Laserfiche WebLink
,.} <br /> #08-3341 Escrows Amendment <br /> January 18,2008 <br /> Page 2 <br /> Escrows. Because of the increases in consultant costs, in 2007 the City began to collect <br /> � escrows from developers of commercial property as well as from subdivision applicants. Two <br /> � types of escrow were required: 1) an Application Escrow, to secure the payment of engineering <br /> and legal consultant costs and excess staff costs incurred by the City as a result of the <br /> development review process; and 2) a Conslxuction Escrow, to secure the payment of <br /> engineering and legal consultant costs and excess staff costs incurred by the City during review - <br /> and inspection of construction of improvements. <br /> Staff has noted that many types of zoning & land use applications not involving commercia.l <br /> development or subdivisions (a.nd even certain building permits not requiring a zoning <br /> � application) still incur significant consultant charges during the review process. T�pical •, <br /> examples are the total home rebuilds on small lake lots with steep topography and homes <br /> tucked in tightly on adjacent lots. Drainage and grading reviews by the engineer can result in <br /> hundreds if not thousands of dollars in review costs. These costs are not covered by the up- <br /> frorit zoning application fees Esta.blishment of an escrow for any type of application likely to <br /> involve consultant review will serve to notify the applicant of these additional potential costs <br /> . and ensure that those costs are reimbursed to the City. � <br /> Existing Code Language,Proposed Ordinance <br /> The current zoning and subdivision codes esta.blish that applicants must pay an established � <br /> . application fee,: as well as reimburse the City for its incurred costs associated with <br /> development. The language includes a requirement for making a `deposit' which the City <br /> draws down and which must be replenished by the applicant. Because the Finance Department _ <br /> has determined it is more practical to send out monthly bills and not draw down the escrow,the <br /> City has not been strictly following the letter of the existing code. <br /> The new ordinance language is intended to refine and further define under what circumstances <br /> deposits or escrow accounts will be required and how they will be administered. The new <br /> ordinance provides that pass-through consultant billings will be billed to applicants monthly <br /> rather than drawing down the escrow account; the escrow account then acts as a surety that . � <br /> bills will be paid. In addition, the proposed ordinance separates the up-front established <br /> application fee requirements from the requirement for reimbursement of City incurred costs. <br /> As a result, Sections 78-42 and 82-47 are shortened, and new Chapter 75 entitled <br /> "Reimbursement of Development Costs; Escrows"is added to the Municipal Code. <br /> 2008 Fee Schedule Revisions. Also attached to this memo are excerpts from the City's 2008 <br /> Fee Schedule, indicating the amount of the escrow to be required for various land use� . <br /> application types. Currently, the Fee Schedule establishes escrows only for certain variance <br /> applications, land alteration CUPs, PUDs and subdivisions, but not for building permit <br /> siivations where substantial consulting costs may be incurred over and above those covered by <br /> the building permit plan review fee or permit fee, but which do, not require a zoning � . <br /> application. The final element of the proposed ordinance is to revise the 2008 fee schedule to � <br /> establish escrows for such building permits. , , <br />