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CR 2012-151 Adopt Revisions to Legislative Policy 8-H-.4m City of Hopkins December 18, 2012 Council Report 2012-151 ADOPT REVISIONS TO LEGISLATIVE POLICY 8 -II Proposed Action Staff recommends the following motion: "Move that Council adopt Resolution 2012-097, Resolution Adopting Changes to Legislative Policy 8-H." Overview As presented to Council at the November 13, 2012 Work Session, we are proposing three amendments to the current policy 8-H. Policy 8-H is in place to protect homeowners from "extremely high street restoration costs when performing repairs to their private water and sanitary sewer service within the city right-of-way." 1. Section 3.01: Change the maximum cost for pavement that a homeowner has from $750 to $1,250. 2. Section 3.02: Clarify which costs are eligible for inclusion in the reimbursable cost. 3. Section 5.03: This section adds a cap to the unit price of a street patch of 1.2 x what the City pays its general street restoration contractor. The reasons for the changes are spelled out in the Analysis of Issues section. Supporting Information ■ Analysis of Issues ■ Policy 8-H showing revisions R. Bradford, P.E. City Engineer Financial Impact: 0 Budgeted: Y/N N/A Source: _N/A -Related Documents (CIP, ERP, etc.): Notes: Council Report 2012-136 Page 2 Analysis of Issues Policy 8-H is in place to protect homeowners from "extremely high street restoration costs when performing repairs to their private water and sanitary sewer service within the city right-of-way." The street restoration reimbursement is intended to come into play when the water main is all the way across the street, necessitating pavement repair for the full width of the street. It is also intended when the age of the pavement necessitates a large patch (e.g. when a new street is cut into, we require the permit holder to patch the entire street width to preserve the maximum integrity of the new road.) We are proposing three amendments to the current policy. 4. Section 3.01: Change the maximum cost for pavement that a homeowner has from $750 to $1,250. a. This change reflects the increase in pavement costs. Most patches cost more than $750 and the policy was intended only for large patches. 5. Section 3.02: Clarify which costs are eligible for inclusion in the reimbursable cost. 6. Section 5.03: This section adds a cap to the unit price of a street patch of 1.2 x what the City pays its general street restoration contractor. a. The purpose of this language is to protect the City from contractors that give the homeowner a low price for the utility work and a high price for the pavement. Because the homeowner has a cap of $750 (currently) on the pavement, the City ends up subsidizing the utility repair work. POLICY 8-11 STREET RESTORATION REIMBURSEMENT FOR PRIVATE UTILITY SERVICE REPAIRS 1. PURPOSE 1.01 The Hopkins City Council recognizes that from time to time property owners experience very expensive street restoration costs when they are required to repair their water or sewer service within the city right-of-way. The City Council furthermore recognizes that some property owners may experience a situation where they may be paying an amount that is substantially higher than the average street restoration cost. 1.02 The purpose of this policy is to outline policies and procedures for reimbursing property owners who experience extremely high street restoration costs when performing repairs to their private water and sanitary sewer service within the city right-of-way. 2. ELIGIBILITY FOR REIMBURSEMENT 2.01 Property owners of homesteaded single family or duplex properties are eligible for street restoration reimbursement under this policy. All other property owners are ineligible. 3. REIMBURSEMENT CONDITIONS 3.01 Property owners may request reimbursement for all street restoration costs that exceed Seven 14und,.oa F -:fl,. Dell ,.s ($750One Thousand Two Hundred Fifty Dollars ($1,250) for each service repair they experience. 3.02 The only street restoration costs eligible for reimbursement are those costs associated with removing and replacing the pavement section and public sidewalk. These items include: sha&� bituminous or concrete pavement, curb and gutter, pavement base course, and the public sidewalk. Items not eligible included are: backfilling, rg adin&-er diftwork, sod, -and private sidewalks, carriage walks, disposal fees, hauling costs, traffic control, or any other work not directly related to replacing the roadway pavement or public sidewalk. eommenly known as eat walks, out walks, e walks. 3.03 Property owners shall be ineligible for street restoration reimbursement when falsifying information requested by the city in processing the reimbursement. City staff shall have the authority to deny any such claims. Claims may be denied completely, or in portions. 