HomeMy WebLinkAboutMaster Development Agreement-Security Reduction Procedure Revisions-December 2015REV1: 05/28/2015 18
from the date of final written acceptance, unless the wearing course is placed during the same construction
season as the bituminous base course. In those instances, the Developer shall guarantee all work,
including street construction, concrete curb and gutter, sidewalks and trails, material and equipment for a
period of two (2) years from the date of final written City acceptance of the work.
C. The required warranty period for sod, trees, and landscaping is two growing seasons
following installation.
34. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the
terms of this agreement, payment of special assessments, payment of the costs of all public improvements,
and construction of all public improvements, the Developer shall furnish the City with an irrevocable letter of
credit, in the form attached hereto, from a bank, cash escrow or a combination cash escrow and Letter of
Credit ("security") for $ . The amount of the security was calculated as follows:
CONSTRUCTION CATEGORY: COST 125%
1. Grading
2. Sanitary Sewer
3. Watermain
4. Storm Sewer (includes pond structures and outfall pipes)
4.5. Streets (includes Sidewalks)
5.6. Trails
7. Surface Water Facilities (pipe, ponds,infiltration basins,
6. bio retention basins, rain gardens, etc.)
7. Erosion Control
8. Street Lighting
9. Street Signs and Traffic Control Signs
9.10. Private Utilities (electricity, natural gas,
telephone, and cable)
Formatted: Indent: Left: 0.3", No bullets or numbering
Formatted: Indent: Left: -0.01", Hanging: 0.31",Numbered + Level: 1 + Numbering Style: 1, 2, 3, … +
Start at: 1 + Alignment: Left + Aligned at: 0.25" +
Indent at: 0.5", Tab stops: Not at 0.92"
Formatted: Indent: Left: 0.3", No bullets or numbering
Formatted: Indent: First line: 0", Tab stops: Not at
0.92"
Formatted: Indent: Left: -0.01", Hanging: 0.31",
Numbered + Level: 1 + Numbering Style: 1, 2, 3, … +
Start at: 1 + Alignment: Left + Aligned at: 0.25" +Indent at: 0.5"
Formatted: Indent: Left: 0", First line: 0"
Formatted: Indent: Left: 0.3", No bullets or numbering
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10.11. Landscaping
11.12. Tree Preservation and Restoration
12.13. Wetland Mitigation and Buffers
13.14. Monuments
15. Erosion and Sedimentation Control
14.16. Miscellaneous Facilities
15. Developer’s Record Drawings
17.
CONSTRUCTION SUBTOTAL $ N/A TOTAL PROJECT SECURITIES (at 125%
Construction Costs)
N/A $
This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be
subject to the approval of the City Administrator. The City may draw down the security, without notice, for
any violation of the terms of this Contract or if the security is allowed to lapse prior to the end of the
required term. If the required public improvements are not completed at least thirty (30) days prior to the
expiration of the security, the City may also draw it down. If the security is drawn down, the proceeds shall
be used to cure the default.
35.36. REDUCTION OF SECURITY. Upon written request by the Developer to the City Engineer
and upon receipt of proof satisfactory to the City Engineer that work has been completed in accordance
with the approved plans and specifications, and terms of this Agreement, and that all financial
obligations to the City have been satisfied, with the City Engineer may approveal reductions in the security
may be reduced as follows:
A. Upon completion of grading operations, including temporary site restoration,
Developer shall submit an as-built grading survey to the City that at a minimum establishes the as-built
grades at all lot corners and downstream drainage conveyance systems and storm water ponds. Upon
inspection of the site and approval of the as-built survey, 100%, or $_________________________, of the
Formatted: Indent: Left: 0.3", No bullets or numbering
Formatted: Indent: Left: -0.01", Hanging: 0.31",
Numbered + Level: 1 + Numbering Style: 1, 2, 3, … +
Start at: 1 + Alignment: Left + Aligned at: 0.25" +Indent at: 0.5"
REV1: 05/28/2015 20
grading security mayshall be released. This security reduction does not include amounts related to erosion
and sedimentation control.
B. Up to 75% of the security provided in accordance with paragraph 34 may be
released upon completion of the following key milestones of the project as determined by the City
Engineer.at the following stages of construction and project approvals by the City.
C. Construction Categories 2 and 3: The amount of $_____________ may be released
when all sanitary sewer and watermain utilities have been installed, all testing and televising has been
successfully completed, sanitary sewer as-built inverts utility record drawings have been verified, and the
utilities are considered ready for use by the City Engineer.
D. Construction Categories 4 and 5-6: The amount of $________________ may be
released when all streets, sidewalks, trails, and storm sewer, and storm water facilities have been installed
and tested, and have been found to be complete to the satisfaction of the City Engineer including all
corrective work for any identified punch list items and including verification of storm sewer as-built inverts,
but not including the final wear course.
E. Construction Categories 67-185: The amount of $_______________ may be
released when all remaining Developer’s obligations under this Agreement have been completed and the
Public Improvements have been found to be complete to the satisfaction of the City including all corrective
work for any identified punch list items, but not including the final wear course. including: (1) bituminous
wear course, (2) street lighting and private utilities, (3) trails, (4) bio retention facilities, (5) iron monuments
for lot corners have been installed, (3) all financial obligations to the City satisfied, (4) the required "record"
plans in the form of the City standards have been received and approved by the City, and (5) the public
improvements are accepted by the City Engineer and City Council.
F. At no point may the Security be reduced below Ttwenty-five percent (25%) of the
original security amounts in paragraph 34 shall be retained as security until: (1) the warranty period has
expiredall improvements have been completed, including bituminous wear course, (2) all improvements
have been fully completed and excepted by the City, including all corrective work and identified punch list
itemsiron monuments for lot corners have been installed, and (3) all financial obligations to the City have
Formatted: Indent: First line: 1", Numbered + Level: 2+ Numbering Style: A, B, C, … + Start at: 1 + Alignment:
Left + Aligned at: -0.5" + Indent at: 0"
REV1: 05/28/2015 21
been satisfied., (4) the required "record" plans have been received and approved by the City, (5) a warranty
security is provided, and (6) the public improvements are accepted by the City.
G. In addition to the above project milestone based security reductions, the Developer
may submit written request to the City Engineer and upon receipt of proof satisfactory to the City
Engineer that work is progressing in accordance with the approved plans and specifications,
and terms of this Agreement, and that all financial obligations to the City have been satisfied, the City
Engineer may approve a one-time reduction in the security for Construction Categories 2-5 in an amount not to
exceed fifty percent (50%) of the initial security amounts.
A.H. It is the intention of the parties that the City at all times have available to it a Letter
of Credit in an amount adequate to ensure completion of all elements of the Subdivision Improvements
and other obligations of the Developer under this Agreement, including fees or costs due to the City by the
Developer. To that end and notwithstanding anything herein to the contrary, all requests by the Developer
for a reduction or release of the Letter of Credit shall be evaluated by the City in light of that principle.
36. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Contract which must be furnished to the City at the time of final plat approval:
Sewer Availability Charge (SAC) $
Water Availability Charge (WAC)
Erosion Control
Park Dedication
Street Light Operating Fee
City Base Map Upgrading
City Engineering Administration Escrow
TOTAL CASH REQUIREMENTS $
37. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the
following address: . Notices to the
City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by
certified mail in care of the City Administrator at the following address: Lake Elmo City Hall, 3800 Laverne
Avenue N. Lake Elmo, Minnesota 55042.