5.e) Reduction of Letter of Credit, Superior Land Development Meeting Date: 10/20/2008
Agenda Item: ����
City Council Agenda Report
City of Scandia
14727 209`h St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Approve the request of Superior Land Development for the release of
$21,000 from the letter of credit for landscaping in the Tii Gavo
subdivision.
Deadline/ Timeline: N/A
Background: • Superior Land Development has requested that the letter of credit
for the landscaping be reduced by the amount of$21,000.00 from
the total of$141,787.00. The LOC for landscaping would then be
at $120,787.00.
• The developer has requested that the guarantee be released.
• The site was inspected by the city's Code Official on September
14, 2009 with Critical Connections; a detailed letter was received
from Critical Connections from that inspection which explains our
findings. An inspection in 2008 has determined that all of the
trees have been planted as required by the landscape plan and
appear to be growing. The release is only for trees that have been
growing for 2 seasons.
Recommendation: Staff recommends approval of the reduction of the letter of credit for
landscaping by$21,000.00 to a new amount of$120,787.00.
Attachments/ Critical Connections letter dated September 17, 2009
Materials provided:
Contact(s): Ken Arndt
(651 433-4410)
Prepared by: Steve Thorp, Code Official
(Tii Gavo LOC reduction landscaping)
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Critical Connections Ecologicat Services, Inc.
14760 Oakhill Road, Scandia, Minnesota 55073
Natural R����V��
Resource
Consulting SEP 'Z "� 2009
September 17, 2009
Landscape CITY OF SCANDIA
Ecology
Botanicai
Inventories Steve Thorp
Building/Code Enforcement Official
Threatened & 14727 209 St. N.
Endangered Scandia, MN 55073
Species Surveys
Greenway & Subject: Tii Gavo Request of Reduction of the Letter of Credit for Landscaping and
Open Space
Planning 2009 Monitoring Report for Landscape Tree Installation
Naturat
Community Mr.Thorp,
Restoration
Wettand The following is a request for a reduction in the letter of credit for landscaping along with the
Delineation & 2009 planting plan update that details the current condition of planted landscape trees at the Tii
Permitting Gavo development in Scandia, MN. Landscape material has been installed over the past three
and a half years at Tii Gavo. The trees planted in the fall of 2007 are now at the end of their two
Wetland Year guarantee and qualify for reducing the letter of credit being held by the City of Scandia for
Banking & landscape material.
Monitoring
Based on City code, once plant material has been in place for two full growing seasons a
Minnesota reduction in the landscaping letter of credit should be released by the City of Scandia to the
Land Cover developer. If plant material dies or is not in good health, additional monitoring will take place or
Classification a replacement tree will be required to be replanted if the tree dies.
Geographic Tree installation began in 2006 with additional installations in 2007 and 2008. The trees planted
Information in 2006 were final inspected last year when the first request for a reduction in the letter of
Systems credit was released by the city. An annual inspection was completed on September 14`h, 2009
of the landscape material that was installed in the fall of 2007 as well as the plant material
Global installed in 2008. No additional trees were installed during the 2009 season.
Positioning
Systems Inspections of each tree involved close observation to determine current vitality. Looking at any
signs of damage along the main trunk and into the crown was noted as well as color of the tree
Database and vegetative bud set for the following season. All trees listed in good health have no
Management & structural problems, are entering into the fall with good leaf color and vigor, and have good bud
Development set for the next growing season.
Environmental
Education
Phone: 651.433.4410 Fax: 651.433.4528 Email:info@ccesinc.com Web: www.ccesinc.com
Trees Planted in Fall of 2006
Trees planted from the fall of 2006 were final inspected last year when they qualified for a reduction in
the Letter of Credit for landscaping. All of these trees are still in good health with no additional
mortality.
Trees Planted in Fall of 2007
In October of 2007 Critical Connections Ecological Services took an active role in assisting with the
coordination of tree planting on-site at Tii Gavo. CCES worked with a local tree spade contractor to
move a total of 63 overstory trees to their permanent locations in late October and into November of
2007. All of these trees were planted before December 15C, 2007. These trees now qualify for a
reduction in the landscaping letter of credit since two years have passed since their installation was
completed.
