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Home My WebLink About#7 Village Preserve 1st-Approve Security Reduction #1 ADENDA ITEM MAYOR & COUNCIL COMMUNICATION -- page 1 -- DATE: March 15, 2016 CONSENT ITEM # 7 AGENDA ITEM: Village Preserve 1st Addition – 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 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 $1,858,897 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 Village Preserve 1st Addition. LEGISLATIVE HISTORY/BACKGROUND INFORMATION: The developer has completed a substantial portion of the required development improvements for the Village Preserve 1st Addition including the installation of sanitary sewer, watermain, storm sewer, and street improvements. In accordance with the revised Security Reduction Policy Paragraph G, the developer is eligible for a reduction in security for Phase 1 in the amount of $728,423. City Council Meeting [Regular Agenda Item 7] March 15, 2016 -- page 2 -- RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, a reduction in the security amount for the Village Preserve 1st Addition. 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 Village Preserve 1st Addition from $2,507,460 down to $1,858,897.” ATTACHMENT(S): 1. Engineer’s Letter Recommending Security Reduction #1 for the Village Preserve 1st Addition. 2. Developer’s Letter Requesting Reduction of Security for the Village Preserve 1st Addition. 3. Security Reduction Worksheet. 3800 Laverne Avenue North • Lake Elmo • Minnesota 55042 Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org March 16, 2016 Craig Allen, Chief Manager Gonyea Company 10850 Old County Road 15, Suite 200 Plymouth, MN 55441 Re: Village Preserve 1st Addition Lake Elmo, Minnesota Irrevocable Letter of Credit No. 320 Dear Mr. Allen: We have reviewed and processed your request dated February 22, 2016 for a reduction in the security for the Village Preserve 1st Addition in Lake Elmo, MN. At this time the Irrevocable Letter of Credit No. 320 may be reduced to $1,858,897. Please process the security reduction through the office of the Lake Elmo City Clerk. This represents a security reduction in the amount of 75% of the Sanitary Sewer and Watermain security, 50% of the Storm Sewer security, and 18% of the Street Improvement security. 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 2/22/2016 FOCUS Engineering, Inc. Mail Village Preserve Security Reduction https://mail.google.com/mail/u/0/?ui=2&ik=885060bd59&view=pt&search=inbox&th=1530b0ffa6295268&siml=1530b0ffa6295268 1/1 Jack Griffin <jack.griffin@focusengineeringinc.com> Village Preserve Security Reduction 1 message Craig@gonyeacompany.com <Craig@gonyeacompany.com>Mon, Feb 22, 2016 at 4:18 PM To: "'Jack Griffin' (jack.griffin@focusengineeringinc.com)" <jack.griffin@focusengineeringinc.com> Jack, Attached is the Pay request from Houle for utility work as well as waiver's for the two payments. I would like to request a reduction in security for Village Preserve. With your new policy, I believe I'm eligible for a one time reduction of at least 50% for the storm and streets. As you will see, over 80% of the storm has been paid and installed but a smaller portion of the streets (please note some of the street work is included in extras). I'm not sure if you calculate a portion of what's been installed and paid for and give that percentage of what you have held for security or how it works exactly? The watermain I believe is eligible for 75% and I'm hoping the sanitary is too. I know we have the corrections for sanitary in the spring, but I would think the 25% you retain would be enough to secure that work? Take a look and let me know if you need anything additional from me. I'm happy to write a formal letter of request, I'm just not sure what to include in the letter without knowing exactly what I'm eligible for. Thanks, Craig ______________________________________________ Craig Allen 10850 Old County Road 15 Suite 200 Plymouth, MN 55441 Cell: 9522704473 craig@gonyeacompany.com 2 attachments Houle PR2 (2).pdf 522K Houle Waiver #1 & #2.pdf 88K VILLAGE PRESERVE 1ST ADDITION Time of Performance: October 31, 2016DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $79,860 NAShared Wildflower Improvements $255,801 $319,751.25Grading $456,502 $570,627.500%Sanitary Sewer $227,849 $284,811.2575%$213,608Watermain $224,251 $280,313.7575%$210,235Streets (includes sidewalks/trails) $727,995 $909,993.7518%$163,799Surface Water Facilities $225,248 $281,560.0050%$140,780Erosion Control $27,970 $34,962.50Sidewalks/Trails NA NAIncluded in StreetsStreet Lighting NA NABy Xcel EnergyStreet Signs and Traffic Control Signs $3,600 $4,500.00Landscaping $105,453 $131,816.25Tree Preservation and Restoration NA NAincluded in Erosion ControlWetland Mitigation and Buffers NA NALOC Through VBWDMonuments $4,600 $5,750.00Miscellaneous Facilities NA NANoneRecord Drawings $2,500 $3,125.00TOTALS $2,005,968 $2,507,460.00RELEASED AMOUNTS:$728,423 $0 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$728,423SECURITY AMOUNT REMAINING:$1,858,897DATE:3/15/2016REDUCTIONSSite Grading Agrmt: Assumed ReplacedNever Received: Provided by Wildflower