HomeMy WebLinkAboutCity Council Ordinance 2007-07CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2007-07
AN ORDINANCE AMENDING CHAPTERS 5 AND 7
OF THE PLYMOUTH CITY CODE
FINANCIAL GUARANTEES IN DEVELOPMENT
CONTRACTS AND SEWAGE USAGE
THE CITY OF PLYMOUTH, MINNESOTA ORDAINS:
SECTION 1. Section 522 of the Plymouth City Code is hereby amended as follows:
Section 522 — Development Contract
522.01. Purpose. It is the purpose of this section to ensure that a subdivider follows the
conditions of approval and properly installs the basic improvements required in a plat. To that
end, whenever a subdivision includes any public improvements or other conditions of approval,
the subdivider shall enter into a development contract with the City, setting forth the conditions
under which the subdivision is approved.
522.03. Required Basic Improvements.
Subd. 1. Subdivider Installation of Improvements. The subdivider shall arrange for
installation of all required improvements in the development subject to the development
contract.
Subd. 2. City Installation of Improvements. The City reserves the right to elect to install
all or any part of the basic improvements required under the provisions of this section pursuant to
Minnesota Statutes, Chapter 429, as may be amended.
Subd. 3. Basic Improvements Required. All of the following required improvements to
be installed under the provisions of this section shall be designed and constructed in accordance
with the design standards of this Chapter and the City of Plymouth Engineering Guidelines,
which are adopted herein by reference; and approved by and subject to the inspection of the City
Engineer. All of the City's expenses incurred as the result of the required improvements shall be
paid to the City by the subdivider.
(a) Streets.
(b) Sanitary sewer.
(c) Watermain.
(d) Surface water facilities (pipe, ponds, rain gardens, etc.).
(e) Grading and erosion control.
(f) Sidewalks/trails.
(g) Street lighting.
(h) Street signs and traffic control signs.
(i) Landscaping required by Section 21130.03 of the Zoning Ordinance.
0) Tree preservation.
(k) Wetland mitigation and buffers.
(1) Monuments required by Minnesota Statutes.
(m) Miscellaneous facilities.
522.05. Other Improvements Required. The subdivider shall arrange for the installation
of telephone, CATV, electrical and natural gas service following the grading of boulevard or
utility easements.
522.07. Completion of Basic Improvements.
Subd. 1. The subdivider shall complete all required basic improvements no later than one
(1) year following the commencement of work on the improvements, except 1) where weather
precludes completion, 2) for street lighting, 3) for landscaping and 4) for the wearing course of
streets.
(a) Where weather precludes completion, the improvement(s) may be completed at
the outset of the next construction/growing season.
(b) The subdivider shall complete street lighting within two (2) years following the
initial commencement of work on the required basic improvements.
(c) The subdivider shall complete landscaping within one (1) year following the
issuance of a building permit for the last vacant lot within the subdivision unless weather
precludes completion, in which case the landscaping shall be completed at the outset of
the next growing season.
(d) The subdivider shall have the option of installing the wearing course of streets
within one (1) year following initial commencement of work on the required basic
improvements or installing it after the first course has weathered a winter season,
consistent with warranty requirements in Section 522.15.
Subd. 2. Reproducible record plans of all public improvements as required by the City
Engineer shall be furnished to the City by the subdivider. Such record plans shall be in mylar
format and an electronic format approved by the City Engineer and shall be certified to be true
and accurate by the registered engineer responsible for the installation of the improvements.
522.09. Financial Guarantees. Subsequent to execution of the development contract but
prior to the release of a signed final plat mylar for recording, the subdivider shall provide the
City with a financial guarantee in the form of a letter of credit from a bank, cash escrow, or a
combination of a letter of credit and a cash deposit with the City. A letter of credit or cash
escrow shall be in an amount equal to one hundred percent (100%) of the estimated cost of
completion of the specified basic improvements. The issuer of the letter of credit or the escrow
agent, as applicable, shall be acceptable to the City.
Subd. 1. Letter of Credit. If the subdivider posts a letter of credit as a guarantee, the
credit shall 1) be irrevocable, 2) be from a bank approved by the City, 3) be in a form approved
by the City, 4) be for a term sufficient to cover the completion, maintenance and warranty
and 5) require only that the
City present the credit with a sight draft and an affidavit signed by the City Manager or the
Manager's designee attesting to the City's right to draw funds under the credit.
