Adopt Resolution #18-216 Approving Assessment Agreement for Municipal Utility Connection Fees for 7131-166th Avenue NW

Purpose:
The purpose of this case is to adopt Resolution #18-216 approving an Assessment Agreement for municipal utility connection fees for 7131-166th Avenue NW.

Background:
The property at 7131 - 166^th Avenue NW is currently served by a private well and septic system.  The property owner is proposing to expand the single-family residential home but the current septic system is too small to accommodate the expansion.  Instead of removing the existing septic system and installing a larger one, the property owner wishes to connect to the existing municipal utilities within the 166^th Avenue right-of-way.
 
The property owner is unable to pay for the required utility connection fees at this time and is therefore requesting financial assistance from the City.  The property owner is requesting that the City enter into an Assessment Agreement (Petition and Waiver Agreement) with him, allowing the property owner to pay the required utility connection fees with interest over a period of ten (10) years.
 
Attached is a copy of an Assessment Agreement that was developed by City Staff and reviewed and approved by the City Attorney.  The property owner has subsequently reviewed and approved the attached agreement, and has signed two hard copies.  Upon receiving Council approval, the agreements will be executed by the City, and the property owner will be directed to bring his agreement to the Anoka County Government Center to have it recorded. The property owner will then be allowed to connect to municipal utilities.
 
This is the first time the City has received such a request, but Staff believes it is in the City’s best interest to assist property owners to connect to municipal utilities due to the numerous environmental and public health benefits.

No notice was required for this case.  The attached Assessment Agreement prohibits the property owner from requesting a hearing.

Observations:
City Staff will inspect and test the utility connection work.
 
As previously discussed, Staff believes it is in the City’s best interest to assist property owners to connect to municipal utilities due to the numerous environmental and public health benefits.  The City currently has a septic system repair policy that provides financial assistance to property owners who cannot afford needed septic system repairs using a similar Assessment Agreement.  Staff therefore plans to circle back with Council to discuss the potential adoption of a policy for assisting property owners to pay for required municipal utility connection fees, which can be cost prohibitive in allowing connections to municipal utilities.

Alternatives:
Alternative #1 – Motion to adopt Resolution #18-216 approving an Assessment Agreement for municipal utility connection fees for 7131-166th Avenue NW.

The total cost of the municipal utility connection fees is $13,611.  Based on the attached Assessment Agreement and payment schedule, the property owner will pay the fees over a period of 10 years at a proposed interest rate of 5.10%.

The City Attorney and Finance Director reviewed and approved the attached Assessment Agreement.  Staff recommends Council approval of alternative #1.

Motion to adopt Resolution #18-216 approving an Assessment Agreement for municipal utility connection fees for 7131-166th Avenue NW.