HomeMy WebLinkAbout#09 - Union Park Security Reduction STAFF REPORT
DATE: January 2, 2024
CONSENT
AGENDA ITEM: Accept Improvements and Approve Security Reductions for Union Park
2nd Addition
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Clark Schroeder, Interim City Administrator
Sophia Jensen, City Planner Marty Powers, Public Works Director
Clarissa Hadler, Finance Director
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security
reductions for Union Park 2nd Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for Union Park 2nd Addition. This request has been
reviewed and is being recommended for approval in accordance with the approved Development
Agreement. Approval of this reduction is contingent on the developer having a positive escrow balance in
the minimum amount required by the city, and the developer being current with all payments and
obligations required by the Development Agreement. The Development Security amount is recommended
to be reduced as follows:
Current Security Amount Proposed Security Amount
1. Union Park 2nd Addition $ 765,837 $ 532,871
The warranty periods for Union Park 2nd Addition public improvements are identified on the attached
Certificate of Completion. Twenty-five percent (25%) of the original security amount will be retained until
the applicable warranty periods have expired and all warranty corrective work has been completed.
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.
RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda,
accept the improvements and approve the security reductions as detailed in the attached respective
worksheets for Union Park 2nd Addition, contingent on the developer being current with all payments and
obligations in accordance with the Development Agreement, including a positive escrow balance as
required by the City. If removed from the consent agenda, the recommended motion for the action is as
follows:
“Move to accept the improvements and approve the security reductions as detailed in the attached
respective worksheets for Union Park 2nd Addition, contingent on the developer being current with all
payments and obligations in accordance with the Development Agreement.”
ATTACHMENTS:
1. Certificate of Completion – Union Park 2nd Addition.
2. Security Reduction Worksheet – Union Park 2nd Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: JANUARY 2, 2024
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: PULTE HOMES OF MINNESOTA, LLC
SUBDIVISION
NAME:
UNION PARK 2ND ADDITION
PROJECT NO.: 2021.118
This Certification of Completion applies to all work under the Development Agreement
This Certification of Completion applies to the following specified parts of the Development
Agreement
Section 32.A – Public sanitary sewer and watermain
Section 32.B – Public improvements including street construction, including concrete curb
and gutter, sidewalks and trails, materials and equipment.
I do hereby certify that the work to which this Certificate applies has been constructed in accordance
with the Development Agreement dated June 15, 2021. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: January 2, 2024
Chad Isakson Reg. No. 49028
FOCUS Engineering, inc.
Section 32.A Warranty Period Begins March 21, 2023 and ends March 21, 2025
Section 32.B Warranty Period Begins
January 2, 2024
and ends
January 2, 2025
UNION PARK 2ND ADDITION Time of Performance: October 31, 2021DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $124,485 $155,606100%$155,606Sanitary Sewer $262,560 $328,20075%$246,150Watermain $210,660 $263,32575%$197,494Storm Sewer (w/pond structures) $239,469 $299,33675%$149,668 $74,834Streets + Sidewalks $296,170 $370,21275%$185,106 $92,553Bituminous Trails $29,616 $37,01975%$27,765Surface Water Facilities NA NAStreet Lighting $18,000 $22,50075%$16,875Street Signs and Traffic Control Signs $1,735 $2,16975%$1,627Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $156,595 $195,743Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $5,600 $7,00075%$5,250Erosion Control $10,000 $12,50075%$9,375Miscellaneous Facilities NA NARecord Drawings $5,000 $6,25075%$4,688TOTALS $1,359,889 $1,699,861RELEASED AMOUNTS:$934,024 $232,966 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$934,024 $1,166,990SECURITY AMOUNT REMAINING:$765,837 $532,871DATE:3/21/2023 1/4/2024REDUCTIONS