Placement: Resolutions
Action Requested: Motion / Vote
TITLE
Resolution 24-R27, a Resolution to Consider and Approve the First Amendment to the Becker Road Construction Agreement with Riverland/Kennedy II, LLC.
BODY
Submitted By: Diana Spriggs, P.E., Assistant Director, Public Works.
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): Consider and approve the First Amendment to the Becker Road Construction Agreement with Riverland to update the Surety requirement to follow City Code rather than limiting the surety reduction as in the original agreement.
Presentation Information: Questions will be answered upon request.
Staff Recommendation: Move that the Council approve the First Amendment to the Becker Road Construction Agreement.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the First Amendment to the Becker Road Construction Agreement.
2. Move that the Council not approve the First Amendment to the Becker Road Construction Agreement and provide staff direction.
Background: Due to the high construction cost that the City has experienced for our own roadway projects, versus the construction costs that developers are experiencing, it was determined upon finalizing of the Becker Road Construction Agreements that a Surety would be required from each developer at the City's construction rate. This rate can be double what the cost is for the developer to complete the work, but this would ensure that the City's surety will be a sufficient dollar amount to cover the remaining work if needed. Per the Construction Agreement, the reduction of the surety is limited to a maximum of 50% reduction for the completed work. Staff has discussed with Riverland/Kennedy II, LLC and determined that allowing the reduction to match the amount of completed work will still leave sufficient funds in the surety to cover any remaining work at the City's rate ...
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