4.15. SR 11-20-2017 EGty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 4.15
Agenda Section Meeting Date Prepared by
Consent November 20, 2017 Lori Ziemer, Finance Director
Item Description Reviewed by
Policy for Payment and Assessment of Costs to Justin Femrite, City Engineer
Repair Private Utility Lines Reviewed by
Cal Portner, City Administrator
Action Requested
Approve,by motion, an amendment to the policy pertaining to payment and assessment of the costs to
connect and repair private utility lines.
Background/Discussion
On August 5, 2013, the Council approved a policy for payment and assessment of costs associated with
connection or repair of private utility lines. The policy established criteria for eligible project costs that
could be financed, as well as the payment terms of the assessment.
Currently, Section 78-4(a) of the Elk River City Code states special assessments levied against the
property for costs to connect or repair private utility lines shall be payable in a single installment, or by up
to 10 equal annual installments, as provided by the City Council.
Staff is recommending amending Section 4 of the policy in regards to the criteria for terms of the
assessment and adding Section 5 allowing for the evaluation of special circumstances.
Financial Impact
N/A
Attachments
■ City Code Section 78-4
■ 8/5/13 Policy with recommended amendments
■ Amended Policy
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAWRE1
Elk River, MN Code of Ordinances
Sec. 78-3. - Work to be completed by property owner.
Page 1 of I
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.
(Ord. No. 12-06, § 1, 4-2-2012; Ord. No. 12-17, § 1, 12-10-2012)
Sec. 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, and all other
outstanding fees and charges required for connection to the public systems, shall
constitute a special charge against the affected property pursuant to Minn. Stats. §
429.101 and shall be specially assessed against the property by the city pursuant to the
provisions of Minn. Stats. § 429.101. Special assessments levied under this section shall
be payable in a single installment, or by up to ten equal annual installments, as provided
by the city council.
(b) The city council shall establish, and may amend from time to time, policies regarding: (i)
projects eligible for this program; (ii) petitions which may be accepted by the city
administrator; (iii) petitions which may only be accepted by the city council; (iv) the number
of annual installments over which amounts paid and assessed will be levied; and (v) the
interest rate applicable to unpaid installments.
(Ord. No. 12-06, § 1, 4-2-2012; Ord. No. 12-17, § 1, 12-10-2012)
about:blank 11/14/2017
CITY OF ELK RIVER POLICY FOR PAYMENT AND ASSESSMENT OF
THE COSTS TO REPAIR PRIVATE UTILITY LINES
Adopted: 8/5/2013
The City of Elk River has adopted an ordinance which provides for payment and assessment of
costs to repair private utility lines. As detailed in the ordinance, the following policy has been
developed to detail (i) projects eligible for this program; (ii) petitions which may be accepted by
the City Administrator; (iii) petitions which may only be accepted by the City Council; (iv) the
number of annual installments over which amounts paid and assessed will be levied; and (v) the
interest rate applicable to unpaid installments.
Poli
1. Eligible projects include but are not limited to the following:
A) The repair of a leaking sewer or water service that has created a public health or
safety hazard on the Property or to improvements within the public right-of-way or on
a neighboring property.
B) The separation of a shared sewer or water service line.
C) The proper abandoning or disconnection of a sewer or water service line that has been
disconnected from a building.
D) The reconnection of a private sewer or water service line if modifications to the
public mains has caused the property owner to no longer have service in the existing
location.
Other eligible projects will be considered by the City on an individual basis.
All work shall be contracted between the Property owner and their Contractor. The City
will reimburse eligible costs in accordance with the terms listed below, but shall not
warrant or be involved in any claims that arise from the work.
2. Eligible Project Costs
Eligible expenses include costs that are directly related to the repair of said service line.
This includes the following:
Installation of required pipes
Restoration of disturbed areas
Interior plumbing to facilitate proper repair
3. Initiation of Project
Projects shall be initiated by the submission of a Petition, Waiver and Agreement, on a
form supplied by the City, which has been signed by the Property Owner.
