HomeMy WebLinkAbout#09 - Northstar 1st Addn Sewer & Water
STAFF REPORT
DATE: April 1, 2025
CONSENT
TO: City Council
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve
Security Reduction for Northstar 1st Addition
REVIEWED BY: Nicole Miller, City Administrator
Clarissa Hadler, Finance Director
Jason Stopa, Community Development Director
Marty Powers, Public Works Director
Nate Stanley, City Engineer
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services
☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future
☒ Managed Growth ☒ Resilient Infrastructure
BACKGROUND: GWSA Land Development, LLC entered into a development agreement with the City
for Northstar 1st Addition on April 22, 2024.
ISSUE BEFORE COUNCIL: Should the City Council accept the public sanitary sewer and watermain
and approve security reductions for Northstar 1st Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the public
sanitary sewer and watermain improvements and reduce the development security for the Northstar 1st
Addition. This request has been reviewed and is recommended for approval in accordance with the
approved Development Agreement. The development security is recommended to be reduced as shown
below:
Current Security Amount Proposed Security Amount
1. Northstar 1st Addition $6,298,524 $5,002,733
The sanitary sewer and watermain improvements for the development have been constructed, tested, and
verified. With the acceptance of the public sanitary sewer and watermain, the 2-year warranty period for
the utility improvements will be initiated as shown on the attached Certificate of Completion. Twenty-five
percent (25%) of the original security amount will be retained until the warranty period has expired.
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 public sanitary sewer and watermain and approve the security reduction for Northstar 1st
Addition as detailed in the attached worksheet. The security reduction is 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:
Motion to accept the public sanitary sewer and watermain and approve the security reduction for
Northstar 1st Addition as detailed in the Security Reduction Worksheet, 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.
ATTACHMENTS:
1. Certificate of Completion – Northstar 1st Addition
2. Security Reduction Worksheet – Northstar 1st Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: APRIL 1, 2025
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: GWSA LAND DEVELOPMENT, LLC
SUBDIVISION
NAME:
NORTHSTAR 1ST ADDITION
PROJECT NO.: 2020.116
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 35.A – Public sanitary sewer and watermain
Section 35.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 April 22, 2024. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: April 1, 2025
Mike Rusenovich Reg. No. 58717
Bolton and Menk, Inc.
Section 35.A Warranty Period Begins April 1, 2025 and ends April 1, 2027
Section 35.B Warranty Period Begins
and ends
NORTHSTAR 1ST ADDITION Time of Performance: October 31, 2025
DEVELOPMENT AGREEMENT AMOUNTS
CATEGORY CONSTRUCTION 125%REMARKS #1 #2 #3 #4 #5 #6
Grading NA NA Included in Grading Security
Sanitary Sewer $694,946 $868,683 75%$651,512
Watermain $687,230 $859,038 75%$644,279
Storm Sewer (w/pond structures)$1,287,633 $1,609,541
Streets + Sidewalks $1,195,161 $1,493,952
County Roadway Improvements $196,526 $245,658
Bituminous Trails $90,980 $113,725
Surface Water Facilities (BMPs)NA NA
Street Lighting $42,000 $52,500
Street Signs and Traffic Control Signs $18,500 $23,125
Private Utilities (electricity, natural gas, telephone, and cable)NA
Builder Landscaping $122,850 $153,563
Subdivision Landscaping $131,850 $164,813
Tree Preservation and Restoration NA NA
Wetland Mitigation and Buffers NA NA
Monuments $21,200 $26,500 105 Lots + Amenity Lot
Erosion Control $107,207 $134,009
Record Drawings $10,000 $12,500
Stormwater Reuse Irrigation $432,736 $540,920
TOTALS $5,038,819 $6,298,524 RELEASED AMOUNTS:$1,295,791 $0 $0 $0 $0 $0
CUMMULATIVE AMOUNTS:$1,295,791
SECURITY AMOUNT REMAINING:$5,002,733
DATE: 4/1/2025
REDUCTIONS