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RESOLUTION NO.9800 <br />CITY OF MOUNDS VIEW <br />COUNTY OF RAMSEY <br />STATE OF MINNESOTA <br />RESOLUTION APPROVING SETTLEMENT AGREEMENT <br />AND GENERAL RELEASE WITH AE2S LLC <br />WHEREAS, effective March 26, 2019, Mounds View and AE2S INC. entered into an <br />Agreement Between Owner and Engineering for Professional Services (the "Engineer Contract") <br />for AE2S to provide engineering and related services for the 2019 Water Treatment Plant ("WTP") <br />Rehabilitation Project, which included WTP Facilities Nos.: 1, 2, and 3 and the water pressure <br />Booster Station Facility located in the City of Mounds View, Minnesota (collectively, the <br />"Property"); <br />WHEREAS, the 2019 Water Treatment Plant Rehabilitation Project was divided into two <br />phases to be separately put out for bid, with the first phase comprising, among other things, the <br />rehabilitation and construction of WTP Facilities 2 and 3 ("Project"); <br />WHEREAS, on or about December 31, 2019, following a Public Bid, Mounds View <br />awarded the Project's contract for construction to Shank Constructors, Inc. ("Shank") pursuant to <br />which Shank would serve as the Project's General Contractor (the "Construction Contract"); <br />WHEREAS, effective January 31, 2020, Mounds View and AE2S INC. entered into an <br />Amendment to Owner -Engineer Agreement for additional services to be performed by AE2S INC. <br />regarding the Project's Construction Phase, Post -Construction Phase, and Construction Phase <br />Instrumentation and Control Services (the "Amendment"); <br />WHEREAS, by letter dated November 25, 2020, from Mounds View to Shank, Mounds <br />View sought a recovery schedule for the ongoing delay of completion of the Project; <br />WHEREAS, by letter dated December 18, 2020, to AE2S INC., Shank requested an <br />equitable adjustment in the Contract Time and reserved its right to seek one in the Contract Price. <br />Shank contended that the Project was delayed, in part, due to numerous design changes and their <br />impact on the sequencing of Shank's work; <br />WHEREAS, effective January 22, 2021, Mounds View and Shank entered into a Tolling <br />Agreement regarding the Project; <br />WHEREAS, following start-up of the Project, Mounds View experienced issues with <br />media loss in WTP Nos.: 2 and 3; and, in or about August 2021, Mounds View found media in <br />the distribution system and in the backwash collection tank (collectively, the "Media Issue"); <br />BE295\365\894969.v2 <br />