HomeMy WebLinkAbout6.i. Approve Special Assessment AgreementG:\ENGPROJ\387\Council Items\20150407 CC Approve Special Assessment Agreement.docx
EXECUTIVE SUMMARY
City Council Regular Meeting: April 7, 2015
AGENDA ITEM: Approve Special Assessment Agreement AGENDA SECTION:
Consent
PREPARED BY: Andrew J. Brotzler, P.E.
Director of Public Works/City Engineer AGENDA NO.
ATTACHMENTS: Resolution, Petition and Waiver
Agreement, Sundae Request APPROVED BY:
RECOMMENDED ACTION:
1) Motion to authorize the execution of a Petition and Waiver Agreement; and
2) Motion to adopt a resolution adopting a special assessment for 2635 132nd Court
West.
ISSUE
Laxman Sundae has requested that for the property located at 2635 132nd Court West that his
Supplemental Water and Sanitary Sewer Connection Charges association with the Old County Road 38
project, as set forth in the current Schedule of Rates and Fees, be placed on his property taxes.
BACKGROUND
When the Old County Road 38 project including the extension of sewer and water to properties along
132nd Court was completed, the City Council implemented special connection charges in-lieu of special
assessments to the properties associated with the sewer and water project cost. These special connection
charges are listed in the Schedule of Rates and Fees and are due at the time a property connects to the
sewer and water system. The City has previously considered when requested the assessment of these
special connection charges to facilitate the connection to city sewer and water. There is no new City
capital outlay associated with special assessment. Funds collected as either special connection charges, or
special assessments is revenue to the City sewer and water utility funds that originally funded the project
cost.
The supplemental connection charge amount to be levied as a special assessment will be set according to
the 2015 rates, in the amount of $12,811.23. At such time that the City sewer and water service is
connected, the typical water access charges (WAC) and sewer access charges (SAC) will apply at the rates
current at the time of connection and will be due prior to permit issuance by the Building Department.
SUMMARY
Staff is recommending the following:
1) The City Council authorize the execution of an agreement with Laxman and Alexie Sundae to
specially assess the special connection charges in the amount of $12,811.23.
2) The City Council adopt a resolution adopting a special assessment for 2635 132nd Court West.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2015-
A RESOLUTION ADOPTING A SPECIAL ASSESSMENT
FOR 2635 132ND COURT WEST
WHEREAS, the City Schedule of Rates and Fees includes a Special connection Charge for the connection
to city sewer and water for the property at 2635 132nd Court West that is due at the time of connection; and
WHEREAS, the property owner has submitted a written request for the special assessment of said
connection charges; and
WHEREAS, the City Council has authorized the execution of a Petition and Waiver agreement with the
property owner.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as
follows:
(1) Such proposed assessment in the amount of $12,811.23, to 2635 132nd Court West (PID 34-44300-
01-070) is hereby accepted and shall constitute the special assessment against the lands named
therein, and each tract of land therein is hereby found to be benefited by the proposed
improvement.
(2) Such assessments shall be as follows:
a. The assessments shall be payable in equal annual installments extending over a period of ten (10)
years, the first of said installments to be payable with general taxes for the year 2015, collectible with
such taxes during the year 2016.
b. To the first installment shall be added interest on the entire principal amount of the assessment
from April 7, 2015 until December 31 of the year in which such installment is payable. The interest
rate shall be set at either 5% per annum or 2 points above the City’s bond rate at the time the
assessments are certified to Dakota County Property Taxation & Records, whichever is less. To
each subsequent installment, when due there shall be added interest for one year at said rate on the
unpaid principal amount of the assessment.
c. The owner of any property so assessed may at any time prior to the certification of the
assessment or the first installment thereof to Dakota County Property Taxation & Records, pay the
whole of the principal amount of the assessment on such property with interest accrued to the date
of payment to the City Treasurer, except that no interest shall be charged if the entire assessment is
paid within 30 days from the date hereof; and such property owner may at any time prior to
December 31 of any year pay to Dakota County Property Taxation & Records the entire principal
amount of the assessment remaining due with interest accrued to December 31 of the year in which
said payment is made. Payment must be received and posted at the County by December 31;
postmarks will not be accepted.
(3) The City Clerk shall forthwith transmit a certified duplicate copy of this assessment roll to the
County Auditor to be extended on the tax list of the County.
ADOPTED this 7th day of April, 2015.
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk
PETITION AND WAIVER AGREEMENT
This Agreement made this ___ day of _________, 2015, by and between the City of Rosemount, a
Minnesota municipal corporation (“City”), and Laxman S. Sundae and Alexie C. Sundae,
(collectively referred to as “Owner”).
