Resolution 5057 - Laserfiche WebLink

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. . . WHEREAS, Surety Bond claims in the amount of $409,000 were filed against Merchants under the Veit and Ebert contracts on October 24 and November 19, 1996, respectively, to recover existing and future costs on Golf Course and Clubhouse defects; and WHEREAS, under the tenns of the Surety Bonds, the City must commence legal action under the bonds within two years of the date offinal payment under the contract in order to preserve the City's legal rights and remedies; and WHEREAS, the final payments under the Veit contract was made by the City on December 13, 1994, establishing the date of December 13, 1996 as the final date by which a legal action could be commenced under the Surety Bond covering the Veit contract; and WHEREAS, the City Attorney advised the City Council at its work session on December 2, 1996 that it would be in the public interest for the City Council to authorize the City Attorney to commence legal action against certain parties under the surety bonds, as well as other necessary parties such as architectural and contractor firms, if necessary, prior to December 13, J 996 to preserve all of the City's rights and remedies under the Surety Bonds and under the state's statute of limitations for certain types of breach of contract actions. NOW, THEREFORE, BE IT RESOLVED THAT the City Council hereby authorizes the City Attorney to commence all necessary legal actions against the Merchants Bonding Company (Mutual) under the Surety Bonds covering the Veit and Ebert construction contracts, as well as any other necessary parties, including general contractors, subcontractors, architectural firms and manufacturers of certain defective equipment regarding construction and design defects at the Golf Course. Adopted this 9th day of December, 1996 ATTEST: ( SEAL) -Chll~:'~inistrator