HomeMy WebLinkAbout#06 - Royal Golf Security Reduction STAFF REPORT
DATE: March 7, 2023
CONSENT
AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve Security
Reduction for Royal Golf Club 3rd Addition.
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator
Sophia Jensen, Planner
Marty Powers, Public Works Director
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council accept the public sanitary sewer and watermain
improvements and approve security reductions for the Royal Golf Club at Lake Elmo 3rd Addition as
itemized below?
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 Royal Golf Club
at Lake Elmo 3rd Addition. This request has been reviewed and the following reduction is being
recommended for approval in accordance with the approved Development Agreement, 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 Development Security amount
is recommended to be reduced as follows:
Current Security Amount Proposed Security Amount
1. Royal Golf 3rd Addition: $ 5,044,448 $ 1,916,902
Work within the development has progressed in accordance with the development agreement and to the
extent necessary to support a reduction in the security as detailed in this report. As part of this reduction the
sanitary sewer and watermain improvements have been accepted and the 2-year warranty period will be
initiated. Twenty-five percent (25%) of the original sewer and water security amount will be retained until
the warranty periods have 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. With this reduction, the remaining security
amount held by the City remains sufficient to complete the remaining improvements.
RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda,
accept the public sanitary sewer and watermain improvements and approve the security reduction for the
Royal Golf Club at Lake Elmo 3rd Addition as detailed in this report and supporting documentation, 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 public sanitary sewer and watermain improvements and approve the security
reductions as detailed in the attached worksheet for the Royal Golf Club at Lake Elmo 3rd Addition,
contingent on the developer being current with all other payments and obligations in accordance with
the Development Agreement.”
ATTACHMENTS:
1. Watermain and Sanitary Sewer Certificate of Completion – Royal Golf Club 3rd Addition
2. Security Reduction Worksheet – Royal Golf Club 3rd Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: MARCH 7, 2023
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: U.S. HOME CORPORATION, D/B/A LENNAR
SUBDIVISION
NAME:
ROYAL GOLF CLUB 3RD ADDITION
PROJECT NO.: 2018.136
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 sanitary sewer and watermain
Section 33.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 August 10, 2021. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: March 7, 2023
Chad Isakson Reg. No. 49028
FOCUS Engineering, inc.
Section 33.A Warranty Period Begins March 7, 2023 and ends March 7, 2025
Section 33.B Warranty Period Begins
and ends
ROYAL GOLF CLUB 3RD ADDITION October 31, 2022DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $924,460 $1,155,575100%$1,155,575Sanitary Sewer $485,113 $606,39175%$454,793Watermain $583,951 $729,93975%$547,454Storm Sewer $666,871 $833,58950%$416,794Streets and Sidewalks $884,687 $1,105,85850%$552,929Trails $44,125 $55,156Surface Water Facilities $23,149 $28,936Street Lighting $48,000 $60,000Street Signs and Traffic Control Signs $5,779 $7,224Landscaping $253,289 $316,611Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $7,300 $9,125Erosion Control $103,835 $129,794Turn Lanes NA NARecord Drawings $5,000 $6,250100%TOTALS $4,035,559 $5,044,448RELEASED AMOUNTS:$3,127,546CUMMULATIVE AMOUNTS:$3,127,546SECURITY AMOUNT REMAINING:$1,916,902DATE: 3/7/2023Time of Performance: REDUCTIONS