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HomeMy WebLinkAboutIX-01 (a-d) Administrative Penalties and Special Charges for Diseased Tree Removals City Council Memorandum To: Mayor Fasbender & City Council Members From: Chris Eitemiller, Finance Manager & Ashley DeBernardi, Assistant Finance Manager Date: November 3, 2025 Item: Certify Unpaid Administrative Penalties and Special Charges for Diseased Tree Removals Council Action Requested: Staff requests Council approval to certify special assessments for unpaid administrative penalties and unpaid special charges for diseased tree removals. If approved, the Finance Department will certify these balances to Dakota County. Background Information: In 2024, for the first time, the City was planning to assess unpaid balances for administrative penalties and special charges for diseased tree removals. Late last year, it was determined that this would first require a notice and public hearing in accordance with Minnesota Statutes Chapter 429 and Section 7.15 of the City Charter. Because of the time required for this process, these balances were not assessed in 2024, to be added to property taxes payable in 2025. Staff requests Council approval to now assess these listed unpaid balances. The City Council previously ordered a public hearing to be held on November 3, 2025. After the public hearing, the City Council may approve the special assessments. Staff will certify the unpaid balances to Dakota County to be added to property taxes payable in 2026. The final certification list will be adjusted to reflect any payments received prior the deadline stated in the attached resolution. Financial Impact: Approximately $13,000 of unpaid administrative penalties and special charges for diseased tree removals will be certified to Dakota County. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: 1. Resolution – requesting approval to assess unpaid administrative penalties and special charges for diseased tree removals. 2. Attachment A – Current list of delinquent balances to be certified to Dakota County. IX-01 (a-d) CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. _________ RESOLUTION CERTIFYING UNPAID ADMINISTRATIVE PENALTIES AND SPECIAL CHARGES FOR DISEASED TREE REMOVALS WHEREAS, the City Council has the authority to assess unpaid administrative penalties pursuant to Section 7.15 of the City Charter and unpaid diseased tree removal invoices as special charges pursuant to Minnesota Statutes Chapter 429, and WHEREAS, property owners have received notice of the public hearing and have the opportunity to speak with Council about these unpaid balances if desired. WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met, heard, and passed upon all objections to the proposed certifications of unpaid charges for unpaid administrative penalties and special charges for diseased tree removals; and WHEREAS, the amounts of bad debt have been minimized through diligent collection efforts by staff. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS; that 1. The certification of unpaid charges in Exhibit A, attached hereto and incorporated herein, is hereby accepted and approved and shall constitute a lien against the property listed. 2. The certification shall be payable over a period of one year on or before the first Monday in January. 3. The owner of the affected property may, at any time prior to certification of unpaid charges to the County Auditor, pay the whole of the certified unpaid charges on such property, with interest accrued to date of payment, to the City Finance Department except that no interest shall be charged if the entire certified amount is paid within thirty (30) days from the adoption of this resolution. The taxpayer may at any time thereafter, pay the City Finance Department or County Auditor, the entire amount certified and remaining unpaid, with interest accrued to December 31 of the year in which payment is made. Such payment must be made before November 15, or interest will be charged through December 31 of the following year. 4. The City Clerk shall transmit a certified copy of this resolution with Exhibit A to the County Auditor to be extended on the property tax list of Dakota County and the certified unpaid charges shall be collected and paid over in the same manner as property taxes. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 3rd DAY OF NOVEMBER, 2025. IX-01 (a-d) Ayes: Nays: _________________________ Mary D. Fasbender, Mayor ATTEST: ____________________________ Kelly Murtaugh, City Clerk IX-01 (a-d) EXHIBIT A CERTIFICATION LISTING The Property Identification Numbers and addresses of the parcels assessed are as follows: Property ID Balance if Paid by November 14, 2025 192970301010 $20.00 193215091010 $400.00 191640009110 $400.00 196340005040 $1,456.00 196340005040 $1,290.00 198375000360 $400.00 198375000360 $200.00 193215087050 $220.00 190380010020 $220.00 198170003130 $200.00 193195008081 $320.00 193195008081 $220.00 193195008081 $220.00 191470101020 $400.00 191470101020 $220.00 191340005010 $1,409.38 193215040020 $288.75 193215022040 $640.00 197730001230 $200.00 198270001030 $40.00 193208001030 $482.47 193208001020 $35.89 191950001040 $200.00 197330000100 $400.00 198170003050 $200.00 191640402350 $200.00 193195018010 $220.00 191360007020 $220.00 191750038060 $220.00 198375100860 $440.00 198375100860 $880.00 191050019040 $220.00 191050019040 $440.00 IX-01 (a-d) City Council Memorandum To: Mayor Fasbender & City Council Members From: Chris Eitemiller, Finance Manager & Ashley DeBernardi, Assistant Finance