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HomeMy WebLinkAbout#6 Village Preserve 1st-Approve Security Reduction #3 ADENDA ITEM MAYOR & COUNCIL COMMUNICATION -- page 1 -- DATE: September 6, 2016 CONSENT ITEM # 6 AGENDA ITEM: Village Preserve 1st Addition – Approve Security Reduction #3. SUBMITTED BY: Jack Griffin, City Engineer THROUGH: Kristina Handt, 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 $619,323 which remains sufficient to complete the remaining improvements. SUMMARY AND ACTION REQUESTED: The City Council is respectfully requested to consider approving, as part of the Consent Agenda, the third 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 all grading work. In accordance with the revised Security Reduction Policy Paragraph A, the developer is eligible for a reduction in security for Phase 1 in the amount of $570,628. City Council Meeting [Consent Agenda Item 6] September 6, 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 the third reduction of the Letter of Credit for the Village Preserve 1st Addition from $1,189,951 down to $619,323.” ATTACHMENT(S): 1. Engineer’s Letter Recommending Security Reduction #3 for the Village Preserve 1st Addition. 2. Security Reduction Worksheet.   3800 Laverne Avenue North • Lake Elmo • Minnesota 55042 Phone: (651) 747-3900 • Fax: (651) 747-3901 • www.lakeelmo.org   September 7, 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 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  $619,323. Please process the security reduction through the office of the Lake Elmo City Clerk.  This  represents  a  reduction  in  the  amount  of  100%  of  the  grading 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:  Kristina Handt, City Administrator    Julie Johnson, City Clerk   Cathy Bendel, Finance Director    Stephen Wensman, City Planner  J Griffin VILLAGE PRESERVE 1ST ADDITION Time of Performance:  October 31, 2016 DEVELOPMENT AGREEMENT AMOUNTS CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 Grading $79,860 NA Shared Wildflower Improvements $255,801 $319,751.25 Grading $456,502 $570,627.50 $570,628 100% Sanitary Sewer $227,849 $284,811.25 $213,608 75% Watermain $224,251 $280,313.75 $210,235 75% Streets (includes sidewalks/trails) $727,995 $909,993.75 $163,799 18%$518,696 75% Surface Water Facilities $225,248 $281,560.00 $140,780 50%$70,390 75% Erosion Control $27,970 $34,962.50 Sidewalks/Trails NA NA Included in Streets Street Lighting NA NA By Xcel Energy Street Signs and Traffic Control Signs $3,600 $4,500.00 Landscaping $105,453 $131,816.25 Tree Preservation and Restoration NA NA included in Erosion Control Wetland Mitigation and Buffers NA NA LOC Through VBWD Monuments $4,600 $5,750.00 Miscellaneous Facilities NA NA None Record Drawings $2,500 $3,125.00 TOTALS $2,005,968 $2,507,460.00 RELEASED AMOUNTS:$728,423 $589,086 $570,628 $0 $0 CUMMULATIVE AMOUNTS:$728,423 $1,317,509 $1,888,137 SECURITY AMOUNT REMAINING:$1,779,037 $1,189,951 $619,323 DATE:3/15/2016 8/2/2016 9/6/2016 REDUCTIONS Site Grading Agrmt: Assumed Replaced Never Received: Provided by Wildflower