HomeMy WebLinkAbout5.A.7. Security for Maintenance on Glacier Estates Development
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CITY OF SHAKO PEE cOhgsEr~T
Memorandum 11 .,
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Approval of Security for Maintenance on Glacier Estates Development
DATE: October 7, 2008
INTRODUCTION:
City Council is being asked to accept a maintenance security less than the required amount, per
City Code and Developer's Agreement.
BACKGROUND:
Glacier Estates is a residential subdivision that was constructed in 2006 with most of the
improvements except for the final bituminous lift and repair items. In 2008, staff has been
working to complete this subdivision to final acceptance.
Staff has met with the developer of Glacier Estates and they have agreed to complete the work
this year, which is mainly the final bituminous wear course of the streets installed. The amount
of work remaining is less than $100,000.00,
Per the City Code, Section 12.19, Subdivision 3, the developer is to provide a maintenance
security for the one year warranty period in the amount of 60% of the total cost of improvements,
In past years, we have received maintenance bonds at 60% of the total costs when the
subdivision work was done in one year and finished the following year,
Due to financial difficulties in the housing market, subdivisions are taking longer to complete,
For instance, Glacier Estates has had an additional year of warranty on the sanitary sewer,
watermain, storm sewer and street work. Per the Code, the developer/contractor is to provide a
maintenance bond in the amount of $593,006.96 as the improvements total $988,344.00.
The developer and his contractor can provide a bond of $200,000.00 to cover the work being
done now and for any other repairs necessary from their bonding company. Staff believes this
security is adequate, due to the additional warranty time that has happened already, and the
amount is more than adequate to cover work done this year.
Staff is requesting Council approval for this revised maintenance security amount due to the
length of the project and financial security that can be obtained.
ALTERNATIVES:
1, Approve a motion approving a maintenance security in the amount of $200,000.00 for
Glacier Estates Subdivision.
2. Do not approve a reduced maintenance security and require the full amount, per City
Code.
3. Table for additional information.
RECOMMENDATION:
Staff would recommend Alternative No. 1.
ACTION REQUESTED:
Approve a motion approving a maintenance security in the amount of $200,000.00 for Glacier
Estates Subdivision.
~~
Public Works Director
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ENGR/2008-PROlECTS-2008-COUNCILIGLAClER-ESTAlES-W ARRANTY
912,21
( C. security may be released when the City Engineer determines that all required
improvements have been satisfactorily completed in accordance with the approved
construction plans, and that the Developer has given the City Engineer a detailed
record drawing survey of the plat showing details as required by the design
requirements and in compliance with Subdivision 3 of this Section,
Subd. 3. Security for Maintenance. Security shall not be released for any improvement until the
Developer has submitted security assuring the satisfactory condition of the improvement for a
period of one (1) year after acceptance by the City. If the improvements were constructed without
security, security for maintenance still is required, This security may be any security listed as an
option in Section 12,16, except that a maintenance bond shall be provided in place of a
performance bond, The amount of the security shall be 60% of the total cost of the improvements,
SEC. 12.20. WHEN SECURITY MAY BE DRAWN UPON. The City may draw upon the security
whenever it appears that the Developer will not comply with the conditions of the final plat, pay the
administrative and inspection fee, or comply with the requirements of this Chapter, including
completion of all improvements prior to expiration of the security. The City shall make reasonable
efforts to notify the Developer prior to making any draw,
SEC. 12.21. SUBMITTAL REQUIREMENTS FOR PRELIMINARY PLATS.
Subd. 1 Documents Required, The preliminary plat shall include the entire land area owned or
controlled by the Developer, unless the excluded land is of a size described as an optional
subdivision under Section 12,01, Subdivision 3 8, A Developer shall submit the following
documents to the Planner:
, A. A completed application form;
,
B. A general narrative description of the project;
C. Fees as specified in the adopted City fee schedule;
D. A description of any requested variances;
E. A wetland delineation report when applicable;
F. When applicable to the land being subdivided, the Developer shall submit the
following documentation:
1. Evidence that a county highway permit will be granted I if the site will have
access to a county road;
2. A landscape plan meeting the landscaping and tree preservation
requirements of City Code, Section 11,24;
3. In rural service areas soil percolation tests, soil .borings and sewage
treatment design for two (2) sites per proposed lot, conforming to the
testing procedures of the Shakopee sewage disposal and treatment code;
and
G, All required drawings as specified in Subdivision 2,
Subd. 2. DrawinQs Reauired. In submitting a preliminary plat for consideration, the Developer
shall submit the following drawings which are described in detail below, the number of copies
necessary for submittal is to be determined by the Zoning Administrator and/or the City Engineer:
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