Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Memorial Arena Roofing topic
No spam. Unsubscribe anytime.
Roseau council unanimously empowers city attorney to declare contractor default on Memorial Arena roofing project
Summary
After reports of unpaid subcontractors, canceled insurance and an expired contractor license, the Roseau City Council adopted Resolution 17-26 giving the city attorney authority to declare contractor default, terminate the contract, notify the surety and take actions to protect the city's interests.
The Roseau City Council unanimously adopted Resolution No. 17-26 on Feb. 2, 2026, delegating authority to City Attorney Michelle Moren to declare Equity Builders & Construction Services, Inc. in default on the Memorial Arena roofing contract and to take contract‑and‑bond actions necessary to protect the city’s legal and financial interests. The resolution preserves litigation decisions for the full council.
Council members acted after Community Development Coordinator Todd Peterson and project engineer William (Bill) Waugh reported the roofing project was substantially complete on Nov. 18 but that the city has not received a warranty from Mule Hide and has retained $100,000 for outstanding punch-list items, including roof edging not installed per specifications. Peterson told the council the project’s total cost is $975,000 and that $875,000 has been paid to date; the city has received $250,000 from SHPO and $52,500 in insurance proceeds and is awaiting reimbursement paperwork.
Waugh and staff said four roofing subcontractors had contacted the city claiming nonpayment by Equity Builders and that Old Republic (the contractor’s performance/payment bond carrier) had notified the city it would work with the general contractor and subcontractors. City records indicate Equity Builders’ contractor liability insurance was recently cancelled and its DOLI contractor license expired Dec. 31, 2025; the Minnesota Department of Administration has suspended Equity Builders from bidding on state projects while it investigates possible debarment.
City Attorney Moren told the council that Minnesota law prohibits placing a mechanic’s lien on a public building, limiting subcontractors’ remedies against the city, and she recommended the council reject a proposed assignment of the contract to Midwest Commercial Roofing because the new entity appeared to involve the same personnel as Equity Builders. On that basis the council voted to delegate to Moren the authority to declare default, terminate the contract, provide notices to the bond issuer and contractor, and commit payment per the contract and surety bond procedures as necessary to protect the city. The resolution explicitly preserves the council’s sole authority to resolve claims or initiate litigation.
The council’s action was presented as a protective measure to ensure the performance bond and surety process can be engaged to complete work and address subcontractor payments. The resolution passed unanimously: Mayor Dan Fabian, Councilmembers Amy Bassingthwaite, Brady Johnson, Pat Novacek and Oliver Ullman voted in favor.
Next steps identified in the meeting included confirming the Mule Hide warranty, coordinating with Old Republic on bond performance, and pursuing additional factual and legal review of insurance, bonds and outstanding subcontractor claims. The council did not authorize litigation in the resolution; any suit or formal claim resolution would return to the full council.
