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IV.5. Approve Assessment of Private Water Line Repairs; BishopApri121, 2020 Council Report 2020-021 APPROVE ASSESSMENT OF PRIVATE WATERLINE REPAIRS Proposed Action. Staff recommends that the Council approve the following motion: Move that the Ho kins Cit Council ado t Resolution 2020-021 A. rovin � S ecial Assessment for Waterline Re airs on Private Propertv_. Overview: As part of a leak detection survey a homeowner was required to have their waterline replaced. The homeowner is required to make the repair based on Hopkins City Code. Following receipt of estimated repair costs the homeowner signed an agreement on March 25, 2020 petitioning the City to do the repairs and waiving their right to object to the assessment. The repairs were completed at a total cost of $7,500. As part of the agreement a 10 year assessment at 4% was proposed and agreed to. Hennepin County requires the City to take specific action placing the assessment on the taxes. This resolution accomplishes that requirement. Supr�ortin�: Information: � Resolution 2020-015 , , ���� r .t r�s ��� � Melanie Ortiz Accounting Technician Financial Impact: $� 7 500.00 Budgeted: Y/N N X Source: �ropertv owner Related Documents (CIP, ERP, etc.): Notes: CITY OF HOPHINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2020-015 Approving Special Assessment for Waterline Repairs on Private Property WHEREAS, On March 25, 2020 the owners of property at 25 12th Ave N, Hopkins, MN and identified as 24-117-22-31-0050 signed an agreement petitioning for repairs to be done to their private waterline; and WHEREAS, the owner has insufficient funds to repair the waterline; and WHEREAS, the City as a program whereby the owner has the ability to petition the City to do the repairs and have the cost assessed to their taxes; and WHEREAS, as part of the agreement the owner waives their right to object to the assessment, NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby orders the assessment of $7,500 to be placed on the taxes of the property listed above for a 10 year period with an interest rate of 4%. Adopted by the City Council of the City of Hopkins this 21 St day of April, 2020. By: Jason Gadd, Mayor ATTEST: Amy Domeier, City Clerk H�P�IN� MINNESOTA Dear Homeowner: The City of Hopkins is sorry to hear that you have to repair or replace your water and/or sewer service connection to your home. In order to assist you better, a program has been developed where you may long-term finance the cost of the work through the City via a special assessment against your property. How does the program work? 1) The homeowner obtains quotes from appropriately licensed, insured and bonded contractors to perform the work. � The homeowner selects a contractor that represents the lowest responsible quote and presents the dollar amount and contractor information to the Utilities Division of�ice. • The homeowner informs the contractor that they are requesting funding by the City's Special Assessment Program. 3) The Utilities Division will prepare a Special Assessment Agreement (sample attached) and the homeowner will sign and notarize the Special Assessment Agreement. The final Special Assessment Agreement amount may be adjusted if the actual work costs exceed the quoted costs. Justification of the adjustment must be reviewed by the Superintendent of Utilities. 4) Upon compleiion ofrepair/replacement, the Inspection Department will inspect the work completed and perform a final inspection report. 5) The homeowner will present a copy of the final inspection report and a lien waiver (or sworn construction statement) from the contractor to the City for processing ofthe Special Assessment Agreement. 6) The Utilities Division submits the Special AssessmentAgreement to the City Council for final approval. • After Council approval, the City pays the contractor the final cost of the work and levy's the cost of the work against your property over a period of loyears (a special assessment). 7) You pay back the City, with interest, when you pay your property taxes. You may pay the total amount assessed at any time during the assessment period. What term and interest rate does the City require? The expense is spread over ioyears. The interest rate assessed forwork complete with a simple interest rate of 4.00%. For further questions, please feel free to contact: Sean Moilanen, Superintendent of Utilities 952-548-6353 Nate Stanley, City Engineer 952-548-6356 Melanie Ortiz, Assessing Admin 952-548-6310 CITY OF HOPKINS AGREEMENT CONCERNING SPECIAL ASSESSMENT FOR WATER OR SEWER REPAIRS OR REPLACEMENT AGREEMENT made as of March 25, 2020 between the City of Hopkins, a Minnesota municipal corporation ("City") and Susan H. Undis & Stephen J. Undis ("Property Owners'�, concerning special assessments for sewer repairs or replacement on property located at 2512�'AveN,. Hoplci� Minnesota. The City and the Property Owners agree as follows: l. Property Owners. The Property Owners, Susan H. Undis & Ste��hen J. Undis, are empowered to execute the waivers and consent contained in this Agreement. 2. Subject Property. The Property Owners are the fee owners of the property located within Hennepin County, Minnesota and legally described as: PID : 24-117-22-31-005 0 Purpose of Agreement. Pursuant to Minnesota Statutes, Chapter 429 the Property Owners petitioned the City on March 25. 