Laserfiche WebLink
City Administrator Ulrich noted the surety is required to assure the improvements are completed <br />according to the plan and if not, he would ask if it is the responsibility of the LRRWMO or the <br />City to gain compliance. He stated the LRRWMO is considering the minimum surety so there is <br />not development cost inconsistency between its member cities but the surety has to be set high <br />enough to assure the improvements are completed because if the developer does not comply, the <br />taxpayers of that community bear the costs of litigation. <br />Mayor Ramsey stated he thinks Ramsey is at a disadvantage when compared to the other <br />LRRWMO member cities because it still has areas to develop. He supported the lowest surety <br />possible to assure Ramsey continues to grow as the other cities had the opportunity before there <br />were rules and restrictions. Mayor Ramsey agreed the Council needed to be good stewards of <br />the environment, but it also needed to assure the City remained economically viable. <br />Councilmember Strommen noted the requirements are already in place so the City needs a surety <br />in an amount high enough to be sure the project is completed because otherwise that financial <br />obligation is on the City. She stated the Council needs to address what it can actually do, not <br />debate requirements that are already enacted. <br />Mayor Ramsey stated many of the rules included in the Third Generation Plan were debatable <br />and enacted by an unelected body, the LRRWMO, and he felt those items were more political <br />than anything else. <br />Councilmember McGlone asked if the City can allow the LRRWMO to collect the fees and <br />regulate and manage the projects. <br />Mayor Ramsey stated the LRRWMO has indicated they are not equipped to do that. <br />Councilmember Strommen stated Ramsey is already collecting fees and fulfilling this function. <br />Councilmember Tossey stated it does not change the results and whether the LRRWMO or City <br />collect the fees, it still hurts Ramsey. <br />Interim Engineer Nelson stated another option is when the City sets the surety, it is <br />backstopped/overlapped by the letter of credit or escrow already in place, which is then not <br />released until the stormwater project is completed. This option may not increase the project cost. <br />City Administrator Ulrich supported this option and suggested the City work with a minimum <br />and maximum range so the City's surety is within the window. He felt that keeping the fees low <br />would help with development and the fewer entities the City has to deal with, the better. City <br />Administrator Ulrich noted the LRRWMO only meets once a month so it would be better for <br />Ramsey to control the process and handle it administratively to facilitate development. <br />Councilmember Strommen stated the other benefit of the City holding the surety is that it can be <br />released as the project is completed and more surety is not held than needed. Once a developer <br />installs the stormwater management facility, that portion of the surety can then be returned. <br />City Council Work Session / July 31, 2012 <br />Page 12 of 18 <br />