2007-10-05 LOC Reduction RequestBO L.TON ~ M ~ N K , INC.
ConsuNing Engineers & Surveyors
7533 Sunwood Drive • Suite 206 • Ramsey, MN 55303
Phone (768) 433-2851 • FAX (763) 427-0833
October 5~', 2007
Mr. Larry Kruse, City Administrator
City of Albertville
5959 Main Avenue NE, P. O. Box 9
Albertville, MN 55301
RE: Towne Lakes Sa` Addition - Letter of Credit Reduction
BMl Project No. T15.21677
Dear Mr. Kruse:
Contractor Property Developers Company (CPDC) has requested a reduction to Letter of Credit No.
060913, currently in the amount of $113,307. This Letter of Credit was established as a 2-year warranty
security for the municipal improvements of the plat and represents 10% of the cost of municipal
improvements.
To date, the warranty period has reached its 1-yr anniversary and we are unaware of any major items in
need of repeat. Assuming the Developer is current with all fees awed to the City, it is recommended that
the Letter of Credit be reduced from $113,307 to no less than $56,650. This reduced balance represents
5% of the cost of municipal improvements, is consistent with the development agreement and is believed
to sufficient performance security for the remainder of the warranty period.
The City has been working with CPDC on an ongoing basis to repairfcorrect issues as they arise. It is
recommended that prior to the final release of the security (scheduled for October of 2008), the City
perform a final review of all improvements to ensure no repairs are needed.
Please let me know if you have any questions or would like additional information.
Sincerely,
BOLTON & C.
afs d, P. E.
Albertville Assistant City Engineer
Cc: Tina Cannes -Albertville Finance Director
Bridget Miller -Albertville City Clerk
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