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HomeMy WebLinkAboutVIII-10 Approve Sanitary Sewer Service Repair Assessment Request - 503 Ramsey Street City Council Memorandum To: Mayor Fasbender & City Council Members From: Ryan Stempski – Public Works Director Date: February 18, 2025 Item: Sanitary Sewer Service Repair Assessment Request – 503 Ramsey Street COUNCIL ACTION REQUESTED The council is requested to authorize a special assessment for the owners of the 503 Ramsey Street property for costs associated with a private sanitary sewer service line repair. BACKGROUND INFORMATION As part of the 2024 Sanitary Sewer Rehabilitations Project, the public works department coordinated improvements to private sanitary sewer services eligible for grant reimbursement with the Metropolitan Council Environmental Services (MCES) Private I&I Grant program. Anthony and MaryJanice Alongi of 503 Ramsey Street submitted the necessary documentation to have their service line improved as part of the project. FINANCIAL IMPACT The City of Hastings has paid the total cost of the repairs upfront as part of the project. The City will receive $5,000 in grant reimbursement from the MCES Private I&I Grant program for completing this work. The remaining $5,000 of costs for this work was agreed upon in advance of the project to be the responsibility of the property owners. Of this remaining balance, the property owner is requesting $3,500 be authorized for special assessment. ATTACHMENTS • Invoice for Work Completed • Resident Request for Financing • Data Practices Compliance Acknowledgement • Assessment Agreement VIII-10 ITEM NO. DESCRIPTION UNIT 1 INSTALL CIPP LATERAL CONNECTION ON UP TO 6" SERVICE (5 TO 25 LF) EA 2 CEMENTITIOUS MANHOLE LINING LF 3 4" CIPP LATERAL SERVICE LINING (END OF LATERAL CONNECTION TO HO LF 4 LINING SEWER PIPE 8" LF CONTRACT AMOUNTS Quantity Unit Price Amount 10 $12,000.00 $ 120,000.00 101 $745.00 $ 75,245.00 327 $10.00 $ 3,270.00 502 $80.00 $ 40,160.00 COMPLETED Total To Date Previous Completed This Pay Period Quantity Amount Quantity Amount Pay Estimate #2 Amount 10 $ 120,000.00 10 $ 120,000.00 $ - 109 $ 81,205.00 101 $ 75,245.00 8 $ 5,960.00 305 $ 3,050.00 305 $ 3,050.00 $ - 502 $ 40,160.00 502 $ 40,160.00 $ - SUBTOTALS: $238,675.00 $244,415.00 $238,455.00 $5,960.00 CONTRACT AMOUNT TOTAL TO DATE PREVIOUS COMPLETED CURRENT PERIOD PROJECTS: 2024-2 Sanitary Sewer Rehabilitations This Period Total to Date $5,960.00 $244,415.00 Hastings Project 2024-2 2024 Sanitary Sewer Rehabilitations Page 1 of 2 Request For Payment Date: 12/31/2024 Project: 2024 Sanitary Sewer Rehabilitations Contractor: Musson Bros. Inc. Request Number: 2 (FINAL) Payment Period: 11/1/2024 - 12/31/2024 VIII-10 12/20/24 VIII-10 Cody Mathisen, P.E. From: Anthony Alongi <alongimn@comcast.net> Sent: Thursday, January 23, 2025 3:54 PM To: Cody Mathisen, P.E. Subject: Re: Payment for 2024 Sanitary Sewer Rehabilitations I’ll pay $1500 up front and finance the rest, if staff are willing to recommend and council is willing to accept. I can make payment whenever you’re ready. Thanks. AA On Jan 23, 2025, at 10:17 AM, Cody Mathisen, P.E. <CMathisen@hastingsmn.gov> wrote: Tony, I was able to confirm this morning that we can get you set up with a financing agreement. This will take me a couple of weeks to prepare and will be brought through the consent agenda for City Council. We can spread the cost of the improvements over 5 years at an interest rate of 4.36%. Are you able to let me know if you would like us to just put the entire $5,000 into that financing agreement or if you would like to pay a portion of it up front to reduce the amount financed? This financing would ultimately be placed on your property taxes and the payments would distributed either via and increase to your monthly mortgage escrow (if you do this), otherwise, I believe you would pay on this twice annually with your property taxes if you currently use that method. Let me know on that down payment and if you have any questions, please don’t hesitate to ask. Thank you, Cody Mathisen, P.E. City Engineer City of Hastings | Public Works | 1225 Progress Drive | Hastings, MN 55033 Direct: 651-480-2372 | Fax: 651-437-5006 Communication Optimal Service Respect for Resources Enthusiasm From: Anthony Alongi <alongimn@comcast.net> Sent: Tuesday, January 21, 2025 5:57 PM 1 VIII-10 2/11/25 VIII-10 PRIVATE SANITARY SEWER SERVICE REPAIR SPECIAL ASSESSMENT AGREEMENT THIS AGREEMENT is made this day of , 2025, by and between the City of Hastings, a Minnesota municipal corporation (“City”), and Anthony Alongi and MaryJanice Alongi, husband and wife (the “Owner”). RECITALS A. The Owner is the fee owner of a parcel located at 503 Ramsey Street, in the City of Hastings, Dakota County, Minnesota, legally described as: Lot Four (4), Block Thirty-four (34), Town of Hastings, according to the recorded plat thereof, Dakota County, Minnesota. PID: 19-32150-34-040 Abstract Property (“Subject Property”). B. The City has found that certain repairs to the Subject Property’s private sanitary sewer service are required. C. The City of Hastings’ contractor on behalf of the Owner will cause the construction of the required private sanitary sewer service repairs. D. The Owner has requested that the City assess a portion of the costs of construction of the required private sanitary sewer service repairs to serve the Subject Property. E. The Owner acknowledges that the required private sanitary sewer service repairs will benefit the Subject Property. 