#12 - Northport Security Reduction

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STAFF REPORT DATE: January 2, 2024 CONSENT AGENDA ITEM: Approve Release of Warranty Security for Public Improvements for Northport 1st and 2nd Addition. SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Clark Schroeder, Interim City Administrator Marty Powers, Public Works Director Clarissa Hadler, Finance Director Sophia Jensen, City Planner Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve release of warranty security for public improvements for Northport 1st and 2nd Addition? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release the development security for Northport 1st and 2nd Addition. The 1-year warranty period for the public improvements expired on December 6, 2023. Twenty-five percent (25%) of the original security was retained through the 1-year warranty period. A warranty walk-through has been completed by city staff and all warranty punch list items have since been addressed by the developer. With the release of the 1-year warranty utility security the overall development security may be reduced as shown below: Current Security Amount Proposed Security Amount 1. Northport 1st Addition: $511,703 $60,008 2. Northport 2nd Addition: $172,417 $16,406 The remaining security is for landscaping items. FISCAL IMPACT: Release of the warranty security closes out the public improvement portion of the development. The operation and maintenance of the public facilities becomes the responsibility of the city going forward. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, approve the release of public improvement warranty security for the Northport 1st and 2nd Additions. The release of security is contingent on the developer being current with all payments and obligations in accordance with the Development Agreement, including a positive escrow balance as may be required by the City. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve the security release for the Northport 1st and 2nd Addition as detailed in the respective Security Reduction Worksheets, contingent on the developer being current with all payments and obligations in accordance with the Development Agreement, including a positive escrow balance as may be required by the City” ATTACHMENTS: 1. Security Reduction Worksheet – Northport 1st Addition. 2. Security Reduction Worksheet – Northport 2nd Addition.