4.7. SR 10-25-1993 - Laserfiche WebLink

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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.