Manager Date: November 3, 2025 Item: Remove Unpaid Administrative Penalties and Special Charges for Diseased Tree Removals from Accounts Receivable for Select Properties. Council Action Requested: Approve removing four properties with outstanding Accounts Receivable balances related to delinquent balances for unpaid administrative penalties and unpaid special charges for diseased tree removals. Background Information: In 2024, for the first time, the City was planning to assess unpaid balances for administrative penalties and special charges for diseased tree removals. Late last year, it was determined that this would first require a notice and public hearing in accordance with Minnesota Statutes Chapter 429 and Section 7.15 of the City Charter. Because of the time required for this process, these balances were not assessed in 2024, to be added to property taxes payable in 2025. Staff is in process to now assess these listed unpaid balances to be added to property taxes payable in 2026. However, there are four properties with unpaid balances for administrative penalties and special charges for diseased tree removals that were sold prior to these balances being assessed to Dakota County. Because of this, these four balances must be written off. Financial Impact: As mentioned above, there are four properties whose balances must be written off: PID 19-17500-38-110 $400.00 PID 19-11250-14-063 $407.50 PID 19-32150-67-050 $150.00 PID 19-10500-43-100 $200.00 Total to be Written Off $1,157.50 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: Resolution – approving removal of balances related to four properties that were sold with unpaid administrative penalties and special charges for diseased tree removals prior to those balances being certified to Dakota County. IX-01 (a-d) CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ____________ RESOLUTION TO WRITE OFF UNPAID DELINQUENT ADMINISTRATIVE PENALTIES AND DISEASED TREE REMOVALS AS UNCOLLECTABLE WHEREAS, the City of Hastings The Unpaid Administrative Penalties and Special Charges for Diseased Tree Removals, identified as Dakota County Property Identification Numbers (PIDs), are listed below: PID 19-17500-38-110 $400.00 PID 19-11250-14-063 $407.50 PID 19-32150-67-050 $150.00 PID 19-10500-43-100 $200.00 Total to be Written Off $1,157.50 The Unpaid Administrative Penalties and Diseased Tree Removals total $1,157.50 to be written off, and WHEREAS, The Unpaid Administrative Penalties and Special Charges for Diseased Tree Removals were not specially assessed against the properties prior to each property’s sale, and WHEREAS, the City may not assess these properties’ new owners for these costs post-sale, and WHEREAS, the City Attorney has determined that the City should write off the value of these Unpaid penalties and tree removal charges, and remove these balances from the City’s outstanding Accounts Receivable balances, NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: 1. The Unpaid Administrative Penalties and Diseased Tree Removals totaling $1,157.50 against PIDs 19-17500-38-110, 19-11250-14-063, 19-32150-67-050, and 19-10500-43-100 shall be removed from the City’s Delinquent Accounts Receivable balances. 2. City staff are directed to update financial records accordingly. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS ______ DAY OF NOVEMBER, 2025. Ayes: Nays: ATTEST: ______________ Kelly Murtaugh, City Clerk Mary D. Fasbender, Mayor SEAL IX-01 (a-d) City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Jenkins, Parks & Recreation Director Date: November 3,2025 Item: Assessment Deferral Agreement 1833 Maple Street Council Action Requested: Approve Assessment Deferral Agreement for 1833 Maple Street. Background Information: The City of Hastings and Hastings City Council approved the boulevard tree protection and removal program administered by the City Forester and Parks and Recreation Department. An element of that program allows residents to choose to have the cost of protection or removal assessed to their property taxes and allow them to pay that balance over time. This is different than a resident not paying their bill for a tree removal and does not incur any late or penalty fees. The owners of 1833 Maple Street have chosen to have the cost of tree removal assessed to their property taxes, and the attached agreement memorializes that choice. The agreement was drafted by the City Attorney and reviewed by Parks and Recreation staff. Staff recommend approving the attached Assessment Deferral Agreement as presented. Financial Impact: The City has already paid the tree removal contractor to remove the affected boulevard tree at 1833 Maple Street, and the property owner will pay that cost over a period of 5 years. The assessment amount is $752.25. