Member Fladmark introduced the following Resolution and moved its adoption:

RESOLUTION NO. 05-07-02a

RESOLUTION RECEIVING BIDS AND AWARDING CONTRACTS

WHEREAS, pursuant to an advertisement for bids prepared and submitted by the Duluth/North Shore Sanitary District, St. Louis County, Minnesota (the “District"), for the construction of certain improvements consisting of the following:

i. construction of a sanitary sewer main line to serve the area within the District (“Improvement A”); and

ii. construction of a sanitary sewer lateral lines to serve the properties within the District (“Improvement B”);

bids were received, opened and tabulated according to law, as shown on Exhibit A; and

WHEREAS, the bid of S.J. Louis Construction, in the amount of $7,786,522 is the lowest responsible bid for Improvement A; and

WHEREAS, the bid of Tjader & Highstrom, in the amount of $4,219,350.76 is the lowest responsible bid for Improvement B. (Improvement A and Improvement B are collectively referred to herein as the “Improvements”.)

NOW THEREFORE, BE IT RESOLVED by the Board of Managers of the District, as follows:

Section 1. Award; Conditions Precedent.

1.01 The bid of S.J. Louis Construction for Improvement A shall be and hereby is accepted.

1.02 The bid of Tjader & Highstrom for Improvement B shall be and hereby is accepted.

1.03 The award of the bids for the Improvements set forth in Sections 1.01 and 1.02 of this Resolution is subject to the following conditions:

A. issuance by the Minnesota Pollution Control Agency (the “MPCA”) of a permit for construction of the Improvements; and

B. certification of the Improvements by the MPCA; and

C. execution of an agreement with the City of Duluth, Minnesota (the “City”) allowing the District to place its facilities within City right of ways and easement areas; and

D. execution of an agreement with the St. Louis and Lake Counties Regional Railroad Authority (the “Regional Railroad Authority”), allowing the District to place its facilities within Regional Railroad Authority right of way; and

E. approval of the Minnesota Public Facilities Authority of a loan to the District for the purpose of financing the construction cost of the Improvements.

Section 2. Execution of Contracts. The Chair and the Secretary are hereby authorized and directed to enter into a contract with each of said bidders for the construction of the Improvements for and on behalf of the District, upon satisfactory review of the contract with each bidder by counsel to the District and subject to satisfaction of the conditions set forth in Section 1.03 of this Resolution.

Section 3. Bid Deposits. Upon satisfaction of the conditions in Section 1.03 of this Resolution, the Secretary is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposit of the successful bidders and the next lowest bidders for each of Improvement A and Improvement B shall not be returned until a contract has been executed.

Adopted May 7, 2002.

ATTEST: Chair

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Secretary

The motion of the adoption of the foregoing Resolution was duly seconded by Member Certano and, upon vote being taken, the following voted in favor thereof: Bovee, Certano, Fladmark, Sironen, Thomas

the following voted against the same: none

the following were absent: none

whereupon, said Resolution was declared duly passed and adopted, and approved and signed by the Chair and attested by the Secretary.