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