#08 - Union Park West Security Reduction

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STAFF REPORT DATE: March 21, 2023 CONSENT AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve Security Reduction for Union Park West Addition. SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sophia Jensen, Planner Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the public sanitary sewer and watermain improvements and approve security reductions for the Union Park West Addition as itemized below? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the public sanitary sewer and watermain improvements and reduce the development security for the Union Park West Addition. This request has been reviewed and the following reduction is being recommended for approval in accordance with the approved Development Agreement, contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. The Development Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Union Park West Addition: $ 2,731,770 $ 2,095,505 Work within the development has progressed in accordance with the development agreement and to the extent necessary to support a reduction in the security as detailed in this report. As part of this reduction the sanitary sewer and watermain improvements have been accepted and the 2-year warranty period will be initiated. Twenty-five percent (25%) of the original sewer and water security amount will be retained until the warranty period has expired. 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. With this reduction, the remaining security amount held by the City remains sufficient to complete the remaining improvements. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, accept the public sanitary sewer and watermain improvements and approve the security reduction for the Union Park West Addition as detailed in the attached worksheet, all contingent on the developer being current with all other 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 public sanitary sewer and watermain improvements and approve the security reductions as detailed in the attached worksheet for the Union Park West Addition, contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement.”