The URL can be used to link to this page

Home My WebLink About5B 2016 Sept Unpaid Special Assessments Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 12, 2016 AGENDA #: 5B PREPARED BY: CATHY ERICKSON, ACCOUNTING MANAGER PRESENTER: DON URAM, FINANCE DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL FOR 2016 UNPAID SPECIAL CHARGES, AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING DISCUSSION: Introduction The purpose of this agenda item is for the City Council to order preparation of an assessment roll and to set an assessment hearing date for 2016 Unpaid Special Charges. These charges include costs and charges incurred by the City for Oak Wilt, Landscaping and mowing of nuisance properties, false alarms and unpaid utility bills. History State Statute 429.101 states that the governing body of any municipality may provide for the collection of unpaid special charges as a special assessment against the property benefited for all or any part of the cost of: 1) Landscaping, s now and weed elimination from streets or private property 2) Nuisance charges 3) Oak Wilt removal 4) T he recovery of any disbursements for payment of utility bills and other services, even if provided by a third party Current Circumstances In order to recover unpaid special charges the City must follow State Statute 429 procedures. Those procedures provide that the City must adopt a resolution declaring the unpaid special charges to be assessed and establish a date for the assessment hearing for those charges. Delinquent Utility Charges and Nuisance Abatement: The assessment shall include the annual principal, a delinquent assessment administration charge of $40 plus interest calculated from the date of the adoption of the assessment resolution to the end of 2016 plus twelve (12) months of the next year and shall bear interest at the rate of 3.69% per annum. Sewer and Water Connection: In April 2016 the Council authorized Resolution 16-056 entering into a connection agreement and agreement with respect to special assessments for 1735 Shoreline Boulevard. Per the agreement, the sewer 2 and water connection assessment amount shall be $21,853, payable over five years on an equal principal installment method, bearing interest at a rate of 4.44% per year. The first installment shall be the annual principal plus interest calculated from the date of the adoption of the assessment resolution to the end of 2016 plus twelve (12) months of the next year and shall bear interest at a rate of 4 and point forty-four (4.44%) per annum. In the case of the special charges being considered as part of this resolution property owners have been provided the opportunity to pay the charges prior to the assessment. Conclusion The City Council should order preparation of the assessment roll and declare the costs to be assessed and establish the date of the assessment hearing in accordance with State Statute 429. ISSUES: In order for the City to recover unpaid special charges incurred in 2016 it is necessary for the City Council to proceed with this process. FINANCIAL IMPACT: The total unpaid special charges proposed to be assessed are: Delinquent Utility Charges $ 77,039.25 Nuisance Abatement 273.74 Sewer & Water Connection 21,853.00 Total Charges to be Assessed $ 99,165.99 This is the principal portion of the assessment. It does not include the administration charge or interest. The principal portion of the assessment in the three prior years is as follows:  2013: $5,440.57 (including $450.00 for false alarm charges)  2014: $54,733.05 (included $5,544.38 for Oak Wilt)  2015: $91,006.29 (included $8,043.83 for Oak Wilt and Mowing) On November 12, 2013, the Council directed staff to certify over-due utility billing to assessments (rather than shutting off water services due to non-payment) and continue to bill renters directly. As a result, the amount being certified has increased significantly. Online payment options have been available to utility customers since early 2014. Approximately 56% of residents pay their utility bill electronically (via PSN, ACH, etc.) ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution as part of the consent agenda declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the 2016 Unpaid Special Charges, and establishing October 10, 2016 for the assessment hearing date. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 RESOLUTION 16-XXX A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2016 UNPAID SPECIAL CHARGES AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, The City has incurred the following unpaid special charges in 2016: Special Charge Unpaid Amount Delinquent Utility Charges $ 77,039.25 Nuisance Abatement $ 273.74 Sewer & Water Connection (per agreement) $ 21,853.00 Total $ 99,165.99 ; and WHEREAS, Minnesota Statutes and Prior Lake City Code authorize the City to recover such charges through the special assessment process; and WHEREAS, WHEREAS, For delinquent utility charges and nuisance abatement, property owners were previously sent notifications of amounts due and failed to pay; and The Council authorized Resolution 16-056 entering into a connection agreement and agreement with respect to special assessments for 1735 Shoreline Boulevard. Per the agreement, the sewer and water connection assessment amount shall be $21,853, payable over five years on an equal principal installment method, bearing interest at a rate of 4.44% per year. The first installment shall be the annual principal plus interest calculated from the date of the adoption of the assessment resolution to the end of 2016 plus twelve (12) months of the next year and shall bear interest at a rate of 4.44% per annum. WHEREAS, The City Manager notifies the City Council that such proposed assessments will be completed and filed in the City Manager’s office for public inspection. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The portion of the cost of such services to be assessed against benefited property owners is declared to be $ 99,165.99. 3. Assessments for Snow Removal, Landscaping, Nuisance Charges, Mowing, Delinquent Utility Charges and False Alarms shall be payable pursuant to Minnesota Statute 429.101 and Sections 704.1003 and 806.301 of the City code in one (1) single installment payable in 2017. The single installment shall include the annual principal, a delinquent assessment administration charge of 4646 Dakota Street SE Prior Lake, MN 55372 $40 ($55 for Spring Lake Township) plus interest calculated from the date of the adoption of the assessment resolution to the end of 2016 plus twelve (12) months of the next year and shall bear interest at the rate of 3.69% per annum. 4. The sewer and water connection assessment shall be payable per the agreement at an interest rate of 4.44% per annum and shall be paid on an equal principal installment method extending over a period of (5) years for the assessment. The first installment shall be the annual principal plus interest calculated from the date of the adoption of the assessment resolution to the end of 2016 plus twelve (12) months of the next year and shall bear interest at a rate of 4.44% per annum. 5. Oak Wilt Assessments shall be payable pursuant to Minnesota Statute 429.101 and Section 602.405 of the City code which provides that all assessments less than $1000 shall be payable in one (1) single installment payable in 2017 and all assessments over $1000 be paid on an equal principal installment method extending over a period of five (5) years for the assessment. The first installment shall be the annual principal plus interest calculated from the date of the adoption of the assessment resolution to the end of 2016 plus twelve (12) months of the next year and shall bear interest at a rate of 3.69% per annum. 6. The City Manager shall submit a list of the costs for services the City has incurred for unpaid utility bills, weed abatement, landscaping, nuisance charges, false alarms and oak wilt abatement, as provided by law, and shall file a copy of such proposed assessment in the office of the City Manager for public inspection. 7. The City Manager shall upon the completion of such proposed assessment notify the City Council thereof. 8. A public hearing shall be held on the 10h day of October, 2016, in City Council Chambers at 7:00 P.M. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given the opportunity to be heard with reference to such assessment. 9. The City Manager is hereby directed to cause a notice of the public hearing on the proposed assessment to be published once in the official newspaper of the City at least two weeks prior to the hearing, and the City Manager shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 10. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Finance Director, except that no interest will be charged if the entire assessment is paid within 30 days from the adoption of the assessment. The owner may, at any time thereafter, pay to the City Finance Director the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 30 or interest will be charged through December 31 of the next succeeding year. PASSED AND ADOPTED THIS 12TH DAY OF SEPTEMBER, 2016 VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager