, the City agreed to extend the completion date for <br />Phase III; and <br />WHEREAS, the City Staff sent the Contractor a Notice of Termination of the <br />Contracts on March 15, 2006, a copy of which was also sent to Travelers Casualty and <br />Surety Company (the "Surety"), which was listed as the surety under the performance <br />bond given with respect to both Phase I and Phase III; and <br />WHEREAS, the City Staff has had some contact with the Surety which has <br />acknowledged the receipt of the claim on the performance bonds; and <br />WHEREAS, the City Council has received a report from the City Staff <br />concerning the matters stated above. <br />NOW, THEREFORE, BE IT RESOLVED, <br />1. The City Council hereby confirms and ratifies the action taken by the City Staff as <br />set forth in the City Engineer's letters dated March 15, 2006, which letters <br />initiated the termination of the Contracts as referred to above. <br />2. The City Council hereby authorizes and directs the City Staff to initiate or <br />continue action with respect to the City's claim on the performance bonds. <br />3. If the Surety determines that it will not complete the performance on the <br />Contracts, the City Council hereby authorizes and directs the City Staff, if <br />necessary, to take whatever steps are required to advertise for bids pursuant to <br />Minn. Stat. §429, or otherwise, to undertake and finish the work necessary to <br />complete Phase I and Phase III of the City's Water System Interconnect Project. <br />CADocumants and Settings\mmfferty\Local Settingffemporary Internet Files\OLKD\resvl - 2006.doc <br />