HomeMy WebLinkAbout#04 - Northport 3rd Security Reduction STAFF REPORT
DATE: January 16, 2024
CONSENT
AGENDA ITEM: Accept Improvements and Approve Security Reduction for the Northport
3rd 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 a security
reduction for Northport 3rd Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the
improvements and reduce the development security for the Northport 3rd Addition. This request has been
reviewed and is being recommended for approval in accordance with the approved Development
Agreement. The warranty period for the Northport 3rd 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 period has expired and all warranty corrective work has been completed.
In addition, the 2-year utility warranty period has expired and all punchlist items have been addressed for
the watermain and sanitary sewer improvements. The utility warranty security is therefore recommended
to be fully released. Approval of these security reductions are 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. Northport 3rd Addition $ 683,546 $ 255,882
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. Release of the public sanitary sewer and
watermain warranty security closes out the public utility improvement portion of the development. The
operation and maintenance becomes the responsibility of the city going forward.
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
Northport 3rd 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
worksheet for Northport 3rd Addition, contingent on the developer being current with all payments and
obligations in accordance with the Development Agreement.”
ATTACHMENTS:
1. Certificate of Completion – Northport 3rd Addition.
2. Security Reduction Worksheet – Northport 3rd Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: JANUARY 16, 2024
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: Pulte Homes of Minnesota, LLC
SUBDIVISION
NAME:
NORTHPORT 3RD ADDITION
PROJECT NO.: 2020.111
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 related to 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 7, 2020. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: January 16, 2024
Chad Isakson Reg. No. 49028
FOCUS Engineering, inc.
Section 33.A Warranty Period Begins January 4, 2022 and ends January 4, 2024
Section 33.B Warranty Period Begins
January 16, 2024
and ends
January 16, 2025
NORTHPORT 3RD ADDITION Time of Performance: October 31, 2021DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Phase 1Sanitary Sewer $215,014 $268,768100%$201,576 $67,192Watermain $210,346 $262,933100%$197,199 $65,733Storm Sewer (w/pond structures) $232,695 $290,86975%$145,434 $72,717Streets + Sidewalks $458,706 $573,38375%$286,691 $143,346Bituminous Trails $15,723 $19,65475%$14,740Surface Water Facilities NA NAIncluded in Phase 1Street Lighting $40,000 $50,00075%$37,500Street Signs and Traffic Control Signs $4,098 $5,12375%$3,842Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $43,500 $54,37575%$40,781Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $4,100 $5,12575%$3,844Erosion Control $10,000 $12,50075%$9,375Miscellaneous Facilities NA NARecord Drawings $10,000 $12,50075%$9,375TOTALS $1,244,182 $1,555,228RELEASED AMOUNTS:$830,901 $40,781 $427,664 $0 $0 $0CUMMULATIVE AMOUNTS:$830,901 $871,682 $1,299,346SECURITY AMOUNT REMAINING:$724,327 $683,546 $255,882DATE:1/4/2022 12/5/2023 1/16/2024REDUCTIONS