HomeMy WebLinkAbout#9 Village Trunk Utility Imp-Approve Security Reduction ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
-- page 1 --
DATE: January 19, 2016
CONSENT
ITEM # 9
AGENDA ITEM: Village East Trunk Utility Improvements – Approve Security Reduction.
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 if removed from the Consent Agenda):
- 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: 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 $381,003.50 which remains sufficient to complete the remaining improvements.
SUMMARY AND ACTION REQUESTED:
The City Council is respectfully requested to consider approving a reduction in the security amount for the developer installed Village East Trunk Utility Improvements.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION:
The developer installed Village East Trunk Utility Improvements have been substantially completed
consisting of the installation of trunk sanitary sewer and trunk watermain. In accordance with Section 28.A of the Development Agreement, up to 50% of the original security, or $381,003.50 may be released
when: “(1) all utilities have been installed, all testing has been successfully completed, and the utilities are considered ready for use by the City Engineer; and (2) completion of the Improvements is done to the
City Council Meeting [Regular Agenda Item 9]
January 19, 2016
-- page 2 --
satisfaction of the City and evidence of such is provided to the City in writing and satisfactory evidence of
payment, such as lien waivers are provided.”
Engineering has reviewed the status of the improvements and has received lien waivers demonstrating
contractor payments have been made in at least the amounts to be released. This review has found that the
conditions identified in Section 28.A of the Development Agreement have been satisfied.
RECOMMENDATION:
Staff is recommending that the City Council approve, as part of the Consent Agenda, a reduction in the
security amount for the developer installed Village East Trunk Utility Improvements. If removed from the consent agenda, the recommended motion for the action is as follows:
“Move to approve a reduction of the Letter of Credit for the developer installed Village East Trunk Utility Improvements from $762,007 down to $381,003.50.”
ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #1 for the Village East Trunk Utility
Improvements. 2. Developer's Letter Requesting Reduction of Security for the Village East Trunk Utility
Improvements.
3. Contractor’s Lien Waiver.
3800 Laverne Avenue North • Lake Elmo • Minnesota 55042
Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
January 12, 2016
Craig Allen, Chief Manager
Gonyea Company
10850 Old County Road 15, Suite 200
Plymouth, MN 55441
Re: Village East Trunk Utility Improvements
Lake Elmo, Minnesota
Irrevocable Letter of Credit No. 310
Dear Mr. Allen:
We have reviewed and processed your request dated December 15, 2015 for a reduction in the security
for the Village East Trunk Utility Improvements in Lake Elmo, MN. At this time the Irrevocable Letter of
Credit No. 310 may be reduced to $381,003.50. Please process the security reduction through the Lake
Elmo City Clerk.
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
Julie Johnson, City Clerk
Cathy Bendel, Finance Director
Stephen Wensman, City Planner
Tuesday, December 15, 2015
Mr. Jack Griffin
City Engineer
3800 Laverne Avenue North
Lake Elmo, MN 55042
Jack:
This email is to request 50%, Or $381,003,50 0fthe security provided for the Eastem Village Trunk
Sewer and Watermain Line" All utilities have been insta11ed and a11 testing has been successfully
COmPleted. Lien Wavers are attached,
園図星
Craig A11en
Chief Manager