2020 to specifically assess the cost for the water and/or sewer service line repair. The petition is incorporated into this agreement by reference. 4. The Improvement Project. The water or sewer service line repair is in conformance with the plans and specifications as approved by the Hopkins Public Works and Inspections Departments. 5. Responsibility. The Property Owners shall assume all responsibility for water or sewer service line, including all obligations under the construction contract for such work. The Property Owners shall obtain lien waivers from all contractors or subcontractors involved with the Construction Contract. 6. Amount to be Assessed. The total cost of the project, based on the lowest responsible proposal, is $7,500, will be assessed against the Benefited Property. The assessed amount may be modified to reflect final total cost. 7. Waiver. In connection with this improvement, the undersigned agree to waive and do waive any and all rights to a public hearing and rights to any notice, whether provided by Minnesota Statutes, Chapter 429, or by any other statute or by ordinance, City Charter, the constitution, or common law. The Property Owners further waives any and all substantive and procedural objections to the improvement and special assessment and stipulates that the benefit to the property exceeds the amount of the special assessment. 8. Waiver of Right of Appeal. Each party to this agreement agrees to waive and does waive any and all rights to an appeal from the special assessment set forth above, whether as provided by Minnesota Statutes, Chapter 429, or by any other statute or by ordinance, City Charter, the constitution, or common law. The special assessment is deemed adopted on the date the city signs this agreement. 4�=� 9. Implementation. Each party to this agreement agrees to execute any other documents upon request of the City necessary to implement the waivers of notice, hearing or right of appeal for the special assessment for the improvement project. 10. Payment. The Property Owners agrees to pay the City for the cost of the above improvements in accordance with the following terms: a. The assessment shall be paid in equal installments over 10 years (maximum is 10 years) at 4.00% and in accordance with all provisions of the city policy for special assessments for service line repairs. b. The first payment shall be payable with the 2021 real estate taxes. 11. Indemnification. The Property Owners shall indemnify and hold harmless the City and Its officers, agents, and empioyees from and against all claims, damages, and losses, or expenses, including attorney fees, which may be suffered or for which they may be held liable, rising out or resulting from the assertion against them of any claims, debts, or obligations in consequence of the perfolmance of this agreement by the City, its employees, agents, or subcontractors. 12. Certifieation of Ownership. The Property Owners certify that they are the sole fee simple owners of the property described in Paragraph 2 above, and has the power and authority to enter into this Agreement. 13. Right of Reeord. It is agreed that the City may record this document in the chain of title of the benefited property legally described above. 14. Payment. The Property Owners agree that, after the City has completed the required inspections and has determined that the installation of the sewer service line repair is in conformance with the applicable City ordinances and State laws, the Property Owners will provide the following documents to the City to allow the City to process payment of the $7,500, amount to be paid for the installation of the sewer service line repair on the Benefited Property: a. A contractor's construction statement identifying the agreed amount to be paid; and b. The City's Final Inspection Report; and c. A contractor's lien waiver; and d_ Property owner's written authorization for City to pay contractor directly. 15. Successors and Assigns. This agreement shall be for the benefit of and be binding upon the Successor, heirs, executors, administrators, and assigns ofthe parties. Further, the Property Owners agree to specifically notify all successors or assigns of the existence of this agreement prior to any transfer, sale, or assignment of the above-described premises. This agreement has been entered into as of the_ _ day of Attest: Amy Domeier, City Clerk STATE OF MIl�INESOTA COUNTY OF HENNEPIN ) }SS ) City of Hopkins Jason Gadd, Mayor By: _ Michael J. Mornson, City Manager 20 . The foregoing instrument was acknowledged before me this day of , 20 , by Jason Gadd, Mayor and Michael Mornson, City Manager, of the City of Hopkins, a Minnesota municipal corporation, on behalf of said municipal corporation. PROPf=RTY OWNEI �c : � ; � �J �� �_ -� 1 ��---� �� (Sign) Susan H. Undis STATE OF MINNESOTA ) � �S COUNTY OF HENNEPIN ) Notary Public �: ��,_"` . � ���'�-!_ ; 1!. � %'. . :.h 4 . r �. � (Sign) 5tephen' J. Undis The foregoing instrument was acknowledged before me this �! day of ��t11,ri� , 20�, by � EN N 1 r�C� V N�DI S � '�=�¢ JENNIFERjEAN UNDIS __ ,s �;■����E Natary Public, State ofMinnesota : No ary Public �K '�'`�'� � My commission expires 31 /anuaryzoz2 IPD�. X 0