HomeMy WebLinkAbout#5 Village Trunk Utility Imp-Approve Security Reduction _2 ADENDA ITEM
MAYOR & COUNCIL COMMUNICATION
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DATE: February 16, 2016
CONSENT
ITEM # 5
AGENDA ITEM: Village East Trunk Utility Improvements – Approve Security Reduction
#2.
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 $190,501.75. This amount will be retained by the City through the one year warranty period.
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. Since the last security reduction
the developer has successfully tested and received engineering approval for the sanitary sewer and
watermain improvements thereby meeting the threshold for an additional 25% security reduction for the
costs of those two utilities, or $190,501.75. In accordance with Section 28 of the Development
City Council Meeting [Regular Agenda Item 5]
February 16, 2016
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Agreement, the remaining 25% of the original security, or $190,501.75 will be retained by the City
through the one-year warranty period.
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 $381,003.50 down to $190,501.75.”
ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #2 for the Village East Trunk Utility
Improvements.
3800 Laverne Avenue North • Lake Elmo • Minnesota 55042
Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org
February 17, 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 February 2, 2016 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 $190,501.75. This represents a reduction in the amount of
$190,501.75; or 25% of the Sanitary Sewer and Watermain Improvements. 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
J Griffin