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HomeMy WebLinkAbout#10 - Inwood 6th Security Reduction STAFF REPORT DATE: February 7, 2023 CONSENT AGENDA ITEM: Accept Improvements and Approve Security Reductions for Inwood 6th Addition (Kwik Trip) SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sophia Jensen, City Planner Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security reductions for Inwood 6th Addition? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the improvements and reduce the development security for Inwood 6th Addition (Kwik Trip). This request has been reviewed and is being recommended for approval in accordance with the approved Development Agreement, and contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. The 2-year warranty period for watermain expired on August 1, 2022 and no corrective items are required. The Development Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Inwood 6th Addition $ 439,246 $ 68,626 The Inwood 6th Addition facilities are in the warranty period as identified 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. Release of the warranty security brings the operation and maintenance of the public watermain 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 respective worksheets for Inwood 6th Addition, all contingent on the developer being current with all other 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 respective worksheets for Inwood 6th Addition, contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement.” ATTACHMENTS: 1. Certificate of Completion – Inwood 6th Addition. 2. Security Reduction Worksheet – Inwood 6th Addition. CERTIFICATE OF COMPLETION DATE OF ISSUANCE: FEBRUARY 7, 2023 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: RPS Legacy Desoto, LLC SUBDIVISION NAME: INWOOD 6th ADDITION (KWIK TRIP) PROJECT NO.: 2019.118 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 31.A – Public sewer and watermain Section 31.B – Public improvements including street construction, 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 January 21, 2020. The above-mentioned improvement is hereby declared to be complete and acceptance of this work is recommended. DATE OF COMPLETION: February 7, 2023 Chad Isakson Reg. No. 49028 FOCUS Engineering, inc. Section 31.A Warranty Period Begins August 1, 2020 and ends August 1, 2022 Section 31.B Warranty Period Begins February 7, 2023 and ends February 7, 2024 INWOOD 6TH ADDITION Time of Performance: October 31, 2020DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $162,442 $203,053 $203,053Sanitary Sewer NA NAPrivate ownedWatermain $57,860 $72,325 $72,325Storm Sewer$13,635 $17,044 $12,783Streets $58,885 $73,606Includes demolition$55,205Trails NA NASurface Water Facilities NA NAStreet Lighting NA NAStreet Signs and Traffic Control Signs NA NALandscaping $29,503 $36,878Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $600 $750 $563Erosion and Sedimentation Control$23,472 $29,340 $22,005Miscellaneous Facilities NA NARecord Drawings $5,000 $6,250 $4,688TOTALS $351,397 $439,246RELEASED AMOUNTS:$370,621CUMMULATIVE AMOUNTS:$370,621SECURITY AMOUNT REMAINING:$68,626DATE:2/7/2023REDUCTIONS