04-24-2017 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 10, 2017 7:00 o'clock p.m. 21. #17-3921 CITY OF ORONO, TEXT AMENDMENT: ESCROW AGREEMENTS AND FINANCIAL GUARANTEES — ORDINANCE NO. 190, Third Series (Continued) The ordinance also modifies the language to only require as -built surveys for principal buildings. An as - built survey is intended to guarantee that the structure and all other improvements are consistent with the approved plans. In addition, the draft ordinance also modifies/clarifies the requirement that owners must pay costs incurred as part of their project. Under the new ordinance, the City will no longer require escrow agreements and incorporates language to include in the permits and applications to negate the need for this separate document. Staff recommends adoption of the ordinance as presented. Printup asked if the City can assess someone if they do not pay the costs incurred by the City. Mattick stated in order to assess something, it must be against the property owner, and a lot of times the applications are made by a builder or an architect. Mattick stated the costs are usually not paid if the project experiences problems and typically the property owner is not aware of the outstanding costs. Mattick stated there is language that allows the City to assess those fees, but that there will be some exposure. Mattick stated he is not sure at this point whether it will help the City or not. Mattick noted approximately ten years ago Orono had a difficult time collecting on these fees and the City was left on the hook for several hundred thousand dollars, which was why the current ordinance was put in place. Mattick stated to his understanding the system in place has been working but that it is a balancing act between protecting the City's financial stake and being fair to the consumer. Walsh stated these code issues involve philosophical discussions and that they are trying to make the ordinances fair to the 85 percent of people who comply with the laws rather than penalizing them. Walsh stated the City will be handling the other 15 percent differently. Walsh stated if someone wants a certificate of early occupancy, a person with a $100,000 house has to pay the same amount of money as the person with a $300,000 house, which results in a greater burden being on the smaller property owner. Walsh stated the City is attempting to balance the risk of allowing people to get things done easier or quicker but that it does not guarantee the project will be done correctly. Seals asked what neighboring cities do. Barnhart stated escrows are not uncommon and that every city he has worked in has required an escrow. Escrows are usually tied to pollution control or consulting fees and that Staff is not proposing to remove financial guarantees for a temporary certificate of occupancy. Barnhart noted the Code Review Committee will be reviewing the escrow amount that should be required. Page 17 of 26