3.04 Property owners may appeal reimbursement denials to the Hopkins City Council after submitting their appeal in writing to the Hopkins City Manager. The appeal shall contain the reason for the appeal as well as all pertinent information that may be needed by the City Council in reviewing the appeal. Legislative Policy Manual -- Chapter 8-H 4. REIMBURSEMENT NOTIFICATION 4.01 Notification of the City's reimbursement policy will be distributed to both the person applying for the plumbing permit, and to the property owner. 4.02 The plumbing permit applicant will receive notice of the city's reimbursement policy when applying for the plumbing permit. 4.03 The property owner will be mailed notice of the city's reimbursement policy subsequent to the plumbing permit being approved by the city's Inspection division. D1luI1-11133 6211111"1101911 5.01 Street restoration reimbursement requests shall be submitted to the Engineering Superintendent or his designee, after full payment has been made by the property owner to the plumbing contractor. 5.02 The reimbursement shall be in writing by the property owner and contain itemized costs submitted by the plumbing contractor for the entire repair. The information required includes repairs to the utility service and to the city right-of-way. 5.03 The reimbursement amount will be the lowest of: 5.03.1 The quantities and pfiees ntainea within the feqtiest shall besubmitted and verified by the ty's Engineering division staff f " _ alidit•- n the reimbursement request at the current unit prices paid by the City to its general street restoration contractor x 1.2, or 5.03.2 The actual prices paid by the property owner The difference between this amount and $1,250 will be paid as a reimbursement to the property owner. The city shall have full authority to request additional information from the property owner, or the plumbing contractor, when verifying requests. 5.04 Any repair not acceptable to the city shall be corrected to the city's satisfaction prior to any reimbursement being made by the city. 5.05 After the Engineering Superintendent or his designee has approved the street repair and the reimbursement information, the reimbursement shall be forwarded to the city's Finance department for issuance of a reimbursement check. 5.06 The city's Finance department shall follow all established policies and procedures when issuing the reimbursement. 6. REIMBURSEMENT FUNDING 6.01 The funds for reimbursements shall be provided by the city's water and sanitary sewer funds. The water fund shall provide funds for reimbursements associated with water service repairs, and the sanitary sewer fund for reimbursements associated with sanitary sewer service repairs. In the event that repairs are made to both the water and sanitary sewer services the reimbursements shall be funded 50% from the water fund, and 50% from the sanitary sewer fund. Legislative Policy Manual -- Chapter 8-H 7. REIMBURSEMENT DEADLINES 7.01 Reimbursement must be submitted in writing to the city's Engineering Superintendent or his designee within 60 days of issuance of the plumbing permit. Reimbursement requests submitted after this date shall be ineligible for reimbursement. The only exception to this rule will be in cases where restoration must be delayed due to weather conditions. 8. EFFECTIVE DATE 8.01 This policy shall be effective as of January 1, 1994. All private service repairs made after this date shall be eligible for reimbursement. Service repair dates shall be determined by the date of plumbing permit issuance. The 60 -day reimbursement deadline contained in section 6.01 shall be waived for all service repairs made between January 1, 1994 and the adoption date of this policy. Established 7/19/94 Revised 12/18/2012 City of Hopkins Legislative Policy Manual -- Chapter 8-H 3 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2012-097 RESOLUTION ADOPTING REVISIONS TO LEGISLATIVE POLICY 8-11 WHEREAS, the City of Hopkins has in place Legislative Policy 8-H; and WHEREAS, the Policy protects homeowner from excessive pavement replacement costs by capping the cost paid by the homeowner; and WHEREAS, the policy has not been updated since its adoption in 1994; and WHEREAS, cost increases for pavement replacement have not been accounted for; and WHEREAS, clarification of what items are eligible and baseline unit prices under this policy are needed; THEREFORE, BE IT RESOLVED, that the City Council of the City of Hopkins hereby adopts the revisions to Legislative Policy 8-H as detailed. Adopted this 18th day of December, 2012 Eugene J. Maxwell, Mayor Attest: Kris Luedke, City Clerk HopcivihResolution.Gimberline 1