HomeMy WebLinkAboutItem 06.dMarch 14, 2013 Item No.
AGREEMENT WITH DANIEL AND LISA TURRES FOR FLOOD INSURANCE REIMBURSEMENT
March 18, 2013 City Council Meeting
Proposed Action
Staff recommends adoption of the following motion: Move to approve an agreement with Daniel
and Lisa Turbes for flood insurance reimbursement.
Passage of this motion will result in the City advancing payment to the Turbes for flood insurance
and establishing reimbursement terms if the Turbes receive a refund from their mortgage lender.
Overview
The Federal Emergency Management Agency (FEMA) recently re- evaluated the flood hazards in
Dakota County and updated the Flood Insurance Study report and the Flood insurance Rate Map
(FIRM). During the map updating process, staff identified that the FIRM did not accurately reflect
existing conditions, specifically storm sewer improvements, immediately downstream of the Lake
Marion outlet. FEMA required the City to submit a Letter of Map Revision (LOMR) to modify the
FIRM to reflect the current conditions and to provide the most accurate flood hazard information
available.
The Turbes home located at 20375 Island View Circle is shown in the floodplain of the current FIRM.
As a result, the Turbes were required by their mortgage lender to pay $1,327 in 2012 and $1,335 in
2013 for flood insurance.
The City submitted a LOMR application that reflects current conditions and removes the Turbes
home from the floodplain to FEMA on January 4, 2013. If FEMA approves the City's LOMR and the
Turbes home is removed from the floodplain, flood insurance may no longer be required and the
Turbes may be eligible for a refund of the flood insurance payments.
The agreement states that the City will advance to the Turbes $2,722 for payment of the flood
insurance and that the City's obligation to make additional payments for flood insurance will cease
when FEMA acts on the City's LOMR application. The agreement also states that the Turbes will
forward refunds of the flood insurance payments to the City.
Primary Issues to Consider
B When can the City expect FEMA's response to its LOMR application? FEMA is currently
reviewing the City's request and is expected to complete their processing by June of 2013.
Supporting Information
@ Agreement signed by Daniel and Lisa Turbes
Financial Impact: $2,722 Budgeted: Yes Source: Utility Fund — Environmental Resources
Related Documents (CIP, ERP, etc.):
Notes:
M:144 M
This Agreement is entered into this 18tt' day of March, 2013 by and between the City of
Lakeville, a Minnesota municipal corporation ( "City ") and Daniel and Lisa Turbes
('Property Owner ")
A. The Property Owner owns a single family home with a street address of
20375 Islandview Circle, Lakeville, Minnesota, legally described as Lot 8, Block 1,
Marion Fields 4 t Addition ( "Subject Property ").
B. The Federal Emergency Management Agency ( "FEMA ") includes the
Subject Property on its flood plain maps.
C. Because the Subject Property is on the flood plain map the Property
Owner was required by the company that has a mortgage on the Subject Property to
pay $1,327.00 in 2012 and $1,395 in 2013 for flood insurance.
D. The City has applied to FEMA for a Letter of Map Revision ( "LOMR ") to
remove the Subject Property from the flood plain.
NOW THEREFORE in consideration of their mutual covenants and undertaking the
parties agree as follows
1 , The City has, at City expense, applied to FEMA for a LOMB to remove the
Subject Property from the flood plain.
2. The City will advance to the Property Owner $2,722.00 for payment of the
flood insurance.
3. The City's obligation to make additional payments for flood insurance will
cease when FEMA acts upon the City's application for the LOMR.
4. If FEMA approves the LOMB and the Subject Property is removed from
the flood plain, and the Property Owner's mortgage lender reimburses Property Owner
the cost of the flood insurance, upon receipt of the reimbursement, the Property Owner
will reimburse the City the amount the City has paid the Property Owner pursuant to this
Agreement.
PROPERTY OWNER.
f ..
Matt Little, Mayor
ON
Charlene Friedges, City Clerk