The following is a list of trees planted during 2007 showing their quantities, what type of tree was
planted and their current condition. Inspection of the following trees took place on September 14`n,
2009 with a representative from the City of Scandia present.
uantit Tree Tvpe Current Condition
12 White Pine In very good health
10 White Oak In very good health
5 White Oak In declining health
2 White Oak Dead
24 Northern Pin Oak In very good health
1 Northern Pin Oak In declining health
1 Northern Pin Oak Dead
5 Quaking Aspen In very good health
2 Black Cherry In very good health
1 Wild Apple In very good health
Total=63
Based on current inspection, 54 of the 63 trees planted in 2007 are in very good health with 6 in
declining health and 3 that are dead. The trees in declining health will not qualify for a reduction in the
letter of credit for landscaping this year. It was determined that they will be inspected again next year
at this time and if they have recovered or are showing improvements in vitality then they will qualify for
the reduction otherwise they will not. The dead trees will require a replacement tree to be planted on-
site before all landscape is determined to be complete at Tii Gavo.
Values to determine credit are found in the Final Landscape Plan submitted by Critical Connections
Ecological Services dated 12-14-07. These values were used to calculate the letter of credit and are as
follows: for deciduous overstory trees the value is$500.00 per tree, for coniferous overstory trees the
value is$400.00 per tree, and for deciduous understory trees the value is$200.00 per tree.
Critical Connections Ecological Services, Inc. Page 2
Trees Planted in Fall of 2007 that Qualify for a Reduction in the Letter of Credit
uantit Tree Tvqe Value Total Reduction
12 White Pine $400.00/tree $ 4,800.00
10 White Oak $500.00/tree $ 5,000.00
24 Northern Pin Oak $500.00/tree $12,000.00
5 Quaking Aspen $500.00/tree $ 2,500.00
2 Black Cherry $500.00/tree $ 1,000.00
1 Wild Apple $500.00/tree 500.00
Total Reduction Request = $21,000.00
Trees Planted in Summer of 2008
In July of 2008 Critical Connections Ecological Services installed the balled and burlap trees specified on
the final landscape plan for Tii Gavo. A total of 21 overstory and 36 ornamental/understory trees were
planted throughout the site. All trees were planted before July 18`h, 2008.
These trees were mulched according to the final landscape plan and were included in the 2008 and 2009
watering program. In the fall of 2008 several trees were staked to correct the settling of the soil that
had occurred since planting. In 2009 two of the sugar maple trees had died and have now been
removed. These two trees will require replacement before landscaping is considered complete at Tii
Gavo.
Overstory Trees Planted
uantit Tree Tvpe Current Condition
16 Red Maple In very good health
3 Sugar Maple In very good health
2 Sugar Maple Dead, have been removed
Total=21
Understory Trees Planted
32 Hawthorn In very good health
4 Nannyberry Viburnum In very good health
Total=36
Trees to be planted for Site Completion
In order to complete all tree installation for Tii Gavo there needs to be an additional 15 deciduous
overstory trees, 10 coniferous overstory trees, 15 ornamental trees and 4 replacement trees planted.
Once these trees have been planted then all of the required trees based on the final landscape plan will
be installed. Many of these trees are proposed to be planted in areas that have not been final graded
(around Community Building and parking area)or occur in the Phase Two portion of the project. Some
of these trees may be planted in 2010 or later when the areas are final graded and ready for final
landscape installation.
Critical Connections Ecological Services, Inc. Page 3
., �
The trees planted in 2007 (ones in decline but given one more year to rebound) and 2008 will be
monitored again in 2010 and a request for a reduction in the letter of credit for landscaping installed in
2007 and 2008 will take place then.Trees planted in 2006 will not be monitored in 2010 or replaced if
they die.
If you have any questions regarding the request and monitoring update, feel free to contact me at any
time.
Ken Arndt „ �----
/ /
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�`Forest Ecologist/Certified Arborist MN-4033A
Critical Connections Ecological Services, Inc.
Critical Connections Ecological Services, Inc. Page 4
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This Agreement dated the 8th day of October, 2009 is by and between City of
Scandia(the"Company") and Security State Bank of Marine (the"Financial
Institution").
