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AGENDA ITEM <br />Item No.: 13 <br />Date: February 10, 2020 <br />Item Description: Orono Preserve Security for Sidewalk Repair <br />Presenter: Jeremy Barnhart, AICP Agenda Consent Agenda <br />Community Development Director Section: <br />1. Purpose. To consider exchanging a Letter of Credit for cash security to guarantee the repair of <br />39 sidewalk panels at Orono Preserve. <br />2. Background. Sidewalks were required along the streets in the Orono Preserve subdivision. <br />These sidewalks were installed, but upon inspection prior to acceptance of the improvements, it <br />was noted that 48 panels of sidewalks were damaged during the construction of the adjacent <br />house and/or utilities. The development contract required the provision of a letter of credit to <br />guarantee completion of improvements, including the sidewalks. The LOC is currently <br />$110,198.00. The development agreement does not permit the reduction of the letter of credit <br />below this amount. <br />As the repair of the sidewalks is the only remaining item, the developer proposes replacing the <br />letter of credit with a separate escrow agreement and a cash escrow deposit. <br />The City Engineer has agreed that $39,000 is an appropriate amount to guarantee completion of <br />the repair work, the City attorney has drafted the escrow agreement. <br />3. Staff Recommendation. Staff supports the proposed action. With Council approval and <br />execution of the escrow agreement, the letter of credit will be released. <br />COUNCIL ACTION REQUESTED <br />City Council should approve the escrow agreement as drafted. <br />Exhibits <br />A. Draft Escrow Agreement <br />B. Map showing damaged panels <br />C. Letter of Request <br />References <br />Orono Preserve Development Agreement <br />Prepared By: J. Barnhart <br />Reviewed By: -Sb)R <br />Approved By: -TV <br />