Text Amendment Subdivision RegulationsTHE CITY OF
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Planning Services Department
City Hall L~
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50 West 13th Street U
Dubuque, Iowa 52001-4864
(563) 589-4210 office
(563) 589-4221 fax
(563) 690-6678 TDD February 2, 2007
plamlingC~?cityofdubuque.org
www.cityofdubuque.org
The Honorable Mayor and City Council Members ---'
City of Dubuque
City Hall - 50 W. 13th Street
Dubuque IA 52001
RE: Text Amendment
Applicant: City of Dubuque
Description: Amend Section 42-24(a) Improvement Guarantees of the City of Dubuque
Subdivision Regulations.
Dear Mayor and City Council Members:
The City of Dubuque Zoning Advisory Commission has reviewed the above-cited
request. The application, staff report and related materials are attached for your review.
Discussion
Planning staff reviewed the proposed text amendment and current regulations for
improvement guarantees and the proposed changes.
There were no public comments.
The Zoning Advisory Commission discussed the request, noting that the requested
change is appropriate and recommended approval.
Recommendation
By a vote of 4 to 0, the Zoning Advisory Commission recommends that the City Council
approve the request.
A simple majority vote is needed for the City Council to approve the request.
Respectfully submitted,
V
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Jeff Stiles, Vice Chairperson
Zoning Advisory Commission
cc: Gus Psihoyos, City Engineer
Service People Integrity Responsibility Innovation Teamwork
THE CITY OF
DuB E
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MEMORANDUM
January 29, 2007
TO: Zoning Advisory Commission
FROM: Kyle L. Kritz, Associate Plannerx~ ~•
SUBJECT: Proposed Amendment to Chapter 42-24 of the Subdivision Regulations
INTRODUCTION
Attached to this memorandum is a memo to City Manager Michael Van Milligen from
City Engineer Gus Psihoyos that outlines proposed change to Chapter 42-24 of the
Subdivision Regulations regarding securities required to be submitted to insure
installation of public improvements. In November 2005, the Zoning Advisory
Commission reviewed a change to this section of the Subdivision Regulations that
required a developer to provide securities in the amount of 110% of the cost of the
public improvements. The current proposal is intended to address a concern that was
subsequently been raised by developers.
DISCUSSION
The proposed change will allow the developer to reduce the level of security for
improvements from 110% to 25% of the construction cost, when the improvements are
substantially completed. For example, when an asphalt street is constructed, the
developer will install the first lift of asphalt on the street, while the second lift of asphalt
will not be installed for at least one year afterwards. Under the proposed change, the
amount of security would be reduced to 25% of the street construction cost, as the
street has substantially been completed, and the City's level of liability has also been
reduced.
RECOMMENDATION
Planning staff recommends that the Zoning Advisory Commission review the attached
memorandum from City Engineer Gus Psihoyos and make a recommendation to the
City Council.
KLK/mkr
Attachment
THE CITY OF
DuB E MEMORANDUM
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December 22, 2006
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Subdivision Securities
BACKGROUND
This memo is written to seek clarification on the policy of providing securities for
public improvements associated with the filing of the final plat of subdivision. In
November of 2005, Chapter 42-24 of the Subdivision Regulations of the Zoning
Ordinance was amended to require the developer to provide securities in the
amount of 110% of the cost of the public improvements. This security is then
reduced to 25% when the improvements are accepted. The City has required
these securities to be in place prior to recording the final plat.
The requirement for the developer to secure 110% of the cost of improvements
for the duration of the project (final platting until final acceptance of the
improvements) has appeared to be a financial challenge to developers. Two
developers have approached us with some options which seem feasible without
leaving the City or future property owners at risk.
DISCUSSION
Once the public improvements are constructed to City specifications and
inspected by the City and the contractor has been paid, the liability to the City is
greatly reduced. Usually only minor expenses are incurred after this point for
miscellaneous corrections or modifications. At this point we would consider the
improvement "substantially" complete, since it is installed and functioning. Final
completion would not occur until after the final lift of asphalt has been placed and
all fixtures are cleaned and adjusted to grade. Since the final. asphalt lift is not
allowed for a minimum of one year, the developer is still bonded for 110% of the
of the installation cost.
Another scenario is: If the developer does not need to record the final plat for
several months, public improvements can be installed to City specifications and
inspected by the City providing the inspection fee for said utilities is paid. When
the developer is ready to record the final plat, some of the public improvements
may be substantially complete. If the installed improvements meet City
specifications at that point, it seems unnecessary to have the developer continue
to bond at 110% of the construction costs.
