HomeMy WebLinkAbout5C - JPA for Assessment Services for City of Prior Lake
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
MARCH 3, 2008
5C
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE JOINT
POWERS AGREEMENTS FOR ASSESSMENT SERVICES FOR THE CITY
OF PRIOR LAKE
DISCUSSION:
Introduction
The purpose of this agenda item is for the City Council to consider renewing
the existing agreement with Scott County to provide property assessment
services to the City of Prior Lake for the assessment years 2009 and 2010.
Historv
The previous Assessor's Agreement was entered into by the Council on June
26, 2006 for property assessment services covering the calendar years 2007
and 2008 at a cost of $100,000 and $108,000 respectively. This cooperative
agreement between the City and Scott County has existed since 1972. The
current agreement is scheduled to expire on December 31,2008.
Because of the slowdown in growth and the fact that the comparable costs for
Savage and Shakopee leveled out this year Staff has negotiated a rollback in
our assessment contract amount to last year's level of $100,000 resulting in a
$8,000 savings in this year's budget.
Current Circumstances
All assessment agreements performed by Scott County for cities and
townships are based on the general number of parcels in the city and the level
of difficulty for property appraisals Le, lakeshore vs. non-Iakeshore, the ratio of
higher valued homes and number of commercial and industrial parcels. Our
new contract is proposed to be renewed for a similar period of two years. Their
service contracts are standardized for all jurisdictions within Scott County and
are separate contracts for each year of service. The proposed amount will
cover the cost to establish and update the market values for all properties
located within the City of Prior Lake.
ISSUES:
In the past the City Council became aware of several customer service issues
that arose. After numerous discussions with the Scott County Administrator,
Chief Financial Officer who has immediate responsibility for the assessing
department and Scott County Assessor Robert Schmitt, we are confident that
the customer service concerns previously experienced have been be
eliminated.
FINANCIAL
IMPACT:
The first year (2009) amount of $102,000 represents a charge of
approximately $10.16 per parcel based upon our current parcel count of
10,043 and a second year contract amount of $105,000 for 2010.
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
The first year cost of 2009, on a per parcel cost basis, is 2.0% higher than our
adjusted assessment contract for this year. The second year increase
represents an adjustment primarily due to the expected increase in our total
number of parcels as a result of new subdivisions and due to annexation
growth plus the annual per parcel cost adjustment.
For comparison purposes the following is an itemization of the larger cities in
Scott County and their respective 2008 per parcel charge:
City Per Parcel Charae Contract Fee*
Prior Lake/i> .... >.>10,(}43@:$10;16 .$10~,OOO(2Q09).
Savage 10,093 @ $9.71 $98,000 (2008)
Shakopee 13,630 @ $9.75 $132,900 (2008)
* Fee rounded to nearest $100 by Scott County Assessor
The City could not hire a full time appraiser, clerical support and provide office
space and equipment as economically as provided in the joint agreement with
the County.
ALTERNATIVES:
The following alternatives are available to the City Council:
1. Adopt A Resolution Authorizing the Joint Powers Agreement for
Assessment of the City of Prior Lake.
2. Table this item for a specific reason.
RECOMMENDED
MOTION:
Alternative 1.
Revi
1. A Resolution Authorizing the Joint Powers Agreement for Assessment of the City of
Prior Lake
2. Joint Powers Agreement for Assessment of the City of Prior Lake
4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 08-xx
A RESOLUTION AUTHORIZING THE JOINT POWERS AGREEMENT
FOR ASSESSMENT OF THE CITY OF PRIOR LAKE
MOTION BY: SECOND BY:
WHEREAS, Since 1972 the City has contracted with Scott County for assessment
services; and
WHEREAS, the contract with the City is the most cost effective means of receiving
assessment services; and
WHEREAS, Scott County has proposed a contract rate of $102,000 for 2009 and
$105,000 for services in 2010; and
WHEREAS, the City of Prior Lake desires to continue the assessment agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE that:
1. The recitals set forth above are incorporated herein.
2. City of Prior Lake hereby approves the assessment agreement with Scott County
according to the following terms:
Fiscal Year
2009
2010
Assessment Service Contract Amount
$102,000
$105,000
3. The Mayor and City Manager are hereby authorized to execute these assessment
contracts on behalf of the City of Prior Lake:
Passed and adopted this 3rd day of March, 2008.
YES
NO
Haugen
Erickson
Hedberg
LeMair
Millar
Haugen
Erickson
Hedberg
LeMair
Millar
{Seal}
City Manager
City of Prior Lake
www.cityofpriorlake.com
H:\ASSESS\Assessor contract resolution. doc
Phone 952.447.9800 / Fax 952.447.4245
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Scott
JOINT POWERS AGREEMENT
FOR ASSESSMENT OF THE CITY OF PRIOR LAKE
THIS JOINT POWERS AGREEMENT is made and entered into by and between the City
of Prior Lake and the County of Scott, State of Minnesota, pursuant to Minnesota Statute
273.072 and Minnesota Statute 471.59.
WHEREAS, the City of Prior Lake wishes to enter into an agreement with the County of
Scott to provide for the assessment of the property in said City of Prior Lake by the County
Assessor's office; and
WHEREAS, it is the wish of said County to cooperate with said City of Prior Lake to
provide for a fair and equitable assessment of property;
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN
CONTAINED, IT IS AGREED AS FOLLOWS:
1. That the City of Prior Lake which lies within the County of Scott and constitutes a
separate assessment district, shall have its property assessed by the County Assessor of Scott
County, for the assessment year 2009. All work done necessary to the establishment of the
estimated market value for each parcel shall be performed by the Scott County Assessor or by
one or more of the licensed assessors under his direction and supervision.
