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HomeMy WebLinkAbout2010-07-21 PACKET 04.O.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # 4/0, DATE 7/21 /10 PREPARED BY: Community Development Howard Blin ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST: Consider approving an amendment to the City's Subdivision Ordinance that allows subdividers the opportunity to construct the public improvements within their project. Consider adopting a resolution authorizing the publication of this ordinance amendment by title and summary. STAFF RECOMMENDATION: 1. Adopt the ordinance amendment. 2. Adopt the ordinance summary resolution. ADVISORY COMMISSION ACTION: DATE ❑ PLANNING 6/28/10 ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS: ❑ MEMO/LETTER: Memo from John McCool dated 7/15/10 Z RESOLUTION: Draft - Ordinance Summary ❑ ORDINANCE: Draft ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS: I ) t & /10 U City Adm inis t rator Date COUNCIL ACTION TAKEN: 10 [ /411� ❑ Z ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 1:1 ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS: ❑ MEMO/LETTER: Memo from John McCool dated 7/15/10 Z RESOLUTION: Draft - Ordinance Summary ❑ ORDINANCE: Draft ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS: I ) t & /10 U City Adm inis t rator Date COUNCIL ACTION TAKEN: 10 [ /411� CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: John McCool, Senior Planner DATE: July 15, 2010 RE: Proposed Subdivision Ordinance Amendment — Construction of Public Improvements •.• The City has initiated an amendment to the City Subdivision Ordinance that allows subdividers the opportunity to construct the public improvements within their project. The Planning Commission held a public hearing at their regular meeting on June 28, 2010. No public comments were received. The Commission recommended approval of the proposed or- dinance amendment. It was noted that the public improvements must still comply with city spe- cifications and standards, the city will perform inspections before the improvements are accepted, the developer must provide to the city certain financial sureties, and privately con- structed improvements typically cost less. The Planning Commission unanimously (5 -to -0 vote) recommended approval of the proposed ordinance. A copy of the draft ordinance amendments as recommended by the Planning Commission and an excerpt from the Planning Commission's unapproved minutes are attached. The City's Subdivision Ordinance currently requires subdividers to petition the City to furnish and construct the public improvements. The City then constructs the public improvements under contracts let by the City. The total project costs are then assessed to the properties within the project area. Before the City awards a contract, the City Engineer prepares preliminary cost estimates for the public improvements, together with the costs for engineering, legal, fiscal, and administrative costs related to the project. A subdivision agreement between the City and the subdivider is then prepared and signed by both parties. 9023s .. The City has adopted the position that subdividers should be given the opportunity to construct the public improvements. A development agreement between the City and subdivider will still be agreed to by both parties and the construction of the improvements must comply with city plans Honorable Mayor, City Council, and Ryan Schroeder Subdivision Ordinance Amendment July 15, 2010 Page 2 of 2 and specifications. The City will review the construction plans and inspect the work during construction before the City accepts the improvements upon completion. To provide this option, it is suggested that the current Subdivision Ordinance be amended to allow a subdivider to request that they construct the public improvements. The proposed ordinance amendment also establishes a set of regulations that requires the subdivider to provide certain financial sureties to the City. These sureties cover the total cost of the pubic improvements, landscaping, lot grading, mailboxes, utility repair /adjustment, etc. An engineering /administrative escrow must also be deposited with the City to cover city services and expenses performed in the processing of the improvements. The ordinance still allows a subdivider the option to petition the City for the construction of the public improvents and have the total construction costs assessed to each benefited parcel. A copy of the proposed ordinance amendment is attached. .. . , That the City Council amend the Subdivision Ordinance regulations to allow subdividers the opportunity to construct the public improvements within their subdivision; and 2. Adopt a resolution authorizing the publication of this Sign Ordinance amendment by title and summary. 