HomeMy WebLinkAbout06-168
Motion By: LeMair
Second By: Dornbush
WHEREAS, The City entered into a Contract with Keys Well Drilling Company on September 6,
2005; and
WHEREAS, On August 25, 2006 Keys Well Drilling Company indicated in writing that they are
unable to complete the well as stipulated in the Contract; and
WHEREAS, Keys Well Drilling Company does not have the equipment necessary to complete Well
No. 9 in accordance with the Contract; and
WHEREAS, Under Section 17 of the City's Contract the City may terminate the Contract if the
contractor is unable to complete the project within seven (7) days notice of this intent to
terminate the Contract; and
WHEREAS, The City has notified the Contractor in writing of the intent to terminate the Contract on
September 15, 2006; and
WHEREAS, Under Section 14 of the Contract the City has the right to carry out the work to
complete the project in accordance with the Contract at the contractors expense; and
WHEREAS, The City shall not make any additional payments to Keys Well Drilling Company until
Well No. 9 is complete.
WHEREAS, The City denies Change Order No. 1 as it is not required upon termination of the
Contract.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The contract with Keys Well Drilling Company for the completion of Wells No. 8 and 9 is hereby
terminated.
3. Staff is authorized to advertise for bids for the required work to complete Well No. 9 in accordance
with the Contract.
PASSED AND ADOPTED THIS 5TH DAY OF SEPTEMBER, 2006.
YES NO
Haugen X Hau~en
Dornbush X Dornbush
Erickson X Erickson
LeMair X LeMalr
Millar X Millar
Fr.ank~anager
.. WWWicityofpriorlake:com
Phone 952.447.4230 / Fax 952.447.4245