The Company has requested that the Financial Institution permit it to initiate debit
and credit entries to accounts maintained at the Financial Institution and other financial
institutions by means of the Automated Clearing House(the "ACH")Network. The
Financial Institution has agreed to do so on the terms of this Agreement.
The Company and the Financial Institution agree as follows:
1. Definitions. Unless defined in this Agreement, capitalized terms shall have
the meanings provided in the Rules.
A. Rules. "Rules"means the rules of the National Automated Clearing
House Association and Appendices to the rules of the National
Automated Clearing House, as amended from time to time.
B. Effective Entry Date. "Effective Entry Date"means the date included
in any Entry as the date upon or after which such Entry is to be
effective.
C. Entry. "Entry"has the meaning given in the Rules, except that it shall
also include an"On-Us Entry."
D. On-Us Entry. "On-Us Entry"means a debit or credit Entry to an
account maintained at the Financial Institution.
2. Compliance with the Rules and Applicable Law. The Company's rights
and obligations with respect to any Entry are governed by the Rules, this
Agreement and applicable law. The Company acknowledges a copy of the
Rules are available upon request. The Company agrees to comply with and be
bound by the Rules. The Company agrees to comply with applicable state and
federal law or regulation and Company warrants that it will not transmit any
Entry that violates the laws of the United States, including,without limitation,
regulations of the Office of Foreign Asset Control (OFAC).
3. Transmittal of Entries and Security Procedures.
A. The Company shall transmit any debit or credit Entry to the Financial
Institution in accordance with the Rules and Attachment 1 to this
Agreement. The Company shall comply with the security procedures
described in Attachment 2 to this Agreement. Company acknowledges
that the security procedures are for verification of authenticity and not
to detect errors in the Entry. Company warrants that no individual will
be allowed to initiate transfers without proper supervision and
safeguards and agrees to take all reasonable steps to maintain
confidentiality of the security procedures and any related security
features. If Company knows or believes that an unauthorized
individual has transmitted or attempted to transmit one or more Entries
or that the security procedures have otherwise been compromised,
Company agrees to immediately notify the Financial Institution and
agrees that any Entry received by Financial Institution before or within
a reasonable time after such notice to the Financial Institution shall be
treated as authorized by Company.
B. The Company hereby authorizes the Financial Institution to transmit
any Entry received by the Financial Institution from the Company in
accordance with the Rules and the terms of this Agreement and to
credit or debit the amount of such Entry to the accounts specified by
Company.
4. Company's Representations,Warranties and Agreements. Company
represents and warrants that each Entry provided to the Financial Institution
complies in all respects with the Rules. Company acknowledges and agrees
that, pursuant to the Rules,the Financial Institution makes certain warranties
to the ACH Operator and other financial institutions and that such warranties
aze made in reliance on: (i)the representations and warranties of the
Company, including but not limited to those contained in this section 4 of this
Agreement and(ii) Company's agreement to be bound by the Rules and
applicable law. The Company shall indemnify the Financial Institution
against any loss, liability or expense (including attorneys' fees and expenses)
resulting from, related to or arising out of any breach of the Company's
warranties or this Agreement. Without limiting the foregoing, Company
warrants:
a) Each Entry is authorized pursuant to the Rules and the
authorization has not been revoked;
b) Each credit Entry is timely and accurate;
c) Each debit Entry is for a sum which, on the Settlement Date
will be due and owing to the Company from the party whose
account will be debited, is for a sum specified by such party
or is to correct a previously transmitted erroneous credit
Entry;
d) No Entry has been reinitiated in violation of the Rules.
5. Financial Institution Obligations. Subject to Section 8 of this Agreement,
the Financial Institution shall, in accordance with the Rules,process, transmit,
and settle for any Entry. The Financial Institution shall have no obligation to
transmit an Entry if the Company fails to comply with any terms of this
Agreement.
6. Company's Account. The Company will maintain a deposit account (the
"Account")with the Financial Institution at all times during the term of this
Agreement. The Company shall at all times maintain a balance of available
funds in the Account sufficient to cover Company's obligations under this
Agreement. The Company authorizes the Financial Institution to debit its
Account for any amount it owes the Financial Institution as a result of this
Agreement.