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: ▪ Assessment Deferral Agreement for 1833 Maple Street IX-01 (a-d) 1 CITY OF HASTINGS ASSESSMENT DEFERRAL AGREEMENT FOR 1833 MAPLE STREET THIS AGREEMENT FOR DEFERRED ASSESSMENT (“Agreement”) is entered into and effective as of the _____ day of __________, 2025 (“Agreement Date”), by and between the City of Hastings, a Minnesota municipal corporation (“City”), and Deborah Grant and Richard Harris (“Owner”). WITNESSETH: WHEREAS, the Owner is the fee simple Owner of property located at 1833 Maple Street, Hastings, Dakota County, Minnesota, Dakota County PID 198375000450, legally described on the attached Exhibit A (“Property”); and WHEREAS, the Owner has been notified by the City that a pest infected tree is located on the Property; and WHEREAS, the City Code § 95.04 declares that an infested tree is a public nuisance and provides the City with the authority to abate the public nuisance; and WHEREAS, the Owner is willing to enter into this Agreement to reimburse the City for the costs of the abatement over a period of time; and WHEREAS, the City has a contractor available to remove the infected tree and stump for an estimated cost of $752.25 (“Project”) and WHEREAS, the Owner is willing to agree to the levy of the Project costs against the Property, in an amount that equals the Assessment Waiver Amount for the Assessment Term with interest accrual at the Assessment Interest Rate to pay for the cost of the Project; and WHEREAS, the Owner is willing to waive their assessment appeal rights up to the Assessment Waiver Amount which constitutes an estimated benefit pursuant to Minnesota Statutes, Chapter 429 in the manner authorized by Minnesota Statutes § 462.3531 in return for the City’s IX-01 (a-d) 2 agreement to pay for the costs of the Project. NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the other contained in this Agreement and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do covenant and agree as follows: ARTICLE I THE AGREEMENT Section 1.01 Purpose. The purpose of this Agreement is to memorialize the covenants and agreements between the Owner and the City with regard to the Property and the Project including the Owner’s waiver of assessment appeal rights up to the Assessment Waiver Amount which constitutes an estimated benefit pursuant to Minnesota Statutes, Chapter 429 in the manner authorized by Minnesota Statutes § 462.3531 in return for the City’s payment of the costs for the Project. Section 1.02 Term. The term of this Agreement shall commence on the Agreement Date and shall terminate upon the expiration of the Assessment Term (or upon prepayment of the levied assessment). ARTICLE II DEFINITIONS Section 2.01 Definitions. The following are terms used in this Agreement. The meanings as used in this Agreement shall be expressly indicated below, unless the context of this Agreement requires otherwise: (a) Assessment Interest Rate: The special assessment levied against the Property shall accrue interest at a rate of ____% per year for the Assessment Term. (b) Assessment Term: The term of the special assessment levied against the Property shall be five (5) years. (c) Assessment Waiver Amount: The total Assessment Amount $752.25, which is commensurate with the estimated special benefit of the Project to the Property. ARTICLE III COVENANTS AND AGREEMENTS Section 3.01 Covenants and Agreements of the Owner. The Owner covenants and agrees with the City that: (a) Assessment Appeal Waiver: Owner hereby authorizes the City to certify to the Dakota County Auditor/Property Tax Assessor a special assessment against the Property up to the Assessment Waiver Amount for Project. IX-01 (a-d) 3 The Owner hereby waives all rights to assessment notices, hearings and appeals, and all other rights pursuant to Minnesota Statutes § 429.061, § 429.071 and § 429.081 for the special assessment against the Property up to the Assessment Waiver Amount, except as modified pursuant to Section 3.02(a). The Owner hereby waives any and all procedural and substantive objections to the special assessment up to the Assessment Waiver Amount against the Property, including, but not limited to, notice and hearing requirements and any claim that any or all of the Assessment Waiver Amount against the Property exceeds the benefit to the Property for the Project. The Owner acknowledges and agrees that the benefit of the Project to the Property does in fact equal or exceed the Assessment Waiver Amount. The Owner also acknowledges and agrees that the Property receives a special benefit equal to or exceeding the Assessment Waiver Amount. The City and the Owner acknowledge and agree that the Owner’s waiver of assessment appeal rights pursuant to Minnesota Statutes, Chapter 429, is capped at the Assessment Waiver Amount by operation of Minnesota Statutes § 462.3531, except as provided herein. The City and the Owner acknowledge and agree that the Owner may appeal any special assessment above the Assessment Waiver Amount. (b) Owner’s Covenant Not to Sue the City: Owner hereby covenants with the City not to appeal or sue the City for a court to set aside, reduce, repeal, or invalidate the levied assessment, or for other relief from the payment of the City’s levy of a special assessment up to the Assessment Waiver Amount against the Property. (c) Owner’s Covenant that Owner is the Fee Owner of the Property: Owner hereby covenants and warrants with the City that Owner is seized in fee of the Property and has good right to enter into this Agreement with the City. Section 3.02 Covenants and Agreements of the City. The City covenants and agrees with the Owner that: (a) City to Pay for Project: The City agrees to pay for the costs of the Project directly to the contractor upon proof of invoices from the contractor based on a pre-approved amount that is no greater than the Assessment Waiver Amount. If the amount of the invoices from the contractor is more or less than the Assessment Waiver Amount, then the Assessment Waiver Amount shall be increased or reduced accordingly and the parties agree that the Section 3.01(a) still applies, in that the Property receives a special benefit equal to or exceeding the revised Assessment Waiver Amount. (b) Assessment Waiver Amount: The City agrees that the City will certify/levy a special assessment against the Property only