HomeMy WebLinkAbout#10 - Savona 4th Security Reduction STAFF REPORT
DATE: January 2, 2024
CONSENT
AGENDA ITEM: Accept Improvements and Approve Security Reductions for the Savona 4th
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 Savona 4th Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for the Savona 4th 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. Savona 4th Addition $ 1,468,090 $ 891,473
The warranty period for the Savona 4th Addition public improvements are outlined on the attached
Certificate of Completion. Twenty-five percent (25%) of the original security amount will be retained until
the 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 reduction as detailed in the attached worksheet for the
Savona 4th 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 reduction as detailed in the attached
worksheet for Savona 4th Addition, contingent on the developer being current with all payments and
obligations in accordance with the Development Agreement.”
ATTACHMENTS:
1. Certificate of Completion – Savona 4th Addition.
2. Security Reduction Worksheet – Savona 4th Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: January 2, 2024
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: U.S. HOME CORPORATION, D/B/A LENNAR
SUBDIVISION
NAME:
SAVONA 4TH ADDITION
PROJECT NO.: 2015.133
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 33.A – Public sewer and watermain
Section 33.B – Public improvements including street construction, concrete curb and gutter,
storm sewer facilities, sidewalks, 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 27, 2016. 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. 45395
FOCUS Engineering, inc.
Section 33.A Warranty Period Begins January 16, 2018 and ends January 16, 2020
Section 33.B Warranty Period Begins
January 2, 2024
and ends
January 2, 2025
SAVONA 4TH ADDITION Time of Performance: September 30, 2017DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5Grading NA NA NASanitary Sewer $379,407 $474,259100%$355,694 $118,565Watermain $460,445 $575,556100%$431,667 $143,889Storm Sewer (w/pond structures) $449,062 $561,32875%$280,664 $140,332Streets $1,296,601 $1,620,75175%$810,375 $405,188Sidewalks/Trails $281,412 $351,76575%$263,824Surface Water Facilities NA NAincluded in Grading AgreementStreet Lighting $84,000 $105,00075%$78,750Street Signs and Traffic Control Signs $4,650 $5,81375%$4,359Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $213,893 $267,36625%$66,842Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NALOC Through VBWDMonuments $7,800 $9,75075%$7,313Erosion Control $81,009 $101,26275%$75,946Record Drawings $6,500 $8,12575%$6,094TOTALS $3,264,779 $4,080,974RELEASED AMOUNTS:$1,878,401 $405,188 $262,454 $66,842 $576,617CUMMULATIVE AMOUNTS:$1,878,401 $2,283,589 $2,546,042 $2,612,884$3,189,501SECURITY AMOUNT REMAINING:$2,202,573 $1,797,386 $1,534,932 $1,468,090 $891,473DATE:1/16/2018 2/5/2019 2/4/2020 5/2/2023 1/2/2024REDUCTIONS