7. Cancellation or Amendment of an Entry. T'he Company shall have no right
to cancel or amend any Entry after its receipt by the Financial Institution.
However, the Financial Institution shall use reasonable efforts to act on a
request by the Company to cancel an Entry before transmitting it to the ACH
or crediting or debiting an On-Us Entry. Any such request shall comply with
the security procedures described on Attachment 2 to this Agreement. The
Financial Institution shall have no liability if it fails to effect the cancellation.
8. Rejection of Entries. The Financial Institution may reject any Enhy,
including an On-Us Entry, which does not comply with the requirements of
Attachment 1 or Attachment 2 of this Agreement and may reject any Entry if
the Company is not otherwise in compliance with the terms of this Agreement
or the Rules. The Financial Institution shall notify the Company in
accordance with Attachment 1 of such rejection no later than the business day
such Entry would otherwise have been transmitted by the Financial Institution
to the ACH or, in the case of an On-Us Entry, the day before its Effective
Entry Date.
9. Provisional Credit Notice. In the case of a credit Entry, credit given by the
Receiver's financial institution for the Entry is provisional until the Receiver's
financial institution has received final settlement through Federal Reserve
Bank or has otherwise received payment. If the Receiver's financial
institution does not receive such payment for the Entry, the Receiver's
financial institution is entitled to a refund from the Receiver in the amount of
the credit Entry to the Receiver.
10. Reversals. If the Company has mistakenly initiated a duplicate Entry of File
or a File contains an Entry or Entries with the types of enoneous data
specified in the Rules relating to reversing files,the Company may reverse the
File or Entry pursuant to the Rules. If the Company reverses an Entry of File,
Company shall indemnify the Financial Institution against any claim, demand,
loss, liability or expense resulting directly or indirectly from such reversal.
11. Notice of Returned Entries. The Financial Institution shall notify the
Company in accordance with Attachment 1 or the receipt of a returned Entry
&om the ACH no later than one business day after the business day of such
receipt. The Financial Institution shall have no obligation to re-transmit a
returned Enhy if the Financial Institution complied with the terms of this
Agreement with respect to the Entry.
12. Periodic Statement. The periodic statement issued by the Financial
Institution for the Company's account will reflect Entries credited and debited
to the Company's account. The Company agrees to notify the Financial
Institution within a reasonable time not to exceed thirty (30) days after the
Company receives a periodic statement of any discrepancy between the
Company's records and the information in the periodic statement.
13. Fees. The Company agrees to pay the Financial Institution for services
provided under this Agreement in accordance with the schedule of charges
attached to this Agreement as Attachment 3. The Financial Institution may
change its fees from time to time upon notice to the Company.
14. Liability. In performance of the services required by this Agreement,
Financial Institution shall be entitled to rely solely on the information,
representations and warranties provided by Company pursuant to this
Agreement, and shall not be responsible for the accuracy or completeness of
such information. The Financial Institution shall be responsible only for
performing the services expressly provided for in this Agreement, and shall be
liable only in the event of loss due to its gross negligence or willful
misconduct in performing those services. In no event shall the Financial
Institution have any liability for any consequential, special, punitive or
indirect loss or damage which the Company may incur or suffer in connection
with this Agreement. In addition, the Financial Institution shall be excused
from failing to act or delay in acting if such failure or delay is caused by legal
constraint, interruption of transmission or communications facilities,
equipment failure, war, act of terror, emergency conditions, or other
conditions beyond the Financial Institution's control.
15. Inconsistency of Name and Account Number. The Company acknowledges
that, if an Entry describes the Receiver inconsistently by name and account
number,payment of the Entry may be made on the basis of the account
number even if it identifies a person different from the named Receiver.
16. Miscellaneous. The Financial Institution may amend the terms of this
Agreement from time to time upon 30 days written by notice to the Company.
Either pariy may terminate this Agreement upon ten (10) days' written notice
to the other. The Financial Institution shall be entitled to rely on any written
notice believed by it in good faith to be signed by one of the Authorized
Representatives whose names and signatures are set forth on Attachment 4 to
this Agreement. This Agreement shall be governed by and construed in
accordance with the law of the state of Minnesota.
