2023-R-02 - Development Services Escrow Accounts /low\
RESOLUTION NO.2023-R-02
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA, AUTHORIZING
THE USE OF ESCROW ACCOUNTS FOR PAYMENT
OF DIRECT AND INDIRECT COSTS ASSOCIATED
WITH DEVELOPMENT PROJECTS. PROVIDING
FOR CONFLICTING PROVISIONS, AN EFFECTIVE
DATE,AND ADOPTION.
WHEREAS, The City of Edgewater contracts for certain professional services,
including but not limited to, engineering, planning, environmental and legal, related to its
review of development projects and is obligated under said contracts to remit payment to those
firms on behalf of the applicant/developers; and
WHEREAS, The applicant/developer is liable to the City for one hundred percent
(10011/6) of the actual costs, both direct and indirect, of coordinating and reviewing
development applications submitted to the City. City staff must then invoice the
applicant/developer for reimbursement; a process that is inefficient and requires additional
staff time, specifically for subdivision and site plan related development projects, which is not
reimbursable by the developer, and
WHEREAS, Implementing the use of escrow accounts for all subdivision and site plan
related development projects and requiring development related funds upfront from the
applicant/developer prior to initial construction would allow the City to use these funds to pay
the firms rather than using City funds; thereby reducing staff time spent processing those
invoices and related payments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Edgewater,Florida:
SECTION 1. The City Council hereby authorizes the establishment and use
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of escrow accounts for all subdivision and site plan related development projects and
authorizes staff to require development related funds upfront from the
applicant/developer prior to initial construction.
a. Upon receiving the Scope of Work from our Contractual Professional Service
Provider detailing estimated costs for services, the City can establish the
Escrow Account for the developer for the amount indicated by the Scope of
Work.
b. When the escrow balance is reduced to 20% or less of its original amount (or
any subsequent reduction(s) to 20% or less of the total amount, if and when
replenished, the City may require additional deposit of funds into the escrow
account in such amount(s) as the City reasonably estimates will cover
remaining consultant's fees and costs. P�
c. Should the escrow account not be replenished when requested by the City, the
City may, in its sole and exclusive discretion, cease any further plan reviews,
cease the further processing of any pending applications, cease any further
inspections and refuse to issue any permits pending until such time as the
escrow is replenished by a further deposit in the amount requested.
d. Any funds in the escrow account not utilized at the end of the project would be
returned to the Developer
SECTION 2. Conflicting Provisions. All resolutions or parts of resolutions in
conflict are hereby repealed.
SECTION 3. Severability and Applicability. If any portion of this resolution is for
any reason held or declared to be unconstitutional, inoperative, or void, such holding shall not
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affect the remaining portions of this resolution. If this resolution or any provisions thereof
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shall be held to be inapplicable to any person, property, or circumstances, such holding
shall not affect its applicability to any other person, property, or circumstance.
SECTION 4. This resolution shall take effect immediately upon adoption.
PASSED AND DULY ADOPTED this r� � day of ,2023.
QL-
-.► Diezel DePew, Mayor
i
Bonnie Zlotni CMC, City Clerk
REVIEWED AND APPROVED:
Aaron R. Wolfe, C , ttorney
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