2005-01-14 LOC Consolidation
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SEH
January 14,2005
RE: Albertville, Minnesota
Karston Cove 3rd Addition
SEH No. A-ALBEV0404.00
Mr. Larry Kruse
City Administrator
City of Albertville
5975 Main Ave NE
P.O. Box 9
Albertville MN 55301-9776
Dear Mr. Kruse:
David Pattberg from Woodside is requesting a consolidation of the two letters of credit issued for Karston
Cove 3rd Addition (see attached 1etter).The first letter of credit is for work associated with construction of
64th Street. The second letter of credit is for work associated with private streets and public utilities
installed with the townhomes on either side of 64th Street. Total amount of the two letters of credit is
$592,711.
Work remaining to be done on 64th Street includes wear course paving, sidewalk installation, boulevard
restoration, and adjustment of manhole castings and gate valves. The actual contract value of the
remaining work is approximately $29,050.
Work completed to date in the private development includes all grading, curbing, and utility work in the
area on the north side of 64th Street. The first lift of blacktop has also been placed on the north side of 64th
Street. Actual cost of the work completed to date is approximately $123,950. Value of the remaining
work is ($567,711 - $123,950) = $443,761.
If the City agrees to consolidate the letters of credit, the recommended amount of security for a single
letter of credit is $472,800. Once the new letter of credit is issued, we recommend release of the two
existing letters of credit.
Please call me at 651.490.2147 if you have any questions.
Sincerely,
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Robert L. Moberg, PE
Project Manager
ah
Attachment
c: Pete Carlson, SEH
Mike Couri, City Attorney
Tina Lannes, City Finance Director
David Pattberg, Woodside
x:\ae\albev\040400\wordlkruse 1 0 1405 .doc
Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-5196
SEH is an equal opportunity employer I www.sehinc.com I 651.490.2000 I 800.325.2055 I 651.490.2150 fax
December 30, 2004
SEH,Inc
Attn: Bob Moberg, Albertville City Engineer
3535 Vadnais Center Drive, Suite 200
St. Paul, MN 55110
Re: Karston Cove 3rd Addition letters of credit
Dear Mr. Moberg:
According to my records Karston Cove 3rd Addition has two outstanding letters of credit.
Letter of credit #S307472 in the amount of $25,000 is to insure the installation of the
final lift and sidewalk on 64th Street. Letter of credit #S309548 in the amount of
$567,711 is for the remainder of the improvements associated with Karston Cove 3rd
Addition.
We requests that these two letters of credit be combined into one letter of credit in an
amount that would insure the completion of all work that is left in the 3rd Addition. The
onsite construction of 3rd Addition has been completed on the north side of 64th Street.
The grading is completed at a cost of approximately $40,000 and the utilities are
complete at a cost of $95,000. We request that the letter of credit be reduced by these
amounts ($567,711 - $40,000 - $95,000) to approximately $435,000. The estimates for
completion are listed below:
64th Street final lift and sidewalk-
Remainder of onsite improvements for 3rd Addition-
Total amount ofproject left-
$ 25,000
$ 435.000
$ 460.000
We request that letter of credit #S307 4 72 be released and letter of credit #309548 be
reduced to $460,000.
If the city does not agree with these requests please itemize the different amounts and
location of the problems. Once the release and reduction has been determined please
respond with a letter stating the outcome. Our bank requires a letter from the city, on city
letterhead, referring to the letter of credit by number and the reduction amount and/or the
release of the letter of credit.
J