HomeMy WebLinkAboutItem 12 - CC Eastern Village Trunk Sewer DA Amendments 8-4-14
MAYOR & COUNCIL
COMMUNICATION
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DATE: 8/4/15 REGULAR ITEM # 12 MOTION AGENDA ITEM: Eastern Village Trunk Sewer and Watermain Developer’s Agreement SUBMITTED BY: Kyle Klatt, Community Development Director
THROUGH: Clark Schroeder, Interim City Administrator REVIEWED BY: Jack Griffin, City Engineer Dave Synder, City Attorney
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .....................................Community Development Director
- Report/Presentation………………………...Community Development Director
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates POLICY RECCOMENDER: Staff is recommending that the City Council approve revisions to the Eastern Village Trunk Sewer and Watermain development contract that will change the name of the developer associated with the project and make other revisions as negotiated by Staff and the developer.
FISCAL IMPACT: Direct Payments to Developer – None (no change from approved agreement). SUMMARY AND ACTION REQUESTED: The City Council is being asked to consider
amendments to the approved developer’s agreement for a project to install trunk sewer and watermain facilities from the 30th Street lift station to the southern edge of the railroad right-of-way line within the southern portion of the Village Planning Area. This trunk infrastructure will connect to the line previously constructed by the City within the 39th Street right-of-way and that was extended to the railroad right-of-way in the northern part of the Village. The revisions will
City Council Meeting [Regular Agenda Item 12]
August 4, 2015
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change the developer of the project from Chase Development, Inc. to two separate parties: Robert
Engstrom Companies and GWSA Land Development, LLC (Gonyea). In addition to the developer change, the two new parties to the agreement have asked for revisions to the document to extend the completion date from September 15th to November 1st. The recommended motion to take action on the request is as follows:
“Move to amend the developer’s agreement for the Eastern Village Trunk Sewer and
Watermain as drafted and documented in the attached amended Development Agreement” LEGISLATIVE HISTORY/STAFF REPORT: The City Council approved a developers’
agreement for trunk sewer and watermain project on June 9th of this year after separating out this specific project from the overall work planned within the Easton Village subdivision. In the time since the Council’s approval of an agreement, the private parties that will be building this project have failed to come to an agreement that would allow work to commence on the project as initially
proposed. At this time, two of the parties that will directly benefit from the installation of the trunk
infrastructure, Robert Engstrom Companies and Gonyea Development, have asked that the City name them as the developer for the project so that they can assume responsibility to build the line and move forward with their respective development projects that are ultimately connecting to this line.
In addition to changing the name of the developer, the parties involved with this project have asked for some additional changes to the agreement, the most significant of which is the moving back of the original project completion date from September 15th to November 1, 2015. The November 1st date was selected because it is the latest date that the sewer connection could be made and still
allow the City to assess properties along 39th Street that will be connecting to this line. Staff has
been in discussions all parties associated with the trunk sewer line, and is recommending approval of the request with the following considerations:
• That Section 9 of the agreement concerning the time of performance be revised to include
additional language that will require the developer to track progress towards completion of the project.
• That the project include a penalty for failure to complete the sewer work by November 1st. The suggested $15,000 penalty represents the City’s carrying costs for bond interest
payments if the 39th Street sewer work cannot be assessed to benefitting property owners.
• That this section include additional clarification concerning the circumstances under which an extension may be considered by the City.
• That in consideration of the later completion date, some of the previous provisions
concerning notification requirements for default be removed. The developer has also asked that the project construction cost estimates be updated to reflect the most recent information available from their contractor. These updated estimates have slightly
lowered the amounts from the agreement as originally drafted.
All proposed changes from the approved agreement are tracked in the attached document.
City Council Meeting [Regular Agenda Item 12]
August 4, 2015
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BACKGROUND INFORMATION (SWOT): Strengths: The revisions will allow the responsibility for the project to transfer to developers that will be able to mobilize and begin construction on the trunk infrastructure.
The agreement includes additional language that offers additional protection to the City if
the sewer line is not installed prior to November 1st. There is no such protection in the current agreement.
The revised agreement is a key part of all parties being able to move forward with their developments and to execute the private agreements necessary to build the trunk sewer
line.
The three affected parties have provided their signed agreement for review by the City to document their intent to move forward with construction.
Weaknesses: Work must commence soon in order to ensure the November 1st deadline can be met.
Opportunities: The proposed revisions will further the City’s interests in completing a
major piece of trunk sewer infrastructure that is funded by private developers.
Threats: Failure to execute an agreement that is acceptable to all parties could lead to delays in connecting individuals to the trunk sewer line, the inability of the City to assess the sewer portion of the 39th Street project, and three developments that will be unable to
move forward with building permits.
RECOMMENDATION: Based on the above Staff report, Staff is recommending that the City Council approve the proposed amendments to the Eastern Village Trunk Sewer and Watermain Developers Agreement as documented in the attached agreement. The suggested motion to adopt the Staff recommendation is as follows:
“Move to amend the developer’s agreement for the Eastern Village Trunk Sewer and
Watermain as drafted and documented in the attached amended Development Agreement” ATTACHMENTS:
1. Amended Eastern Village Trunk Sewer and Watermain Developers Agreement