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