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HomeMy WebLinkAboutVIII-10 Water Service Repair Assessment Request City Council Memorandum To: Mayor Fasbender & City Council Members From: Ryan Stempski – Public Works Director/City Engineer Date: August 1, 2022 Item: Water Service Repair Assessment Request – 514 Tiffany Drive COUNCIL ACTION REQUESTED Enclosed for Council approval is a request from Heidi Pahl for the City to pay the cost to repair the water service line at her property located at 514 Tiffany Drive and to assess the costs back to the property. The cost of the work in this case was $7,500. BACKGROUND The City Attorney has prepared an agreement and waiver of assessment appeal for the property owner to sign, detailing out the conditions and terms of the assessment and protecting the City from an assessment appeal. The Council is requested to approve Ms. Pahl’s request for the City to fund the water service repair and assess the cost back to the property under the condition that she first enters into an assessment agreement with the City. ATTACHMENTS  Resident Request  Assessment Agreement VIII-10 Since 1857Hastings 1. 2. 3. 4. 5. 6. 7. 8. 9. Contractors Property owners arefree to use any contractor experienced in the underground utility construction.These are some who are based in the immediate area of Hastings or very experienced in working in Hastings. St.Croix Sewer -LisaGartzkeConstructionLorlandSewer&. Water Valley Rich Co.,Inc.Bauer Services (651)238-0310(612)414-8618 (651)775-0606 or (651)437-6235 (952)448-3002(651)246-9153 Sewer Backup Clearing Services These are contractors who may be able to assist with the clearing of a sewer backup on the service line before making any decision on an excavated type of repair.Again,property owners arefree to contact other contractors who provide these types of services. Rumpca Services,Inc.Majeski Plumbing (651)459-2896(651)437-3823 MINNESOTA City Financing Program for Sewer & Water Service Repair Work Contractor can begin work at any time, but City does not pay bill until Steps 2-7 are complete. Property owner submits a simple request to the City Public Works Department (attention to Public Works Director - contact information below). Three to five sentences is adequate, covering the nature of the request and the expected costs. Contractor estimates are desirable, but not mandatory up front. The request can be emailed. Attn: Public Works Director 1225 Progress Drive Hastings, MN 55033 (651) 480-6185 Submit signed Acknowledgement form indicating understanding that all information involved is public record City prepares documents necessary for City Attorney to draft agreement forms • Request Letter/Email• Contractor Estimates • Property Information City Attorney Drafts Assessment Agreement & Waiver of Assessment Appeal forms • NOTE: A copy of the final contractor invoice with an actual final cost figure will be necessary to complete this agreement. Property owner signs agreement and waiver form City pays contractor City Council makes formal approval on consent agenda Amount is assessed against property and becomes payable on property tax statement in Spring of following year: • 5 year term if < $10,000 • 10 year term if > $10,000• Interest rate is the same as City infrastructure project interest rate for the year in which the assessment is finalized. VIII-10 VIII-10 VIII-10 VIII-10 1 PRIVATE WATER SERVICE REPAIR SPECIAL ASSESSMENT AGREEMENT THIS AGREEMENT is made this ________ day of August, 2022, by and between the City of Hastings, a Minnesota municipal corporation (“City”), and Heidi M. Pahl, an unmarried person (the “Owner”). RECITALS A. Owner is the fee owner of a parcel located at 514 Tiffany Drive, in the City of Hastings, Dakota County, Minnesota, legally described as: Lot 6, Block 2, Cari Park Fourth Addition, according to the recorded plat thereof, and situate in Dakota County, Minnesota PID: 19-16403-02-060 Abstract Property (“Subject Property”). B. The City has found that certain repairs to the private water service are required. C. The Owner will cause the construction of the required private water service repairs. D. The Owner has requested that the City assess the costs of construction of the required private water service repairs to serve the Subject Property. E. The Owner acknowledges that the required private water service repairs will benefit the Subject Property. VIII-10 2 NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. PRIVATE WATER SERVICE REPAIRS. The Owner will hire and approve a contractor of their choice to construct private water service repairs (“Improvements”) that serve the Subject Property. 2. SPECIAL ASSESSMENTS. The City agrees to advance the funds necessary for the water line 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 one hundred percent (100%) of the cost of the Repairs through the assessment process. The City will assess the Subject Property the following principal amount for the Repairs: $7,500.00 (“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 4.35% 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 2023. 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. 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] VIII-10 3 CITY: CITY OF HASTINGS By: Mary Fasbender Mayor By: Kelly Murtaugh City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) On this ___ day of , 2022, 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 VIII-10 4 OWNER: By: Heidi M. Pahl STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ____ day of , 2022 by Heidi M. Pahl, an unmarried person. Notary Public VIII-10