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<br />Motion Carried. Voting Yes: Chairperson Levine, Commissioners VanScoy, Andrusko, Bauer, <br />Brauer, and Nosan. Voting No: None. Absent: Commissioner Maul. <br /> <br />5. PUBLIC HEARINGS/COMMISSION BUSINESS <br /> <br />5.01: Public Hearing: Consider Ordinance #16-05 Amending City Code 117-615 to <br />Correct the Approved Formats for Warranties on Stage I and Stage II <br />Improvements <br /> <br /> <br />Public Hearing <br /> <br /> <br />Chairperson Levine called the public hearing to order at 7:01 p.m. <br /> <br />Presentation <br /> <br /> <br />Community Development Director Gladhill presented the staff report stating the purpose of <br />this hearing is to consider an ordinance to amend City Code 117-615 to align City Code <br />language with the City's current policy regarding warranties for Stage 1 and Stage II <br />improvements on private developments. When private developments construct Stage 1 <br />improvements (public improvements such as sidewalks, roads, storm drainage, etc.) and Stage 2 <br />improvements (seal coating, street striping, streetlights, etc.), the developer must warranty their <br />work for one (1) year following the final acceptance of any required improvements. If the <br />improvements are defective or fail within that year, the City can draw from the warranty funds to <br />make repairs. <br /> <br />Community Development Director Gladhill reported the City has a longstanding informal policy <br />of requiring developers to warranty their work by giving the City cash or a letter of credit equal to <br />25% of the cost of the improvements. The money is refunded at the end of the one-year warranty <br />period. Currently, however, the code suggests that developers also have the option of submitting <br />a bond for warranty and maintenance. The City historically has not accepted bonds in these <br />situations because of the logistical difficulties involved in trying to collect on a bond to pay for <br />repairs. The proposed amendment would remove the language that states that bonds are <br />acceptable for warranties and replace it with new language formalizing the City's policy of <br />requiring 25% of the project costs as a warranty in the form of either cash or a letter of credit. <br />Leaving the language in its current form could create confusion among developers who might <br />reasonably expect the City to honor the current language that bonds are an acceptable format for <br />warranties. Staff reviewed the matter in further detail and recommended approval of the <br />Ordinance as written. <br /> <br />Citizen Input <br /> <br /> <br />Commissioner Bauer questioned what percentage of applicants used a letter of credit versus cash. <br /> <br /> <br />Planning Commission/March 3, 2016 <br />Page 2 of 8 <br /> <br />