Subd. 2. Cash Escrow. If the subdivider posts a cash escrow as a guarantee, the escrow
instructions approved by the City shall provide that 1) the subdivider will have no right to a
return of any of the funds except as provided in Section 522.13, and 2) the escrow agent shall
have a legal duty to deliver the funds to the City whenever the City Manager or the Manager's
designee presents an affidavit to the agent attesting to the City's right to receive funds whether or
not the subdivider protests that right.
Subd. 3. Cash. A cash deposit made with the City Finance Department may be used as
part of the required financial guarantee in those instances where the subdivider elects to have the
City install some or all of the public improvements.
Subd 4. Subdivider Installed Improvements. For basic improvements to be installed by
the subdivider, the required financial guarantee shall include all the following fixed or estimated
costs.
(a) Costs of the basic improvements identified in Section 522.03, Subd. 3.
(b) Engineering, to include subdivider's design, surveying, and inspection.
(c) Principal amount of special assessments previously levied against the property
together with one year of interest.
(d) Estimated cost of energy for street lights for the first two years of operation.
Subd. 5. City Installed Improvements. For basic improvements to be installed by the
City, the required financial guarantee shall be the sum of the following fixed or estimated costs:
(a) A cash deposit in an amount equal to twenty-five percent (25%) of the estimated
cost of installing the specified public improvements as determined by the City Engineer,
which costs would include charges incurred by the City for legal, planning, engineering
and administration associated with the installation project(s). The deposit shall be
applied to the costs of such installations, with the remainder of the costs specially
assessed, in the manner provided by Minnesota Statutes, over a period of five (5) years
together with interest thereon.
(b) In lieu of the cash deposit, the subdivider may elect to have the City provide one
hundred percent (100%) of the cost of such installations, which costs shall be assessed
over a period of five (5) years. In such event, the subdivider shall post a letter of credit
for sixty (60) percent of the cost of assessments, which letter of credit shall be released
after the subdivider pays the principal and interest on said assessments for two (2) years
and which letter of credit shall be separate from any other letters of credit associated with
the subdivider's project.
522.11. Administration of Development Contract. The subdivider shall, upon execution
of the Development Contract, pay to the City of Plymouth the costs of administering the
Development Contract. Administrative costs include but are not limited to monitoring of
construction observation, consultation with Developer and his/her engineer on status or problems
regarding the project, plan review, coordination for testing, final inspection and acceptance,
project monitoring during the warranty period, and processing of requests for reduction in
security, for all public improvements covered by the development contract. The fee schedule for
administrative costs is as follows:
Estimated Cost of Proposed
Public Improvement(s)
City Administrative Cost
Less than $150,000
3.0 percent (Minimum $500)
$150,000 to $300,000
2.5 percent
Over $300,000
2.0 ercent
(Ord. 2005-10, 6/14/2005)
522.13. Release and Expiration of Financial Guarantees.
Subd. 1. The financial guarantee shall be held by the City until, upon written notice by the
subdivider and certification from a professional engineer that part or all of the required
improvements have been completed and upon verification of such by the City staff, a portion or
all of the financial guarantee is released by the City Engineer. No financial guarantee shall be
released in full until the City has received 1) certified, reproducible record plans of all required
improvements installed by the subdivider and 2) a title insurance policy approved by the City
Attorney indicating that the improvements are free and clear of any and all liens and
Subd 2. It shall be the responsibility of the subdivider to insure that a submitted financial
guarantee shall continue in full force and effect until the City Engineer has approved and
accepted all of the required improvements, and thereby is authorized to release the guarantee or
reduce the amount of the guarantee as provided in Subd. 1 above.
Subd. 3. When any instrument submitted as a financial guarantee contains provision for
an expiration date, after which the instrument may not be drawn upon, not withstanding the
status of the Development Contract or of the required improvements, the expiration date shall be
October 31 or the closest business day in the case of weekends and legal holidays. Further, the
financial guarantee shall be deemed automatically extended without change for six (6) months
from the expiration date unless sixty (60) days prior to the expiration date, the financial
institution notifies the City in writing by certified mail that it does not elect to renew the
financial guarantee for an additional period. If the instrument is not to be renewed and has not
been released by the City Engineer, another acceptable financial guarantee in the appropriate
amount shall be submitted at least sixty (60) days prior to the expiration. The term of any
extension shall be approved by the City Engineer and subject to the requirements of this section.
Upon receipt of an acceptable substitute financial guarantee, the City Engineer may release the
original guarantee.
522.15. Warranty/Maintenance Guarantee.
Subd. 1. The subdivider shall submit either 1) a warranty/maintenance bond or 2) a letter
of credit for twenty-five percent (25%) of the amount of the original cost of the improvements.
