Loading...
IV.4. Enter into Joint Powers Agreement with Hennepin County for Assessing Services; Bishop CITY OF HOPKINS City Council Report 2024-073 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: June 11, 2024 Subject: Joint Powers Agreement with Hennepin County for Assessment Services _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Enter into a Joint Powers Agreement with Hennepin County for Assessment Services. OVERVIEW Since 1999, the City has contracted with Hennepin County to provide property tax assessment services. All contracts between 1999 and 2024 have required the City to pay the County for this work. The most recent contract has an annual cost of $185,000. On May 14, 2024 the Hennepin County Board approved a resolution directing County staff to offer assessment agreements to Cities with populations of less than 30,000 at no cost. The County currently has contracts with 34 of 45 Cities, who will collectively pay the County $5.1 million in 2024. The County’s 2025 budget and tax levy will be increased to offset their loss of contract revenue. The City and County responsibilities in the agreement remain the same. The County is responsible for performing assessment services pursuant to Minnesota law. The City is responsible for providing information, records, data and office space for one appraiser. The agreement is has no end date and will continue indefinitely. SUPPORTING INFORMATION • Joint Powers Agreement for Assessment Services Finance Department 2 JOINT POWERS AGREEMENT FOR ASSESSMENT SERVICES THIS JOINT POWERS AGREEMENT (“Agreement”) is made and entered into by and between the County of Hennepin, a body politic and corporate under the laws of the State of Minnesota (the “County”), and Hopkins (the “City”). RECITALS 1. WHEREAS, Pursuant to Minn. Stat. § 471.59, subdivision 1, the parties to this Agreement agree to exercise certain powers on behalf of the other or to cooperate with respect to their powers, to the extent and according to the terms provided herein; 2. WHEREAS, Minnesota Statutes Section 273.072 authorizes the County and any city or town lying wholly or partially within the County of Hennepin and constituting a separate assessment district to enter into an agreement, pursuant to Minnesota Statutes Section 471.59, for the provision of assessment services in the city or town by the county assessor; 3. WHEREAS, the City lies wholly or partially within the County of Hennepin and constitutes a separate assessment district; 4. WHEREAS, the City desires the County to perform property tax assessments on behalf of the City; 5. WHEREAS, the City is willing to share all information, records, data, reports, etc., necessary to allow the County to carry out its responsibilities under this agreement; 6. WHEREAS, the County is willing to cooperate with the City by completing property tax assessments in a proper manner; and NOW, THEREFORE, for mutual consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, the parties agree as follows: AGREEMENT 1. Recitals. The foregoing recitals are incorporated in this Agreement. 2. Purpose. This Agreement describes the duties and responsibilities of each of the parties related to the provision of assessment services to the City by the County. 3. Indefinite Term. This Agreement shall become effective on the Effective Date and shall, unless otherwise terminated in accordance with the provisions hereof, continue in effect for an indefinite term of years. 4. Termination. This Agreement may be terminated by either party, with or without cause, upon ninety (90) days’ written notice. 3 5. County Responsibilities. 5.1 The County shall perform property assessments for the City in accordance with property assessment procedures and practices established and observed by the County, the validity and reasonableness of which are hereby acknowledged and approved by the City. Any such practices and procedures may be changed from time to time, by the County in its sole judgment, when good and efficient assessment procedures so require. Property assessments by the County shall be composed of those assessment services pursuant to Minnesota Law. 6. City Responsibilities: 6.1 The City shall provide to the County, at no cost, all information, records, data, reports, etc., necessary to allow the County to carry out its responsibilities hereunder, and the City agrees to cooperate in good faith with the County in carrying out the work under this Agreement. 6.2 The City shall provide to the County, at no cost, office space, office furniture, and personnel required by the County, as specifically set forth in Exhibit A, attached hereto and made a part hereof by this reference. 7. Non-Discrimination. In accordance with Hennepin County Affirmative Action Policy and the County Commissioners' policies against discrimination, no person shall be excluded from full employment rights or participation in or the benefits of any program, service or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, ex-offender status or national origin; and no person who is protected by applicable Federal or State laws, rules and regulations against discrimination shall be otherwise subjected to discrimination. 8. Independent Contractor. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of joint venturers or co-partners between the parties hereto or as constituting the City as the agent, representative or employee of the City for any purpose or in any manner whatsoever. Any and all personnel of City or other persons, while engaged in the performance of any activity under this Agreement, shall have no contractual relationship with the County and shall not be considered employees of the County and any and all claims that may or might arise under the Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including, without limitation, claims of discrimination against the City, its officers, agents, City or employees shall in no way be the responsibility of the County, and City shall defend, indemnify and hold the County, its officials, officers, agents, employees and duly authorized volunteers harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the County, including, without limitation, tenure 4 rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Re- employment Compensation, disability, severance pay and retirement benefits. 9. Indemnification. 