Loading...
HomeMy WebLinkAbout15.A.1. Subdivision Ordinance Revision for Reduction in Securities-Ord. No. 651 IS-A,), CITY OF SHAKOPEE Memorandum TO: Mayor & City Council CONSENT Mark McNeill, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Consider Adoption of Ordinance No. 651, an Ordinance Amending Section 12.19, Subdivision 1 of the City Code DATE: January 7,2003 INTRODUCTION: Attached is Ordinance No. 651, an ordinance amending Section 12.19, Subdivision 1 of the City Code in regard to reduction of financial security for developer constructed public improvements. BACKGROUND: Previously, the City did revise its subdivision ordinance in October, 1999 and those modifications included a revised attached provision on the reduction of securities for private developments installing public improvements. Staff has been working with the City Attorney to modify the developer's agreement to come into conformance with the revised City Code. ill reviewing this ordinance further, by applying to developments that occurred in 2003, a concern on the amount of security that the City retained during the actual construction of the subdivision improvement was noticed. Also attached is previous language that was included in the developer's agreement for reduction of securities during the construction of subdivision improvements. ill the previous scenario, the developer provided the City with maintenance bonds for various improvements that were completed prior to reduction of the security amount. ill the revised subdivision ordinance in 1999, the security was allowed to be reduced during construction with a maintenance bond being provided only after final acceptance of improvements. In the new ordinance, the revised provision for reduction of securities has been modified to include more security amount as necessary during the construction of the project. This additional amount will provide the City with enough security for the completion of any work, and if any work needs to be corrected prior to the issuance of a maintenance bond after final acceptance. The City Attorney has worked with the City Clerk and the City Engineer to provide the revised language in order to provide a reduction in security, a process that staff feels will protect the City in the event that the security needs to be utilized for completion of the public improvement in the subdivision. ALTERNATIVES: 1. Adopt Ordinance No. 651, an ordinance amending Section 12.19, Subdivision No. I of the City Code pertaining to the Reduction of Financial Security for Developer-Constructed Public Improvements. 2. Do not adopt Ordinance No. 651. 3. Table for additional information. RECOMMENDATION: Staff recommends Alternative No.1, to revise the ordinance division of the reduction of securities for private developments, as prepared by the City Attorney. ACTION REQUESTED: Offer Ordinance No. 651, An Ordinance of the City of Shakopee, Minnesota, Amending Section 12.19, Subdivision No. 1 of the City Code Pertaining to the Reduction of Financial Security for Developer-Constructed Public Improvements and move its adoption. ~~ Public Works Director BUpmp MEM0651 912.17 Subd. 2. Bond. A bond shall be a performance bond with one (1) or more corporate sureties engaged in the business of signing surety bonds in the State of Minnesota. The bond shall include a provision that the principal of the bond shall comply with all the terms of the resolution of final plat approval relating to construction of required improvements. Subd. 3. Escrow Aareement. The escrow holder shall be a responsible independent third party, acceptable to all parties. SEC. 12.18. SECURITY PERIOD. Subd. 1. Period. Security shall be for an initial period estimated by the Developer and approved by the City Engineer, and shall be at least thirty (30) days longer than the time necessary for completion of all improvements. The developer shall extend or renew the security as necessary to provide security until all improvements have been completed and accepted by the City Engineer. Subd. 2. Extension or Renewal of Security. Security shall be automatically renewable. Subd. 3. ComDletion Within Ten (10) Years. Unless otherwise limited in the Developers Agreement all improvements must be completed within ten (10) years from the date of the final plat approval, or receive City Council permission for extension or renewal of the security. In determining whether to allow extension or renewal the City Council shall consider whether there is a need for the improvement. If the Council determines that there is no need, then the security shall be released. If the Council determines that there is a need, then the Council shall determine whether the improvement should be ordered constructed either at the Developer's or the City's expense, and whether the security should be extended or renewed for an additional period of time. SEC. 12.19. REDUCTION IN SECURITY. Subd. 1. When Mav be Reduced. A. In General. Security may be reduced upon request by the Developer after acceptance of an improvement by the City Engineer. The improvement shall be a complete system, such as all of a particular utility or a block of street paving, and shall have separarble costs of at least 20% of the total amount of the security. In no event shall the security be reduced below 25% of the original amount of security (plus 100% of the estimated cost of any unpaid inspection and administration costs), nor below 125% of the amount which the City Engineer deems necessary to complete all remaining