HomeMy WebLinkAbout#20 - Assessor ServicesSTAFF REPORT
DATE: January 16, 2018 REGULAR #20
AGENDA ITEM: Assessor Services
SUBMITTED BY: Kristina Handt, City Administrator
REVIEWED BY: Brian Swanson, Finance Director
BACKGROUND: The City currently has a contract with Raboin Inc for City Assessor services. Dan Raboin has provided notice that he will be terminating the agreement and plans to stay only through the Local Board of Appeals and Equalization (LBAE) in April. ISSUE BEFORE COUNCIL: Who should the council select for providing assessor services? PROPOSAL: Upon receiving Mr. Raboin’s notice, staff obtained quotes from Washington County and Chase Peloquin for assessor services. Washington County provided a sample billing based upon 2017 parcel numbers and an agreement. Mr. Peloquin provided a written proposal. Copies of both are included in your packet.
Staff discussed the two proposals with the Finance Committee at their January 9th meeting. They suggested looking into having the assessor send notices to those residents who will have their property visited every
year. The city is on a rotation to have each parcel visited once in a five year period. Chase Peloquin was willing to add that to his proposal for an additional $1,500.
Mr. Peloquin’s base charge is $48,500 with additional charges per parcel for newly created parcels and for building permits issued beginning in 2018. Washington County’s estimate includes the number of 2017 parcels and their fee schedule which is adopted by the County Board each year. Their estimate for the base is $56,154.19. Mobile Homes and Personal Property (2018 est $4,989.05) are required to be covered by Washington County regardless of who provides general assessing services for the city. Even after subtracting for these services, Peloquin’s base is still less by a couple thousand dollars. Therefore staff would recommend Council provide direction to staff to bring back a contract for assessing services for the next three years with Peloquin. FISCAL IMPACT: The 2018 budget for assessing services is $53,350. Assuming the same level of growth and permits as 2017,
assessing services in 2018 will exceed budget by about $14,500. Of that amount $3,700 is the retainer the city will be holding until Dan Raboin completes the LBAE. OPTIONS: 1) Direct staff to prepare a contract for assessing services with Chase Peloquin 2) Direct staff to work on a contract for assessing services with Washington County
RECOMMENDATION: “Motion to direct staff to prepare a contract for assessing services with Chase Peloquin.” ATTACHMENTS:
• Chase Peloquin Proposal
• Washington County Billing Sample and Agreement
Prepared For:
Lake Elmo City Council
City Administrator - Kristina Handt
3800 Laverne Avenue North
Lake Elmo, MN 55042
Proposal for
Assessing Services
City of Lake Elmo, MN
Prepared By: Chase Peloquin, SAMA
Date of Proposal:
Friday, January 5, 2018
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Table of Contents
Proposal for Assessing Services
Letter to the Council………………………................…………….………………. 2
Description of Services…...…………………..……………………………….…… 3
Parcel Counts…………….……………..……………..………..……………….…. 4
Pricing…………………………………..……………..………..……………….…. 5
Payment & Key Date Schedule.………...……...……………….………………… 6
Resume ……………..………………………………………………………………. 7
Qualifications of the Assessor……………………………………………………. 8
MN State Assessor License..………………..………………………………..……. 10
Professional References …………….………………………..…………………… 11
Please send all Correspondence to:
Chase Peloquin
29067 Machmeier Ct
Lindstrom, MN 55045
Email: ScandiaAssessor@outloook.com
Phone: (651) 538-6383
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Letter to the Council
Friday, January 5, 2018
Lake Elmo City Council
3800 Laverne Avenue North
Lake Elmo, MN 55042
Dear Council Members & Administrator Handt,
I believe that I am a well-qualified candidate for the City Assessor position because
of my extensive background in property tax assessment. As a Senior Accredited
Minnesota Assessor (SAMA) I have attained the highest licensure level of MN real
estate assessment and property tax administration.
Working as the City Assessor for Scandia over the past several years has given me
firsthand experience of the specific needs of City Administration as well as the
ability to successfully address important issues that arise with the citizens.
As the Commercial Appraiser for Chisago County I have gained the essential skills
and talents that are vital in delivering a quality commercial and residential
assessment.
