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2004-06-07 Request for Acceptance of Public Improvements , f June 7, 2004 Mr. Pete Carlson, P.E. Consulting City Engineer City of Albertville 5975 Main Ave. NE P.O. Box 9 Albertville, MN 55301-0009 3030 Centre Pointe Drive Suite 800 Roseville, Minnesota 55113 telephone 6 5 1 . 5 5 6 . 4 5 5 0 facsimile 6 5 1 . 5 5 6 . 4 5 5 1 Re: Request for Acceptance of Public Improvements, Towne Lakes Phase 1 Dear Mr. Carlson, The public utilities have been installed, tested, and the streets paved with the final lift of asphalt in Towne Lakes. City staff has performed a walk thru and generated a relatively small punch list. These corrections are primarily warranty items Le. curb repairs and will be repaired shortly. Therefore, we respectfully request that the city consider formal acceptance the public street and utility improvements so that the two warranty period may commence. The Letter of Credit from Scherer Bros Lumber Co. supplied for Towne Lakes is in the amount of $136,000.00. A maintenance/warranty bond will be forward upon city acceptance for surety purposes to replace the letter of credit pursuant with the development agreement. I have attached a copy of application for Payment No. 11 (Final) for your convenience. We would appreciate if this request could be presented to the City Council for consideration at the June 21, 2004 City council meeting. If you have any questions please feel free to contact me. Sincerely ~ David Hempel Project Manager Enc!. Pay Est. No. 11 Towne Lakes Copy of Letter of Credit Development Agreement Excerpts Cc Mr. Larry Kruse, City AdministratorY Fran Hagen, WPS Curt Hennen, Hennen Construction II ,MAR-25-2004 02:56PM FROM-HENNEN CONSTRUCTION ~ +763-428-2462 Westwood Professional Services, Inc. "T C O-....r I r j /1 Application for Payment No. 11 & Final CPDC . Albertville. Towne Lakes - 7599 Anagram Drive Eden Prairie. MN 55344 (952) 937-5150 OWNER'S PROJECT#: N/A ENGINEER'S PROJECT t#: 99360 CONTRACTOR: Hennen Construction Company CONTRACT FOR; Utill1les and Street Construction CONTRACT DATE: June 19, 2001 ~ FOR WORK ACCOMPLISHED THROUGH THE DATE OF: March 26, 2004 STATEME:NT OF WORK: Original Contract Amount Net Change Orders (thru No.5) Current Contntct Amount 1.046,651.20 188,633.00 1,237,284.20 CONTRACTOR'S CERTIFICATION; Total Amount Due Less Amount Retained (0%1 Amount Due to Date Previous Payments Recommended Amount Due This Application 1,158,898.60 0.00 1,158,898.60 1.135.720.62 23,1n.98 The undersigned CONTRACTOR cerlifIes that (1) all prevl0lJ8 progress payments received from OWNER 011 account of work done under the ~ referred to above haw baen applied to diSCharge in full all cbtigaticns of CONTRACTOR Incurred in con"~CIIon With Work CO\fered by prIr;J( AppUcatIons for Payment nLmlbered 1 thl'Dll9h 10 Inclusive; and (2) tide to an work. materials and equipment Incorporated In said Work or oth8lwtsa fisted In, or covered by this ~lIcatlon fO( . Payment will pass to OWNER at time of payment free 'and cfear of BIlIlaO$, claims, securlly, Interest and encumbl'anees .. (except 8uch 85 are covered by Bond acceptable to OWNER Indemnlfyiog OWNER against any such I/en. claim. security interlMlt or encumbrnnco): and (3) all W~ coVered by this Appllcallon for Payment In aCCOrdance with the Contract Documents and not defectlve .as that term Is deftned In.the ConIract DoCJ.lments. "J - 01.'1 Dated 200tf , - ENGINEER'S RECOMMENDATION: Hennen ConstructiOn Company (Contractor) By; (I AA~ ~ ~~ --r-",--- _ This application (with accompanying documentation) meets the requirements of the Contract Documents and payment of the above AMOUNT DUE THIS APPLICATION Is recommended. Dated 3/ z(, . 20 01 WESiWOOD PROFESSIONAL SERVICes, INC. (EngIneer) ~~ Pay SIUflm8ty. 