improvements. Subd. 2. When Mav be Released. Security may be released in the following circumstances and when the Developer complies with Subdivision 3 below: A. security may be released tor any improvement which the City Council has agreed to construct under Chapter 429; B. security may be released for any improvement for which the Developer has provided cash as payment in full for the Developer's share of the cost of the improvement, at 125% plus engineering and administrative costs, which improvement cannot be timely constructed by the Developer, or which improvement the City Council determines is not appropriate for immediate development due to incompatible grades, future planning, inadequate or lack of connecting facilities, or other reasons. If the amount of security estimated tor completion of the improvement exceeds the actual costs, the City shall return any excess to the Developer, with interest, upon completion of the improvement. page revised in 1999 1578 912.21 C. security may be released when the City Engineer determines that all required improvements have been satisfactorily completed in accordance with the approved construction plans, and that the Developer has given the City Engineer a detailed record drawing survey of the plat showing details as required by the design requirements and in compliance with Subdivision 3 of this Section. Subd. 3. Security for Maintenance. Security shall not be released for any improvement until the Developer has submitted security assuring the satisfactory condition of the improvement for a period of one (1) year after acceptance by the City. If the improvements were constructed without security, security for maintenance still is required. This security may be any security listed as an option in Section 12.16, except that a maintenance bond shall be provided in place of a performance bond. The amount of the security shall be 60% of the total cost of the improvements. SEC. 12.20. WHEN SECURITY MAY BE DRAWN UPON. The City may draw upon the security whenever it appears that the Developer will not comply with the conditions of the final plat, pay the administrative and inspection fee, or comply with the requirements of this Chapter, including completion of all improvements prior to expiration of the security. The City shall make reasonable efforts to notify the Developer prior to making any draw. SEC. 12.21. SUBMITTAL REQUIREMENTS FOR PRELIMINARY PLATS. Subd. 1 Documents ReQuired. The preliminary plat shall include the entire land area owned or controlled by the Developer, unless the excluded land is of a size described as an optional subdivision under Section 12.01, Subdivision 3 B. A Developer shall submit the following documents to the Planner: A. A completed application form; 8. A general narrative description of the project; C. Fees as specified in the adopted City fee schedule; D. A description of any requested variances; E. A wetland delineation report when applicable; F. When applicable to the land being subdivided, the Developer shall submit the following documentation: 1. Evidence that a county highway permit will be granted, if the site will have access to a county road; 2. A landscape plan meeting the landscaping and tree preservation requirements of City Code, Section 11 .24; 3. In rural service areas soil percolation tests, soil borings and sewage treatment design for two (2) sites per proposed lot, conforming to the testing procedures of the Shakopee sewage disposal and treatment code; and G. All required drawings as specified in Subdivision 2. Subd. 2. DrawinQs Reauired. In submitting a preliminary plat for consideration, the Developer shall submit the following drawings which are described in detail below: page revised in 1999 1579 up to the covenants and agreements and the developer agrees that the City shall be entitled to its administrative costs, legal costs, and reasonable attorney's fees in connection with said action. (B) Binding Effect The terms and provisions hereof shall be binding upon and insure to the benefit ofthe representatives, successors and assigns ofthe parties hereto and shall be binding upon all future owners of all or any part of the subdivision and shall be deemed covenants running with the land. Reference herein to Developer, if there be more than one, shall mean each and all of them. This Agreement shall be placed on record so as to give notice to subsequent purchasers and encumbrances of all or any part of the subdivision and all recording fees shall be paid by the Developer. Upon the filing of a release from the City, all agreements contained herein shall thereafter be inapplicable to any property covered by said release. (C) Notices Any notices permitted or required to be given or made pursuant to this Agreement shall be delivered personally or mailed by United States Mail to the addresses hereinafter set forth by certified or registered niail. Such notices, demand or payment shall be deemed timely given or made when delivered personally or when deposited in the United States Mail in accordance with the above. Addresses of the parties hereto are as follows: If to the City- City Administrator City Hall 129 HoImes Street South Shakopee, MN 55379 If to the Developer Ryland Homes , 7900 West 78th, Suite 100 Edina, MN 55439 Attn. Mark Sonstegard Steven D. Soltau Shakopee Crossings 3601 Minnesota Drive Suite 880 Edina, MN 55435 (D) Release of Developers Agreement Upon completion or partial completion of Plan A Improvements, the City may release all or a portion of the cash, letter