(a) The required warranty period for materials and workmanship from the utility
contractor installing public sewer and water mains shall be two (2) years from the date of
final written City acceptance of the work.
(b) The required warranty period for all work relating to street construction, including
concrete curb and gutter, sidewalks and trails, materials and equipment shall be subject to
one (1) year from the date of final written acceptance, unless the wearing course is placed
during the same construction season as the bituminous base course. In those instances,
the subdivider shall guarantee all work, including street construction, concrete curb and
gutter, sidewalks and trails, material and equipment for a period of two (2) years from the
date of final written City acceptance of the work.
(c) The required warranty period for sod, trees, and landscaping is one growing
season following installation.
(Ord. 2003-15, 06/10/2003)
SECTION 2. Section 715 of the Plymouth City Code is hereby amended as follows:
Section 715 - Sanitary Sewer System
715.01. Definitions, Use of Terms. Subdivision 1. General Rule. Unless specifically
provided otherwise, terms used in this Section classifying or describing various types of uses
upon which rates or charges are imposed have the meanings given them by the Zoning Code of
the City (Appendix I of this Code).
Subd. 2. Additional Definitions. For the purposes of this Section alone, "Surface
Water" means storm water, ground water, roof runoff water, or subsurface drainage water.
715.02. Accounts; How Kept. All accounts shall be kept on the books of the Finance
Department by the house and street number and under the account number assigned thereto and
the name of the owner or of the person signing the application for service. All bills and notices
sent out by the Finance Department shall be sent to the house or street number of the property.
If non-resident owners or agents desire personal notice sent to a different address, they shall file
an application therefor with the Finance Department. Any error or change in any address shall
be promptly reported to the Finance Department.
715.03. Service Charge Imposed. A charge is hereby imposed upon every establishment
served by the sanitary sewer system of the City either directly or indirectly, for the use of the
facilities of the sewer system and for connection therewith, which charge shall be as hereinafter
provided in Subsection 715.05. All charges for use of the City's sewer system shall be due on
the date specified by the Finance Department for the respective account and shall be delinquent
thereafter. It shall be the duty of the Finance Department to endeavor to promptly collect
delinquent accounts. For good cause shown, the Finance Director may, in appropriate
circumstances, adjust the amount due on such accounts. Annually all delinquent accounts shall
be certified to the City Manager who shall prepare an assessment roll providing for assessment
of the delinquent amounts against the respective properties served. This assessment roll shall
be delivered to the City Council for adoption on or before October 31 st of each year. Such
action may be optional or subsequent to taking action to collect delinquent accounts. (Ord. 94-
25, 12/19/94)
715.05. Type and Amount of Service Charge. Charges for sewer service are as follows:
(a) Base Fee. A charge of $4.03 per month shall be made to every sanitary sewer
account to defray administrative costs, billing costs, and other fixed costs of the
City. (Ord. 2002-31, 11-26-2002; Ord. 2004-27, 11/09/2004; Ord. 2005-32,
11/29/2005)
(b)
Volume Charge. A charge of $2.37 per one thousand gallons of sewage
discharged into the City's sanitary sewer system shall be made to each sanitary
sewer account except for qualified senior citizens for whom a charge of $2.12
per one thousand gallons will apply. For purposes of this section, an individual
must meet the following criteria for the qualified senior citizen discount to
apply: (1) the individual must be 62 years of age or older; (2) the property must
be homesteaded; and (3) the individual's name must appear on the bill. Seniors
in a multi -unit building will also be eligible for a senior discount if the bylaws,
or other governing documents for the building, require that at least one
tenant/owner in each unit be at least 62 years of age. For residential customers,
the volume of such sewage discharge shall be based upon the actual amount of
water consumed during the appropriate two month billing, in the period of
December through February. For non-residential customers, the volume of such
sewer discharge shall be based upon the actual water consumed by the account
each month. Alternatively, non-residential customers may have their volumes of
sewer discharge based on actual sewage flows or calculated sewage flows if
sewer usage or sewer deduct meters are installed. In instances where there is no
metered water service to an account or the account history is inadequate, the
volume of sewer usage shall be that used for similar classes of property similarly
Ord. 98-15, 05/06/98; Ord. 2002-31, 11/26/2002; Ord. 2003-08, 03/25/2003;
Ord. 2004-27, 1110912004; Ord. 2005-32, 11 /29/2005)
(c) Amount Due After Due Date. An amount equal to 10% of the unpaid current
month service charges and an amount equal to 10% of the unpaid current bi-
monthly service charges shall be added to each account which is not paid by the
due date as specified by the Finance Department. (Ord. 94-25, 12/19/94)
715.07. Industrial User Strength Charge. Subdivision 1. Recitals. The Metropolitan
Waste Control Commission, a metropolitan commission organized and existing under the laws
of the State of Minnesota (the "Commission"), in order to receive and retain grants in
compliance with the Federal Water Pollution Control Act Amendments of 1972 and regulations
thereunder (the "Act"), has determined to impose an industrial user sewer strength charge upon
uses of the Metropolitan Disposal System (as defined in Minnesota Statutes, Section 473.121,
Subdivision 24, as amended) to recover operation and maintenance costs of treatment works
attributable to the strength of the discharge of industrial waste, such sewer strength charge
being in addition to the charge based upon strength of industrial discharge and allocated to it
each year by the Commission, it is hereby found, determined and declared to be necessary to
establish sewer strength charges and a formula for the computation thereof for all industrial
users receiving waste treatment services within or served by the City. Furthermore, Minnesota
Statutes, Section 444.075, Subdivision 3, empowers the City to make such sewer charge against
the owner, lessee, occupant, or all of them and certify unpaid charges to the County Auditor as
a tax lien against the property served.
