HomeMy WebLinkAboutA010 - Memo to Mayor and Council dated July 7, 2000 A I Iq
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TO: Mayor and City Council
FROM: Paul D. Wiegand, Public Works Director 16,
DATE: July 7, 2000
SUBJECT: Public Improvement agreement for Vulcan Subdivision
During the development of Vulcan Industrial Properties Subdivision in 1997,
an agreement for public improvements was executed that dealt with the
construction of a sanitary sewer that would serve Lot 6 of the development. In
addition to the agreement, a letter of credit in the amount of$30,000 was given
to the City as financial security for the sanitary sewer work.
As Lot 6 was built upon, the sanitary sewer service for the building was
extended to the existing sewer and the new sewer line contemplated by the
public improvement agreement was not needed. Because of this, the letter of
credit submitted as financial security was allowed to expire.
Under normal circumstances, the work involved with the public improvement
agreement would have been accomplished, accepted by the City, and the
financial security released. Because the property, Lot 6, is now being sold, the
status of the agreement and financial security are being questioned. As noted
above, no formal action was taken to release the letter of credit. It was just
allowed to expire.
In order to clarify the situation, it is recommended that the City Council void
the public improvement agreement and release the letter of credit for Vulcan
Industrial properties Subdivision.
Cc: Steven L. Schainker, City Manager
Brian P. O'Connell, Director of Planning and Housing
Jerry Byg, Municipal Engineer