HomeMy WebLinkAbout4B, Letter of Credit Reduction for Hazelnut 3rd Addn Dev
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/],\~HILLS
City Council
Agenda Packet Item:
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~HILLS
Request for Council Action
Prepared By:
DepL:
Council Mtg. Date:
Final Action Needed By:
Kristine Giga
Engineering
2/11/08
2/11/08
Budgeted Amount:
Actual Amount:
Funding Source:
N/A
Cm.l~ilActionRequest:
Mati^on to Authorize Staff to Reduce the Letter of Credit fort he" Hazelnut 3td Addition Developmelltto $4:2;475.
':Staff,.'Rec6mmendation:
Authorize" Staff to Reduce the Letter of Credit for the Hazelnut 3rd Addition 'Oevelopmeniio$42.475.
~~gyj~9ry_G,~1!1ml_~jClnAction:
-- Commission
Planning:
PTRC:
-~upport!l1!:rqOqJrnents: (attached)
x Memo/letter:
Resolution No.:
Ordinance No.:
Dated February 7,2008 from Civil Engineer Kristine Giga and City Planner James Lehnhoff
Engineering Recommendation:
Attorney Recommendation:
Other:
Elh?_~~!?.I)ri1i}HC:citions:
:Admi!Jistrator'l~taff Comments:
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EN HILLS
MEMORANDUM
DATE:
February 7,2008
AGENDA ITEM
TO:
Mayor and City Council
Jim Willis, Interim City Administrator
FROM:
Kristine Giga, Civil Engineer
SUBJECT:
Hazelnut Park 3rd Addition Letter of Credit Reduction
BACKGROUND
In 2007, the City Council approved a Development Agreement for the Hazelnut Park 3rd
Addition plat. This development consists of 16 single family lots. The public improvements
include the construction of the street extension of Katie Lane to Cleveland Avenue, sanitary
sewer, watermain, storm sewer and infiltration basins. A majority of the work was completed in
2007, and the project is scheduled for completion in 2008. Work remaining for 2008 includes
the final lift of the bituminous pavement, turf establishment, landscaping, completion of the
storm sewer construction, and installation of street signs.
The developer submitted a letter of credit in the amount of$374,793.75 (equal to 125% of the
improvements) as the form of security for this project. At this time, the developer is requesting a
letter of credit reduction from the City for the completed public improvements.
DISCUSSION
All items completed to date are in accordance with project plans and specifications. The
Development Agreement states the City Council may reduce the letter of credit upon completion
of improvements and acceptance by the City. The following lists the improvements, associated
costs, amount to be reduced and remaining security.
\\Mctro-inet.us\ardenhills\PR&PW\Engineering\2008\Councit Actiolls\2-II-08MemoHazel3 _ LOC _ Reductioll.doc
Improvement
Site Grading/Turf Establishment
Landscaping
Storm Sewer
Street Improvements
Sanitary SewerfWatermain
Street Signs
Subtotal
Estimated Cost
$ 74,000
$ 10,500
$ 55,040
$ 89,550
$ 70,245
$ 500
$ 299,835
Security remaining (125% of improvements): $42,475
RECOMMENDED COUNCIL ACTION
Amount Reduced
$ 71 ,000
$ 0
$ 53,040
$ 71,750
$ 70,245
$ 0
$ 265,855
Amount
Remaining
$ 3,000
$ 10,500
$ 2,000
$ 17,980
$ 0
$ 500
$ 33,980
Staff recommends that the City Council authorize staff to reduce the letter of credit to the
developer, B. O'Meara Construction, Inc., to $42,475.