Agenda - Council - 07/26/1983 - Laserfiche WebLink

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I I I I I I I '1 I I I I I I I I I I TO: FROM: DATE: RE: CITY COUNCIL LLOYD SCHNELLE, CLAYTON BERG, LARRY KOSHAK and WILLIAM K. GOODRICH JULY 26, 1983 ASSESSMENT POLICY ORDINANCE The Council will recall the memorandum presented to you on this subject dated June 22, 1983. At the Council meeting on June 26, 1983, the Council directed further study on this subject with the suggestion being made to explore the possibility of reducing the escrow requirements. ~ With that goal in mind, Lloyd Schnelle and Bill Goodrich met with representatives of Evansen-Dodge, Inc., municipal fiscal advisors. As a result of that meeting, Evansen-Dod~e prepared two ~omputer runs showing model projects with constrdction costs of $1,213f000 and one project requiring a 15% cash escrow and the other project requiring a 0% cash escrow. These are the computer runs which the two Evah~n-Dodge representatives discussed with the Council at the special meeting on July 21, 1983. Therefore, based on all previous study and discussion on this subject, an alternative for the Council to consider is as follows: Require a minimum of 15% of the cost of trunk, laterals, curb and gutter, street surfacing, etc. to be escrowed with the City in the form of cash OR require 20% of the project cost in the form of a letter of credit. The decision on whether the cash or letter of credit should be required will be made by the Council on a case by case basis. The final escrow amounts shall be subject to increase based on the developer's financial stability in relation to the project size. This potential increase will be determined as outlined in Bill Goodrich's memo to the Council dated June 22, 1983. Require that each project have FHA and VA approval before the bond sale to give additional assurance that the project is feasible. Require a cash or letter of credit escrow of 125% of the Engineer's estimated cost for improvements such as grading, street signs, street lighting, extra maintenance of streets and storm sewer during construction. This escrow to be returned to the developer only when these improvements have been completed. Ail other items of the 6/22/83 memorandum would continue to be a part of the City's policy. The alternative as proposed in this memorandum has not been reviewed by the City's Ad Hoc Assessment Policy Committee. Please advise if the Council wants that Committee's review and input prior to final action. wkg/cmh