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5.05: Discuss Amending the Approved Format for Warranties on Stage I and Stage II <br />Improvements (Project NO. 16-21); Case of the City of Ramsey <br />Presentation <br />Housing Intern Healy presented the Staff Report stating the purpose of this discussion is to <br />consider amendments to City Code to align City Code language with the City's current policy <br />regarding warranties for Stage 1 and Stage II improvements on private developments. When <br />private developments construct Stage 1 improvements (public improvements such as sidewalks, <br />roads, storm drainage, etc.) and Stage 2 improvements (seal coating, street striping, streetlights, <br />etc.), the developer must warranty their work for one (1) year following the final acceptance of <br />any required improvements. If the improvements are defective or fail within that year, the City <br />can draw from the warranty funds to make repairs. <br />Housing Intern Healy reported the City has a longstanding informal pohrequiring developers <br />to warranty their work by giving the City cash or a letter of credit, Pgi, eto 25% of the cost of the <br />improvements. The money is refunded at the end of the one-y' ar arranty period. Currently, <br />however, the code suggests that developers also have tb option of submitting a bond for <br />warranty and maintenance. The City historically has not a—:,epted bonds in these situations <br />because the logistical difficulties involved in trying to e. ii: on a bond to pay for repairs. The <br />proposed amendment would remove the language ;hat states that bonds are acceptable for <br />warranties and replace it with new language formah.-ing the City's policy of requiring 25% of the <br />project costs as a warranty in the form of eithe c 'ash or a letter of credit. Leaving the language in <br />its current form could create confusion am Jn ! c::;velopers who might reasonably expect the City <br />to honor the current language that bonds al n acceptable format for warranties. <br />Commission Business <br />Commissioner Bauer was in fa for of the City's Ordinances aligning with the City's practices. <br />Commissioner Nosan <br />There was consenf the Commission for staff to proceed with the proposed amendment for <br />the approved format for warranties on Stage I and Stage II improvements. <br />6. COMMISSION / STAFF INPUT <br />6.01: Staff Update <br />The Staff Update was noted. <br />6.02: Zoning Bulletins <br />Zoning Bulletins were noted. <br />Planning Commission/January 7, 2016 <br />Page 8 of 9 <br />