Agenda - Council - 09/14/2010 - Laserfiche WebLink

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CASE # P 7,4 CONSIDER AWARD OF CONTRACTS FOR THE COMPLETON OF OUTSTANDING DEVELOPMENT OBLIGATIONS ASSOCIATED WITH THE SWEETBAY RIDGE SUBDIVISION By: Tim Himmer, City Engineer Background: Like many residential developments, the SWEETBAY RIDGE subdivision has stalled due to current economic conditions. To date certain stage one improvements listed in the development agreement remain incomplete; specifically the final lift of asphalt on all streets, certain sidewalk and bituminous trail segments, and miscellaneous clean up items (silt fence removal, curb repair, utility corrections, etc.). Since there has been a substantial delay in construction other items may be discovered during the implementation process and additional corrective actions may be necessary for the existing infrastructure that has never been formally accepted, including but not limited to landscaping, grading, utility installation, and erosion control. Staff has been working with the developer and their lender in an effort to get all outstanding items completed, but due to funding constraints they neglected to undertake the required improvements at this time. The longer these items remain incomplete the faster the roads will deteriorate, the less attractive the development will be from a marketing standpoint, and the more likely it is that construction prices will increase and the existing security will no longer cover all of the associated costs. The City has called on the a letter credit ($319,501) that was being held as security for this development, and also has approximately $33,000 in escrow and another $39,000 in trail fee credits at its disposal to finance the improvements. Should the required improvements exceed the dollar amounts outlined above the City will utilize all other legal remedies available to seek reimbursement for such expenses. Observations: Over the past several months the developer solicited quotes for all the outstanding items referenced, which totaled approximately $350,000. As you can see from the numbers listed above (approximately $390,000) there should be enough money within the various developer securities to cover all the costs associated with completing the development obligations. Once it was determined that the developer was no longer proceeding on a reasonable time frame to complete the project, staff called on the letter of credit and formally solicited quotes for portions of the outstanding work that require special expertise. It was also decided that some of the items could be completed by Public Works crews and the ICWC. Therefore, it is proposed that the boardwalk and misc. clean up items (estimated at approximately $195,000) be handled in -house with staff time and materials being paid by the developer securities. Following are the quotes received for this project: Bituminous . Concrete Diversified Paving, Inc. $108,226.00 Arnt Construction Co. $81,309.00 Minnesota Roadways Co. $102,296.75 C.W Houle, Inc. $58,516 North Valley, Inc. $99,700.00 Voson Plumbing, Inc. $64,419.00