Agenda - Council Work Session - 07/31/2012

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Sureties for subdivisions are specified in City Code Section 117-615 as 125% of construction cost. Sureties for commercial sites are specified in City Code Section 117-54 as 150% of the required improvements. The Stage 1 improvements required in the development agreement (subdivisions) include: 1. Trunk and lateral Utilities (Storm sewer, Sanitary Sewer, Watermain) 2. Streets with concrete curb and gutter 3. Lot grading with permanent erosion control 4. Sidewalk and trail construction 5. Small utilities (gas, electric, telephone) The required surety amount is based on an itemized listing of construction costs for items 1-4 and includes silt fence and other erosion control measures as determined by Engineering. The improvements required in the development contract (commercial developments) include: 1. Site grading 2. Concrete or bituminous driveways and parking lots with concrete curb and gutter 3. Turf establishment on disturbed areas and installation of landscaping and irrigation system. Staff has prepared an analysis for two commercial developments and three subdivisions, listing the sureties posted for each project and the fees proposed by the LRRWMO. We focused on the construction cost of the onsite ponds for this analysis, we did not include all of the storm sewer that is connected to the pond. The analysis is attached to the case. The proposed LRRWMO sureties include a disturbed area fee with 10% contingency and 30% administrative fees added to all costs. This adds $8,000 - 12,000 to the commercial sites and $50,000 - 580,000 to the subdivisions. A portion of the cost is due to the disturbed area fee and the remainder is due to the 10% +30% for contingency and administration. We currently have two categories in our development agreement, Stage 1 improvements and Stage 2 improvements. The stage 2 improvements include lighting, signs, and the first seal coat. There was discussion at the July LRRWMO meeting about creating a third category which would cover the LRRWMO regulated activities, IE. Stormwater Management Facilities, Erosion and Sediment Control and Shoreline or Streambank Improvement. The Stormwater related items as noted above would be removed from the Stage 1 calculations and added to the Stage 3 calculations with a separate surety. There was discussion at the LRRWMO meeting about the current method utilized by the member cities for establishing sureties. Andover uses 115% of construction cost multiplied by 1.5, Anoka and Ramsey use 125% of the construction cost. The need to cover administrative and legal fees was also discussed, it requires staff time and sometimes legal services to access the sureties to cover the cost of remedial work. There is a range of calculation methods in use, it may be prudent to request that the LRRWMO proposed fees be adjusted to more closely match existing rates and establishing a uniform calculation procedure for all cities in the WMO. The LRRWMO has established and will maintain a bank of available runoff retention Volume Credits. Volume reduction or runoff retention achieved onsite in excess of the requirements of the Appendix E Storm Water Standards of the Third Generation plan may be credited into the bank for use on other projects that are unable to fully meet this requirement on a parcel. Volume credits may be utilized by permit applicants to meet the requirement of Appendix E only after the applicant has demonstrated to the LRRWMO that: • One half inch of runoff from all impervious surface on the parcel will be retained on the parcel; and • Soil conditions and/or other site constraints prevent retention of additional runoff on site.