of credit or performance bond deposited under Paragraph V (B), retaining 125% ofthe City Engineer's estimate of the cost, including City inspection and administration, to complete the improvements, provided however, that the Developer submit a Maintenance bond guaranteeing said improvements for a period of one year after final acceptance by the City. Should the Developer fail or refuse to submit to a Maintenance Bond as provided herein, the City may retain some or all of the cash or letter of credit as security for the one year written guarantee as provided in Paragraph V (G) (4). Should the certified letter of credit be for such a period of time so as to preclude its use under this paragraph, the City is authorized to draw against such letter of credit at any time to complete said improvements or to make such repairs or additions as would be provided under the one year written 9 '1 . (;.. i' - ~antee when, in the judgment of the City, the City determines that the Developer is not going to complete such improvements or make such repairs. (E) Incorporation by Reference All City of Shakopee Design Criteria, Standard Specifications, including bonding provisions, the approved plans, addenda, change orders, special provisions, proposals, specifications and contract for the Improvements fumished and let pursuant to this Agreement shall be and hereby are made part of this Agreement by reference as fully as if set out herein full. (F) Changes from Plan A Improvements to Plan B Improvements and from Plan B Improvements to Plan A Improvements It is agreed and understood that the Developer, at its option, is authorized to enter into this Agreement providing for some Plan A Improvements and some Plan B Improvements. At such time as the Developer may choose after the execution of this Agreement, the Developer may, in writing, request that some or all of the improvements originally designated as Plan A Improvements be changed to Plan B Improvements. The City in its sole and absolute discretion may enter into a 'Plan A to Plan B Change Agreement' which shall be recorded. It is specifically agreed and understood, however, that no changes made in accordance with this paragraph will in any way reduce, lessen, obviate or cancel in any way, manner or form the provisions or requirements of this Agreement respecting improvements under Plan A made prior to such change. In the event the Developer wishes to change some or all of Plan B Improvements to Plan A Improvements, then it shall apply in writing to the City for such changes and the City in its sole and absolute discretion may enter into a 'Plan B to Plan A Change Agreement' which shall be recorded. IX. Payments to the Park Fund in Lieu of Land Dedication ill accordance with the authority provided by the Shakopee City Code, Section 12.07, Subd. 5, the Developer and the City hereby acknowledge that park dedication is due and payable to the City under the terms of said Section by the Developer, which was payable at the time of final approval of the Subdivision, and payment of which the Developer has requested deferment until the issuance of building permits for the lots in said Subdivision. Therefore, the City agrees to accept payment of said park dedication on a per lot basis at the time of the issuance of the building permits. Said amount due shall be based upon the fee schedule in effect at the time the building permit is issued. IN WITNESS WHEREOF, The City and Developer have caused this Agreement to be duly executed on the day and year first above written. (The next page is the signature page.) 10 , '. i ci ! <:~/,~:. [ , ""._.r Jo./i, I , ORDINANCE NO. 651, FOURTH SERIES AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING SECTION 12.19, SUBDIVISION 1 OF THE CITY CODE PERTAINING TO THE REDUCTION OF FINANCIAL SECURITY FOR DEVELOPER- CONSTRUCTED PUBLIC IMPROVEMENTS THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS: SECTION 1. Section 12.19, Subd. 1 of the City Code is amended as follows: SEC. 12.19. REDUCTION IN SECURITY. Subd. 1. When May be Reduced. In General. Security may be reduped upon request by the D6'":eloper after acceptance of.an llnprovement by the City Engineer. The improvement shall be a complete system, such as all of a particular utility or a block of street paving, and shall haye separorble costs of at least 20% ofilia total amount of the security. ill no 6'lent shall the security be reduced belo'll 25% of the original amount of security (plus 100% of tho estimated cost of any unpaid inspection and administration costs), nor below 125% of the amount which the City Engineer deems necessary tD complete all remaining improyements. Upon completion or partial completion of the improvements and upon request by the Developer, the City may release all or a portion of the Security. In no event shall the Security be reduced below the full amount of any unpaid inspection and administration costs plus 100% of the amount that the City Engineer deems necessary to complete all remaining improvements. In addition to those amounts, 25% of the original Security amount must also be withheld unless the City Engineer detennines that a lesser percentage is sufficient to ensure satisfactory completion of the remaining improvements. SECTION 2. Effective Date. This ordinance becomes effective from and after its passage and publication. ~ ., ~ Adopted in regular session of the City Council of the City of Shakopee, Minnesota held the day of , 2003. Mayor of the City of Shakopee ATTEST: City Clerk -,~ , ~ -0. v