HomeMy WebLinkAbout#21a Boulder Ponds -Approve Security Reduction #1 ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
-- page 1 --
DATE: December 15, 2015
REGULAR
ITEM # 21.a
AGENDA ITEM: Boulder Ponds – Approve Security Reduction #1.
SUBMITTED BY: Jack Griffin, City Engineer
THROUGH: Clark Schroeder, Interim City Administrator
REVIEWED BY: Stephen Wensman, City Planner
Cathy Bendel, Finance Director
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .........................................................................................City Staff
- Report/Presentation………………………………………… .........................City Staff
- Questions from Council to Staff ............................................. Mayor Facilitates
- Public Input, if Appropriate………………………………….Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
POLICY RECOMMENDER: Administration/Finance/Planning/Engineering.
FISCAL IMPACT:
It is the City’s goal to retain at all times during the subdivision improvements a security amount
that is adequate to ensure completion of all elements of the improvements as protection to the
City tax payers against the potential of developer default. With this reduction the remaining security amount held by the City will be $1,565,229 which remains over and above the estimate
to completion for the remaining subdivision improvements.
SUMMARY AND ACTION REQUESTED:
The City Council is respectfully requested to consider approving a reduction in the security
amount for the Boulder Ponds 1st Addition.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
City Council Meeting [Regular Agenda Item 21.a]
December 15, 2015
-- page 2 --
The Boulder Ponds 1st Addition developer installed improvements have been substantially
completed including the installation of sanitary sewer, watermain, storm sewer, residential
streets, 5th Street, trails and sidewalks, and partial landscaping consisting of over $2.7 million in
construction costs. In accordance with Section 36 of the Boulder Ponds Development Contract, the progress for the improvements have been satisfied for the sanitary sewer and watermain but
have not reached the threshold necessary to be edible for a security reduction at this time for the
remaining improvements. Due to the end of the construction season the developer will not have
an opportunity to reach the necessary thresholds until next spring.
RECOMMENDATION:
If the City Council adopts a revised security reduction policy to be presented by staff at the
December 15, 2015 council meeting, and further directs staff to apply the revised policy to all
active developments in the City, then staff is recommending that the City Council approve a reduction in the security amount for the Boulder Ponds 1st Addition. The recommended motion
for the action is as follows:
“Move to approve a reduction of the Letter of Credit for the Boulder Ponds 1st Addition from
$3,610,726 down to $1,565,229.” ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #1 for the Boulder Ponds 1st
Addition.
3800 Laverne Avenue North • Lake Elmo • Minnesota 55042
Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
December 11, 2015
Ms. Deb Ridgeway
The Excelsior Goup, LLC
1660 Highway 100 South, Suite 400
St. Louis Park, MN 55416
Re: Boulder Ponds
Security Reduction #1
Dear Ms. Ridgeway:
We have reviewed your request for a reduction in the security for Boulder Ponds. In accordance with
Section 36 of the Boulder Ponds Development Contract, the progress for the improvements have been
satisfied for sanitary sewer and watermain but have not reached the threshold necessary to be edible
for a security reduction at this time for the remaining improvements.
However, should the City Council adopt a revised policy to be presented by staff at the December 15,
2015 council meeting, and direct staff to apply the revised policy to all active developments in the City,
then the security amount of $3,610,726 may be reduced to $1,565,229.
Should you have any questions or require additional information, please call me 651.300.4264.
Sincerely,
John (Jack) W. Griffin, P.E.
City Engineer
cc: Clark Shroeder, Interim City Administrator
Cathy Bendel, Finance Director
Stephen Wensman, City Planner