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Home My WebLink About2011-02-16 PACKET 12.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 2/16/11 PREPARED BY Community Development Howard Blin ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Workshop on subdivision improvements. STAFF RECOMMENDATION Workshop on subdivision improvements. BUDGET IMPLICATION $N /A $N /A N/A BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS DATE REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: Memo from Howard Blin, Jennifer Levitt, and Les Burshten ❑ RESOLUTION: ❑ ORDINANCE: Ord. No. 880 ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS s City Administrator Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: Howard Blin, Community Development Director Les Burshten, Public Works Director Jennifer Levitt, City Engineer DATE: February 10, 2011 RE: Workshop on Subdivision Improvements Summary The City has recently begun allowing developers to construct streets and utilities in subdivisions. This was a change from the long held practice of all subdivision improvements being constructed by the City with costs assessed against the property. At the February 16 workshop, staff will present the proposed approach to managing private im- provements. The overall goal is to reduce costs to developers while maintaining City control over design specifications and construction quality. This item is for informational purposes, no action is requested. Improvement projects in Cottage Grove have traditionally been done under the process outlined in Minnesota Statutes Chapter 429. This public process involves the following steps: • The developer petitions the City to construct the improvements. • The City prepares a feasibility plan, plans and specifications, and bids the projects. • A contractor is awarded the project and constructs the improvements under contract to the City. • Construction costs are assessed against the benefitting property. As part of the settlement of the assessment appeal with Lennar Homes, that developer was al- lowed to construct improvements in the Pinecliff 3rd Addition project. It was necessary to amend the City's Subdivision Ordinance to accommodate this new approach. Attached is the amended ordinance, which was adopted in July 2010. Since that time, staff has received requests from other developers to construct private improvements. Developers maintain that they can complete the project in a shorter time and at a lower cost than the public process. The general advantages and disadvantages of each approach are summarized below: Honorable Mayor, City Council, and Ryan Schroeder Workshop on Subdivision Improvements February 10, 2011 Page 2 of 2 City Construction Advantages: (Chapter 429 Process) • City controls design and construction process. • Better quality assurance on design. • Fewer challenges to city design standards. Disadvantages: • From start of a project (petitioning the city) to start of construction is longer. • City must finance improvements, which increases risk. • More time consuming for City Council and staff. Private Improvements Advantages: • Typically faster to get construction underway. • Developer not required to contract with low bidder. • Better coordination of street and utility improvements with site and house construction. • Better /easier coordination with grading contractor. • Less financial risk to City. Disadvantages: • Less City control of contractor. Discussion Staff agrees that to attract development in a weak housing market, Cottage Grove must offer de- velopers the most cost effective means of constructing improvements. The City must, however, also ensure that public streets and utilities are constructed to City standards. To achieve both objectives, the following approach is recommended. City Preparation of Plans and Specifications. The City or its consulting engineer would prepare all plans for street and utility construction. This avoids the sometimes costly and time consuming practice of developers submitting plans to the City for review for which multiple revisions are necessary. Developers would pay for the cost of plan preparation. Developer Construction of Improvement. Developers would be allowed to privately contract for improvements. Private construction contracts can typically be awarded in a much shorter time than under the Public Chapter 429 process. Prior to construction, the City and developer would enter into a development agreement which includes the requirement of financial guarantees from the developer. City Inspection of Construction. During the construction period, City inspectors will regularly be on site to ensure that all improvements conform to approved plans. City retains testing firms under contract. As part of this process the City will also collect escrow payments from the developer to cover the costs of administering and inspecting the project. 