Agenda - Council - 06/28/2011 - Laserfiche WebLink

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• June X, 2011 - To: SP Contract No: Location: DEPARTMENT LETTERHEAD. Re: Potential Temporary Suspension. of State Contract Performance We are writing because your organization has a relationship with this agency either under a current contract with an expiration date after June 30, 2011, or a new contract that is to become effective on or after July 1, 2011. As you may know, the Minnesota State Legislature adjourned May 23, 2011, without appropriating money to fund the operations of state government for the fiscal year that begins July 1, 2011. MnDOT operates on a biennial budget. Funds are appropriated by the Minnesota Legislature every two years, with each fiscal year beginning on July 1 and "ending on June 30 of the followingealendar,year. Its current biennial budget is due to end after June 30, 2011. In the absence of legislation specifically appropriating - funds for the continuing: operations of the agency for the next biennium,, it' will have no or very authority to expend or release funds to pay for goods or services after June 30, 2011. In this event, expenditures will be limited to fund or support only critical life, health,,and safety functions of state government Because we do not know whether the biennial budget process will, conclude in time to avoid a disruption to our operations, we, must advise,all contractors, vendors and grantees that in the absence of legislatively authorized appropriations as of July 1, 2011, all work, activity and performances under our contracts must be suspended as of that date, pending authorized appropriations, as will all payments required of this agency under those contracts. Under authority of Minnesota Department of Transportation Standard Specification for Construction, . Specification 1501.2, the above -named project will be suspended in accordance with MnIDOT Specification .1402.2B, effective. July 1, 2011.. MnDOT deems this suspension to be necessary and in the, public interest. In accordance with Mn/DOT Specification 1716, the Contractor is responsible for the project during times of suspension, among other things. Also, in accordance with Specification 1404, the Contractor is responsible for maintenance of traffic. In the event that any contract concerns a critical state function, as described above, you will be notified by separate letter, publication, bulletin or other appropriate means.