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STAFF REPORT <br />DATE: January 2, 2024 <br /> CONSENT <br /> <br />AGENDA ITEM: Accept Improvements and Approve Security Reductions and Release for <br />the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions <br /> SUBMITTED BY: Jack Griffin, City Engineer <br />REVIEWED BY: Clark Schroeder, Interim City Administrator <br /> Sophia Jensen, City Planner Marty Powers, Public Works Director <br /> Clarissa Hadler, Finance Director <br /> Chad Isakson, Assistant City Engineer <br /> <br /> <br />ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve security <br />reductions and release for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions? <br /> <br />PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to reduce the landscape <br />security for Legacy at Northstar 1st Addition; accept the improvements and reduce the development security <br />for Legacy at Northstar 2nd, 3rd, and 4th Additions; and release the utility warranty security for Legacy at <br />Northstar 4th Addition as the 2-year warranty period for public watermain and sanitary sewer in the 4th <br />Addition expires on January 4, 2024. These requests have been reviewed and are being recommended for <br />approval in accordance with the approved Development Agreements. In regards to the 4th Addition, a <br />warranty walk-through was completed by city staff and all warranty punch list items have been addressed <br />by the developer. It is recommended release of security for these utilities be processed administratively <br />after January 4, 2024. Each approval is contingent on the developer having a positive escrow balance in the <br />minimum amount required by the city, and the developer being current with all payments and obligations <br />required by the Development Agreement. The Development Security amounts are recommended to be <br />reduced as follows: <br /> Current Security Amount Proposed Security Amount <br />1. Legacy at Northstar 1st Addition $ 784,678 $ 715,078 <br />2. Legacy at Northstar 2nd Addition $ 481,408 $ 403,704 <br />3. Legacy at Northstar 3rd Addition $ 589,929 $ 486,687 <br />4. Legacy at Northstar 4th Addition $ 476,964 $ 315,478 <br /> <br />The Legacy at Northstar 2nd, 3rd, and 4th Addition public improvement warranty periods will be initiated as <br />outlined in the attached Certificates of Completion. The Legacy at Northstar 1st Addition landscaping is in <br />the warranty period and reduction is recommended in accordance with the development agreement. <br />Twenty-five percent (25%) of the original security amounts will be retained until the applicable warranty <br />periods have expired and all warranty corrective work has been completed. <br /> <br />FISCAL IMPACT: It is the City’s goal to retain at all times during the subdivision improvements a <br />security amount that is adequate to ensure completion of all elements of the improvements as protection to <br />the city tax payers against the potential of developer default. Release of the public sanitary sewer and <br />watermain warranty security closes out the public utility improvement portion of the development. The <br />operation and maintenance of these facilities become the responsibility of the city going forward. <br /> <br />RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, <br />accept the improvements and approve the security reductions and release as detailed in the attached <br />respective worksheets for the Legacy at Northstar 1st, 2nd, 3rd, and 4th Additions, contingent on the developer