OLD LYME PLANNING COMMISSION
SPECIAL MEETING
FEBRUARY 2, 2010
PRESENT WERE: Chairman Harold Thompson, Robert McCarthy, Steve Ross and Chris Kerr.
DISCUSSION WOOD CREST ESTATES SUBDIVISION – BOND RELEASE REQUEST – FURTHER RELEASE
Thompson requested that all future communication be directed through the Land Use Office. Thompson also discussed the issue of items being placed on the agenda without proper time to review due to the short notice provided by the applicant.
Thompson reported that he had spoken with Tom Metcalf several times regarding this subject matter. Thompson stated when Metcalf prepared his cost estimate he reviewed the numbers that were provided by Mr. Kenny of Kenwood, LLC. Thompson stated that the regulations require that when a bond amount is established that the cost be pro-rated over three years in case the work is not completed including interest for each of those three years.
Thompson stated the cost for Wood Crest Drive (as provided by Kenny) is $408,910.00 and compounded with the interest for three years totals $544,295.00. Thompson stated it is understood by the commission that a lot of cost of that section of road had to do with additional expenses such as a retaining walls and excavation which would not normally be required for a road of equal length on Main Street. Thompson stated the regulations also provide the Planning Commission with a certain amount of latitude with respect to how much is retained in the bond portion. Thompson stated the commission also has the option to adjust the amount that is retained by the town in bond portion until the road is turned over between 5% and 50%. Thompson stated that following a discussion with Tom Metcalf, Tom has stated
that based on the original construction estimate that retaining 5% of the construction bond would be acceptable. Thompson stated that based on the original numbers it would be 544,259 x 5% = $27,212.00.
Ross asked for clarification on the interest. Thompson stated that the regulation states when establishing a completion bond it has to be assumed that the road will not be completed in the first year and possibly go out to three years so the amount of money retained by the town in the form of a completion bond would include additional interest for the next three years to accommodate for any changes in inflation or cost of doing business over that extended period. He further stated this would insure the town had sufficient funds to complete the project.
Page 2 – Minutes
February 2, 2010
Ross stated that was for a completion bond and presently they are converting to a maintenance bond. Thompson stated the bond will not be converted to a maintenance bond until the road is turned over to the Town. Ross stated so we are reducing the completion bond so he asked the validity of adding the three years interest if the road is substantially completed.
Thompson stated that Metcalf is suggesting that when the commission establishes a number to be retained that it is prudent to follow the guidelines established in the regulations which takes the commission through the process from a completion bond to a maintenance bond.
Thompson outlined the figures:
544,259 x 5% = $27,212.000
+ $ 9,840.00 monumentation
+ $ 100.00 painting
+ $ 3,500.00 as-built drawings
$ 40,652.00 TOTAL
Kevin Kenny stated that Mr. Metcalf used the numbers from the Developers Construction Costs for the drive and monumentation but used a larger number for the as-builts. Kenny also noted he had already delivered the as-built plans to Mr. Metcalf’s office. Kenny also stated that when the road is actually accepted by the town a mylar needs to be provided which will cost approximately $75.00 not $3,500.00. Discussion ensued about the as-builts and it was agreed this issue could be resolved at a later date. McCarthy also stated that the amount for monumentation did not include the interest figure for three years and that amount would be $3,000.00 which would bring the figure back up to $40,000.00 even if the as-built issue was resolved.
Steve Ross made a motion to reduce the bond amount to $40,000.00. Chris Kerr seconded the motion. The motion passed unanimously.
Respectfully submitted,
Kim Groves
Land Use Administrator
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