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1. Certificate of Occupancy/Utility ServiceCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone f4061 758-7000 Fax - (406) 758-7758 REPORT TO: Honorable Mayor and City Council FROM: Craig Kerzman, Building Official PJ Sorensen, Zoning Administrator James H. Patrick, City Manager SUBJECT: Certificate of Occupancy/Utility Service MEETING DATE: January 3, 2005 (workshop) BACKGROUND: The City as a whole does a good job of reviewing plans submitted for building permits and inspecting certain aspects of projects while they are under construction. However, once a project nears completion, there really is not an effective method currently to ensure that it is completed properly. For example, a new homeowner will want to move in as soon as possible and the smoke detectors may not be installed, or a new business starts stocking the shelves and their focus shifts from finishing construction to getting the business operating. In those situations, contractors often fail to call for final inspections. If they do, the result is frequently simply a punchlist that sloes not get completed. Last fall, we decided to try anew procedure in an effort to close the loop on commercial projects. When a Certificate of Occupancy ("CIO") is requested, the Building Department sends a notice to Public Works, Parks, Zoning, and the Fire Department. The notice provides each with 5 working days to inspect the site and respond with an approval or disapproval of the C/O. Once each department has resolved any issues with the developer, the Building Department will issue the CIO. In certain instances, such as winter weather preventing landscaping or paving, a performance bond or other security can be posted. While this process has improved the situation, it has not always led to compliance. The main problem is that, unless financing requires it or the city pursues a prosecution, a C/O is simply a piece of paper. The lack of a CIO does not prevent someone from moving in, and does not prevent them from using the property. Most are good citizens and will try to comply, but some do not. If our goal is to ensure that development occurs in full compliance with all city codes, there must be a consequence beyond simply denying a CIO. One possibility discussed by staff has been linking permanent water and/or sewer service to a final inspection/approval of the project. Whitefish adopted an ordinance in 2003 which allows for precisely that link for both commercial and residential properties, and for both new construction and remodeling. The advantage in terms of compliance is that, while a CIO itself is not necessary to actually use a building, utility service is essential. Receiving utility service would become the incentive to comply with city codes. -Furthermore, the incentive is built-in to the system as an automatic step as opposed to relying on a separate, lengthy legal process to compel action. The Whitefish ordinance can be utilized as a model for our own ordinance, which would need to be written to fit within the context of our utility rules and CIO procedures. RECOMMENDATION: if desired by the Council, staff should be directed to modify the Whitefish model and place the ordinance on the Council agenda. ALTERNATIVES: As suggested by the Council. ATTACHMENTS: The City of Whitefish ordinance is attached. Respectfully submitted, Craig Kerzman Building Official rv. can u �nfri nor J R111WJ lA. A C441d Vi1 City Manager PJ Sorensen Zoning Administrator Report compiled December 28, 2004 ORDINANCE NO. 03- 23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WHITEFISH, MONTANA, PROHIBITING THE PROVISION OF PERMANENT WATER AND/OR SEWER SERVICE TO ANY NEWLY CONSTRUCTED OR REMODELED STRUCTURE UNTIL SUCH STRUCTURE HAS COMPLIED FULLY WITH ALL CITY CODES. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Whitefish, Montana, as follows: Section 1: A. No City employee shall provide permanent water or sewer service to a newly constructed structure, or to a newly remodeled structure if a building permit was required for such remodeling, until such structure and the land on which it and/or its related parking, driveways, and landscaping are to be located, comply fully with all specific project requirements, and all City ordinances, codes, and rules and regulations. B. If a property owner or his or her representative requests permanent water and/or sewer service from the City but such service is withheld pursuant to. Subsection A above, then the City shall provide to the person requesting service a written statement of all of the City requirements, ordinances, codes, rules and regulations to which such structure and/or land is subject to but not in compliance with. C. It shall be permissible for City employees to grant temporary water service for construction purposes only, and any such water service granted prior to full compliance, as required in Subsection A above, shall be deemed to be temporary service, subject to termination as set forth herein. D. Temporary water service, if granted, may be terminated by the City after three days prior written notice has been personally delivered or mailed by first class mail, postage prepaid, to the owner or to