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3.4. SR 09-23-2002**Item 3.4.** MEMORANDUM TO: Mayor and City Council FROM: Lori Johnson, Finance Director DATE: September 23, 2002 SUBJECT: Ross and Kay Bengston Sewer Backup Special Assessment Request Update On August 26 the Council approved a reimbursement of $500 to Ross and Kay Bengston to cover a portion of the costs they incurred due to a sewer backup. The Council also approved reimbursing the remaining $4,300 and levying a special assessment to recapture the costs if staff determined that the assessment was legal. Minnesota Statute Chapter 429 states that local improvements and certain current services may be assessed to the benefiting property owner as long as all of the other requirements of the statute have been fulfilled. Certain current service assessments require that the city has adopted an ordinance providing that these services are the property owner's responsibility and that the city may assess for certain costs. Sewer backup cleanup costs are not local improvements and are included as assessable current services. Therefore, the sewer backup costs incurred by Ross and Kay Bengston are not assessable. Given the above interpretation, the $4,300 requested by Ross and Kay Bengston will not be assessed to their property. The $500 deductible payment has been paid as approved by the Council. Action Requested No action is required on this item as the costs are not assessable. s: \council\lori\bengupd.doc