HomeMy WebLinkAbout#03 - Northstar Offsite Utilities Security Reduction
STAFF REPORT
DATE: June 3, 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 Offsite Utilities
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 Site Improvement Agreement with the
City for Northstar 1st Addition on October 6th, 2023. The Site Improvement Agreement included extension
of sanitary sewer and watermain along Stillwater Blvd and between Stillwater Blvd and the UPRR tracks
southwest of the Northstar site.
ISSUE BEFORE COUNCIL: Should the City Council accept the public sanitary sewer and watermain
and approve security reductions for the offsite utilities installed under the Northstar 1st Addition Site
Improvement Agreement?
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 Site Improvement Agreement. This request has been reviewed and is recommended for approval
in accordance with the approved Site Improvement Agreement. The development security is recommended
to be reduced as shown below:
Current Security Amount Proposed Security Amount
1. Northstar 1st Addition Offsite Utilities $1,078,750 $269,688
The offsite 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 offsite 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 offsite sanitary sewer and watermain and approve the security reduction for the Northstar
1st Addition Site Improvement Agreement 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 Site
Improvement 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 offsite sanitary sewer and watermain and approve the security reduction
for the Northstar 1st Addition Site Improvement Agreement as detailed in the Security Reduction
Worksheet, contingent on the developer being current with all payments and obligations in
accordance with the Site Improvement Agreement, including a positive escrow balance as required
by the City.
ATTACHMENTS:
1. Certificate of Completion – Northstar 1st Addition Site Improvement Agreement
2. Security Reduction Worksheet – Northstar 1st Addition Site Improvement Agreement.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: JUNE 3, 2025
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: GWSA LAND DEVELOPMENT, LLC
SUBDIVISION
NAME:
NORTHSTAR 1ST ADDITION – SITE IMPROVEMENT
AGREEMENT
PROJECT NO.: 2020.116
This Certification of Completion applies to all work under the Site Improvement Agreement
This Certification of Completion applies to the following specified parts of the Site Improvement
Agreement
Section 19 – Public sanitary sewer and watermain
I do hereby certify that the work to which this Certificate applies has been constructed in accordance
with the Site Improvement Agreement dated October 6, 2023. The above-mentioned improvement
is hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: June 3, 2025
Mike Rusenovich Reg. No. 58717
Bolton and Menk, Inc.
Section 19 Warranty Period Begins June 3, 2025 and ends June 3, 2027
NORTHSTAR SITE IMPROVEMENTS Time of Performance: October 31, 2025
DEVELOPMENT AGREEMENT AMOUNTS
CATEGORY CONSTRUCTION 125%REMARKS #1 #2 #3 #4 #5 #6
Sanitary Sewer $558,750 $698,438 $523,828
Watermain $286,917 $358,646 $268,985
Erosion Control $12,333 $15,416 $11,562
Record Drawings $5,000 $6,250 $4,688
TOTALS $863,000 $1,078,750 RELEASED AMOUNTS:$809,063
CUMMULATIVE AMOUNTS:$809,063
SECURITY AMOUNT REMAINING:$269,688
DATE: 6/3/2025
OVERSIZE PAYMENTS $82,642
Sanitary Sewer $25,920
Watermain $56,722
REDUCTIONS