the owner's representative's last known address. E. Receipt of temporary water and/or sewer service does not in any way entitle a structure to receive permanent water and/or sewer service. F. If an owner of a structure or his or her representative permits individuals to occupy a structure prior to receipt of an occupancy permit from the Whitefish Building Department, then the City shall be entitled to withhold, or if granted shall be entitled to terminate, water and/or sewer service to such structure. - 1 - G. if, in the opinion of the City Manager (or his or her designee), weather conditions or other factors prevent a structure from complying fully with all project requirements, ordinances, codes, and rules and regulations, then the City Manager may, upon application by the owner or his or her representative, grant permanent water and/or sewer service,; to such structure, but only after written commitment by the owner or his or her representative to come into full compliance within a period of time satisfactory to the City Manager. In such case, the City Manager shall require from the owner or his or her representative a bond, letter of credit, or other cash deposit in the amount of 150 percent (150%) of the estimated cost to comply, and the City shall be entitled to draw upon such bond, letter of credit, or cash deposit and arrange for the structure to come into compliance if compliance has not occurred by the deadline approved by the City Manager. Section 2: Rule V1(6) of the Rules and Regulations for the City of Whitefish Water and Wastewater Utility, entitled "Application for Temporary Service," is hereby amended as follows: Water and/or sewer service for building, construction or other temporary purposes must be specially applied for. The method of connection and charges to the customer must be agreed upon before obtaining any service. The triage charge may be based on an agreeable estimate of water to be used at a rate commensurate with the -rate schedule. The Water and Wastewater Utility reserves the right to require metering of such temporary use if the condition warrants. In all cases, the customer must pay for all charges necessary to provide the temporary service, including the removal of the service and meter, if required. Temporary water and/or sewer service, if granted, may be terminated by the City after three days prior written notice of termination has been personally delivered or mailed by first class mail, postage prepaid to the owner's or the owner's representative's last known address. Receipt of temporary service does not in any way entitle a customer to permanent service. Section 3: Section XV(3) of the Rules and Regulations for the City of Whitefish Water and Wastewater Utility, entitled "Discontinuance by the Water and Wastewater Utility," is hereby amended as follows: Service shall only be discontinued for violations of these rules or for the failure to comply with other City project requirements, ordinances, codes, or rules or regulations if such termination is specifically authorized by City Ordinance, after written notice has been mailed by regular -9- mail to the customer by the Water and Wastewater Utility that the violation of rules must cease; provided, however, that where fraudulent use of water is detected, or where the Water and Wastewater Utility's regulating or measuring equipment has been tempered with, or where a dangerous condition is found to exist on the customer's premises, the water may be shut off without advance notice. If the customer, upon notification, does not comply with the written notice within ten days, the Water and Wastewater Utility shall discontinue service. The Water and Wastewater Utility shall keep record of all notices. Section 4: The Rules and Regulation for the City of Whitefish Water and Wastewater Utility set forth above many be amended in the future by resolution, rather than by ordinance. Section 5: The City Manager is hereby authorized arrd directed to amend, as appropriate, application forms used by the Public Works Department prior to providing water and/or sewer service, so that such application forms notify customers, in general terms, of the procedures set forth in Section 1, above. Section 6: The City Manger is hereby authorized and directed to create a written procedure for ensuring that all new structures subject to this ordinance shall be inspected for compliance with project requirements, ordinances, codes, and rules and regulations before permanent water and/or sewer service is granted by the City. Section 7: That in the event any word, phrase, clause, sentence, paragraph, section or other part of the amendments set forth herein is held invalid by a court of competent jurisdiction, such judgment shall affect only that part held invalid, and the remaining provisions thereof shall continue in full force and effect. Section8, This Ordinance shall be in full force and effect from and after thirty (30) days after its passage by the City Council of the City of Whitefish, Montana, and approval by the Mayor thereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF WHITEFISH, MONTANA, THIS 2ND DAY OF SEPTEMBER , 2003. ATTEST: Necile Lorang, City Clerk 'Ar L4--\ ANDY F RY, MAYOR -3-