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CD 0 .Q CD 0 c( 0 0 CI "0 CI ~ - ::E 0 - - 0 0 0 0 0 - ~ c ro 0 c 0 0 0 0 CD 1; 1; ::E - 1; 1; - iii - 1; 1; 1; 1; iii III "0 Ol III "0 .D .D .D s:. ~ ~ ::s s:. ::> ::s :::I ::s ::s ::s ::s 0 ::s ::s ::s ::s ::s 0 0 0 f/) 0 ~ f/) f/) f/) f/) t/) t/) l- t/) f/) t/) t/) f/) l- I- CD ro c u:: ...... ...... .0 z - c Q) E >. co a.. .... o - c .2 ro .Q 0.. a. <( u o a.. u SCHERER BROTHERS LUMBER .. COMPANY CORPORATE OFFICES 9110 83rd Ave. N, Brooklyn Park, MN 55445 direct 612.493.2711 fax 612.627.0879 e-mail: www.schererbros.com February 27, 2002 Ms. Linda Goeb City Administrator City of Albertville 5975 Main Avenue Albertville, MN 55301 Re: Letter of Credit #010801 - Towne Lakes Dear Ms. Goeb: In accordance with the City Engineer's recommendation and City Council approval, we hereby stipulate that the above mentioned Letter of Credit in the amount of $1,434,485.00 be amended to a new amount of $136,000.00, and a new expiration date of August 1; 2003. All other terms and conditions of said Letter of Credit shall remain in full force and effect. Sincerely, SCHERER BROS. LUMBER CO. ~d4 President Scherer Bros. Yards: Albertville, Arden Hills, Minneapolis, Shakopee . Scherer Bros. Cabinet Distributors. Scherer Bros. Marketing Services Scherer Bros. Installation Services. Scherer BrQs. FarNorth Windows. Component Systems Incorporated . Truss Manufacturing Company ~SeJ 1200 25th Avenue South, P.O. Box 1717, St. Cloud, MN 56302-1717 TO: Linda Goeb City Administrator Albertville, Minnesota FROM: Peter J. Carlson, P .E. City Engineer DATE: January 16, 2002 RE: Letter of Credit Reduction Towne Lakes Albertville, Minnesota SEH No. A-ALBEV0009.00 14 ~~. 01y MEMORANDUM 320.229.4300 800.572.0617 320.229.4301 FAX The construction work for Towne Lakes is complete with the exception of the final bituminous wear course and the concrete sidewalks. Our office has inspected the improvements and found them to be in compliance .. dards. Therefore, I recommend the letter of credit be reduced to no less $136, 00. c: Mike Couti, City Attorney Cindy Sherman, City Planner Dave Hempel, CPDC Fran Hagen, Westwood Engineers doc:umeat4 Short EHiotI Hendrickson Inc. . Your Trusted Resource Equal Opportunity Employer CITY OF ALBERTVILLE MASTER PLANNED UNIT DEVELOPMENT AGREEMENT TOWNE LAKES TIllS AGREEMENT, entered into this ~ -It day of bJ ,2001 by and between Contractor Property Developers Company, collectively referred to herein as "Developer"; and the CITY OF ALBERTVILLE, County of Wright, State of Minnesota, hereinafter referred to as "City"; WITNESSETH: WHEREAS, Developer is the fee owner and developer of the real property (the "Development") described in Exhibit A, attached hereto and incorporated herein by reference, which real property is proposed to be subdivided and platted for development and which real property is subject to the provisions of this Agreement; and WHEREAS, Developer is proposing to subdivide a portion of the Develqpment into 43 single-family lots. Said subdivision, which is to be governed by.this' Agreement, is intended to bear the name "Towne Lakes" and shall hereinafter be referred to in its entirety as "Said Plat" or "Subject Property"; and WHEREAS, Developer has received preliminary plat approval for 119 single family lots in the Development as shown on Exhibit G, of which Said Plat is the first phase of the Development; and WHEREAS, this Agreement shall apply both to the Subject Property and to the Development as shown on the attached Exhibits A and G; and , 1 B. The Developer warrants to the City for a period of two years from the date the City accepts the finished MWlicipal Improvements that all such improvements have been constructed to City standards and shall suffer no significant impairments, either to the structure or to the surface or other usable areas due to improper construction, said warranty to apply both to poor materials and faulty workmanship. C. Developer shall provide the City with lien waivers from all contractors and subcontractors engaged to construct said improvements on Said Plat. Should Developer fail to provide the City with all applicable lien waivers, the City reserves the right to draw upon Developer's surety and pay any contractors who performed work on any Municipal Improvements and whom Developer has failed to fully pay for the performance of said work. D. The City shall, at its option, have the City Engineer present on Said Plat for inspection purposes at all times (or such times as the City may deem necessary) during the construction and installation of said MWlicipal Improvements. Developer agrees to pay for all costs incurred by the City during said inspections. 