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HomeMy WebLinkAbout5F Jeffers Pond 7th Improvements Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 11, 2016 AGENDA #: 5F PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTER: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING PUBLIC IMPROVEMENTS FOR JEFFERS POND 7TH ADDITION DISCUSSION: Introduction The purpose of this agenda item is to consider a resolution accepting the developer installed public improvements for the Jeffers Pond 7th Addition. This action is housekeeping in nature and is called for as part of the development agreement between the developer and the city. In essence, this is the process through which privately installed improvements come into public ownership pursuant to Prior Lake City Code. History The Jeffers Pond 7th Addition is part of the overall Jeffers Pond Development and is located south of County Road 42 and west of County Road 21. On June 24, 2013, the City Council adopted Resolution 13-078 entering into a Development Contract with the Jeffers Foundation for the Jeffers Pond 7th Addition 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 the development 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 for the project described above 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. 2 Conclusion The City Engineer has reviewed the improvements and recommends that the City Council accept the improvements for the development. ISSUES: Once the improvements are accepted, the public improvements will then be turned over to the City. 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 IMPACT: Within the development contract for the development, revenue was recieved for city administration and for city contracted construction observation. Staff will review the City administration expenditures at the conclusion of the warranty period and will invoice the developer if revenue received is insufficient to cover expenses. The project security will not be released until the warranty period has passed and project expenses rectified. Escrow was received by the City for the development for construction observation and any remaining escrow funds will be returned at the conclusion of a successful warranty period. This one year warranty period starts when the project is accepted. ALTERNATIVES: 1. Approve a resolution accepting the public improvements for Jeffers Pond 7th Addition as part of the consent agenda. 2. Deny for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED MOTION: Motion and second to approve alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION ACCEPTING THE DEVELOPER INSTALLED IMPROVEMENTS FOR JEFFERS POND 7TH ADDITION CITY PROJECT #DEV13-000001 Motion By: Second By: WHEREAS, On June 24, 2013, the City Council adopted Resolution 13-078 which authorized the City to enter into a Development Contract with the Jeffers Foundation for the plat known as Jeffers Pond 7th Addition; 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, WHEREAS, The City has received the as-built drawings and property iron certification letter; and 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 Jeffers Pond 7th Addition development. 3. Any remaining escrow dollars for construction inspection will be returned to the developer at the conclusion of the warranty period. PASSED AND ADOPTED THIS 11TH DAY OF JANUARY 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 December 30, 2015 Kelly Johnson Assistant Treasurer/Director Jeffers Foundation 2605 Fernbrook Lane, Suite B1 Plymouth, MN 55447 RE: LETTER OF ACCEPTANCE LETTER OF CREDIT REDUCTION PROJECT #DEV13-000001 – JEFFERS POND 7TH ADDITION Dear Ms Johnson: The improvements including any punch list items for the Jeffers Pond 7th 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 Jeffers Pond 7th Addition, City Project #DEV13-000001. The City Council resolution accepting the improvements is attached. A warranty bond in the amount of $110,465 was received for the Jeffers Pond 7th Development. The warranty bond term is for a period of one year and will expire on January 11, 2016. Prior to January 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 #7540659016-900 to $19,463. Please provide the LOC in the revised amount to remain in place during the warranty period. If you have any questions please call me (952) 447-9834. Sincerely, Seng Thongvanh, P.E. Project Engineer CITY OF PRIOR LAKE Cc: Larry Poppler, City Engineer Morgan Stanley Bank, N.A.