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� . <br /> . o <br /> MEMORANDUM � <br /> To: Chair Kempf and Planning Commission <br /> Ron Moorse, City Administratar <br /> From: Mike Gaffron,Asst. City Administrator <br /> Date: January 18, 2008 <br /> Subject: #08-3341 Proposed City Code Amendment: Escrows . <br /> 1)Add Chapter 75 -Reimbursement of Development Costs <br /> 2)Revise Section 78-42: Fees for Zoning Applications <br /> 3)Revise Section 82-47: Subdivision Fees <br /> Attachinents ' � <br /> ' A- Draft#2 (1-18-08) Proposed Ordinance - <br /> . B -Existing Code Excerpts � <br /> � C - Sample Escrow Agreement Forms ' � <br /> '� D - 2008 fee Schedule Excerpts � � <br /> Background , � <br /> Consultant Services. The City contracts with Bonestroo & Associates for engineering services <br /> and with Campbell Knutson P.A. for legal services, in relation to the zoning and land use <br /> application review, approval and inspection process. On occasion other outside consultants are <br /> also used. <br /> Reimbursement Process. These consultants bill the City for their services; and the City pays <br /> these bills directly. The City then sends bills to the individual applicants for reimbursement of <br /> the consultaut costs resulting from their application review, approval and inspection process. <br /> This `pass-through' process is authorized under existing Zoning Code Section 78-42 and <br /> Subdivision Code Section 82-47.. <br /> Development Costs Increasing. The nature of development in Orono has changed in recent <br /> years. Within the last decade Orono has experienced increased commercial development; <br /> multi-family and higher density urban-scale subdivisions rather than creation of rural 2-acre <br /> lots without utilities; a significant increase in redevelopment of small individual lakeshore lots <br /> in topographically challenged areas; increasingly complex environmental protection <br /> regulatigns; plus a restructuring of the Public Works Department to eliminate the position of <br /> Public Works Director. As a result, the level of engineering consulting services required as a <br /> � result of private development projects has dramatically increased from what it was in the past. <br /> Letters of Credit. The City has for the past 30-40 years required Developers Agreements and <br /> Letters of Credit (LOCs) to secure the construction costs of required improvements associated <br /> with development. However, these LOCs do not provide security for the incurred consultant <br /> charges and excess staff time expended as a result of those developments. <br />