3.3. SR 10-13-2008REQUEST FOR ACTION
To Item Number
Ma or and Ci Council 3.3.
Agenda Section Meeting Date Prepared by
Consent October 13, 2008 Ter Maurer, Public Works Director
Item Description Reviewed by
Quotations for Completing Work at Belmont Estates Lori ohnson, Ci Administrator
Development Reviewed by
Action Requested
Authorize Rum River Contracting to complete the development work at Belmont Estates
Addition to be funded by the developer's letter of credit.
Background/Discussion
Belmont Estates Addition, located south of CSAH 12 adjacent to Hillside Park in east Elk River
has a developer's agreement originally signed on October 15, 2004. The developer's agreement
requires that all developer improvements be completed by December 31, 2005. Due to the
slowdown in the housing market, the developers have been given additional time to complete the
improvements. It has become clear that the developers do not have the financial ability to have
all improvements completed, which include the final lift of blacktop, sidewalk construction and
other miscellaneous items. Therefore, staff is recommending that the city complete the
improvements, utilizing the developer's letter of credit to fund the costs.
Four quotes have been received for the remaining work items. The attached bid tabulation shows
the total quote from the four contractors, Rum River Contracting, North Valley, Inc., Hardrives,
Inc., and Oman Bros., Inc. The low quote received from Rum River Contracting is in the amount
of $81,631.52. This is a unit-based quotation, so the contractor will be paid only for those units
used. The quote is based on an estimation of the amount of units needed to complete the project.
In addition to the contractor's costs, there will be some minor city costs for coordinating and
inspecting the work and any other unpaid bills that the developer may have with the city, which
will also be funded by the letter of credit.
Financial Impact
There will be no financial impact to the city, since the developer's letter of credit is sufficient to
pay for all of the improvements. Securing funds from the letter of credit will occur prior to
authorizing work to proceed.
Attachments
• Quotation Summary
Belmont Estates
October 13, 2008
Page 2
QCt10Il Motion by Second by Vote
Follow Up
S:\PUBLIC W012KS\Engineexing Division\2008 CC Memos\Belmont Estates Request.doc
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