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• • • CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Jason C. Wedel, City Engineer MEETING DATE: February 13, 2012 TOPIC: Consider Resolution No. 12 -11 Authorize Execution of Amendment to the Development Contracts for Pine Glen and Pine Glen 2nd Addition VOTE REQUIRED: 3/5 INTRODUCTION On May 22, 2006 and March 12, 2007, the City Council approved the Development Contracts for the Pine Glen and Pine Glen 2nd Additions respectively. Included in the Development Contracts was a provision that the developer establish a cash escrow with the City for the payment of costs incurred by the City related to plat review, administration, engineering review, legal costs, etc. In addition, the developer was also required to provide letters of credit to ensure the improvements that are installed by the developer are in compliance with City requirements. This includes such items as sanitary sewer, watermain, storm sewer and street improvements. BACKGROUND The majority of the developer installed improvements have been complete for several years. The only work remaining is to pave the final lift of bituminous on the streets, which is scheduled to take place this spring. The developer's current of letter of credit is therefore still in place and needs to be renewed for another year. The developer is requested that the City utilize the existing cash escrow as security for the developer installed improvement rather than require the letter of credit be renewed. Renewing the letter of credit cost the developer money and with the housing market continuing to be challenging he would rather not incur the additional cost. The current cash escrow on deposit with the City for both phases of Pine Glen is $85,117.03. A portion of that cash deposit will be needed for City staff time associated with finalizing the project and inspecting the paving of the final lift of bituminous on the streets. Staff is therefore comfortable allowing $65,117.03 to be used as security for the developer installed improvements. The estimated cost to complete the paving is $118,000. The City is therefore requiring the developer to submit an additional $56,500 in cash so that the total cash deposit will be $121,617.03 which is slightly more than the estimate cost to complete the streets. The developer has agreed to provide the additional cash deposit as described above. The only item that still needs to be resolved is amending the existing Development Contracts to allow the cash