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<br />Item No: 5 <br />Meeting Date: May 2, 2016 <br />Type of Business: Work Session <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: James Ericson, City Administrator <br />Item Title/Subject: Review Proposed Ordinance 916, Revising Section 1006.06 <br />of the Municipal Code regarding Certificates of Occupancy <br />and Escrow Deposits <br /> <br />Introduction: <br /> <br />W hen a building is constructed and becomes ready for occupancy, there may remain a few <br />issues that are not quite complete, issues which would not otherwise prevent the space <br />from being occupied from a Building Code standpoint. Sometimes the issues are <br />impractical to complete due to weather conditions, such as final grading, survey, sod, <br />driveways, etc. in the winter months. In such cases, cities accept an escrow before <br />granting the Certificate of Occupancy to ensure the work is completed after the occupancy <br />has been granted. <br /> <br />Discussion: <br /> <br />The City’s Fee Schedule already includes references to Certificate of Occupancy escrows, <br />in that the City would collect a minimum of $1,000 from the builder or developer if <br />something isn’t completed at the time occupancy is requested. The following list <br />represents common issues necessitating potential escrow: <br /> <br />a. Seed/Sod/Landscaping <br />b. As-built grading survey (covers grading and survey completion) <br />c. Driveway Installation <br />d. Curb cut modifications <br />e. Site clean-up <br />f. Stormwater management/drainage features/site erosion <br />g. Right-of-way restoration <br />h. Any other item as determined by the Building Official <br /> <br />A typical example of when this would come into play would be when a homeowner or <br />contractor needs to close on a new home in January but the only thing holding up the final <br />Certificate of Occupancy is installation of a driveway or sod/seed which would be <br />impractical for the time of year. In such cases, the builder, developer or owner would <br />deposit the required escrow to ensure the work would be completed when weather was <br />more permissive, and the City would issue the Certificate of Occupancy. <br /> <br />The proposed revisions to Section 1006.06 provide the authorization to collect an escrow; <br />the process by which the deposited monies would be used to address whatever work <br />remains to be completed would be handled in a separate policy document and escrow <br />agreement.