02-25-2015 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: Shim. Stat.. 4039y. ?lion. Sun. ,: 46311. Slain. Stat. n 163.161. SI inn. Sial. SS 429,361• -129.1)81. 1.NIC infoilllail011111C1110, 1'pnnJ.larrsomn l l,;uuln \9 inn Stat. S 6 'till. tId, 12. 1.4. NI inn. Stat. 65A.50. souls. Nl nm. Stat. g 65A 30. solids. 12, 11. Department of Commerce Lin of Insurnncc l:;a<'tma L; 3 fnniripoliies kir Drhris Rommit- NI inn. Stat. @ 65A.30, sn6d. 13161 See Section V-11 Discontinuing the atcottnl. The costs incurred by the city may be charged against the property as a special assessment. The city council may provide that the assessment may be paid in five or fewer equal annual installments with interest at 8 percent per year. It is a good idea to keep an accurate record of the incurred costs so the city can accurately assess them. An alternative to using a special assessment is to recover the costs by obtaining a court judgment against the property owner. V. Buildings damaged by fire or explosion Sometimes, there is a fire or explosion in a city that damages a building. If the owner does not make the necessary repairs to the property, the responsibility sometimes may fall to the city. If the building was insured, it may be an option for the city to receive a portion of the insurance settlements from the damage if the city has established an escrow or bust account for this purpose. A. Establishing the account In order to obtain a portion of the insurance settlements from fire or explosion damage, the city must first establish an escrow or trust account. It is important to note that the city cannot obtain insurance settlement proceeds for losses that happened bet2»'e the effective date of the account. The escrow or trust account is established by passing a resolution. The next step is to notify the commissioner of commerce, in writing, that the city has established a oust or escrow account and intends to uniformly apply this section with respect to all property located within the city. The city should also request to be added to the list of cities that maintain these accounts. The commissioner keeps a list of all cities with this type of account. When the commissioner receives notice that a city has established an account, the commissioner will add the city to the list. Then, the commissioner will distribute the list to all insurance companies transacting property insurance in this state, indicating the addition of the new city. The addition of the city to the List is effective on the date specified by the commissioner in the amendment. The commissioner must notify the city and insurance companies of the effective date of the addition, which cannot be less than 30 days after the receipt of notice by the insurance company. Once on the list, cities must make a written report to the commissioner on the extent of the city's use o1' the escrow account. The report must also include the effect of the use of the law on arson fires in the city. The report must be filed with the commissioner no later than 90 days after the two-year anniversary of the city's placement on the list and, thereafter, no later than 90 days after each subsequent two-year period. League of Minnesota Cities Information Memo: 6/24/2013 Dangerous Properties Page 5 4