#10 - Savona 4th Security Reduction

Home Browse Search

STAFF REPORT DATE: January 2, 2024 CONSENT AGENDA ITEM: Accept Improvements and Approve Security Reductions for the Savona 4th Addition SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Clark Schroeder, Interim City Administrator Sophia Jensen, City Planner Marty Powers, Public Works Director Clarissa Hadler, Finance Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security reductions for Savona 4th Addition? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the improvements and reduce the development security for the Savona 4th Addition. This request has been reviewed and is being recommended for approval in accordance with the approved Development Agreement. Approval of this reduction is contingent on the developer having a positive escrow balance in the minimum amount required by the city, and the developer being current with all payments and obligations required by the Development Agreement. The Development Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Savona 4th Addition $ 1,468,090 $ 891,473 The warranty period for the Savona 4th Addition public improvements are outlined on the attached Certificate of Completion. Twenty-five percent (25%) of the original security amount will be retained until the warranty periods have expired and all warranty corrective work has been completed. FISCAL IMPACT: It is the City’s goal to retain at all times during the subdivision improvements a security amount that is adequate to ensure completion of all elements of the improvements as protection to the city tax payers against the potential of developer default. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, accept the improvements and approve the security reduction as detailed in the attached worksheet for the Savona 4th Addition, contingent on the developer being current with all payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to accept the improvements and approve the security reduction as detailed in the attached worksheet for Savona 4th Addition, contingent on the developer being current with all payments and obligations in accordance with the Development Agreement.” ATTACHMENTS: 1. Certificate of Completion – Savona 4th Addition. 2. Security Reduction Worksheet – Savona 4th Addition.