HomeMy WebLinkAbout#08 - Union Park West Security Reduction
STAFF REPORT
DATE: April 1, 2025
CONSENT
TO: City Council
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Approve Release of Grading and Public Utility Security for the Union
Park West Addition
REVIEWED BY: Nicole Miller, City Administrator
Clarissa Hadler, Finance Director
Jason Stopa, Community Development Director
Marty Powers, Public Works Director
Nate Stanley, City Engineer
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services
☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future
☒ Managed Growth ☒ Resilient Infrastructure
BACKGROUND: U.S. Homes Corporation entered into a development agreement with the City for Union
Park West Addition on July 24, 2019.
ISSUE BEFORE COUNCIL: Should the City Council approve the release of the grading security and the
public utility warranty security for Union Park West Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release the grading
security and reduce the public utility warranty security for the Union Park West Addition. This request has
been reviewed and is being recommended for approval in accordance with the approved Development
Agreement. The Development Security amount is recommended to be reduced as follows:
Current Security Amount Proposed Security Amount
1. Union Park West Addition $2,016,243 $731,717
The two-year warranty period for Union Park West sanitary sewer and watermain ended on March 21,
2025. Twenty-five percent (25%) of the sanitary sewer and watermain portion of the original security was
retained through the two-year warranty period. A warranty walkthrough has been completed by City Staff
and all sanitary sewer and watermain warranty punchlist items have been addressed by the developer.
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. Release of the Public Utility warranty security
closes out the sanitary sewer and watermain portion of the development. The operation and maintenance of
the public sanitary sewer and watermain 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 the grading security and the public utility warranty security as detailed in the attached
worksheet for Union Park West Addition, contingent on the developer being current with all 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:
Motion to release the grading security and public utility warranty security as detailed in the attached
worksheet for Union Park West Addition, contingent on the developer being current with all
payments and obligations in accordance with the Development Agreement, including a positive
escrow balance as required by the City.
ATTACHMENTS:
1. Security Reduction Worksheet – Union Park West Addition.
UNION PARK WEST ADDITION Time of Performance: October 31, 2022
DEVELOPMENT AGREEMENT AMOUNTS
CATEGORY CONSTRUCTION 125%REMARKS #1 #2 #3 #4 #5 #6
Grading $487,082 $608,853 100%$608,853
Sanitary Sewer $313,229 $391,536 100%$293,652 $97,884
Watermain $365,453 $456,817 100%$342,613 $114,204
Storm Sewer (w/pond structures)$308,968 $386,210 50%$193,106
Streets + Sidewalks $432,768 $540,959 50%$270,480
Bituminous Trails $42,867 $53,584
Surface Water Facilities $53,555 $66,944
Street Lighting $36,000 $45,000
Street Signs and Traffic Control Signs $7,950 $9,938
Private Utilities (electricity, natural gas, telephone, and cable)
Landscaping $84,546 $105,683 $79,262
Tree Preservation and Restoration $0 $0
Wetland Mitigation and Buffers $0 $0
Monuments $9,200 $11,500
Erosion Control $38,798 $48,498
Miscellaneous Facilities $0 $0
Record Drawings $5,000 $6,250
TOTALS $2,185,416 $2,731,770 RELEASED AMOUNTS:$636,265 $79,262 $1,284,527 $0 $0 $0
CUMMULATIVE AMOUNTS:$636,265 $715,527 $2,000,053
SECURITY AMOUNT REMAINING:$2,095,505 $2,016,243 $731,717
DATE:3/21/2023 11/6/2024 4/1/2025
REDUCTIONS