HomeMy WebLinkAbout#07 - Union Park 2nd Addn Security Reductin STAFF REPORT
DATE: March 21, 2023
CONSENT
AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve Security
Reduction for Union Park 2nd 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 Union Park 2nd Addition as itemized below?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the public
sanitary sewer and watermain improvements, release grading security and reduce the development security
for the Union Park 2nd 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. Union Park 2nd Addition: $ 1,699,861 $ 765,837
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 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. 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, release grading security, and approve the
security reduction for the Union Park 2nd Addition as detailed in the attached worksheet, 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, release grading security, and
approve the security reductions as detailed in the attached worksheet for the Union Park 2nd 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 – Union Park 2nd Addition
2. Security Reduction Worksheet – Union Park 2nd Addition.
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: MARCH 21, 2023
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: PULTE HOMES OF MINNESOTA, LLC
SUBDIVISION
NAME:
UNION PARK 2ND ADDITION
PROJECT NO.: 2021.118
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 32.A – Public sanitary sewer and watermain
Section 32.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 June 15, 2021. The above-mentioned improvement is
hereby declared to be complete and acceptance of this work is recommended.
DATE OF COMPLETION: March 21, 2023
Chad Isakson Reg. No. 49028
FOCUS Engineering, inc.
Section 32.A Warranty Period Begins March 21, 2023 and ends March 21, 2025
Section 32.B Warranty Period Begins
and ends
UNION PARK 2ND ADDITION Time of Performance: October 31, 2021DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $124,485 $155,606100%$155,606Sanitary Sewer $262,560 $328,20075%$246,150Watermain $210,660 $263,32575%$197,494Storm Sewer (w/pond structures) $239,469 $299,33650%$149,668Streets + Sidewalks $296,170 $370,21250%$185,106Bituminous Trails $29,616 $37,019Surface Water Facilities NA NAStreet Lighting $18,000 $22,500Street Signs and Traffic Control Signs $1,735 $2,169Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $156,595 $195,743Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $5,600 $7,000Erosion Control $10,000 $12,500Miscellaneous Facilities NA NARecord Drawings $5,000 $6,250TOTALS $1,359,889 $1,699,861RELEASED AMOUNTS:$934,024 $0 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$934,024SECURITY AMOUNT REMAINING:$765,837DATE:3/21/2023REDUCTIONS