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8.2. SR 08-15-2016 clty Elk Request for Action R.iVer To Item Number Mayor and Ci Council 8.2 Agenda Section Meeting Date Prepared by General Business August 15, 2016 Justin Femrite, P.E., City Engineer Item Description Reviewed by Highland Road Sewer and Water Connection Cal Portner, City Administrator Reviewed by Action Requested Discussion on collection of interest fees from property owner at 12095 Highland Road. Background/Discussion This item is brought before the Council at the request of Councilmember Burandt. The property owner is requesting the city provide the incentive for their connection to the public sewer and water systems on Highland Road that was in place for connections made before January 1, 2016. The incentive offered between December,2012 and January, 2016,waived the interest on the outstanding sewer and water assessment. The current payment required on this assessment is the original$15,000,plus interest calculated from 2006, for a current total of$20,158. The incentive dropped the interest charge for connections made before January, 2016, saving the property owners $5,158. Letters were sent to all qualifying property owners of this incentive in December of 2012 and a reminder letter was sent in October of 2015 with direction of the City Council on October 5, 2015. Dennis & Patricia Gorman claim they never received those letters because they have not been living at the property and stated it is a rental property. Neither letter was returned as undeliverable. The property is not legally licensed as a rental property. The addresses for courtesy letters were cross-referenced with the rental license database. If licensed, the owner's current address would have been noticed. This is the same owner name and address that was on file and used for all of the notices sent out during the original Highland Road project in 2006 when the services were made available. From that date, they presumably would not have had any expectation of a savings for the incentive. The Council discussed the sunset provision of the incentive on October 5, 2015, and unanimously approved (4-0, Council Member Westgaard was absent) to end the program per ordinance. Financial Impact The sanitary sewer fund will receive $5,158 less revenue if direction is given to waive the interest charge. Attachments ■ Excerpt of minutes (Item 8.1) from City Council meeting on October 5, 2015 POWERED 6T Template Updoted 4/14 INAWRE] City Council Minutes Page 2 October 5, 2015 4.6 Hire Jason Ames as wastewater treatment systems operator at step B of pay grade 6 effective October 26, 2015. 4.7 Hire John Legatt as maintenance mechanic at step A of pay grade 6. Motion carried 4-0. No one appeared for Open Foram. Mayor Dietz read the proclamation. Moved by Councilmember Burandt and seconded by Councilmember Olsen to proclaim October 4-10, 2015, as Public Power Week. Motion carried 4-0. Z Mayor Dietz read the proclamation. Moved by Councilmember Wagner and seconded by Councilmember Olsen to proclaim October 1 — 10, 2015, as Minnesota Manufacturces Week. Motion carried 4-0. Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. There being no one to speak, Mayor Dietz closed the public hearing. Moved by Councilmember Olsen and seconded by Councilmember Wagner to adopt resolution 15-61 to vacate a roadway easement. Motion carried 4-0. Mr. Leeseberg stated the applicant has withdrawn their applications for a preliminary plat, final plat, and a conditional use permit. Mr. Beck indicated it is not necessary to conduct a public hearing since the application has been withdrawn. 8.1. Ordinance 78-5 Sunset on Payment and Assessment for Connections Ms. Fischer presented the staff report. City council Minutes October 5, 2015 Page 3 Mayor Dietz felt property owners were given ample time to hook up and doesn't think it is fair to those who have hooked up if the city doesn't make the others hook up. He would like to have a discussion with Attorney Beck regarding enforcement, Attorney Beck explained current enforcement is by way of not issuing permits for new or failing septic or wells and requiring connection at time of sale. Mayor Dietz stated he was on the Council when the city water and sewer was installed in the Highland area and he didn't think it was fair for those people not to be forced to hook up as other developments were not given the option to wait. Councilmember Wagner questioned what happens after the sunset date. Mayor Dietz explained property owners will no longer receive city assistance and will be responsible for financing the connections on their own. Councilmember Burandt questioned what action a property owner has to take before the sunset date in order to qualify for the incentive program. Mr. Femrite indicated a petition would need to be submitted by November 15 in order for staff to process the paperwork and certify it with Sherburne County. Councilmember Burandt expressed concern with forcing property owners to hook up in this time of economic hardship. Mayor Dietz stated a majority of these property owners were supposed to hook. up years ago and have had ample time to comply. He added the city initiated this incentive program in hopes of assisting property owners with the connections. Councilmember Wagner questioned how many property owners responded to the recent reminder. Ms. Fischer stated -a few have responded but the response is much lower than staff had hoped. Mr. Femrite indicated he been contacted by less than 10% of the remaining property owners. Moved by Mayor Dietz and seconded by Councilmember Wagner to terminate the incentive program for the payment and assessment for connections as scheduled on December 31, 2015. Motion carried 4-0. Mr. Adams presented the staff report, Mayor Dietz provided some additional background explaining it is difficult to serve on a commission of three. He stated he would like to have the option for two Councilmembers to serve on the commission. Attorney Beck indicated language allowing for up to two Councilmembers would need to be included in the legislation. Mayor Dietz would also like to make it a policy for at least one person on the commission to be serviced by city water.