3. Construction of On- and Off-Site Improvements. A. Develpper shall construct all on- and off-site improvements including installation of paved streets, curb and gutter, boulevards, street signs, traffic signs, yard top soil, sod and seed in all yards, grading control per lot, bituminous or concrete driveways and parking lots, drainage swales, berming, and like items as necessary, street cleanup during project development, and erosion control, all as required by City ordinance. Front, side and portions of the back yards of residential lots shall be sodded in accordance with the Residential Development Standards as on file with the City Administrator's Office. Those portions of the yards not required to be sodded may be seeded with grass seed or sodded. In all cases permanent turf or grass must be established over all areas of the lot not covered by a hard or impervious surface. The Developer shall guarantee that all new plantings shall survive for two full years from the time the planting has been completed or will be replaced at the expense of the Developer. Said on- and off-site improvements shall be installed no later than October 31, 2003, with the exception of erosion control, drainage swales and berming, which shall be installed upon initial grading of Said Plat, and except that the driveways and sod need not be installed 11 5. Surety Requirements. A. Developer will provide the City with an irrevocable letter of credit (or other surety as approved by the City Attomey) as security that the obligations of the Developer wIder tlus contract shall be performed. Said letter of credit or surety shall be in the amount of $1,434,485.00 representing the sum of 100% of the estimated cost of the Municipal Improvements ($1,070,000.00),50% of the on and off-site improvements ($25,800.00), and 150% of the estimated cost for. landscaping/screening materials ($338,685.00). Said letter of credit or smety must meet the approval of the City attorney as to form and issuing bank. B. The City may draw on said letter of credit or smety to complete work not performed by Developer (including but not limited to on- and off- site improvements, MWlicipal Improvements described above, erosion control, and other such measures), to pay liens on property to be dedicated to the City, to reimbw.se itself for costs incurred in the drafting, execution, administration or enforcement of this Agreement, to repair or correct deficiencies or other problems which occur to the Municipal Improvements during the warranty period, or to otherwise fulfill the obligations of Developer under this agreement. C. In the ,event that any cash, irrevocable letter of credit, or other surety referred to herein is ever utilized and found to be deficient in amount to payor reimburse the City in total as required herein, the Developer agrees that upon being billed by the City, Developer will pay within thirty (30) days of the mailing of said billing, the said deficient amount. If there should be an overage in the amount of utilized security, the City will, upon making said determination, refund to the Developer any monies which the City has in its possession which are in excess of the actual costs of the project as paid by the City. D. Developer hereby agrees to allow the City to specially assess Developer's property for any and all costs incurred by the City in enforcing any of the terms of tIus agreement should Developer's letter of credit or smety prove insufficient or should Developer fail to maintain said letter of credit or surety in the amount required above within 30 days of mailing of written request by the City. Should the City assess Developer's property for said costs, Developer agrees not to contest or appeal such assessment and waives all statutory rights of , 14 appeal under Minnesota Statutes, including Minnesota Statute 429.081. E. That portion of said cash, ilTevocable letter of credit or other strrety with respect to the perfOlmance of Site Improvements shall be released upon certification of the City Engineer and approval of the City Council that all such items are satisfactorily completed pursuant to this Agreement. F. In the event a strrety referred to herein is in the form of an iITevocable letter of credit, which by its tenns may become null and void prior to the time at which all monetary or other obligations of the Developer are paid or satisfied, it is agreed that the Developer shall provide the City with a new letter of credit or other surety, acceptable to the City, at least forty-five (45) days prior to the expiration of the original letter of credit. If a new letter of credit is not received as required above, the City may without notice to Developer declare a default in the terms of this Agreement and thence draw in pad or in total, at the City's discretion, upon the expiring letter of credit to avoid the loss of Strrety for the continued obligation. The form of any iITevocable letter of credit or other surety must be approved by the City Attorney prior to its issuance. 