HomeMy WebLinkAbout#13 - Hammes 3rd Security Reduction STAFF REPORT
DATE: February 7, 2023
CONSENT
AGENDA ITEM: Approve Release of Warranty Security for Public Utilities and Landscaping for
Hammes Estates 3rd Addition.
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director
Sophia Jensen, City Planner
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve release of warranty security for public
utilities and landscaping for Hammes Estates 3rd Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release development
security for Hammes Estates 3rd Addition. The 2-year warranty period for Hammes Estates 2nd Addition
watermain and sanitary sewer period expired on March 17, 2022. A warranty walk-through has been
completed by city staff and all warranty punch list items have since been addressed by the developer.
Additionally, the landscaping security is proposed to be released per the planning director’s
recommendation as all work is completed per the development agreement.
The remaining development security for public improvements is pending completion of warranty punchlist
items for public improvements (streets and storm). Current Security Amount Proposed Security Amount
1. Hammes Estates 3rd Addition: $861,170 $318,252
FISCAL IMPACT: Release of the warranty security closes out the public utilities and landscaping portion
of the development. The operation and maintenance of these facilities becomes the responsibility of the
City going forward.
RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda,
approve the release of warranty security for public sanitary sewer, watermain, and landscaping in Hammes
Estates 3rd Addition, resulting in a full release of all remaining securities. The release of security is
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 approve the security release for the Hammes Estates 3rd Addition as detailed in the respective
Security Reduction Worksheets, 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”
ATTACHMENTS:
1. Security Reduction Worksheet – Hammes Estates 3rd Addition.
HAMMES 3RD ADDITION Time of Performance: October 31, 2018DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Phase 1Sanitary Sewer $384,246 $480,307 $360,230 $120,077Watermain $503,893 $629,866 $472,399 $157,466Storm Sewer (w/pond structures) $360,855 $451,068 $225,534 $112,767Streets + Sidewalks $500,959 $626,199 $313,099 $156,550Bituminous Trails $48,972 $61,215 $45,911Surface Water Facilities NA NAStreet Lighting $48,000 $60,000 $45,000Street Signs and Traffic Control Signs $3,100 $3,875 $2,906Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $212,300 $265,375 $265,375Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $6,900 $8,625 $6,469Erosion Control $44,616 $55,770 $41,828Miscellaneous Facilities NA NARecord Drawings $5,000 $6,250 $4,688TOTALS $2,118,840 $2,648,551RELEASED AMOUNTS:$1,371,263 $416,118 $542,918 $0 $0 $0CUMMULATIVE AMOUNTS:$1,371,263 $1,787,382 $2,330,300SECURITY AMOUNT REMAINING:$1,277,288 $861,170 $318,252DATE:3/17/2020 11/17/2020 2/7/2023REDUCTIONS