2 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA AMENDINA 3 TITLE 10, CHAPTER 3, SECTION 1, GENERAL OVERVIEW OF THE SUBDIVISION ORDINANCE •D The City Council of the City of Cottage Grove, Washington County, Minnesota, does hereby ordain as follows: 7 SECTION 1. AMENDMENT Title 10, Chapter 3, Section 1; General Overview of the 8 City's Subdivision Ordinance is amended and shall read as follows: 9 10 -3 -1: GENERAL OVERVIEW: 15 16 17 18 19 20 21 22 23 24 25 27 28 29 30 31 32 33 34 35 36 37 38 SECTION 2. AMENDMENT Title 10, Chapter 3, Section 3; Subdivision Agreement of the City's Subdivision Ordinance is amended and shall read as follows: 10 -3 -3: Contents of Agreement: A. Contents Of Agreement: The City shall enter into a contract, known as a subdivision agreement, with the subdivider /developer. The agreement shall provide for the completion of the improvements required by this Title. Prior to the subdivider or City initiating the improvements, the final plat and resolution shall be recorded, the subdivision agreement and petition under Minnesota Statutes Chapter 429 shall be signed, all cash deposits paid, the financial guarantees shall be posted and approved by the City Attorney, and land required to be dedicated is conveyed to the City. Until completion of the foregoing, only rough grading or other minor forms of construction can begin. B. Public Improvements: 1. The agreement shall require the subdivider /developer to furnish and construct at the sole expense of the subdivider and at no expense to the city all the pubic improvements in accordance M S Subsection 462 358 Subdivison 2A authorizes the city to condition approval of NO SIR $10 MIN 15 16 17 18 19 20 21 22 23 24 25 27 28 29 30 31 32 33 34 35 36 37 38 SECTION 2. AMENDMENT Title 10, Chapter 3, Section 3; Subdivision Agreement of the City's Subdivision Ordinance is amended and shall read as follows: 10 -3 -3: Contents of Agreement: A. Contents Of Agreement: The City shall enter into a contract, known as a subdivision agreement, with the subdivider /developer. The agreement shall provide for the completion of the improvements required by this Title. Prior to the subdivider or City initiating the improvements, the final plat and resolution shall be recorded, the subdivision agreement and petition under Minnesota Statutes Chapter 429 shall be signed, all cash deposits paid, the financial guarantees shall be posted and approved by the City Attorney, and land required to be dedicated is conveyed to the City. Until completion of the foregoing, only rough grading or other minor forms of construction can begin. B. Public Improvements: 1. The agreement shall require the subdivider /developer to furnish and construct at the sole expense of the subdivider and at no expense to the city all the pubic improvements in accordance M S Subsection 462 358 Subdivison 2A authorizes the city to condition approval of 39 with the plans and specifications prepared reviewed and approved by the City 40 Engineer or require the subdivider /developer to petition the City to furnish and 41 construct improvements in accordance with the plans and specifications prepared 42 the City Engineer The City Engineer shall prepare preliminary cost estimates for the 43 public improvements, together with the costs for engineering, legal, fiscal and 44 administrative costs related to the project, which shall be incorporated into the 45 subdivision agreement. 46 2. The City shall G9RStFUGt the publiG impFevemeRts under GOntFaGt(S) let by the City. The 47 City EngiReeF shall have the allthGFity tO coordinate the WGFk GIGRe under the pUb1iG 48 subd 49 3. The completion date for the public improvements shall be reasonable, considering the 50 work to be done, the season of the year and proper correlation of the improvements 51 with construction activities in the subdivision and other projects which are included 52 within the City improvement contract(s). 53 4. No subdivider who has previously defaulted on work or commitments on the phases of 54 the original preliminary plat or other projects in the City less than five (5) years old 55 shall be permitted to start work on any other subdivision until the defaults are 56 remedied. 57 5. The subdivision agreement shall contain provisions for park dedication as required in 58 Section 10 -4 -3 of this Title. (197 Ce § 23 , R' 59 C. Boulevard And Yard Improvements: 60 1. The subdivider /developer shall be required to assure the performance and /or 61 installation of the following: 62 a. Rough grading of all public rights of way. 63 b. Grading and seeding of vacant lots. 64 c. Cutting of grass and weeds, in excess of eight inches (8 ") in height, on vacant lots. 65 d. Street sweeping and cleaning of storm sewers and holding ponds. 66 e. Installation and maintenance of erosion control devices. 67 f. Boulevard sod, boulevard trees, and yard sod. 68 g. Replacement of trees removed from the right of way. 69 h. Monument replacement. 70 i. Surveyor's certification of individual lot grading compliance. 71 j. Drainage and erosion control plan compliance. Page 2 72 k. Final grading of each lot in subdivisions in compliance with the approved plan. 73 74 75 2. The subdivider shall not transfer or assign its obligations to install and pay for 76 boulevard trees, sod and hard surface driveways to the home builder or purchaser of 77 any lot. 78 D. Public Utilities 79 1. New Lines to be Underground. All electrical distribution systems (ex( 80 feeders and high voltage distribution lines). telephone service lines, c 81 telecommunications lines cable lines and services constructed withir 82 and providing service to customers in a newly platted area, shall be t 83 underaround: unless the City Council, by resolution. determines that: 84 (a) Such requirement would result in unnecessary duplication of facilities where the 85 property to be served abuts an existing development already served by overhead 86 facilities or :. 