With an excellent understanding of computer applications such as Microsoft
Office, Computer Assisted Mass Appraisal (CAMA) systems, and a comprehensive
knowledge of Microsoft Excel; I possess the technical skills required to keep up
with the information age. My abilities to work well with others, learn new things
quickly, and maintain a positive work environment also qualify me for this
position.
Please contact me at (651) 538-6383 to set up an interview. I believe my experience
and enthusiasm will make me a valuable team member at the City of Lake Elmo.
Sincerely,
Chase Peloquin, SAMA
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Description of Services
Annual Valuation & Classification
Annually value and classify all real property parcels within the City of Lake Elmo
per State and County guidelines.
Quintile
Inspect and verify data characteristics of all real property parcels per State and County
guidelines. Mail notification post cards to residential properties prior to visiting.
New Construction
Coordinate with the City Building Official to view, value and classify all new
construction projects.
Local Board of Appeal and Equalization
Staff an Annual Local Board of Appeal and Equalization meeting.
Splits, Combinations & Plats
Coordinate with the County to process parcel splits, parcel combinations and
administration of new plats.
Sales Verification and Ratio Study
Process, verify and analyze Certificates of Real Estate Value. Compile and provide
sale information to the MN Department of Revenue for State Sales Ratio Studies.
Taxpayer Relations & Communication
A dedicated phone line and email address will be provided and constantly
monitored. All taxpayer calls and emails will be returned within a timely manner.
Provide information to citizens, land developers, contractors and government
officials to keep them informed of assessment policies and procedures. Serve as an
expert resource to city staff and citizens regarding all aspects of real property
appraisal and property tax assessment.
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Parcel Counts
The following parcel count information was obtained from the 2017 Washington
County Assessment Report and the current City Assessor.
Agricultural
There are 113 parcels classified as agricultural.
Apartment
There are 6 parcels classified as apartment.
Commercial/Industrial
There are 201 parcels classified as commercial/industrial.
Residential & Season Residential
There are 3,642 parcels classified as residential or seasonal residential.
Exempt
There are 494 parcels classified as exempt.
Total Parcels
Included in this proposal are a total of 4,377 parcels.
* Mobile Homes & Other Personal Property are not included in this proposal
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Pricing
This proposal is based on the parcel count and classification information in the
preceding section. Changes for the 2018 Assessment will be billed per the Parcel
Additions section of this proposal.
Annual Assessment Cost
The proposed annual cost for Assessment Services will be:
Forty-Eight Thousand Five Hundred Dollars & 0/100
$48,500.00
New Construction & Building Permits
The annual cost for Building Permits will be based on the following schedule:
Type Rate per Permit
Apartment $30.00
Commercial/Industrial $50.00
Exempt $50.00
Single-Family Homes $20.00
Single-Family Attached (per unit) $10.00
Other Permits $2.00
- Windows, Roofing, Siding, Remodels, Decks, Porches, Additions,
Accessory Buildings, Basement Finish, Foundation or Structure
Alterations.
* The City will provide copies of all building permits, building plans, and building
permit reports including PID’s electronically, via email, at a minimum of a
monthly basis.
Parcel Additions
The annual cost increase for newly created parcels will be based on the following
schedule:
Classification Annual Rate Increase per Parcel
Agricultural $12.00
Apartment $20.00
Commercial/Industrial $30.00
Residential/Seasonal Residential $12.00
Exempt $5.00
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Payment & Key Date Schedule
While payment and key date schedules are flexible to meet the requirements of the
City, the following progression is being proposed for the 2019 Assessment.
Start Date
Services are available to commence on May 1st, 2018.
Monthly Payment Schedule
Beginning May 1st, 2018 monthly payments in the amount of $3,500.00 will ensue
and be due on the 1st day of every month.
May 2018 $3,500.00
June 2018 $3,500.00
July 2018 $3,500.00
August 2018 $3,500.00
September 2018 $3,500.00
October 2018 $3,500.00
November 2018 $3,500.00
December 2018 $3,500.00
January 2019 $3,500.00
February 2019 $3,500.00
March 2019 $3,500.00
April 2019 $3,500.00
Monthly Payment Total $42,000.00
Final Payment
Within five business days of the adjournment of the Lake Elmo Local Board of
Appeal and Equalization Meeting the balance of the Annual Assessment Cost,
including any new construction and parcel addition charges, will be due. The final
invoice will be provided to the City on or before February 10th each year.