Eligible Project Costs shall be detailed on Exhibit B of the signed Petition, Waiver and
Agreement and approved by City Staff or the City Council prior to any work being
completed. Any expenses that are determined, by City staff or the City Council, that are
not required to facilitate the service repair, will be deducted from the requested amount.
All permit fees and any escrow money required by said permits will not be eligible for
reimbursement.
4. Approval and Terms of the Assessment
Petitions shall be limited to a minimum request of $3,000 and a
maximum request of $40,000 for residential uses
and a maximum request of $150,000 $75,000
for all other uses. The City Administrator shall have the authority to approve all petitions
up to $20,000. Those petitions above $20,000 will require the approval of the City
Council.
All qualified expenses, reimbursed by the City, will be levied as a special assessment
against the property, pursuant to the Petition, at the current bonding interest rate available
to the City plus a 1.5% administrative fee. The final rate will be determined at the time
of petition signing. The term of the assessment will be as follows:
$3,000 to $10,000 Up to 5 -years
$10,001 to Max Up to 10 -years
5. Special Circumstances
Special circumstances will be evaluated on a case-by-case basis by city staff, the City
Administrator, of the City Council.
GP:3301030 A
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5. Special Circumstances
Special circumstances will be evaluated on a case-by-case basis by city staff, the City
Administrator, of the City Council.
GP:3301030 A
CITY OF ELK RIVER POLICY FOR PAYMENT AND ASSESSMENT OF
THE COSTS TO REPAIR PRIVATE UTILITY LINES
Adopted: 11/20/2017
The City of Elk River has adopted an ordinance which provides for payment and assessment of
costs to repair private utility lines. As detailed in the ordinance, the following policy has been
developed to detail (i) projects eligible for this program; (ii) petitions which may be accepted by
the City Administrator; (iii) petitions which may only be accepted by the City Council; (iv) the
number of annual installments over which amounts paid and assessed will be levied; and (v) the
interest rate applicable to unpaid installments.
Poliev
1. Eligible projects include but are not limited to the following:
A) The repair of a leaking sewer or water service that has created a public health or
safety hazard on the Property or to improvements within the public right-of-way or on
a neighboring property.
B) The separation of a shared sewer or water service line.
C) The proper abandoning or disconnection of a sewer or water service line that has been
disconnected from a building.
D) The reconnection of a private sewer or water service line if modifications to the
public mains has caused the property owner to no longer have service in the existing
location.
Other eligible projects will be considered by the City on an individual basis.
All work shall be contracted between the Property owner and their Contractor. The City
will reimburse eligible costs in accordance with the terms listed below, but shall not
warrant or be involved in any claims that arise from the work.
2. Eligible Project Costs
Eligible expenses include costs that are directly related to the repair of said service line.
This includes the following:
Installation of required pipes
Restoration of disturbed areas
Interior plumbing to facilitate proper repair
3. Initiation of Project
Projects shall be initiated by the submission of a Petition, Waiver and Agreement, on a
form supplied by the City, which has been signed by the Property Owner.
Eligible Project Costs shall be detailed on Exhibit B of the signed Petition, Waiver and
Agreement and approved by City Staff or the City Council prior to any work being
completed. Any expenses that are determined, by City staff or the City Council, that are
not required to facilitate the service repair, will be deducted from the requested amount.
All permit fees and any escrow money required by said permits will not be eligible for
reimbursement.
4. Approval and Terms of the Assessment
Petitions shall be limited to a minimum request of $3,000 and a maximum request of
$40,000 for residential uses and $75,000 for all other uses. The City Administrator shall
have the authority to approve all petitions up to $20,000. Those petitions above $20,000
will require the approval of the City Council.
All qualified expenses, reimbursed by the City, will be levied as a special assessment
against the property, pursuant to the Petition, at the current bonding interest rate available
to the City plus a 1.5% administrative fee. The final rate will be determined at the time
of petition signing. The term of the assessment will be as follows:
$3,000 to $10,000 Up to 5 -years
$10,001 to Max Up to 10 -years
5. Special Circumstances
Special circumstances will be evaluated on a case-by-case basis by city staff, the City
Administrator, or the City Council.
GP:3301030 vl