Subd. 2. Establishment of Strength Charges. For the purpose of paying the costs allocated to
the City each year by the Commission that are based upon the strength of discharge of all
industrial users receiving waste treatment services within or served by the City, there is hereby
approved, adopted and established, in addition to the sewer charge based upon the volume of
discharge, a sewer charge upon each company or corporation receiving waste treatment
services within or served by the City, based upon strength of industrial waste discharged into
the sewer system of the City (the "Strength Charge").
Subd. 3. Establishment of Strength Charge Formula. For the purpose of computation of
the Strength Charge established by Subdivision 2 hereof, there is hereby established, approved
and adopted in compliance with the Act the same strength charge formula designated in
Resolution No. 76-172 adopted by the governing body of the Commission on June 15, 1976,
such formula being based upon pollution qualities and difficulty of disposal of the sewage
produced through an evaluation of pollution qualities and quantities in excess of an annual
average base and the proportionate costs of operation and maintenance of waste treatment
services provided by the Commission.
Subd. 4. Strength Charge Payment. It is hereby approved, adopted and established that
the Strength Charge established by Subdivision 2 hereof shall be paid by each industrial user
receiving waste treatment services and subject thereto before the twentieth (20th) day next
succeeding the date of billing thereof to such user by or on behalf of the City, and such payment
thereof shall be deemed to be delinquent if not so paid to the billing entity before such date.
Furthermore, it is hereby established, approved and adopted that if such payment is not paid
before such date an industrial user shall pay interest compounded monthly at the rate of two-
thirds of one percent (.2/3%) per month on the unpaid balance due.
Subd. 5. Establishment of Tax Lien. As provided by Minnesota Statutes, Section
444.075, Subdivision 3, as amended, it is hereby approved, adopted and established that if
payment of the Strength Charge established by Subdivision 2 hereof is not paid before the
sixtieth (60th) day next succeeding the date of billing thereof to the industrial user by or on
behalf of the City, said delinquent sewer strength charge, plus accrued interest established
pursuant to Subdivision 4 hereof, shall be deemed to be a charge against the owner, lessee and
occupant of the property served, and the City or its agent shall certify such unpaid delinquent
balance to the county auditor with taxes against the property served for collection as other taxes
are collected; provided, however, that such certification shall not preclude the City or its agent
from recovery of such delinquent sewer strength charge and interest thereon under any other
available remedy.
715.09. Billin . It is hereby made the duty of the City Manager to render to the owners,
lessees or occupants of non-residential properties monthly bills and bi-monthly bills (every two
months) for residential properties for the amount of the sewer rental charge hereinabove set
forth. The funds received from the collection of the sewer rental charges shall be kept separate
from the general or other revenues of the City and when so collected shall be placed in the
appropriate special funds. (Ord. 94-25, 12/19/94)
715.11. Damages; Waiver of Claim. Any person using the sewer system of the City,
whether as owner, lessee, or occupant of any land, building, or premises served by such sewers
shall be deemed to waive any claim or cause of action for damages claimed against the City of
Plymouth as a result of the backing up of sewers in any basement iri the City of Plymouth not
intentionally caused by the deliberate act of some employee or agent of the City of Plymouth.
(Ord. 95-36, 06/20/95)
SECTION 3. This ordinance shall be effective immediately upon its passage.
ADOPTED by the City Council of the City of Plymouth, Minnesota this 27t` day of March,
2007.
A EST:
Sandra R. Engdahl, Clerk
IUWAW)�-
Kelli Slavik, Mayor