9.1 City: The City agrees that it will defend, indemnify and hold the County, its elected officials, officers, agents, employees and duly authorized volunteers harmless from any and all liability (statutory or otherwise) claims, suits, damages, judgments, interest, costs or expenses (including reasonable attorney’s fees, witness fees and disbursements incurred in the defense thereof) resulting from or caused by the negligent or intentional acts or omissions of the City, its officers, agents, contractors, employees or duly authorized volunteers in the performance of the responsibilities provided by this Agreement. The City’s liability shall be governed by Minn. Stat. Chapter 466 and other applicable law, rule and regulation, including common law. 9.2 County: The County agrees that it will defend, indemnify and hold the City, its elected officials, officers, agents, employees and duly authorized volunteers harmless from any and all liability (statutory or otherwise) claims, suits, damages, judgments, interest, costs or expenses (including reasonable attorney’s fees, witness fees and disbursements incurred in the defense thereof) resulting from or caused by the negligent or intentional acts or omissions of the County, its officers, agents, contractors, employees or duly authorized volunteers in the performance of the responsibilities provided by this Agreement. The County’s liability shall be governed by Minn. Stat. Chapter 466 and other applicable law, rule and regulation, including common law. 10. Limitation of Liability. The County shall endeavor to perform all services called for herein in an efficient manner. The sole and exclusive remedy for any breach of this Agreement by the County and for County’s liability of any kind whatsoever, including but not limited to liability arising out of, resulting from or in any manner related to contract, tort, warranty, statute or otherwise, shall be limited to correcting diligently any deficiency in said services as is reasonably possible under the pertinent circumstances. 11. Dispute Resolution. The parties will use a dispute resolution process for any unresolved dispute between the parties before exercising any legal remedies. The dispute resolution process is a three-level dispute resolution ladder that escalates a dispute from the project management level through the executive management level. At each level of the dispute resolution process, the parties’ representatives will meet and explore resolution until either party determines that effective resolution is not possible at the current level and notifies the other party that the process is elevated to the next level. The parties designate the following dispute resolution representatives: County Assessor, Assistant County Administrator Resident Services, County Administrator. The parties will complete the dispute resolution process in good faith before resorting to any other legal process or remedy. 5 12. Force Majeure. If a force majeure event occurs, neither party is responsible for a failure to perform or a delay in performance due to the force majeure event. A force majeure event is an event beyond a party’s reasonable control, such as unusually severe weather, fire, floods, other acts of God, labor disputes, acts of war or terrorism, or public health emergencies. 13. Records. All records kept by the County and Council with respect to the Combined Project are subject to examination by representatives of each party. All data collected, created, received, maintained or disseminated for any purpose by the County and Council under this Agreement are governed by Minnesota Statutes, Chapter 13 (“Act”), and the Minnesota Rules implementing the Act. 14. Audit. Under Minnesota Statutes, Section 16C.05, subdivision 5, the parties agree that the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by either party and the state auditor or legislative auditor, as appropriate, for at least six years from the end of this Agreement. 15. Notice. Any notice or demand, which may or must be given or made by a party hereto, under the terms of this Agreement or any statute or ordinance, shall be in writing and shall be sent registered or certified mail to the other party addressed as follows: TO CITY: City Manager City of Hopkins 1010 First Street South Hopkins, MN 55343 TO COUNTY: Hennepin County Administrator 2300A Government Center Minneapolis, MN 55487 copies to: County Assessor Hennepin County 2103A Government Center Minneapolis, MN 55487 Any party may designate a different addressee or address at any time by giving written notice thereof as above provided. Any notice, if mailed, properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt and shall be deemed received within the second business day thereafter or when it is actually received, whichever is sooner. Any notice delivered by hand shall be deemed received upon actual delivery. 16. Amendment. Any modifications to this Agreement will be in writing as a formal amendment. 6 17. Entire Agreement. This Agreement is the entire agreement between the parties and supersedes all oral agreements and negotiations between the parties relating to this Agreement. All exhibits and attachments to this Agreement are incorporated into the Agreement. If there is a conflict between the terms of this Agreement and any of the exhibits the Agreement governs. 18. Severability. The provisions of this Agreement are severable. If a court finds any part of this Agreement void, invalid, or unenforceable, it will not affect the validity and enforceability of the remainder of this Agreement. A waiver by a party of any part of this Agreement is not a waiver of any other part of the Agreement or of a future breach of the Agreement. 19. Counterparts. This Agreement may be executed in multiple counterparts, all of which when taken together shall compromise one agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile transmission or electronic transmission (e.g., ‘pdf’ or ‘tif’) shall be effective as delivery of a manually executed counterpart of this Agreement. 20. Effective Date. This Agreement will be effective when all parties have signed it. The date of this Agreement will be the date this Agreement is signed by the last party to sign it (as indicated by the date associated with that party’s signature). Each party is signing this Agreement on the date stated below that party’s signature. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK 7 COUNTY BOARD AUTHORIZATION Reviewed by the County Attorney’s COUNTY OF HENNEPIN Office STATE OF MINNESOTA ______________________________ By: _____________________________________ Assistant County Attorney Chair of Its County Board Date: ________________________ ATTEST:_________________________________ Deputy/Clerk of County Board Date:_____________________________________ By: ______________________________________ County Administrator Date:_____________________________________ By: ______________________________________ Assistant County Administrator - Residential Services Date: _____________________________________ Recommended for Approval By: _______________________________ County Assessor/Director, County Assessor Department 8 CITY COUNCIL AUTHORIZATION By: ___________________________________ Patrick Hanlon, Mayor ATTEST: ______________________________ Amy Domeier, City Clerk Date: __________________________________ By: ___________________________________ City Manager Date: __________________________________ 9 EXHIBIT A (Assessment Services – City of Hopkins) During the contract term, the City shall: 1. The CITY agrees to furnish, without charge, secured office space as needed by the COUNTY at appropriate places in the CITY's offices. Such office space shall be sufficient in size to accommodate reasonably one (1) appraiser and any furniture placed therein. The office space shall be available for the COUNTY's use upon request during typical business hours, and during all such hours the COUNTY shall be provided with levels of heat, air conditioning and ventilation as are appropriate for the seasons.