HomeMy WebLinkAbout#9 Wildflower security reduction
MAYOR & COUNCIL COMMUNICATION
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DATE: September 6, 2016
CONSENT
ITEM # 9
AGENDA ITEM: Wildflower at Lake Elmo – Approve Security Reduction #4.
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 $1,297,986 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, a reduction in the security amount for the Wildflower at Lake
Elmo 1st Addition.
LEGISLATIVE HISTORY/BACKGROUND INFORMATION: The developer has completed a
substantial portion of the required development improvements for the Wildflower at Lake Elmo 1st
Addition including the installation of sanitary sewer, installation of watermain, and the construction of
street and storm sewer improvements. In accordance with the revised Security Reduction Policy
Paragraph D, the developer is eligible for a reduction in security for Phase 1 in the amount of $744,337.
RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent
Agenda, a reduction in the security amount for the Wildflower at Lake Elmo 1st Addition. If removed
from the consent agenda, the recommended motion for the action is as follows:
City Council Meeting [Consent Agenda Item 9]
September 6, 2016
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“Move to approve a reduction of the Letter of Credit for the Wildflower at Lake Elmo 1st Addition
from $2,042,322 down to $1,297,986.”
ATTACHMENT(S):
1. Engineer’s Letter Recommending Security Reduction #4 for the Wildflower at Lake Elmo 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
Mr. Robert Engstrom
Robert Engstrom Companies
4801 West 81st Street, Suite 101
Minneapolis, MN 55437
Re: Wildflower at Lake Elmo 1st Addition
Lake Elmo, Minnesota
Irrevocable Letter of Credit No. 1000
Dear Mr. Engstrom:
We have reviewed and processed your request for a reduction in the security for the Wildflower at Lake
Elmo 1st Addition in Lake Elmo, MN. At this time the Irrevocable Letter of Credit No. 1000 may be
reduced to $1,297,986. This represents a reduction in the amount of $744,337 for street and storm
sewer improvements. Please process the security reduction through the office of 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
WILDFLOWER AT LAKE ELMO 1ST ADDITION Time of Performance: November 30, 2016
DEVELOPMENT AGREEMENT AMOUNTS
CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6
Grading $116,000 NA Covered by Site Grading Agreement $116,000
Sanitary Sewer $386,885 $483,606 75%$241,803 $120,902
Watermain $472,052 $590,065 75%$295,033 $147,516
Streets $916,819 $1,146,024 75%$274,539 $584,978
Surface Water Facilities $509,946 $637,433 75%$318,716 $159,358
Erosion Control NA NA Covered by Site Grading Agreement
Sidewalks/Trails $220,838 $276,048
Street Lighting NA NA By Xcel Energy
Street Signs and Traffic Control Signs $9,950 $12,438
Landscaping $200,000 $250,000
Tree Preservation and Restoration $23,675 $29,594
Wetland Mitigation and Buffers NA NA LOC Through VBWD
Monuments $6,000 $7,500
Miscellaneous Facilities NA NA
Record Drawings $6,500 $8,125
TOTALS $2,752,665 $3,440,831 RELEASED AMOUNTS:$116,000 $1,130,091 $268,418 $744,337 $0 $0
CUMMULATIVE AMOUNTS:$116,000 $1,246,091 $1,514,509 $2,258,846
SECURITY AMOUNT REMAINING:$3,440,831 $2,310,740 $2,042,322 $1,297,986
DATE:10/29/2015 12/15/2015 2/16/2016
REDUCTIONS