HomeMy WebLinkAboutItem 12 Section 34-Lennar Utility Improvements AGENDA ITEM1
MAYOR AND COUNCIL COMMUNICATION
DATE: 3/19/2013
REGULAR
ITEM #: 12
RESOLUTION
AGENDA ITEM: Section 34 (Lennar Area) Water and Sewer Utility Extension
Improvements – Resolution No. 2013-22 Declaring Adequacy of Petition;
Approving Preliminary Fee Agreement; Ordering Preparation of
Feasibility Report and Preparation of Plans and Specifications; and
Approving Engineering Services Agreement
SUBMITTED BY: Jack Griffin, City Engineer
THROUGH: Dean A. Zuleger, City Administrator
REVIEWED BY: Adam Bell, City Clerk
Cathy Bendel, Finance Director
Dave Snyder, City Attorney
Kyle Klatt, Planning Director
SUMMARY AND ACTION REQUESTED: The City Council is respectfully requested to
consider approving Resolution No. 2013-22 Declaring Adequacy of Petition; Approving
Preliminary Fee Agreement; Ordering Preparation of Feasibility Report and Preparation of Plans
and Specifications; and Approving Engineering Services Agreement for the Section 34 (Lennar
Area) Water and Sewer Utility Extension Improvements.
STAFF REPORT: The City of Lake Elmo received a Petition, pursuant to Minnesota Statute
429, requesting the extension of trunk watermain and sanitary sewer facilities to serve the
properties that will be a part of the Lennar development and the surrounding undeveloped
properties located in the south half of Section 34, Township 29 North, Range 21 West.
The improvements would consist of trunk watermain, extending from the Eagle Point Business
Park to the first Phase of the proposed Lennar development; a sanitary lift station located in the
vicinity of Hudson Boulevard and Keats Avenue with a connecting Forcemain along Hudson
Boulevard to the existing sewer line in the Eagle Point Business Park; and a trunk gravity sewer
from the lift station site to the first Phase of the proposed Lennar development. For the sole
purpose of establishing the order of magnitude of the proposed Project, a preliminary estimate of
the total project cost is $800,000 to $1,500,000.
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The Petition has been reviewed and certified by the City Clerk to represent at least 35%, but less
than 100%, of the properties to be benefitted by the requested improvements (see attached
Petition for Local Improvements and Petition Map). The Petition has also been signed by Lennar
Corporation since portions of the subject property are under contract for purchase by Lennar for
the purposes of platting a single-family and multi-family residential development.
Upon receipt of the request, staff worked with Lennar to better understand the scope of the
improvements requested and the desired schedule to implement the Project (see attached Project
Schedule). Staff also retained a work scope and fee proposal from Bolton and Menk, Inc. for
engineering services related to the Feasibility Report and project design.
Should the Council choose to accept the petition and undertake the preliminary consideration of
the Public Improvements, the City will incur costs prior to gaining certainty of being able to
recover these costs. These costs include Professional Engineering and Legal Services to prepare
a Feasibility Report, preparation of Plans and Specifications, and other related matters. To
protect the City against this uncertainty, staff has prepared, and Lennar Corporation has agreed to
execute a Preliminary Fee Escrow Agreement requiring Lennar to deposit a sufficient escrow
amount to cover the estimated fees for Professional Services in connection with the project, and
to replenish the escrow upon request of the City.
Upon completion of the Feasibility Report, which will include the proposed project assessment
methodology and the preliminary assessment amounts for each subject parcel, the City will
request from each parcel an Agreement of Assessment and Waiver of Irregularity and Appeal.
Receipt of this agreement provides the City with certainty of recovering all costs apportioned to
that property through the levy of the assessment.
RECOMMENDATION: Staff is recommending that the City Council consider approving
Resolution No. 2013-22 Declaring Adequacy of Petition; Approving Preliminary Fee
Agreement; Ordering Preparation of Feasibility Report and Preparation of Plans and
Specifications; and Approving Engineering Services Agreement for the Section 34 (Lennar
Area) Water and Sewer Utility Extension Improvements.
ATTACHMENTS:
1. Resolution No. 2013-22
2. Petition for Local Improvements
3. Petition Map
4. Preliminary Fee Escrow Agreement
5. Professional Services Agreement, Bolton and Menk, Task Order No. 1
6. Proposed Project Schedule