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<br /> STAFF REPORT <br />DATE: January 20, 2026 <br /> CONSENT <br /> <br />TO: City Council <br />FROM: Mike Rusenovich, Project Engineer <br />AGENDA ITEM: Accept Sanitary Sewer and Watermain Improvements and Approve <br />Security Reduction for Northstar 2nd Addition <br />REVIEWED BY: Nicole Miller, City Administrator <br /> Clarissa Hadler, Finance Director <br /> Jason Stopa, Community Development Director <br /> Adam Swanepoel, Interim Public Works Director <br /> Nate Stanley, City Engineer <br /> <br /> <br />CORE STRATEGIES: <br /> <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☒ Managed Growth ☒ Resilient Infrastructure <br /> <br /> <br />BACKGROUND: GWSA Land Development, LLC entered into a development agreement with the City <br />for Northstar 2nd Addition on June 25, 2025. <br /> <br />ISSUE BEFORE COUNCIL: Should the City Council accept the public sanitary sewer and watermain <br />and approve security reductions for Northstar 2nd Addition? <br /> <br />PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the public <br />sanitary sewer and watermain improvements and reduce the development security for the Northstar 2nd <br />Addition. This request has been reviewed and is recommended for approval in accordance with the <br />approved Development Agreement. The development security is recommended to be reduced as shown <br />below: <br /> <br /> Current Security Amount Proposed Security Amount <br />1. Northstar 2nd Addition $2,403,908 $1,810,783 <br /> <br />The sanitary sewer and watermain improvements for the development have been constructed, tested, and <br />verified. With the acceptance of the public sanitary sewer and watermain, the 2-year warranty period for <br />the utility improvements will be initiated as shown on the attached Certificate of Completion. Twenty-five <br />percent (25%) of the original security amount will be retained until the warranty period has expired. <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.