up to the Assessment Waiver Amount for the Project pursuant to this Agreement. (c) City’s Covenant to Construct the Project: The City hereby covenants and warrants IX-01 (a-d) 4 with the Owner that City will contract directly with a contractor to perform the work for the Project. (d) City Recording of this Agreement: The City will record this Agreement against the Property and the costs of recording shall be included in the Assessment Waiver Amount. (e) Prepayment of Assessment: The City agrees that the Owner may prepay some or all of the City’s assessment levy against the Property for the Project with no penalty and only with interest accrual pursuant to Minnesota Statutes § 429.061. ARTICLE IV DEFAULT Section 4.01 Default. If a party to this Agreement materially defaults in the due and timely performance of any of its covenants, or agreements hereunder, the other party may give notice of default of this Agreement. The notice shall specify with particularity the default or defaults on which the notice is based. The notice shall specify a ten (10) day cure period within which the specified default or defaults must be cured. If the specified defaults are not cured within the cure period, the other party may pursue all remedies and sanctions available at law and in equity, including specific performance. Section 4.02 Attorneys’ Fees, Costs and Expenses. The Owner agrees to pay the City the amount of the City’s assessment levy up to the Assessment Waiver Amount with accrued interest together with the City’s attorneys’ fees, costs and expenses to defend the special assessment levy by the City pursuant to this Agreement. The Owner acknowledges and agrees that the Owner would be unjustly enriched if the City’s assessment levy pursuant to this Agreement was set aside, reduced, repealed or invalidated by a court with jurisdiction over the Property since the Owner requested the Project and this assessment financing for the Project. The Owner agrees that the court with jurisdiction over the Property shall award the City the assessment levy up to the Assessment Waiver Amount with accrued interest together with the City’s attorneys’ fees, costs and expenses for breach of the Owner’s covenant not to appeal or sue the City pursuant to Article III, Section 3.01(b). ARTICLE V GENERAL PROVISIONS Section 5.01 Notices. All notices, requests, demands or other communications required or permitted by this Agreement shall be in writing and delivery shall be deemed to be sufficient if delivered personally or by registered or certified mail, return receipt accepted, postage prepaid, addressed as follows: If to the City: City of Hastings Attn: City Administrator 101 4th Street East Hastings, MN 55033 IX-01 (a-d) 5 If to the Owner: Deborah Grant and Richard Harris 1833 Maple St. Hastings, MN 55033 Section 5.02 Non-Assignability. Neither the City nor the Owner shall assign any interest in this Agreement nor shall either party transfer any interest in the same without the prior written consent of the other party. Section 5.03 Binding Effect. This Agreement and the terms, conditions and covenants contained herein and the transaction contemplated hereunder shall be binding upon and inure to the benefit of the parties hereto and his respective successors, heirs, personal representatives, and permitted assigns. This Agreement shall further be binding on subsequent purchasers of the Property and shall run with the Property herein described. Section 5.04 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 5.05 Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified or changed only by a written amendment authorized and executed by the City and the Owner. Section 5.06 Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 5.07 Entire Agreement. This Agreement shall constitute the entire agreement between the parties and shall supersede all prior oral or written negotiations. Section 5.08 Notice To Buyers. The Owner agrees to notify and provide any buyer of the Property with an executed copy of this Agreement if the Owner sells any interest in the Property following the execution of this Agreement by both the Owner and the City, but before the recording of this Agreement with Dakota County Recorder and/or Registrar of Titles. [remainder of page intentionally blank] IX-01 (a-d) 6 IN WITNESS WHEREOF, the City and the Owner have caused this Agreement to be executed by his duly authorized representatives. 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 the City Clerk of the City of Hastings, the Minnesota municipal corporation named in the foregoing instrument, and was signed on behalf of said municipal corporation by authority of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation. Notary Public IX-01 (a-d) 7 OWNER Deborah Grant _____________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) On this _____ day of _______________, 2025, before me a Notary Public within and for said County, personally appeared Deborah Grant. Notary Public IX-01 (a-d) 8 OWNER Richard Harris _____________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) On this _____ day of _______________, 2025, before me a Notary Public within and for said County, personally appeared Richard Harris. Notary Public This instrument drafted by and after recording please return to: Greta Bjerkness #0390575 LeVander, Gillen & Miller, P.A. 1305 Corporate Center Drive, Suite 300 Eagan, Minnesota 55121 38000.08001 IX-01 (a-d) A-1 EXHIBIT A LEGAL DESCRIPTION Lot 45, Westwood Addition First Section, Dakota County, Minnesota PID: 198375000450 IX-01 (a-d)