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6.14. SR 10-17-2005 Item 6.14. MEMORANDUM TO: Mayor and City Council FROM: Scott Clark, Community Development Director C;V DATE: October II, 2005 SUBJECT: Waiver of Letter of Credit for School District Action for Consideration Independent School District 728 has requested a waiver to the letter of credit requirements for the East Elk River Elementary School project (see attached letter dated October 10, 2005.). Background Approximately two years ago the Building Division instituted a policy that any new building permit ( except single family residential) requires a letter of credit to ensure that minor site issues are corrected, e.g. finalizing landscaping plans, internal sidewalks, other physical improvements, grading corrections, etc. The letter of credit was established as the source of remedy since the other leverage tool for corrections, a certificate of occupancy, is viewed as tying back to building deficiencies, not site issues. The letter of credit is calculated at 3% of building value up to a maximum of $50,000. It is the intention of the staff to bring this letter of credit requirement to the Council at a future date to formalize it as part of the Zoning Ordinance. Recommendation Since this is an internal policy, a simple motion by the Council provides necessary direction to staff and no findings or resolution is necessary. S:\PLANNING\Scott Qark\ Waiver of LOC for School District.doc Independent School District ADMINISTRATION OFFICES 815 Highway 10 Elk River, MN 55330 728 ~ DR. ALAN JENSEN Superintendent of Schools (763) 241-3400 Fax (763) 241-3407 -- - ==-::::= - - - - - - - - - - -- - - -- - - -- - - -- - - -- - - -- - - -- - - - - - - - - - - - - n \., 1 2 2005 October 10, 2005 VIA FACSIMILE AND U.S. MAIL Mr. Scott Clark Community Development Director City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: East Elk River Elementary School Dear Mr. Clark: On behalf of Independent School District #728, I hereby request a waiver of the Letter of Credit requirement for the East Elk River Elementary School project. Please contact me at 763/360-2539 if you have any questions. Sincerely, ~~ &~/ahy Ron Bratlie, Ed.D. Director of Special Projects