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Home My WebLink About1998-10-07 PACKET 08.A.REQUEST �F CITY COtJNCIL ACTIdIV COUNCIL A��NDA tVIEETING ITEt� DATE 10/7/98 PREPAF2ED BY: Community Development Kim Lindquist QFZIGINATING DEPARTMEPdT STAFF AUTkiOR w.��s..64�4woe...�.m��.�....�.��.m..�Ra.ati�«.¢ffi. • • , i - �, ' Discussion about the survey resul4s from area cities regarding financiai guarantees for subdivision develapment. : � • . � . � . ; � � . � . . . � ADVISORY COMMISSION ACTION �I. ■ ■ ■ � ■ ■ , ; , . *. c PARKS AND RECREATlOPJ HUMAN SERVICES/RIGHTS ECONOMIC DEV. AUTHORITY L�I:�� REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ..�. �� ►�', � � �' MEMO/LETfER: Memo from iCim Lindquist dated 10/2/98 - � s: i-� • . � ; , s �• � IEGA� FdEGCtviiViEi�DAI"6Gid: OTHEF2: Survey resul4s �r -• a- • APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ qENiED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � �. �a�.Ae��ffi�..¢�ffi��.��.��.��...��s..� ce�u��L �c �r��: ❑ �e�P�z�v�� ❑ �E�e�� ❑ e��r��c� F�.IGROUPS�RLANPdING\1998\CIT'VCOUId�Fin Guae Survey Resulta caver.d� MEMORANDUM T0: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: Kim Lindquist, Community Development Director DATE: October 2, 1998 RE: Survey Results of Financial Sureties and Developer Costs for Subdivision Introduction Attached are the survey resuits regarding financial sureties and developer costs for subdivision. In total, we received information from 12 communities. In many cases the information is somewhat incomplete and interpretation of information was done to complete the response sheet. For example, many ot the communities require a financiai guarantee for site grading. This is an a�l-encompassing category that could include street grading, erosion control, street sweeping, and lot grading compiiance. Similariy, landscaping in some cities appears to include trees, shrubs, and sod. This category would be similar to our practice of requiring a financiai surety for boulevard trees, yard sod, and swale sod. There are other nuances found within other cities regarding their development surety programs. Many cities required out�ight cash payment for items, particulariy street signs. This solution obviousiy ties up more of a developer's money since the items are not included in the special assessment but are "front-ended" by the developer. There were other cities that required payments for items not listed on the survey and not required by Cottage Grove. Lakeville, for example, requires payment of a cash escrow for future upgrading of adjacent streets. Overall, staff believes the City is in sync with other communities and the financial guarantees they require. Two areas, which iilustrate the greatest variation, are the three-year payment for streetlights and the payment far the first application of sealcoating. in our review, none of the cities required a three-year payment for the street light utility charge. However, three communities did charge one or two year payment for the utility charge. None of the communities charged for future sealcoating. The public works policy is to sealcoat two years after developer installation. This timeframe could vary depending upon the amount and timing of construction within the subdivision. DiSCUSS1011 It appears that the two new payments, the street light utility charge and the sealcoat charge, may be the fees that triggered concern by developers. All other payments and financial guarantees appear to be relatively consistent with other developing communities. The two new fees reflect staffs' interest in not having the general fund subsidize new development. Survey Results Regarcling Financial Sureties and Developer Costs for Subdivision October 2, 1998 Page 2 Previously, the utility charge was paid by the city until lots within the development were sold. If sales were siow, the City continued to pay the utility charges. if fots sell quickiy, the city pays less. For example, approximately two-thirds of the lots in Eagie Ridge are vacant. The City has been carrying the utility costs for the lights since their installation in 1996. Another example is the new Hidden Vailey development currently under construction. Most likely streetiights will be installed this fali as part of the on�oing utility work. Without this payment, the City would be carrying the utility charges on the newly installed lights for a minimum �f 6 months since n� new construction is anticipated untif spring. On the other hand, some developments sell out faster and perhaps a three-year payment wouid appear excessive. Given that other communities (inver Grove Heights, Lakevilie, and Maple Grove) require some payments, staff is recommending a change in policy from the three-year payment to a two-year payment. This change would result in a cost savings of $30.28 per lot under the 1998 utility fees. Similar to the utility charge, staff has supported the seaicoating charge to defray the cost of development to the general public. Public Works has begun to sealcoat new roads within two years of installation. The seaicoating is a direct benefit to the new residents of the development and is applied to counteract the negative affects of construction tra�c. Given the amount of roadway work necessary under the pavement management program, it seems appropriate to not burden the general fund with new development sealcoating program. Although unique in this area, staff continues to support this developer payment. To give the Council an idea of the financial impact of this fee, two examples are given. The payment for Hidden Valiey 7`" Addition was $5,428 for sealcoating and in Sandy Hiils 8"' the charge was 6,586.45. The fee is based solely on the amount of roadway within the plat. Recommendation Staff recommends maintaining the financial guarantee system and developer fee system in the ci�rrent form with one modification, to reduce the streetlight utility payment from three years to two years. � > � _ � w W � � W N Z � � � W N 1�fs � � � ' � � b � � � $ �� d ., � wo a �^ �� ° � � � � � � � A � !� '" A �� z r� � a� a� a� a� z�� b � � �� N �� ; � T vi �n a � � ly � .�1 � F �' �' � " � L V O A� O V] N N d �^� N � 'O '�O .� •� � b aa a� z z z z� � z a� � .� � w � � � � W� a e B� 7 0 �` �'�� y w � � �d ^ � � � .� � � G � v . w e o a � ��" r �Z r`� �" 6�i � �" N �" ,7, �" ,� �" �" � � a � � T Q q a ' � v�i 'C S'� y � � � E �' y o,$ ^r > q �� '+- Y., r Gzy � .'S .� �u ° ° a`"i s o a � �.�, �., �o ;�, y `� F� � � o � a : o � a� •�,w^ e �.n a� ��Y�'"z Z a &' � ��32z �3�^ d .N � a ° v o� °o N .. i � 1 (� G ro � v � p ' � V1 � � � p N a b Vl �� y N Vi N a�� a 3� a� z a� z�� .. � v o x �� b c � �� a `�= s ° = � �,,� � � � °' � �� Q = � g � b ., v 3 �� ¢;� w oa S c.� o N N � c6 d a 0 a � � ;� � �� a � 3� eo � •� a � � � , ��-��Z � a �,Z�� 3� �� $'n � a U � C r��z z �aa z zz N 83 ° r'a := v �, °' v o E y � � X � � w � O w g g ,� p � � � .., o o E W = $� � A a �� a, � '� '� o � � ., = '�3 � �, a ��r��5 � z�°��,�o8a�� a a 0 0 � ° 0 W �� G1 .Y w 0 a� d� � i 'w �zzz z z zz z zz � o .� � � d ^ � y � � '�s', � y � � � �n � o v p� N L O O w � N N Y � '�' � � G M ��" .�. 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