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6.2. SR 01-09-2012ITEM 6.2 MEMORANDUM . - 1,V~~` TO: Mayor and City Council FROM: Justin Femrite P.E., City Engineer DATE: January 9, 2012 SUBJECT: Review of Costs Associated with Private Utility Service Line Repairs This memo discusses a proposed option for private property owners to address costs associated with the installation, repair, or replacement of private sanitary sewer or water service lines. Over the last few years, it has been increasingly difficult for private property owners to make required repairs to their private service lines. Chapter 78 of the Elk River City Code details that both the sewer and water laterals are owned and to be maintained by the property owner. Such responsibility includes repair or replacement of any portion of the service line from the mainline sewer and water pipes in the street, continuous to the home or business. The repairs we have recently seen are generally unplanned emergency repairs that need to be completed by the property owner within a few days to ensure the safety and health of the public. One example of such a repair, could be a leaking water service found beneath the street that, if it were to go unfixed, could cause damage to the public utilities, roadway, and cause contamination of the public water system. Another example is if the city changed the configuration of the public sanitary sewer system and failure of the property to properly connect to the new system would cause sewer to be discharged in a manner that would cause a public health hazard. Staff has explored the idea to allow for assessing the costs of the service line repairs to the private property to assure the health and safety of the public. Working with the city attorney and the director of the Elk River Municipal Utilities, we have prepared the attached draft ordinance amendment and agreement that would allow assessing the costs for required sewer or water service line repairs. The agreement would allow for the property owner to obtain quotes and hire a contractor to complete the required repair. Upon completion, the city would, on the property owner's behalf, pay the contractor the agreed price of the repair. These costs would then be levied as an assessment against the property in accordance with Minnesota Statutes Section 429.101 at a set interest rate for a term not to exceed 10-years. The agreement would give the property owner an option to quickly make a decision to complete the required repair, thereby assuring the safety of the public. PowEeco er A~~ The attached draft ordinance amendment and agreement have been prepared to only cover those repairs or replacements that are deemed, by city or ERMU staff, to be a public safety or health hazard. This prevents the assessment option from being used beyond its intentions which is to correct a public health and safety hazard. State law does not allow fox costs associated with private service repairs, not deemed a threat to public health or safety, to be assessed or publicly financed. At the work session, staff will be prepared to review the draft ordinance and agreement with the City Council. With any desired changes or modifications incorporated, staff will bring this item back to a regular City Council meeting for formal adoption as a consent item. If you have any questions on the item before the meeting feel free to call me at 763.635.1051. ORDINANCE NO. 11-_ CITY OF ELK RIVER AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING CHAPTER 78, ARTICLE I OF THE ELK RIVER CODE OF ORDINANCES TO ADD NEW DIVISION 1, PROVIDING FOR PAYMENT AND ASSESSMENT OF THE COSTS TO CONNECT AND REPAIR PRIVATE UTILITY LINES The City Council of the City of Elk River hereby ordains as follows: Section 1. That Chapter 78, Article I of the City of Elk River Code of Ordinances shall be amended to add new Division 1, which shall read as follows: Division 1. Payment and Assessment of Costs to Connect or Repair Private Utility Lines. Section 78-1. Finding of Public Health and Safety Hazard. a) The City Council finds that failure to connect to the city water system as required by section 78-21 of this code, failure to connect to the city sewer and sewage disposal system as required by section 78-97(d) of this code, and failure to maintain in good, operable condition private water and sanitary sewer utility lines, creates public health and safety hazards on private property which must be eliminated. b) In addition to the provisions of section 78-22 and section 78-97(d), which authorize the city to make connections to the city water and sanitary sewer systems and to access the costs therefore to the affected property, and the provisions of chapter 46, article II of this code, which declares defective sewage systems and plumbing a nuisance affecting the public's safety and health and authorizes the City to abate such nuisances and to assess the costs therefor to the affected properties, the City Council finds that it is necessary and in the public interest to provide a mechanism for costs incurred by private property owners to eliminate such public health and safety hazards on private property to be assessed against the property as a special assessment. Section 78-2. Petition Authorized. Property owners who are required to connect to the city water and/or sanitary sewer system pursuant to section 78-21 and section 78-97(d) of this code, or who have private water and/or sanitary sewer lines which have failed, and such failure has been determined by City land development staff to be a public health or safety hazard, may petition the City, on a form provided by the City, to pay the costs to connect or repair the private utility lines and to assess amounts paid as a special charge under Minnesota Statutes, Section 429.101. The City may accept or reject such petitions in its sole discretion, and may impose such conditions and requirements to acceptance as it deems appropriate. Section 78-3. Work to be Completed by Property Owner. If a petition to pay and assess the costs of connection or repair is accepted by the City, installation of the required connections and/or repairs to private utility lines on private property shall be the responsibility of the property owner, shall be contracted for by the property owner, shall be completed by the property owner as required by the policies and ordinances of the City of Elk River and Elk River Municipal Utilities, and shall be inspected and accepted by the city building official before payment of costs is made. Section 78-4. Payment and Assessment of Costs Authorized. a) Upon completion and acceptance by the City of all work required, the City will make payment to the party or parties who performed the work in an amount not to exceed that set forth