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HomeMy WebLinkAbout#11 - Wildflower 4th Addition Security Reduction STAFF REPORT DATE: August 20, 2024 CONSENT AGENDA ITEM: Accept Improvements and Approve Security Reductions for the Wildflower at Lake Elmo 4th Addition SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Marty Powers, Public Works Director Clarissa Hadler, Finance Director Sophia Jensen, City Planner Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security reductions for the Wildflower at Lake Elmo 4th Addition? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the improvements and reduce the development security for the Wildflower at Lake Elmo 4th Addition. This request has been reviewed and is being recommended for approval in accordance with the Development Agreement, and contingent on the developer being current with all other required payments and obligations, including a positive escrow balance. The Development Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Wildflower 4th Addition: $793,116 $661,246 The Wildflower at Lake Elmo 4th Addition public facility warranty periods are identified on the attached Certificate of Completion. Twenty-five percent (25%) of the original security amounts will be retained until the warranty periods have expired and all warranty corrective work has been addressed. 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 worksheet for the Wildflower at Lake Elmo 4th Addition, contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as may be 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 a security reduction as detailed in the attached Security Reduction Worksheet for Wildflower at Lake Elmo 4th Addition, contingent on the developer being current with all other subdivision payments and obligations.” ATTACHMENTS: 1. Certificate of Completion – Wildflower at Lake Elmo 4th Addition 2. Security Reduction Worksheet – Wildflower at Lake Elmo 4th Addition CERTIFICATE OF COMPLETION DATE OF ISSUANCE: AUGUST 20, 2024 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: ROBERT ENGSTROM COMPANIES SUBDIVISION NAME: WILDFLOWER 4TH ADDITION PROJECT NO.: 2021.113 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 34.A – Public sanitary sewer and watermain Section 34.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 February 2, 2022. The above-mentioned improvement is hereby declared to be complete and acceptance of this work is recommended. DATE OF COMPLETION: August 20, 2024 Mike Rusenovich Reg. No. 58717 FOCUS Engineering, inc. Section 34.A Warranty Period Begins January 17, 2023 and ends January 17, 2025 Section 34.B Warranty Period Begins August 20, 2024 and ends August 20, 2025 WILDFLOWER AT LAKE ELMO 4TH ADDITION Time of Performance: August 31, 2022 DEVELOPMENT AGREEMENT AMOUNTS CATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6 Sanitary Sewer $257,538 $321,923 75%$241,442 Watermain $218,620 $273,275 75%$204,956 Streets & Sidewalks $1,240,903 $1,551,129 75%$775,564 $387,782 Storm Sewer $238,267 $297,834 75%$148,917 $74,458 Erosion Control $38,975 $48,719 75%$36,539 Surface Water Facilities (BMPs) $12,460 $15,575 75%$11,681 Trails $50,907 $63,634 75%$47,725 Street Lighting $24,000 $30,000 75%$22,500 Street Signs and Traffic Control Signs $5,219 $6,524 75%$4,893 Landscaping $5,000 $6,250 Tree Preservation and Restoration NA NA Wetland Mitigation and Buffers NA NA Monuments $4,100 $5,125 75%$3,844 Private Utilities NA NA Record Drawings $5,000 $6,250 75%$4,688 TOTALS $2,100,989 $2,626,236 RELEASED AMOUNTS:$446,398 $924,481 $462,241 $131,870 CUMMULATIVE AMOUNTS:$446,398 $1,370,879 $1,833,120 $1,964,989 SECURITY AMOUNT REMAINING:$2,179,838 $1,255,357 $793,116 $661,246 DATE:1/17/2023 12/5/2023 1/2/2024 8/20/2024 REDUCTIONS