CITY OF SCANDIA SECURITY STATE BANK OF
MARINE ON ST. CROIX
By: By:
Title: Title:
ATTACHMENT 1
A. Delivery of Files:
• Disk should be delivered to Security State Bank of Marine
• Files must be delivered to the financial institution by 12:00 p.m. the day
before the requested settlement day to ensure funds availability at the
opening of business on settlement day. If the date falls on a weekend or a
holiday observed by the Federal Reserve the file may be delivered the
business day before. Company may deliver files up to 2 days before the
requested settlement day. The financial institution will hold those files
and process them to settle on the Effective Entry Date listed by the
Company.
• The payroll will follow.
B. Limits:
• The total dollar amount of Entries transmitted by the Company to the
Financial Institution on any single day shall not exceed $25,000.00.
Financial Institution may review the limit set forth in the preceding
sentence and change the limit by sending written notice of the change.
C. Notice by Financial Institution:
• If an Entry is rejected or returned the Financial Institution shall notify the
Company by telephone at 651-433-2274.
ATTACHMENT 2
Security Procedures—
The Uniform Commercial Code, Article 4A, (UCC 4A) demands that for
corporate credits there be a "commercially reasonable" security procedure in
place to guard against loss. Your regional ACH Association suggests that this
"procedure"be used for a11 types of originated transactions. Depending on the
media of input you are accepting, some of the following suggestions should be
used to ensure your procedures are commercially reasonable:
1. encryption of information when data transmitted.
2. multiple passwords and call back procedures for files sent via data
transmission.
3. transmittal forms with total entries, dollars, Effective Entry Date, and
signature, along with a call back or use of a voice response system for
verification of information when input is tape, paper, diskette, or other
media requiring delievery.
4. company input schedule so that your institution knows when to expect a
file.
File Transmission—
The company's authorized representative will provide the financial institution
with verification of the totals contained in the transmission by sending a total
with the diskette. These totals will be verified by two authorized
representatives of the City of Scandia by telephone the day of files
transmission. (See Attachement 4).
The financial institution will anticipate the receipt of a direct deposit
transmission from the company on each scheduled processing date identified
by the company in writing and agreed to by the financial institution. The
company's authorized representative will notify the financial institution if a
transmission will not take place on the prearranged scheduled processing date.
The company is responsible for ensuring that the financial institution receives
the transmission on or before each processing date indicated in the processing
schedule.
The financial institution will verify that the file totals agree with the company
information given by phone. In the event of a discrepancy in the totals, the
financial institution will call the company representative. If an authorized
representative is not available for notification, then the file will not be
processed until the company's authorized representative can be contacted on
the next business day.
The company is solely responsible for the accurate creation, modification, and
deletion of the account information maintained on the company's personal
computer and used for direct deposit money transfer.
The company is solely responsible for access by its employees of the data files
maintained on the company's computer.
The company is responsible for operator security procedures on the one
personal computer licensed for use of the program.
ATTACHMENT 3
A. Fees:
• This should include all fees charged for ACH transactions. Included are
monthly base fees or per file input fees, transaction fees, and exception
processing fees. If data base management or key entry functions are utilized a
fee for these services should be included.
• Set-up Fee (one-time only) $0.00
Per file (or monthly base fee) $0.00
Per transaction(plus Federal Reserve fees)
Debit $0.00
Credit $0.00
Addenda records (per record) $0.00
Returns and Notifications of change $0.00
Reversals
File reversals $0.00
Single enhy reversals $0.00
Data Retention $0.00
Investigations
Within 3 months of settlement date $0.00
More than 3 months after settlement date $0.00
ATTACHMENT 4
Schedule of Payments
File transmissions will be processed twice a month with effective entry dates of the 2"a
and 17th days of the month. If these dates fall on the weekend or holidays observed by
the Federal Reserve the file transmissions will be the next business day.
Authorized representatives:
A list of authorized signers should be maintained by the financial institution which
include all signers authorized by the depositor. Be sure to include 2"d and 3`d shift
contacts and phone numbers in case there aze problems that need to be dealt with during
non-banking hours.
Authorized Re resentative List for Ci of Scandia
Name Signature Phone Date Added Date Deleted
( rinted) Number
Colleen
Firkus
Brenda
Eklund
Anne
Hurlburt