6. Surety Release. , A. Periodically, as payments are made by the Developer for the completion of portions of the Municipal Improvements and/or on- and off-site Improvements, and when it is reasonably prudent, the Developer may request of the City that the surety be proportionately reduced for that portion of the Municipal Improvements and on-and off-site improvements which have been fully completed and payment made therefor. All such decisions shall be at the discretion of the City Council. The City's cost for processing reduction request(s) shall be billed to the Developer. Such cost shall be paid to the City within thirty (30) days of the date of mailing of the billing. B. The Developer may request of the City a reduction or release of any surety as follows: 1. When another acceptable letter of credit or surety is furnished to the City to replace a prior letter of credit or strrety. , 15 -* When all or a portion of the Municipal Improvements or the on- and off-site improvements have been installed, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of improvements so installed, except that the City shall retain the letter of credit or surety in the amount of 10% of the estimated construction price of the Municipal Improvements during the fIrst year of the warranty period and 5% of the estimated construction price of the Municipal Improvements during the second year of the warranty period. Ileveloper may substitute a warranty bond acceptable to the City Attorney for the warran er f credit m e same amounts an uratIon as required for the ~~~_.. letter of credit. .....------.-...-- As to all requests brought under this paragraph, the City Council shall have complete discretion whether to reduce or not to reduce said letter of credit or surety. A. The costs incurred by the City in processing any reduction request shall be billed to the Developer and paid to the City within thirty (30) days of billing. 7. Abandonment of Proiect - Costs and Expenses. , In the event Developer should abandon the proposed development of the Subject Property, the City's costs and expenses related to attorney's fees, professional review, drafting of this Agreement, preparation of the feasibility report, plans and specifications, and any other expenses undertaken in reliance upon Developer's various assertions shall be paid by said Developer within thirty (30) days after receipt of a bill for such costs from the City. In addition, in the event the De"eloper abandons the project, in whole or in part, ceases substantial field work for more than nine (9) months, fails to provide sufficient ground-cover to prevent continuing soil erosion from the Development, or fails to leave the abandoned property in a condition which can be mowed using conventional lawn mowing equipment, Developer agrees to pay all costs the City may incur in taking whatever action is reasonably necessary to provide ground-cover and otherwise restore the Development to the point where undeveloped grounds are level and covered with permanent vegetation sufficient to prevent continuing soil erosion from the Development and to facilitate mowing of the Development. In the event that said costs are not paid, the City may withdraw funds from the above- mentioned surety for the purpose of paying the costs referred to in this paragraph. , 16 Check No. 001480 011563 AUDIT FUND 011779 AUDIT FUND 146,691.43 1,202.00 71,691.43 -1,202.00 70,489.43 PLEASE DETACH BEFORE DEPOSITING TOWNE LAKES clo CONTRACTOR PROPERTY DEVELOPERS CO MN ROSEVILLE 55113 THIS FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER TOWNE LAKES c/o CONTRACTOR PROPERTY DEVELOPERS Co. 3030 CENTRE POINTE DRIVE SUITE 800 ROSEVILLE MN 55113 US BANK 24 HOUR BANKING 17-2 910 6/30/2004 $70,489.43 Seventy Thousand Four Hundred Eighty-Nine and 43/1 OO-----------.----.----------m--------------- Dollars PAY TO THE ORDER OF CITY OF ALBERTVILLE PO BOX 9 ALBERTVILLE, MN 55301 THE BACK OF THIS DOCUMENT CONTAINS AN ARTIFICIAL WATERMARK-HOLD AT AN ANGLE TO VIEW II-ODD .I..BolI- 1:0 g .0000 2 21: .0 I.. 75 bB . ~ 2 I.. 211-