Lower Rum River Water Management Organization (LRRWMO) - Implementation of Third Generation Plan; New Development Requirements

City staff is requesting City Council's input regarding the LRRWMO's proposed implementation of the Third Generation Plan.

One of the proposed new requirements is the establishment of minimum performance sureties for activities requiring a LRRWMO Permit (see attached), and whether or not the amount would be consistent for all member cities.  The minimum surety amount is proposed to be:

For Stormwater Management Facilities:
$6 per square foot for Infiltration Basins or Rain Gardens
125% of the construction and maintenance costs of all other facilities 

For Erosion and Sediment Control:
$2,500 per acre disturbed plus $2.50 per linear foot of erosion control

For Shoreline or Streambank Improvement:
The greater of $5000 or $100 per linear foot of affected shoreline or streambank

In addition, the surety is proposed to include 10% for contingency and 30% for administrative costs. The minimum surety required is proposed to be $5,000.

The LRRWMO is considering some flexibility on whether the sureties would be collected at a WMO level or City level.

Section 117-615 (Construction of Improvements) Subd. (g) of the City Code currently requires a surety equal to 125% of the total costs of the improvements for new subdivisions.

Section 117-54 (Site Plan Review) Subd. (d) of the City Code currently requires a surety equal to 150% of the total costs of the improvements exclusive of the cost of the actual building for Development Permits. 

The surety amounts proposed by the LRRWMO would result in slightly higher development costs than are currently required. 

Developers will pay for as a pass-through cost as part of the Development Agreement or Development Permit with the City. 

No action is required by the City Council at this time.  The LRRWMO will continue to discuss the proposed new requirements at their July 19th meeting.