4.7. SR 10-25-1993
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1~6 Energy Parii Drive
8t Paul, H~ 5.5108-52112
Gl2-644-4389
_Fa.t 612-644-9446
mI SOOIard Pariill'ay, Sfp, 102
llinoeapolis, HN 55441-6451
612-546-0432
Fax: 612-544-&.398
ITEM 4.7.
October 21, 1993
File: 230-190-20
Mr. Pat Klaers
City Administrator
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: Hillside Estates Lateral Sanitary Sewer
Dear Mr. Klaers:
As you requested, this correspondence is intended to give you my thoughts relative to the
issue of a letter of credit for the sanitary sewer extension that Mr. Rick Foster has requested
to be included with the trunk water main extension to the new elevated tower.
As you are aware, Mr. Foster believes that it should not be necessary for him to provide a
letter of credit to cover the cost of the sanitary sewer extensions. In his argument against
providing a letter of credit, he has cited improvements such as the Western Area
improvement project and the Meadowvale Heights Trunk improvement project. Both of these
projects, I believe, are substantially different than the current improvement Mr. Foster is
requesting. Both of these projects included trunk sanitary sewer extensions which served
several properties. In the case of the Western Area improvement, there was no petition from
affected property owners. It was initiated by the City Council. In the case of the
Meadowvale Heights improvement, the project was initiated by the development of
Meadowvale Heights 1st Addition. The developer for that project petitioned for trunk
improvements; however, the actual extension was based on City Council initiation due to the
other properties involved in the assessment. In the case of Mr. Foster's request for sanitary
sewer improvements, these are not trunk facilities but rather lateral lines intended to serve
future additions of his Hillside Estates project.
Given that the improvements in question are lateral rather than trunk, it has always been the
City I s policy that developers are required to place a letter of credit to cover these types of
improvements. I believe that if no letter of credit is required to cover these proposed lateral
sanitary sewer extensions, this would signify a change in the City's overall policy relative to
developers providing security on internal improvements to their projects. I would suggest
that if no letter of credit is going to be required on this project, that staff prepare
recommendations for City Council consideration relative to the need for letters of credit from
developers such that all developers are treated equitably on this issue.
.
Mr. Pat Klaers
October 21, 1993
Page Two
If you have any questions regarding these comments, please call.
Sincerely,
MSA, CONSULTING ENGINEERS
.~Jq~
Terry J. M'~rer, P.E.
TJM:ds
190-21 02. OCT
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