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STAFF REPORT <br />DATE: January 16, 2024 <br /> CONSENT <br />AGENDA ITEM: Accept Improvements and Approve Security Reduction for the Northport <br />3rd Addition <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 /> ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve a security <br />reduction for Northport 3rd Addition? <br /> <br />PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the <br />improvements and reduce the development security for the Northport 3rd Addition. This request has been <br />reviewed and is being recommended for approval in accordance with the approved Development <br />Agreement. The warranty period for the Northport 3rd Addition public improvements are outlined on the <br />attached Certificate of Completion. Twenty-five percent (25%) of the original security amount will be <br />retained until the warranty period has expired and all warranty corrective work has been completed. <br /> <br />In addition, the 2-year utility warranty period has expired and all punchlist items have been addressed for <br />the watermain and sanitary sewer improvements. The utility warranty security is therefore recommended <br />to be fully released. Approval of these security reductions are contingent on the developer having a positive <br />escrow balance in the minimum amount required by the city, and the developer being current with all <br />payments and obligations required by the Development Agreement. The Development Security amount is <br />recommended to be reduced as follows: <br /> Current Security Amount Proposed Security Amount <br />1. Northport 3rd Addition $ 683,546 $ 255,882 <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 becomes the responsibility of the city going forward. <br /> RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, <br />accept the improvements and approve the security reductions as detailed in the attached worksheet for the <br />Northport 3rd Addition, contingent on the developer being current with all payments and obligations in <br />accordance with the Development Agreement, including a positive escrow balance as required by the City. <br />If removed from the consent agenda, the recommended motion for the action is as follows: <br /> <br />“Move to accept the improvements and approve the security reductions as detailed in the attached <br />worksheet for Northport 3rd Addition, contingent on the developer being current with all payments and <br />obligations in accordance with the Development Agreement.” <br /> <br />ATTACHMENTS: <br />1. Certificate of Completion – Northport 3rd Addition. <br />2. Security Reduction Worksheet – Northport 3rd Addition.