91 10 -3 -4: FINANCIAL GUARANTEES (S ubdivider Petitions 92 A. Financial Guarantees Required Generally: The subdivider shall be required to post 93 financial guarantees to ensure completion of all improvements required by this Title, the 94 preliminary and final plat resolutions, and the subdivision agreement. The financial 95 guarantees shall be in the form of cash, escrow, or letter of credit. 96 B. Public Improvements: One hundred percent (100 percent) of improvements including, but 97 not limited to, street lighting, public sanitary sewer, water, storm sewer, curb and gutter, 98 street grading and street bituminous surfacing, shall be assessed against properties in 99 the subdivision. The developer shall provide the City with a letter of credit in an amount of 100 forty percent (40 percent) of the estimated cost of the improvements, which letter of credit 101 shall guarantee payment to the City of the assessments. 102 C. Boulevard And Yard Improvements: 103 1. The subdivider shall be required to post financial guarantees in the amount of one 104 hundred fifty percent (150 percent) of the estimated costs to assure completion of the 105 items listed in subsection 10 -3 -3C1 of this Chapter. The financial guarantees shall be 106 subject to approval by the City Attorney before acceptance by the City. The subdivider 107 shall deposit with the City, from a bank or other reputable and financially sound 108 institution subject to the approval of the Finance Director, a letter of credit Page 3 109 110 111 112 113 114 115 116 117 118 iaU, 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 guaranteeing performance and completion of improvements /work required by the subdivision agreement. 2. If there is noncompliance with the requirements of this Title, at any time, the City Administrator can direct the performance of any work required of the subdivider. Specifically, if on -site improvements have not been installed or structures occupied for forty five (45) days or longer, the City Administrator shall direct an inventory for noncompliance on June 15 and September 15 of each year and may direct the performance of any work heretofore required of the subdivider. The cost of the City's performance of any such work, including labor, equipment and material, shall be paid from the posted financial guarantees. (Ord. 634, 9 -18 -1996) 10 -3 -4A: FINANCIAL GUARANTEES (Subdivider Financed and Constructed Proiectsl 0 letter of credit, or a performance bond as follows: 1. Off -site surety. (a.) A surety must be provided to the city in a sum equal to 150 percent the total held in a non - interest bearing account. and 95percent of the total shall be posted as proceeds of the Security. the City shall be reimbursed for any attorneys' fees. the work. (b) Items covered by these guarantees must include, but not be limited to. water 152 improvements to be furnished and installed by the subdivider, pursuant to the 153 development contract, and which have not been completed prior to filing of the final 154 I�at. 155 c) The city is entitled to reimburse itself out of the cash escrow for any costs and 156 expense incurred by the city for completion of the work in case of default by the 157 subdivider. Upon completion of the work and termination of any liabilities to the city by 158 the subdivider under the contract, the balance remaining of the cash bond escrow 159 must be refund to the subdivider. 160 (2) On -site surety. 161 162 163 164 165 166 167 168 169 170 171 172 173 174 release of the final plat for recording. (b) Items covered by this surety must include, but not be limited to. landscaping as M 175 (c) The city is entitled to reimburse itself out of the cash bond escrow for any cost 176 and expense incurred by the citv for completion of the work in case of default by the 177 subdivider. Upon completion of the work and termination of any liabilities to the city b 178 the subdivider under the contract, the balance remaining of the cash bond escrow 179 must be refunded to the subdivider. 180 B. Engineering /Administrative Escrow. 181 1. The developer must post to the city an engineering /administrative cash escrow to be 182 held in a non - interest bearing account. This escrow must be a minimum of seven 183 percent of the total security amount or $1.000.00, whichever is the greater. This 184 escrow must be filed with the citv prior to release of the final plat for recording. Costs 185 of city services, expenses and materials provided in reviewing and processing of the 186 final plat, including but not limited to staff time, legal expenses. office and field 187 inspections. general inspections, and all other city staff services performed in the 188 rocess� improvements must be charged to the enaineerina /administrative 189 escrow account and must be credited to the Citv of Cottage Grove. 190 2. Costs of city services, expenses and materials provided in reviewing and processing 191 of the final plat including but not limited to staff time, legal expenses incurred in plat 192 approval. office and field checking setting grade and drainage requirements general Page 5 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 the engineering /administrative escrow account and must be credited to the Citv of Cottage Grove. 