HomeMy WebLinkAbout5E Eagle Creek Estates Development Improvements 600i
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4646 Dakota Street SE
4'I NESOlP Prior Lake,MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: AUGUST 10, 2015
AGENDA#: 5E
PREPARED BY: SENG THONGVANH, PROJECT ENGINEER
PRESENTER: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING THE
IMPROVEMENTS FOR THE EAGLE CREEK ESTATES DEVELOPMENT
DISCUSSION: Introduction
The purpose of this agenda item is to consider a resolution accepting the
developer installed improvements for the Eagle Creek Estates
Development.
This action is housekeeping in nature as the staff has already accepted the
improvements specified in the development contracts as noted below.
History
The Eagle Creek Estates Development is located north of County Road 21
and west of Markley Lake. On July 8, 2013, the City Council adopted
Resolution 13-086 entering into a Development Contract with KRB
Development, Inc. for the Eagle Creek Estates Development. Since that
City Council action, the developer has been completing the construction of
the improvements as outlined in the Development Contract. The
Development Contract and approved construction drawings outline the
necessary developer installed improvements as well as other items needed
for this development to be accepted by the City.
The Development Contract for each of these developments details the
mechanisms for City acceptance of the developer installed improvements.
In 2005, the City amended the Standard Development Contract to include
City Council authorization to accept the improvements in addition to the
final written acceptance by the City Engineer.
Current Circumstances
The developer has now completed the improvements as outlined in the
Development Contract. The improvements have been inspected by the
City and have been found to be in compliance with City standards and the
approved drawings. In some cases minor field changes were necessary
during construction. These improvements including any field adjustments
were documented in the completed as-built drawings. These as-built
drawings were completed by the developer and reviewed by the City. The
property iron certification letter has been received by the City.
Conclusion
The City Engineer has reviewed the improvements and has written the
acceptance letter for these developments. It is now appropriate for the City
Council to accept the improvements for these developments.
ISSUES: Once the improvements are accepted, the public improvements will then be
turned over to the City and the security for the development returned to the
developer. It will then be the responsibility of the City to perform
maintenance over the public improvements and take over operational costs
for the street lighting on the project.
FINANCIAL An escrow in the amount of$95,563 for consulting and construction
IMPACT: inspection was received by the City for this development. An additional
$13,680 was received for consulting and construction inspection to cover
additional inspection time spent on the Development. These dollars have
been reserved in the Developers Agreement Special Revenue fund for
payment. Any remaining escrow funds intended for construction inspection
will be returned to the developer at the conclusion of a successful warranty
period (1 year).
Oversizing for street, storm sewer and watermain construction was paid by
the City to the Developer through the Development Contract. The costs for
these improvements have been reconciled with the Developer through the
Development Contract and no additional compensation is necessary.
ALTERNATIVES: 1. Approve a resolution as part of the consent agenda accepting the
improvements for the Eagle Creek Estates Development.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Motion and second for approval of alternative#1.
MOTION:
2
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4646 Dakota Street SE
4I rNEso` t* Prior Lake, MN 55372
RESOLUTION 15-xxx
A RESOLUTION ACCEPTING THE DEVELOPER INSTALLED IMPROVEMENTS FOR EAGLE CREEK
ESTATES DEVELOPMENT CITY PROJECT#DEV11.000005
Motion By: Second By:
WHEREAS, On July 8, 203, the City Council adopted Resolution 13-086 which authorized the City to
enter into a Development Contract with KRB Development, Inc. for the plat known as
Eagle Creek Estates; and
WHEREAS, The Development Contract outlined the improvements the developer was responsible for
installing; and
WHEREAS, These improvements and all other Development Contract responsibilities are now
complete to the satisfaction of the City; and,
WHEREAS, The City has received the as-built drawings and property iron certification letter; and
WHEREAS, The City Engineer has reviewed the improvements and has written the acceptance letter
for this development.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council hereby accepts the improvements for the Eagle Creek Estates Development.
3. Any remaining escrow dollars for construction inspection will be returned to the developer at the
conclusion of the warranty period.
4. The oversizing amount for street, storm sewer, and watermain construction was paid to the developer
in accordance with the Development Contract. No further compensation to the developer is needed for
this project
PASSED AND ADOPTED THIS 10th DAY OF AUGUST 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager
O1 %0+1'
u rn 4646 Dakota Street SE
Prior Lake,MN 55372
y,
August 5, 2015
Gary Horkey
KRB Development LLC
17021 Fish Point Road
Prior Lake, MN 55372
RE: LETTER OF ACCEPTANCE
LETTER OF CREDIT REDUCTION
PROJECT#DEV11-000005—EAGLE CREEK ESTATES
Dear Mr. Horkey:
The improvements including any punch list items for the Eagle Creek Estates Development have been
completed. The property pin certification letter and warranty bond have been received for the
development. Therefore, the City accepts the improvements for Eagle Creek Estates Development, City
Project#DEV 11-000005. The City Council resolution accepting the improvements is attached.
A warranty bond in the amount of $2,951,288.23 was received for the Eagle Creek Estates
Development. The warranty bond term is for a period of one year and will expire on August 11, 2016.
Prior to August 11, 2016 the City will perform a warranty period inspection to ensure all applicable
improvement items have met City requirements. If all items pass inspection, the project will be closed
out at that time.
Also, in accordance with the development contract "...once the City has accepted the project, as-builts
have been completed, all punch list items are completed and warranty bond submitted, the Irrevocable
letter of Credit may be reduced to 5%". With the completion of the aforementioned items, the City
hereby authorizes the reduction of the Letter of Credit#1087 to $171,033.16. Please provide the LOC in
the revised amount to remain in place during the warranty period.
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com
If you have any questions please call me (952) 447-9834.
Sincerely,
Seng Thongvanh, P.E.
Project Engineer
CITY OF PRIOR LAKE
Cc. Tradition Capital Bank