HomeMy WebLinkAbout#08 - Union Park West Security Reduction STAFF REPORT
DATE: March 21, 2023
CONSENT
AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve Security
Reduction for Union Park West 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 West 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 Union Park West
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 West Addition: $ 2,731,770 $ 2,095,505
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 and approve the security reduction for the
Union Park West 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 and approve the security
reductions as detailed in the attached worksheet for the Union Park West 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 West Addition
2. Security Reduction Worksheet – Union Park West Addition
CERTIFICATE OF COMPLETION
DATE OF ISSUANCE: MARCH 21, 2023
OWNER: CITY OF LAKE ELMO, MN
DEVELOPER: U.S. HOMES CORPORATION (D/B/A LENNAR)
SUBDIVISION
NAME:
UNION PARK WEST ADDITION
PROJECT NO.: 2021.119
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 July 9, 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 WEST ADDITION Time of Performance: October 31, 2022DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading $487,082 $608,853Sanitary Sewer $313,229 $391,53675%$293,652Watermain $365,453 $456,81775%$342,613Storm Sewer (w/pond structures) $308,968 $386,210Streets + Sidewalks $432,768 $540,959Bituminous Trails $42,867 $53,584Surface Water Facilities $53,555 $66,944Street Lighting $36,000 $45,000Street Signs and Traffic Control Signs $7,950 $9,938Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $84,546 $105,683Tree Preservation and Restoration $0 $0Wetland Mitigation and Buffers $0 $0Monuments $9,200 $11,500Erosion Control $38,798 $48,498Miscellaneous Facilities $0 $0Record Drawings $5,000 $6,250TOTALS $2,185,416 $2,731,770RELEASED AMOUNTS:$636,265 $0 $0 $0 $0 $0CUMMULATIVE AMOUNTS:$636,265SECURITY AMOUNT REMAINING:$2,095,505DATE:3/21/2023REDUCTIONS