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HomeMy WebLinkAboutItem 06.gJune 24, 2014 Item No. SPECIAL ASSESSMENT AGREEMENT FOR WATER SERVICE REPAIRS 20678 HERSHEY AVENUE Proposed Action Staff recommends adoption of the following motion: Move to approve the Special Assessment Agreement with Brandon Zautner and Karen Cleare, 20678 Hershey Avenue for water service repairs. Approval of the Special Assessment Agreement will result in the levy of special assessments for water service repairs at 20678 Hershey Avenue. Overview The water service at 20678 Hershey Avenue had a very significant water service leak. The leak resulted in a significant loss of unmetered water and created a potential threat of contamination to the water supply system. Property owners are legally responsible for repairs to water services from the curb stop to the home. The current homeowners, Brandon Zautner and Karen Cleare, agreed to having the City Utility Department perform the repair with the cost ($4,285.00) specially assessed against the property. Primary Issues to Consider • Special Assessment process. In the Agreement, the property owner waives their right of appeal and a public hearing. • Special assessment terms. The special assessment will be collected with property taxes payable over a five year period commencing in 2015. S_puorting Information Financial Impact: $ NA Budgeted: Y/N _NA_ Source: _Utility Fund Related Documents (CIP, ERP, etc.): Notes: PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AGREEMENT made this 7" day of July, 2014, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City ") and Brandon Zautner and Karen Cleare, ( "Property Owner "). RECITALS A. Property Owner is the fee owner of the following legally described property in the City of Lakeville, with a street address of 20678 Hershey Avenue, hereinafter referred to as the "Subject Property ": Lot 10, Block 2 Park Terrace, Dakota County, Minnesota. Parcel ID Number 225670002100. B. Property Owner has requested the repair of a leaking water service line on the Subject Property ( "Public Improvement'). C. Property Owner has requested that the City assess the cost of the Public Improvement against the Subject Property. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. Public Improvement. City will construct the Improvements for costs as shown in Exhibit A attached hereto. Property Owner will be solely responsible for landscaping and restoration of the project site. 2. Special assessment in the amount as shown on Exhibit A attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the land named therein, is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 3. Such assessments shall be considered payable in equal annual principal installments over a period of five (5) years, the first of the installments to be payable on or before the first Monday in January 2015, and shall bear interest at the rate of 3.65 percent per annum. To the first installment shall be added interest on the entire assessment from August 1, 2014 until December 31, 2015. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. The owner of any property so assessed may, at anytime prior to December 31, 2014, pay the assessment on such property in whole or in part without interest to the City of Lakeville. Therefore, in 2015 and future years, property owners may pay to the City of Lakeville or Dakota County the entire amount of the assessment remaining unpaid. Such payment must be made before November 15 of the year in which such payment is made, or interest will be charged through December 31 of the succeeding year. 5. The Property Owner waives any and all procedural and substantive objections to the Public Improvement and special assessment including, but not limited to, hearing requirements and any claim that the assessment exceeds the benefit to Subject Property. The Property Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 6. BINDING EFFECT; RECORDING. This Agreement shall be binding upon the Property Owner and the Property Owner's successors, heirs and assigns. This Agreement may be recorded against the title to the Subject Property. CITY OF LAKEVILLE 0 Matt Little, Mayor F3 Charlene Friedges, City Clerk PROPERTY OWNER: Brandon autner 1�� Kar n eare Exhibit A 20678 Hershey Avenue Repair water service and sidewalk Project Administration Special Assessment Fee Dakota County Fee Total 3,900.00 240.00 125.00 20.00 84,285.00