05/13/2002 Council Packet - Laserfiche WebLink

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• • • COUNCIL MINUTES APRIL 8, 2002 Road pavement including aggregate base $100,000 Storm sewer $51,000 Sanitary sewer $43,000 Water main $45,000 Councilmember Carlson pointed out the City does not install these improvements for all residential developments. City Engineer Studenski agreed and indicated developers can request through petition that the City install the utilities for a project. He pointed out that there have been other projects in the past for which the City only installed the wear course on the roadway. He acknowledged the City has not performed this type of work for a development for a few years but noted the City does have a program in place to address these types of requests, which includes the requirement of an escrow, letter of credit, etc. Councilmember Dahl noted this request had been discussed during the Council work session and staff had indicated the City may not wish to perform these types of projects in the future. Community Development Director Grochala indicated the City may wish to consider whether they will continue offering this option for residential developments. He noted there may be times when it is appropriate for the City to perform the utility work for projects, but over the past few years the majority of contractors have chosen to do all the work themselves. He acknowledged that it may be better for the City to do less of these types of projects. Councilmember Dahl questioned what would happen if a developer, for whatever reason, was unable to complete the project and whether the City would be able to assess the cost of the installed utilities to recoup its investment. City Attorney Hawkins noted the development agreement includes a clause that the developer agrees to the amount of assessment, up to a certain amount, and waives the right to appeal those assessments. He noted the agreement includes a letter of credit requiring the developer to have 35 percent of the cost of the project available and, if the developer defaulted on the agreement, the assessment would be levied against the property. If the assessment was not paid, then the City could either buy the property itself or put the property up for sale through public auction to recoup its investment. City Engineer Studenski added the developer is required to provide an escrow so cash is available to cover the preparation work, including plans and specifications, staking, etc. Councilmember Carlson noted the development agreement indicated the entire cost of the improvement incurred by the City shall be assessed against the property in accordance with City policy. She asked if it would be possible for the City to not collect the full amount of the assessment and noted there is a State Statute that does not allow an assessment for an amount higher than the improvement would increase the value of the property. 8