1 VIII-10 NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. PRIVATE SANITARY SEWER SERVICE REPAIRS. Subject to a separate agreement between the Owner and the City of Hastings dated October 9, 2024, the City of Hasting’s Contractor completed private sanitary sewer service repairs (“Improvements”) that serve the Subject Property. 2. SPECIAL ASSESSMENTS. The City agrees to advance the funds necessary for the sewer service repairs in return for Owner’s agreement to have the costs assessed against the Subject Property as provided for in this Agreement. The Owner agrees to pay fifty percent (50%) of the cost of the Repairs which amounts to $5,000.00. The Owner agrees to pay $1,500.00 to the City of Hastings within 30 days of the execution of this agreement. The City shall assess the Subject Property the following principal amount for the Repairs which reflects the remaining balance due: $3,500.00 (“Assessment Amount”). Failure by the Owner to pay $1,500.00 within 30 days of the agreement execution will result in the entirety of the unpaid $5,000 balance to be certified as the Assessment Amount. The Assessment Amount shall be deemed adopted on the date this Agreement is signed by the City. The Assessment Amount shall be paid over a 5-year period without deferment, together at a rate of 4.36% interest on the unpaid balance. Interest shall begin accruing thirty (30) days after the City Council’s approval of this Agreement. The Owner further agrees that the Assessment Amount may be exceeded if the increases are a result of requests made by the Owner or otherwise approved by the Owner in a subsequent written document. The first installment shall be due and payable with first half of property taxes in 2025. The Owner further agrees that the City can assess an additional $50.00 which represents $5.00 per year for the term of the assessment to offset the fees imposed by Dakota County for this assessment, plus the City’s administrative fee. 3. WAIVER OF APPEAL. The Owner hereby authorizes the City to certify to the Dakota County Auditor/Property Tax Assessor a special assessment against the Subject Property up to the Assessment Amount. The Owner hereby waives all rights to assessment notices, hearings, appeals, and procedural and substantive objections and all other rights pursuant to Minn. Stat. §429.061, §429.071 and §429.081 for the special assessment against the Subject Property up to the Assessment Amount, including, but not limited to, any claim that the Assessment Amount against the Subject Property exceeds the benefit to the Subject Property for the Improvement. The Owner acknowledges and agrees that the benefit of the Improvement to the Subject Property does in fact equal or exceed the Assessment Amount. The Owner also acknowledges and agrees that the Subject Property receives a special benefit equal to or exceeding the Assessment Amount. 4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon the Owner and the Owner’s successors and assigns. This Agreement may be recorded against the title to the subject property. [remainder of page intentionally blank] 2 VIII-10 CITY: CITY OF HASTINGS By: Mary Fasbender Mayor By: Kelly Murtaugh City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) On this day of , 2025, before me a Notary Public within and for said County, personally appeared Mary Fasbender and Kelly Murtaugh, to me personally known, who being each by me duly sworn, each did say that they are respectively the Mayor and City Clerk of the City of Hastings, the municipality named in the foregoing instrument, and that the seal affixed to said instrument was signed and sealed on behalf of said municipality by authority of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipality. Notary Public This instrument was drafted by and after recording return to: Korine L. Land, #262432 LeVander, Gillen & Miller, P.A. 1305 Corporate Center Drive, Suite 300 Eagan, MN 55121 651-451-1831 3 VIII-10 OWNER: ANTHONY AND MARYJANICE ALONGI By: Anthony Alongi By: MaryJanice Alongi STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 2025 by Anthony Alongi and MaryJanice Alongi, husband and wife. Notary Public 4 VIII-10