4. If, at any time, the balance in the engineering/administrative escrow account is depleted to less than 5 percent of the oriainally reauired cash escrow amount. the processing the final plat. 5. If all. or a part. of a development has been completed inspected and accepted. all been paid and after approval by City Council. SECTION 3. AMENDMENT Title 10, Chapter 3, Section 7; Subdivider Request for Construction of Improvements is amended and shall read as follows: 10 -3 -7: CONSTRUCTION PLANS A. Construction plans for the required improvements conforming in all respects to the 232 B. Such plans together with the quantity of construction items must be submitted to the City 233 Engineer for the City Engineer's approval and estimate of total cost of the required ',.- 1 1 0-01111111' 2W- Z WIMM7.-MIS ■ M o - - il -. - - 10 -3 -7: CONSTRUCTION PLANS A. Construction plans for the required improvements conforming in all respects to the 232 B. Such plans together with the quantity of construction items must be submitted to the City 233 Engineer for the City Engineer's approval and estimate of total cost of the required ',.- 234 235 236 237 238 239 240 241 242 243 improvements: upon approval they will become a part of the development agreement Section 4. Effective Date. This ordinance shall be in full force and effect from and after its adoption and publication according to law. Passed this day of 2010. 244 Attest: r• r•4 t►• 251 Myron Bailey, Mayor Caron M. Stransky, City Clerk subiect to the City Engineer's certificate of compliance with the contract. • *7.P.Ca1w:i#yl+b11:1 ral r - WHEREAS, the City Council of the City of Cottage Grove adopted Ordinance No. XXX, which repeals City Code Title 10, Chapter 3 Section 1, General Overview of the Subdivision Ordinance; and WHEREAS, Minnesota Statutes, Section 412.191, subd. 4 allows publication by title and summary in the case of lengthy ordinances; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that the City Clerk shall cause the following summary of Ordinance No. XXX to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Cottage Grove has adopted Ordinance No. XXX. The ordinance amends City Code Title 10, Chapter 3, Section 1, General Overview of the Subdivision Ordinance. This amendment allows subdividers the opportunity to construct the public improvements within their projects. The entire text of Ordinance No. XXX is available for inspection at Cottage Grove City Hall during regular business hours and is posted at the Washington County Park Grove Library. BE IT FURTHER RESOLVED that a complete copy of the ordinance is kept in the City Clerk's office at City Hall for public inspection and a copy of the ordinance will be posted on the Public Notice Bulletin Board at City Hall, 7516 — 80th Street South. Passed this 21st day of July 2010. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk 6.6 Subdivision Ordinance Amendment —Case TA10 -017 The City of Cottage Grove has applied for an amendment to the City's Subdivision Ordin- ance that allows developers the opportunity to construct the public improvements with their project. McCool summarized the staff report and recommended approval of the ordinance amendment. Messick asked if the City would see a savings in cost and time if developers construct the utilities. McCool responded that the city's time was billed through the assessment process, so the developer paid that cost. Most developers, particularly the national builders, want the option to construct the public improvements themselves because they have better control as to when the work gets done. Linse asked if other cities use a similar structure as this. McCool answered yes, noting that some cities do not provide for the option of petitioning the city and the developer has to do the work. Staff believes some developers may want the option to petition the city to construct the public improvements. Messick asked if the cost savings would be more for the developer. McCool stated the developer controls the timeframe and contractor. Rostad asked if developers have to acquire the off -site surety, on -site surety, and the engi- neering /administrative escrow. McCool responded yes. He explained that the on -site surety covers individual lot requirements such as tree planting, sod, driveways, sidewalks, etc. The off -site surety is for public improvements, such as street lighting, streets, curbs, etc. Linse asked if the sureties referenced in Title 10 -3 -4A are defined somewhere else within the ordinance. McCool stated that it is defined in lines 124 through 148 of the draft ordinance. Poncin asked if the city would lose consistency in design and materials if developers do their own street lights and sidewalks. McCool responded that the city has a set of templates with specifications on construction details that they have to comply with. Messick opened the public hearing. No one spoke. Messick closed the public hearing. Messick stated that he supports the ordinance amendment because it will reduce the costs for developers while giving the city control. • •r •. • r • • / #..