HomeMy WebLinkAbout#12 - Legacy 3rd Addn Security Release STAFF REPORT
DATE: February 7, 2023
CONSENT
AGENDA ITEM: Approve Release of Warranty Security for Public Utilities for Legacy at
Northstar 3rd Addition.
SUBMITTED BY: Jack Griffin, City Engineer
REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director
Sophia Jensen, City Planner
Chad Isakson, Assistant City Engineer
ISSUE BEFORE COUNCIL: Should the City Council approve release of warranty security for public
utilities for Legacy at Northstar 3rd Addition?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release the
development security for Legacy at Northstar 3rd Addition. The 2-year warranty period for Legacy at
Northstar 3rd Addition watermain and sanitary sewer expired on January 5, 2023. Twenty-five percent
(25%) of the original security was retained through the 2-year warranty period. A warranty walk-through
has been completed by city staff and all warranty punch list items have been addressed by the developer.
With the release of the 2-year warranty security for sanitary sewer and watermain the overall development
security may be released as detailed in the attached worksheets and shown below. Current Security Amount Proposed Security Amount
1. Legacy at Northstar 3rd Addition: $785,584 $589,929
FISCAL IMPACT: Release of the 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 warranty security for public sanitary sewer and watermain for Legacy at Northstar
3rd Addition. The release of security is 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 approve the security release for the Legacy at Northstar 3rd Addition as detailed in the
respective Security Reduction Worksheet, 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”
ATTACHMENTS:
1. Security Reduction Worksheet – Legacy at Northstar 3rd Addition.
LEGACY AT NORTH STAR 3RD ADDITION Time of Performance: October 31, 2021DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Grading SecuritySanitary Sewer $311,625 $389,531 $292,148 $97,383Watermain $314,469 $393,086 $294,815 $98,272Storm Sewer (w/pond structures) $358,510 $448,138 $224,069 $112,034Streets + Sidewalks $677,964 $847,455 $423,728 $211,864Bituminous Trails $24,180 $30,225Surface Water Facilities $13,495 $16,869Street Lighting $48,000 $60,000Street Signs and Traffic Control Signs $5,300 $6,625Private Utilities (electricity, natural gas, telephone, and cable)Builder Landscaping $41,925 $52,406Landscaping $60,775 $75,969Tree Preservation and Restoration NA NAWetland Mitigation and Buffers NA NAMonuments $6,400 $8,000Erosion Control $7,750 $9,688Record Drawings $5,000 $6,250TOTALS $1,875,393 $2,344,241RELEASED AMOUNTS:$586,963 $647,796 $323,898 $195,654 $0 $0CUMMULATIVE AMOUNTS:$586,963 $1,234,759 $1,558,658 $1,754,312SECURITY AMOUNT REMAINING:$1,757,278 $1,109,482 $785,584 $589,929DATE: 1/5/2021 1/4/2022 12/20/2022 2/7/2023REDUCTIONS