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HomeMy WebLinkAbout2011-189RESOLUTION NO. 2011-189 A RESOLUTION SUSPENDING PERFORMANCE OF CERTAIN CONTRACTS WHEREAS, the City is a party to a contract with St. Croix Events, Inc. (St. Croix) whereby the City authorized St. Croix to organize and conduct a Marathon Race in Stillwater made October 5, 2010, for a term of one year, subject to certain conditions, and WHEREAS, the City is also a party to a contract with Lumberjack Days Festival Association, Inc. (the Association) whereby the City authorized the Association to conduct the Lumberjack Days celebration in Stillwater, and the Festival contract was made subject to certain conditions in September of 2008 for a term of five (5) years, and WHEREAS, the St. Croix contract and the Association contract (collectively the Contracts) reserve unto the City all rights under the police power of the City to suspend any part of either event when the public's health, safety and welfare is threatened, it has come to the attention of the City that obligations of St. Croix and the Association to pay for goods and services rendered and delivered to St. Croix and the Association for the conducting of both events are unpaid and have resulted in litigation, and WHEREAS, St. Croix has not paid the City $7,542 for public safety services provided to the Marathon in 2010 and 2011, and a Judgment filed in the Washington County District Court in April of 2011 against St. Croix in favor of RES Specialty Pyrotechnics (RES) of Belle Plaine, Minnesota, on the basis that RES had not been paid for providing fireworks for the 4th of July and Lumberjack Days for the years 2008 and 2009, and a Judgment is in the amount of $104,620 even though the City had contributed $40,000 to the Association towards the cost of fireworks in each of those years, and WHEREAS, complaints have been made with the City regarding unpaid creditors of both St. Croix and the Association and the complaints remain under investigation, and the level of public disapproval of a continued association with either entity is damaging to the health, safety and welfare of the community, NOW, THEREFORE, be it resolved as follows: 1.) That the Contract for the Marathon will not be renewed; 2.) That the Contract for Lumberjack Days and the 4th of July is hereby suspended pending the results of the pending investigation; 3.) That once the investigation is complete and all related information becomes public, the status of the Lumberjack Days and 4th of July Contracts be again placed on the Agenda for a determination of whether either or both Contracts should be cancelled; 4.) That the Marathon, Lumberjack Days and 4th of July Celebrations for the year 2012 are suspended until further notice. Enacted by the City Council this 20 day of December, 2011 CITY OF STILL Mayor ATTEST: �' J / L�L� Diane F. Ward, City Clerk -2-