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HomeMy WebLinkAbout11B (2) Water and Sewer Ordinance 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 113-xx AN ORDINANCE AMENDING SECTION 704.500, 705.600 and 705.1002 RELATING TO DEFERRAL OF CERTAIN WATER CONNECTION, SEWER CONNECTION, WATER TOWER CHARGES AND METROPOLITAN SAC CHARGES FOR ECONOMIC DEVELOPMENT PURPOSES The City Council of the City of Prior Lake does hereby ordain that: 1. Prior Lake City Code Section 704.500 is deleted in its entirety and replaced with the following: 704.500 Payment of Fees: Any property owner who is obligated to pay permit fees under this section shall do so at the time of permit issuance. Any person obliged to pay water connection charges or water tower charges may do so as follows: (1) Payment in full of all water connection charges and water tower charges at the time of permit issuance; or (2) If the person meets the eligibility requirements of the City of Prior Lake’s Sewer and Water Fee Deferral Program Policy, deferred monthly payment of up to eight (80) percent of the fees due within sixty (60) consecutive months from permit issuance as follows: a) Fees of at least three (3) and no more than ten (10) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20) percent of the total water connection charges and water tower charge shall be paid at the time of permit issuance. 2. The remaining balance shall be repaid utilizing the city’s automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be the rate set forth in the Metropolitan Council Small Business SAC Deferral Program for the year the permit is issued. 4. The deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest shall become immediately due and payable. The balance plus interest and applicable fees shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. b) Fees greater than ten (10) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20%) of the total water access charges and water tower charge shall be paid at the time of permit issuance. Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 2. The remaining balance shall be repaid utilizing the city’s automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be determined using a rate of two (2) percentage points higher than the net interest cost of the most recent bonds sold by the city. 4. The deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest shall become immediately due and payable. The balance plus interest and applicable fees shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. 2. Prior Lake City Code Section 705.600 is deleted in its entirety and replaced with the following: 705.600 Payment of Fees: Any property owner who is obligated to pay permit fees under this section shall do so at the time of permit issuance. Any person obliged to pay sewer connection charges may do so as follows: (1) Payment in full of all sewer connection charges at the time of permit issuance; or (2) If the person meets the eligibility requirements of City of Prior Lake’s Sewer and Water Fee Deferral Program Policy, deferred monthly payment of up to eight (80) percent of the fees due within sixty (60) consecutive months from permit issuance as follows: a. Fees of at least three (3) and no more than ten (10) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20) percent of the total sewer connection charges shall be paid at the time of permit issuance. 2. The remaining balance shall be repaid utilizing the city’s automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be the rate set forth in the Metropolitan Council Small Business SAC Deferral Program for the year the permit is issued. 4. Deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest and applicable fees shall become immediately due and payable. The balance plus interest shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. b. Fees greater than ten (10) SAC units (units shall be as set by the Metropolitan Waste Control Commission and for the purposes of deferral shall be measured prior to application of available credits): 1. At least twenty (20%) of the total sewer connection charges shall be paid at the time of permit issuance. 2 2. The remaining balance shall be repaid utilizing the city’s automatic monthly pay system in equal increments for up to sixty (60) consecutive months from the date of permit issuance. 3. The interest rate on the unpaid balance shall be determined using a rate of two (2) percentage points higher than the net interest cost of the most recent bonds sold by the city. 4. The deferred balance shall be secured by the property owner in the form of a special assessment agreement in a form acceptable to the City Attorney executed by all parties prior to approval of the deferral. 5. In the event of a failure to pay the any amounts due under this Section for a period of at least sixty (60) days the remaining balance plus interest shall become immediately due and payable. The balance plus interest and applicable fees shall be assessed against the property in accordance with the terms of the assessment agreement. In no event shall the payments under the assessment agreement extend for a period of more than 12 months beyond the initial 60 month period of the deferral. 3. Prior Lake City Code Section 705.1002 is hereby amended by the addition of Subsection (7) to read as follows: (7) Payment for SAC units shall be made prior to the issuance of the permit or pursuant to City Code Section 705.600 the City policy on deferral of SAC, Water, Sewer and Water Tower Charge Policy adopted on February 11, 2013 and any subsequent amendments thereto. This ordinance shall become effective from and after its passage and publication. th Passed by the City Council of the City of Prior Lake this 11 day of February 2013. ATTEST: _________________________ __________________________ City Manager Mayor th Published in the Prior Lake American on the 16 day of February 2013. 3