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Home My WebLink About5M - Assessment Services City Of Prior Lake 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: JUNE 26, 2006 5M 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 2007 and 2008. Historv The previous Assessor's Agreement was entered into by the Council on June 7, 2004 for property assessment services covering the calendar years 2005 and 2006 at a cost of $81,000 and $90,000 respectively. This cooperative agreement between the City and Scott County has existed since 1972. The current agreement is scheduled to expire on December 31, 2005. FINANCIAL IMPACT: 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. The first year (2007) amount of $100,000 represents a charge of approximately $10.32 per parcel based upon our current parcel count of 9,687 and a second year contract amount of $108,000 for 2008. The first year cost of 2007, on a per parcel cost basis, is 5.3% higher than our 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 2006 per parcel charge: ",",r"';"li1!~'~~"XWW'h'"'''r"rIrr"1 ~!~!""~:::"'""i"! 1111_\iSt~~11IOO~111~lrr ,r ',.', '," ' , ,,", ",,'. 'i", ' ,/r " " 'rr,lElll~!illl~~III~I!1!11!!!~. Savage 9,549 @ $9.80 $93,600 Shakopee 12,643 @ $9.84 $124,400 www.cityofpriorlake.com H\ASSESS\Agenda assessor contraqbA8ne 952.447.4230 / Fax 952.447.4245 * 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. ISSUES: The City Council is aware of several customer service issues that arose this year. Those issues appear to have been related to one individual who was responsible for all Prior Lake appraisals. After numerous discussions with the Scott County Administrator, Chief Financial Officer who has immediate responsibility for the assessing department and new Scott County Assessor Robert Schmitt, we are confident that the customer service concerns previously experienced will be eliminated. The following alternatives are available to the City Council: ALTERNATIVES: RECOMMENDED MOTION: 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. Alternative 1. Reviewed by: 1. 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 H\ASSESS\Agenda assessor contract.doc 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 106-xx 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 $100,000 for 2007 and $108,000 for services in 2008; 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: Assessment Service Year Contract Amount 2007 $100,000 2008 $108,000 3. The Mayor and City Manager are hereby authorized to execute this contract on behalf of the City of Prior Lake: Passed and adopted this 26th day of June, 2006. YES NO Haugen Dornbush Erickson LeMair Millar Haugen Dornbush Erickson LeMair Millar {Seal} City Manager City of Prior Lake www.cityofpriorlake.com H:IASSESSlAssessor contract resolution. doc Phone 952.447.4230 / Fax 952.447.4245 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 ofthe 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 2007. 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 00,000.00, such payment to be made to the Scott County Treasurer on or before July 15, 2007. 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 ofthis 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 .. 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 2008. 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 $108,000.00, such payment to be made to the Scott County Treasurer on or before July 15, 2008. 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