2 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA AMENDING 3 TITLE 10, CHAPTER 3, SECTION SUBDIVISION ORDINANCE OF THE CITY CODE 5 The City Council of the City of Cottage Grove, Washington County, Minnesota, does 6 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: 10 -3 -1: GENERAL OVERVIEW: 15 16 17 18 19 20 21 22 23 division. 24 SECTION 2. AMENDMENT Title 10, Chapter 3, Section 3; Subdivision Agreement of 25 the City's Subdivision Ordinance is amended and shall read as follows: 26 10 -3 -3: Contents of Agreement: 27 A. Contents Of Agreement: The City shall enter into a contract, known as a subdivision 28 agreement, with the subdivider /developer. The agreement shall provide for the 29 completion of the improvements required by this Title. Prior to the subdivider or City 30 initiating the improvements, the final plat and resolution shall be recorded, the subdivision 31 agreement and petition under Minnesota Statutes Chapter 429 shall be signed, all cash 32 deposits paid, the financial guarantees shall be posted and approved by the City 33 Attorney, and land required to be dedicated is conveyed to the City. Until completion of 34 the foregoing, only rough grading or other minor forms of construction can begin. 35 B. Public Improvements: 36 1. The agreement shall require the subdivider /developer to furnish and construct at the 37 sole expense of the subdivider and at no expense to the city all the pubic 38 impr ovement s ^e +' + ien- the -C t y-te in accordance Wim 15 16 17 18 19 20 21 22 23 division. 24 SECTION 2. AMENDMENT Title 10, Chapter 3, Section 3; Subdivision Agreement of 25 the City's Subdivision Ordinance is amended and shall read as follows: 26 10 -3 -3: Contents of Agreement: 27 A. Contents Of Agreement: The City shall enter into a contract, known as a subdivision 28 agreement, with the subdivider /developer. The agreement shall provide for the 29 completion of the improvements required by this Title. Prior to the subdivider or City 30 initiating the improvements, the final plat and resolution shall be recorded, the subdivision 31 agreement and petition under Minnesota Statutes Chapter 429 shall be signed, all cash 32 deposits paid, the financial guarantees shall be posted and approved by the City 33 Attorney, and land required to be dedicated is conveyed to the City. Until completion of 34 the foregoing, only rough grading or other minor forms of construction can begin. 35 B. Public Improvements: 36 1. The agreement shall require the subdivider /developer to furnish and construct at the 37 sole expense of the subdivider and at no expense to the city all the pubic 38 impr ovement s ^e +' + ien- the -C t y-te in accordance 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 GeHStFWGt the p6lbliG4mprevemeRtS URdeF GE)RtF@Gt(S) let by the City. The 47 48 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. (4 971 Code § 23 ' °` 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 0% facilities: or (c) That the size of the subdivision is too small to iustifv the underground installation of such facilities. 10 -3 -4: FINANCIAL GUARANTEES (Subdivider Petitioned Proiectsl 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 guaranteeing performance and completion of improvements /work required by the 110 subdivision agreement. 111 2. If there is noncompliance with the requirements of this Title, at any time, the City 112 Administrator can direct the performance of any work required of the subdivider. 113 Specifically, if on -site improvements have not been installed or structures occupied for 114 forty five (45) days or longer, the City Administrator shall direct an inventory for 115 noncompliance on June 15 and September 15 of each year and may direct the 116 performance of any work heretofore required of the subdivider. The cost of the City's 117 performance of any such work, including labor, equipment and material, shall be paid 118 from the posted financial guarantees. (Ord. 634, 9 -18 -1996) 119 10 -3 -4A: FINANCIAL GUARANTEES (Subdivider Financed and Constructed Projects) 120 A. 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 i.—Off-site surety. the work. ■,.. (a) A surety must be provided to the city in a sum equal to 150 percent the total 152 development contract, and which have not been completed prior to filing of the final 153 P—lat. 154 155 156 157 158 159 (2) On -site surety. 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 rem 178 B. Engineering /Administrative Escrow. 179 1. 180 181 182 183 184 185 186 187 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 Cottage Grove. the itemized charges. 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 IGV ■ e - 11-4 il :e =:: R - - - 10 -3 -7: CONSTRUCTION PLANS IGV 234 235 236 237 238 239 240 241 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 261 day of u 2010, 242 Attest: 243 244 245 246 �j p 247 248 Caron M. Stransky, City Clerk rM• •.ice