Two requests have been suggested that would reduce the securities in light of
the above situations.
Can the developer reduce his securities for the improvements to 25% of
the construction costs when they are "substantially complete"? Final
acceptance would be by City Council action with the 25% securities
remaining in effect for an additional two (2) years from date of acceptance
by the Council.
2. In a case where a plat has not been filed until after portions of the public
improvements have been installed, can the securities be reduced to 25%
of the "substantially complete" items plus 110% of the items not
constructed?
CONCLUSION
In order for developers to continue with additional phases or other developments
within the City, securities should be held by the City which accurately reflect the
liability the City may have if problems arise with the proposed public
improvements. To hold securities for 110% of the construction costs after the
improvement has been installed and functioning may place a higher financial
burden on developers than necessary. Engineering feels the securities for
proposed public improvements installed in accordance with plans approved by
City Engineering and inspected by the City could be reduced to 25% of the
anticipated construction costs once they are "substantially" complete as
determined by the City Engineer.
RECOMMENDATION
Engineering recommends the securities for public improvements be established
at 25% of the cost of public utilities which are "substantially complete" and 110%
of the remaining improvements not substantially complete at the time of
recording the final plat. Engineering feels this policy could also apply to major
site plans where public improvements are proposed to be dedicated to the City.
"Substantially complete" shall mean constructed and inspected in accordance
with the plans and specifications approved by the City Engineer.
Please advise if you have any additional requirements or recommendations.
cc: Barry Lindahl, City Attorney
Ron Turner, PLS
Attach.
Preparers Barry A. Lindahl Address: Suite 330 300 Main Street Dubuaue, IA 52001 Telephone: 5j 631
583-4113
ORDINANCE NO. 5-07
AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 42-24
IMPROVEMENT GUARANTEES PROVIDING FOR THE REDUCTION OF SECURITIES FOR
PUBLIC IMPROVEMENTS UPON SUBSTANTIAL COMPLETION OF SUCH
IMPROVEMENTS
Section 1. City of Dubuque Code of Ordinances § 42-24 is amended to read as
follows:
Sec. 42-24. Improvement guarantees:
{a) Application: Before the recording of final plats, ar as a condition of
approval of final plats, the Commission and City Council shall require the
following guarantees:
(1) The furnishing of a performance guarantee in an amount
not less than one hundred ten percent (110%) of the cost of
construction of public improvements by the owner. Upon
determination by the City Engineer that a public improvement
is substantially complete, the amount of such guarantee shall
be reduced to twenty-five percent {25%) of the cost of
construction of the public improvement. "Substantially
complete" shall mean that the public improvement has been
inspected by the City Engineer and determined by the City
Engineer to be constructed in accordance with the approved
plans and specifications; and
(2) Provision for a maintenance guarantee in the amount of
twenty frve percent (25%) of the cost Of the public
improvements by the owner for a period of two (2) years after
final acceptance of the improvements by the City Council; and
(3) Payment of City inspection fees for public improvements shall be
based upon three percent (3%) of the construction costs of the
public improvements.
Section 2. This Ordinance shall take effect upon publication.
Passed, approved and adopted this 20th day of Feb ry, 200 .
Roy D. Buol, Mayor
Attest:
eanne F. Schneider, City Clerk
Effect of Amendment
Sec. 42-24. Improvement guarantees.
(a) Application: Before the recording of final plats, or as a
condition of approval of final plats, the Commission and City
Council shall require the following guarantees:
(1) The furnishing of a performance guarantee_in_an__________________
amount not less than one hundred ten percent (110%)
of the cost pf_ construction_ of_public_ improvements by _________________
the owner. Upon determination by the City Enoineer
that a public improvement is substantially complete.
the amount of such guarantee shall be reduced to
twenty-five percent (25%) of the cost of construction
of the public improvement. "Substantially complete"
shall mean that the public improvement has been
inspected by the City Enoineer and determined by the
City Engineer to be constructed in accordance with
the approved plans and specifications; and
(2) Provision for a maintenance guarantee in the
amount of twenty five percent (25%) of the cost of the
public improvements<by_the owner_fora_period_of_two_______________
(2) years after final acceptance of the improvements
by the City Council; and
(3) Payment of City inspection fees for public improvements
shall be based upon three percent (3%) of the construction
costs of the public improvements.
-- Deleted: and maintenance
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