WITNESSETH:
WHEREAS, the Owner is the fee owner of certain real property (the “Subject Property”)
located at 2635 – 132nd Court West in the City of Rosemount; and
WHEREAS, special connection charges that were fixed by reference to the portion of the
cost of municipal sewer and water service that was paid by special assessment levied against the
Subject Property will be due at the time of connection of the Subject Property to the municipal
sewer and water systems; and
WHEREAS, such special connection charges are currently set $12,811.23; and
WHEREAS, the Owner desires to have such connection charges levied against the Subject
Property as special assessments; and
WHEREAS, the Owner wishes the City to levy such special assessments without notice of
hearing or hearing on the special assessments, in the amount of $12,811.23, against the Subject
Property in lieu of collection of such charges as connection charges; and
WHEREAS, the City is willing to levy such special assessments in accordance with the
request of the Owner and without such notice or hearing, provided the assurances and covenants
hereinafter stated are made by the Owner to ensure that the City will have valid and collectable
special assessments as they relate to the Subject Property; and
WHEREAS, were it not for the assurances and covenants hereinafter provided, the City
would not levy such special assessments without such notice and hearing.
NOW, THEREFORE, ON THE BASIS OF THE MUTUAL COVENANTS AND
AGREEMENTS HEREINAFTER PROVIDED, IT IS HEREBY AGREED BY AND
BETWEEN THE PARTIES HERETO AS FOLLOWS:
1. The Owner represents and warrants that he is the owner of 100 percent of the Subject
Property, that he has full legal power and authority to encumber the Subject Property as
herein provided, and that as of the date hereof, he has fee simple absolute title in the Subject
Property, which is not subject to any liens, interests or encumbrances, except as listed on the
attached Exhibit A.
2. The Owner requests that $12,811.23 be assessed against the Subject Property in lieu of
special connection charges. Owner understands that he will be required to pay normal and
typical connection charges at the time of connection to the municipal sewer and water
systems.
3. The Owner waives notice of hearing and hearing on the special assessments levied pursuant
to Minn. Stat. Section 429.061, and specifically request that special assessments be levied
against the Subject Property without hearings.
4. The Owner waives the right to appeal the levy of the special assessments in accordance with
this Agreement pursuant to Minn. Stat. Section 429.081, or reapportionment thereof upon
land division pursuant to Minn. Stat. Section 429.071, Subd. 3, or otherwise, and further
specifically agrees with respect to such special assessments against the Subject Property or
reapportionment that:
a. Any requirement of Minn. Stat., Chapter 429 with which the City does not comply
are hereby waived by the Owner;
b. The increase in fair market value of the Subject Property resulting from construction
of the Improvement Project for which the special connection charges were set will
be at least equal to $12,811.23, and that such increase in fair market value is a special
benefit to the Subject Property;
c. Assessment of $12,811.23 of the cost of the Improvement Project against the
Subject Property is reasonable, fair and equitable; and
d. The Owner further specifically waives notice and right to appeal reapportionment of
such special assessments upon land division pursuant to Minn. Stat., Section 429.071,
Subd. 3.
5. Owner represents and warrants that the Subject Property is not so classified for tax purposes
as to result in deferral of the obligation to pay special assessments; and Owner agrees that he
will take no action to secure such tax status for the Subject Property during the term of this
Agreement.
6. The covenants, waivers and agreements contained in this Agreement shall bind the
successors and assigns of the Owner and shall run with the Subject Property and bind all
successors in interest thereof. It is the intent of the parties hereto that this Agreement be in
a form that is recordable among the land records of Dakota County, Minnesota; and they
agree to make any changes in the Agreement that may be necessary to effect the recording
and filing of this Agreement against the title of the Subject Property.
7. This Agreement shall terminate upon the final payment of all special assessments levied
against the Subject Property under this Agreement, and the City shall thereupon execute and
deliver such documents, in recordable form, as are necessary to extinguish its rights
hereunder.
8. Assessments levied pursuant to this Agreement will be spread over a ten-year period with
interest at a rate determined by the City Council in accordance with its normal and
customary procedures.
IN WITNESS WHEREOF, the parties have set their hands the day and year first written above.
CITY OF ROSEMOUNT OWNER
By: ____________________________ ________________________________
William H. Droste, Mayor Laxman S. Sundae
By: ___________________________ ________________________________
Clarissa Hadler, City Clerk Alexie C. Sundae
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this ____day of ________, 2015, by
William H. Droste and Clarissa Hadler, the Mayor and City Clerk of the City of Rosemount,
Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the City.
__________________________________________
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ____day of ________, 2015, by
Laxman S. Sundae and Alexie C. Sundae.
__________________________________________
Notary Public