HomeMy WebLinkAboutResolution 2006-032CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION NO. 2006-032
WHEREAS, the City of Lake Elmo and Chris Riley Utilities, Inc. (the
"Contractor "), entered into an agreement on or about �I , 2005, regarding the
construction of certain items related to the City's Water System Interconnect Project,
Phase I; and
WHEREAS, the City and Chris Riley Utilities, Inc., entered into an agreement on
or about tie fff�, 7-® , 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 4th day of April, 2
can 3ohnson, Mayor Ile
CADocuments and Settinplslumby\Local SeninpUemporary Internet Fi1esl0LK9\resv2 - 2006.doc