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4.9 SR 11-07-2022 Request for Action To Item Number Mayor and City Council 4.9 Agenda Section Meeting Date Prepared by Consent November 7, 2022 Lori Ziemer, Finance Director Item Description Reviewed by Sherburne County Assessment Services Cal Portner, City Administrator Agreement Reviewed by Action Requested Approve, by motion, the Assessment Services Agreement with Sherburne County effective January 2, 2024, through June 30, 2027, to perform property assessments for 2025-2027. Background/Discussion The Sherburne County assessor has performed the property assessment services for the city in the past and is formalizing their assessment services agreement. They have not had agreements for the past several years and the goal is to update their assessment agreements every three years. The 2024 property assessment will continue to be performed by the county as it is now. The fee charged by the county will remain the same under the current fee schedule and will not change for the 3- year term of the agreement. The assessment service fee is $6.00 per parcel for improved residential/agriculture properties, $4.00 per parcel for unimproved residential/agriculture properties, and $8.00 per parcel for commercial/industrial/exempt/public utilities and personal properties. Financial Impact The assessment service fee is a budgeted expense within the Finance department. Mission/Policy/Goal Elk River Mission Attachments  Assessment Services Agreement The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 ASSESSMENT SERVICES AGREEMENT THIS AGREEMENT, made and entered into by and between the County of Sherburne, a political subdivision of the State of Minnesota, hereinafter referred to as the “County” and City of Elk River, a political subdivision of the State of Minnesota, hereinafter referred to as “City”; WHEREAS, said City lies either wholly or partially within the County and constitutes a separate assessment district; and WHEREAS, under such circumstances the provision of the Minnesota Statutes, Sections 273.072 and 471.59 permit the County Assessor to provide for the assessment of property; and WHEREAS, said City desires the County to perform certain assessments on behalf of said City; and WHEREAS, the County is willing to cooperate with said City by completing the assessment in a proper manner; NOW, THEREFORE, in consideration of the mutual covenants contained herein it is agreed as follows: 1. The County shall perform the 2025, 2026 and 2027 property assessment for the City in accordance with the property assessment procedures and practices established and observed by the County, the validity and reasonableness of which are hereby acknowledged and approved by the City. The property assessment by the County shall be composed of those assessment services which are set forth in Exhibit A, attached hereto and made a part hereof by reference. 1 2. All information, records, data, reports, and the like that are necessary to allow the County to carry out its responsibilities under this Agreement shall be furnished to the County without charge by the City and the City agrees to cooperate in good faith with the County in carrying out the work under this Agreement. 3. The City agrees to furnish, without charge, work space, if needed, for an appraiser to perform such tasks as document review, with such tasks to be performed during normal business hours for the City. 4. The County agrees to indemnify and hold harmless the City and all of its agents and employees against any and all claims, demands, actions or causes of action arising out of or by reason of the performance of work provided for herein to be performed by the County. It is further agreed that any and all full time employees of the County engaged in the performance of any work or services required or provided for herein shall be considered employees of the County only and not of the City and that any and all claims that may arise under the Workman’s Compensation Act of the State of Minnesota and any and all claims made by any third parties as a consequence of any act or omission on the part of said County employees shall be the sole obligation and responsibility of the County. 5. This Agreement shall commence on January 2, 2024 and shall terminate on June 30, 2027. Either party may initiate an extension of this Agreement for a term of three years by giving the other party written notice of its intent to extend no less than 120 days prior to the termination of this Agreement. If the party who receives said notice of intent to extend gives written notice to the other party of its desire not to extend the Agreement at least 60 days prior to the termination of this Agreement, this Agreement shall terminate on June 30, 2027. 2 6. In consideration of said assessment services, the City agrees to pay the County a fee of $6.00 per parcel for all improved residential/agriculture properties; $4.00 per parcel for all unimproved residential/agriculture properties and $8.00 for all commercial/industrial/exempt/public utilities and personal properties. 7. Any notice which may be given or made by a party hereto under the terms of this Agreement shall be in writing and shall be sent by United States Mail or personally delivered to the other party addressed as follows: To: City of Elk River 13065 Orono Parkway Elk River MN 55330 To: Michelle Moen, Sherburne County Assessor Sherburne County Government Center 13880 Business Center Drive NW, Suite 100 Elk River, MN 55330 8. The Agreement may be amended or modified only by written agreement signed by authorized representatives of the parties hereto. 3 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by its duly authorized officers and delivered on its behalf, this ___ day of ___ , 2022. SHERBURNE COUNTY Dated: ______________ By Michelle Moen Sherburne County Assessor City of Elk River Dated: By John J. Dietz, Mayor Dated: By Tina Allard, City Clerk 4 EXHIBIT A During the term of this Agreement, the County shall: 1. Physically inspect and value and classify real property, in accordance with State statutes. 2. Physically inspect and value all new construction, additions and renovations. 3. Conduct valuation reviews prior to Board of Review or Open Book Meeting. 4. Attend Board of Review or Open Book Meetings either in person or virtually. Per Board request, make all necessary review appraisals. 5. Keep updated property records including physical characteristics, sales data, current values and classifications. 6. Administer all State mandated property tax programs and maintain proper documentation. 7. Print and mail valuation and classification notices. 8. Respond to taxpayers regarding assessment or appraisal inquiries and concerns. 9. Process all divisions, combinations, new plats, and annexations including revaluation and reclassification of affected parcels. 10. Administer the abatement process pursuant to Minn.Stat. § 375.192 and county abatement policy. 11. Make appraisals for, testify and/or negotiate all District Court and Tax Court filings. 12. Adjust estimated market values on all property annually based upon the market analysis of existing real estate market conditions. 5