2. It is hereby agreed that the City of Prior Lake and all of its officers, agents, and
employees shall render full cooperation and assistance to said County to facilitate the provision
of the services contemplated hereby.
3. In consideration for said assessment services, the City of Prior Lake hereby agrees to
pay the County of Scott the sum of $1 02,000, such payment to be made to the Scott County
Treasurer on or before July 15, 2009.
4. The County agrees that in each year of this Agreement it shall, by its County Assessor
or one or more of his appraisers, view and determine the market value of at least twenty percent
(20%) of the parcels within this. taxing jurisdiction. It is further agreed that the County shall have
on file documentation of those parcels physically inspected for each year of this Agreement.
5. Each named party to this Agreement shall be liable for its own acts to the extent
provided for by law and hereby agrees to indemnify, hold harmless and defend the other named
parties to this Agreement, its officers and employees against any and all liability, loss, costs,
damages, expenses, claims or actions, including reasonable attorney's fees with the other, its
officers and employees may hereafter sustain, incur or be required to pay, arising out of or by
reason of any act or omission of the party, its agents, servants, or employees, in the execution,
performance, or failure to adequately perform its obligations.
This provision to indemnify and hold harmless does not constitute a waiver by any
named party to limitations on liability provided by Minnesota Statute Chapter 466. Further, all
workers' compensation claims shall be handled in the jurisdiction in which the agent is
employed.
IN WITNESS WHEREOF, the City of Prior Lake has executed this Agreement by
its Mayor and City Administrator or its Township Chairperson by the authority of its governing
body and the County of Scott has executed this Agreement by its Chairperson, County
Administrator, and County Assessor pursuant to the authority of the Board of Commissioners
intending to be bound thereby.
CITY OF PRIOR LAKE:
City Mayor/Township Chairperson
Date
City Administrator
Date
City/Township Clerk (if applicable)
Date
COUNTY OF SCOTT:
Chairperson
County Board of Commissioners
Date
County Administrator
Date
County Assessor
Date
Approved as to form:
Scott County Attorney
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Scott
JOINT POWERS AGREEMENT
FOR ASSESSMENT OF THE CITY OF PRIOR LAKE
THIS JOINT POWERS AGREEMENT is made and entered into by and between the City
of Prior Lake and the County of Scott, State of Minnesota, pursuant to Minnesota Statute
273.072 and Minnesota Statute 471.59.
WHEREAS, the City of Prior Lake wishes to enter into an agreement with the County of
Scott to provide for the assessment of the property in said City of Prior Lake by the County
Assessor's office; and
WHEREAS, it is the wish of said County to cooperate with said City of Prior Lake to
provide for a fair and equitable assessment of property;
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN
CONTAINED, IT IS AGREED AS FOLLOWS:
1. That the City of Prior Lake which lies within the County of Scott and constitutes a
separate assessment district, shall have its property assessed by the County Assessor of Scott
County, for the assessment year 2010. All work done necessary to the establishment of the
estimated market value for each parcel shall be performed by the Scott County Assessor or by
one or more of the licensed assessors under his direction and supervision.
2. It is hereby agreed that the City of Prior Lake and all of its officers, agents, and
employees shall render full cooperation and assistance to said County to facilitate the provision
of the services contemplated hereby.
3. In consideration for said assessment services, the City of Prior Lake hereby agrees to
pay the County of Scott the sum of $1 05,000, such payment to be made to the Scott County
Treasurer on or before July 15, 2010.
4. The County agrees that in each year of this Agreement it shall, by its County Assessor
or one or more of his appraisers, view and determine the market value of at least twenty percent
(20%) of the parcels within this taxing jurisdiction. It is further agreed that the County shall have
on file documentation of those parcels physically inspected for each year of this Agreement.
5. Each named party to this Agreement shall be liable for its own acts to the extent
provided for by law and hereby agrees to indemnify, hold harmless and defend the other named
parties to this Agreement, its officers and employees against any and all liability, loss, costs,
damages, expenses, claims or actions, including reasonable attorney's fees with the other, its
officers and employees may hereafter sustain, incur or be required to pay, arising out of or by
reason of any act or omission of the party, its agents, servants, or employees, in the execution,
performance, or failure to adequately perform its obligations.
This provision to indemnify and hold harmless does not constitute a waiver by any
named party to limitations on liability provided by Minnesota Statute Chapter 466. Further, all
workers' compensation claims shall be handled in the jurisdiction in which the agent is
employed.
IN WITNESS WHEREOF, the City of Prior Lake has executed this Agreement by
its Mayor and City Administrator or its Township Chairperson by the authority of its governing
body and the County of Scott has executed this Agreement by its Chairperson, County
Administrator, and County Assessor pursuant to the authority of the Board of Commissioners
intending to be bound thereby.
CITY OF PRIOR LAKE:
City Mayor/Township Chairperson
Date
City Administrator
Date
City/Township Clerk (if applicable)
Date
COUNTY OF SCOTT:
Chairperson
County Board of Commissioners
Date
County Administrator
Date
County Assessor
Date
Approved as to form:
Scott County Attorney