in the petition accepted by the City. Such payment by the City shall constitute a special charge against the affected property pursuant to Minnesota Statutes, Section 429.101 and shall be specially assessed against the property by the City pursuant to the provisions of Minnesota Statutes, Section 429.101. Special assessments levied under this Section shall be payable in a single installment, or by up to 10 equal installments, as provided by the City Council. b) Petitions requesting payment and assessment of amounts less than $10,000 may be accepted by the City Administrator, or may be referred by the City Administrator to the City Council for action. All other petitions may only be accepted by the City Council. The City Council shall provide the City Administrator direction, from time to time, on the number of annual installments over which amounts paid and assessed will be levied, and the interest rate applicable to unpaid installments, for petitions accepted by the City Administrator. For petitions acted on by the City Council, the Council shall establish the number of annual installments and interest rate at the time it accepts the petition. Section 2. That this Ordinance shall be published and take effect as provided by law. Passed and adopted by the City Council of the City of Elk River this day of , 2011. John J. Dietz Mayor Attest: Tina Allard City Clerk GP:3072366 vl PETITION, WAIVER AND AGREEMENT FOR PAYMENT OF THE COST OF REPAIRS TO PRIVATE UTILITY LINES AND ASSESSMENT OF AMOUNTS PAID AS A SPECIAL CHARGE UNDER MINNESOTA STATUTES, SECTION 429.101 TO: City Council of the City of Elk River located at (the Owners), owners of the property and legally described on Exhibit A attached hereto (the Property), Petition the City of Elk River (the City) to pay the costs of certain repairs (the Repairs) to private utility lines located on the Property, including: Private water service lines Private sanitary sewer service lines In an amount not to exceed that set forth on Exhibit B attached hereto (the Cost of Repairs), And to levy a special assessment against the Property in the amount of the Cost of Repairs as an unpaid special charge pursuant to Minnesota Statutes, Section 429.101. Owners acknowledge and agree: 1 }that there has been a failure of the utility lines on the Property; 2) that the failure of the utility lines has created a public health and safety hazard on the Property; 3) that the Repairs identified on Exhibit B are reasonable and necessary repairs to eliminate the public health and safety hazard on the Property; 4) that the Cost of Repairs identified on Exhibit B are reasonable and necessary to affect the Repairs and are the responsibility of Owners; and 5) that Owners have been provided the opportunity to pay the Cost of Repairs without the City's involvement and have elected, instead, to petition the City to pay the Cost of Repairs and to assess the full amount of the Cost of Repairs to the Property. Owners agree: i) to have the Repairs identified on Exhibit B completed as required by the policies and ordinances of the City; 2) to submit evidence to the City that the Repairs have been inspected and accepted by the City Building Official; 3) that, upon completion and acceptance of the Repairs, City shall make payment to the Owner's contractor or other parties who performed the Repairs in an amount not to exceed the Cost of Repairs identified on Exhibit B; 4) that payment by the City of the Cost of Repairs shall create an unpaid special charge against the Property; 5) that this unpaid special charge shall be specially assessed against the Property by the City pursuant to Minnesota Statutes, Section 429.101; and 6) that the special assessment shall be payable in equal annual installments with interest accruing on unpaid installments at the rate of %. Owners represent and warrant that they are the sole fee Owners of the Property and agree to make payment of all assessments levied pursuant to this Petition, Waiver and Agreement for Payment of the Cost of Repairs. Owners expressly waive objection to any irregularity with regard to the assessment of the Property for the Cost of Repairs, expressly agree that the amount assessed is reasonable, expressly waive any claim that the amount assessed is excessive, expressly waive all rights of appeal, including any rights under Chapter 429, Minnesota Statutes, from the assessment by the City of the Cost of Repairs, and expressly agree to pay when due all assessments levied for the Cost of Repairs. Dated this day of , 20 OWNER By: Its: EXHIBIT A Legal Description EXHIBIT B Repairs: Cost of Repairs: GP:3070946 vl Item # 6.4 MEMORANDUM x.iver TO: Mayor and City Council FROM: Michael Hecker, Parks and Recreation Director DATE: January 9, 2012 SUBJECT: Sidewalk and Trail Snow Removal During the recent New Year's weekend we requested parks maintenance staff to clean the sidewalks and trails from the New Year's Eve slush and snow that occurred. It was not a typical fluffy snow but aslush/sleet combination that started with a rain changeover to snow. Parks Maintenance Supervisor Rodney Schreifels used his judgment based on past experience to work on the trails and sidewalks before they froze and fi~rther become more work. The additional work would have included additional staff time on regular hours and use of equipment and additional supplies that would have taken time and additional cost during the week. Two parks maintenance employees were already scheduled to work Monday morning (city New Year's holiday) to clean the Handke ice rinks. We did not schedule anyone for Sunday morning because of the holiday. Due to the snowfall, we brought in two employees to clear the snow off the rinks Sunday morning. These two employees and a third employee who was called in cleared the snow and ice off the sidewalks and trails Sunday morning. A majority of the snow/sleet removal was Sunday morning and some was completed Monday morning. A total of 13 hours of overtime was used New Year's holiday weekend (Sunday and Monday) to clear the sidewalks and trails. The current snow ordinance outlines that residents are required to clear snow on their sidewalks within 24-hours of a snow event. The actual ordinance reads as follows: Section 46-34 (8). All sidewalks must be free of snow and ice during normal business hours in commercial and industrial honed districts and within 24 hours after a snowfall within residential honed districts. Based on the ordinance, past experience, and the type of snowfall we received, Mr. Schreifels made the decision to clear the sidewalks and trails. We would appreciate direction from City Council regarding snow removal of sidewalks/trails during holidays based on our current ordinance, policies and past practices. ~1/EAEO er ~JIA~'UR~