End Date
The annual assessment will be considered complete upon the adjournment of the
Lake Elmo Local Board of Appeal and Equalization Meeting.
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Chase B. Peloquin, SAMA
29067 Machmeier Ct Lindstrom, MN 55045 651-538-6383
ScandiaAssessor@outlook.com
Employment: City Assessor Scandia, MN
City of Scandia May 2015 - Present
Serve as an expert resource to staff and citizens regarding all aspects of real property appraisal and
property tax assessment
Perform market research by gathering data including actual income information, occupancy levels,
rental rates, and capitalization rates to determine potential market performance of properties
Effectively identify and evaluate economic trends, market conditions and real estate investments
Provide information to citizens, land developers, contractors, government officials and county
departments to keep them informed of assessment policies and procedures
Commercial Appraiser Center City, MN
Chisago County Assessor’s Office June 2012 – Present
Interview, train, supervise and evaluate Sr. Deputy Assessors and Assessment Assistants
Appraise commercial, industrial, apartment, and complex special use properties using mass appraisal
statistical modeling techniques, direct capitalization and discounted cash flow analysis
Negotiate favorable settlements and manage all aspects of countywide tax court petitions
Field Appraiser Scandia, MN
Frank Langer – Scandia City Assessor June 2009 – May 2015
Review residential property, collect data on building measurements, cost, building features and
neighborhood characteristics
Inspect real estate and record characteristics such as type of property, physical condition, structural
component, size, nature and type of improvements to establish the value and classification of property
Sr. Deputy Assessor Center City, MN
Chisago County Assessor’s Office June 2009 – June 2012
Review residential property, collect data on building measurements, cost, building features and
neighborhood characteristics
Inspect real estate and record characteristics such as type of property, physical condition, structural
component, size, nature and type of improvements to establish the value and classification of property
Receive and respond to inquiries and complaints from property owners by explaining how property
values were established and informing property owners of appeal procedures
Compile and analyze market sales data to allow reliable estimates of property values
Field Engineer Winterhaven, CA
Kiewit Pacific Company – Northwest Division June 2008 – March 2009
Plan, schedule, supervise and approve work done by contractor and company crews
Prepare material takeoffs, estimate costs and purchase materials
Coordinate daily construction activities and develop schedules for crews, equipment and materials
Project Manager Lindstrom, MN
Custom Fit Homes Inc. December 2005 – June 2008
Effectively work with contractors, surveyors, architects, engineers and building officials
Estimate, contract, manage, budget and supervise all aspects of construction
Schedule, coordinate, inspect and approve work done by subcontractor crews
Education: Bachelor of Science Degree Mankato, MN
Major: Business Finance December 2005
Minor: Business Administration Cum Laude
Minnesota State University, Mankato College of Business AACSB Accredited
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Qualifications of the Assessor
Designation:
Senior Accredited Minnesota Assessor License #3336
Appraisal Education:
Minnesota Association of Assessing Officers:
Residential Appraisal Principles July 2009
Residential Appraisal Procedures August 2009
Mass Appraisal Basics August 2009
Assessment Laws & Procedures January 2010
Assessment Administration October 2011
Basic Income Approach to Valuation October 2011
Minnesota Residential Case Study April 2012
Oral Interview – MN State Board of Assessors May 2012
Valuation of Big Box Retail May 2016
Tax Court – Big Box Symposium May 2016
Minnesota Income Property Case Study October 2016
International Association of Assessing Officers:
Income Approach to Valuation September 2011
Minnesota Department of Revenue:
Professional Assessment Certification & Education March 2012
Minnesota Tax Calculation Course December 2012
Ethics for MN Assessors August 2015
Professional Assessment Certification & Education September 2015
Minnesota Tax Calculation Course December 2016
Kaplan Professional Schools:
National USPAP Update Course May 2012
McKissock
Appraisal of Fast Food Facilities May 2016
Appraisal of Self Storage Facilities June 2016
Appraisal Institute
A little Value for Everyone (Rounded) November 2017
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Qualifications of the Assessor (Cont.)
Professional Affiliation:
Member of Minnesota Association of Assessing Officers (MAAO)
Region 3 Tax Court Committee Member November 2014
Region 3 Commercial Industrial Committee Member November 2014
Experience:
City Assessor – City of Scandia, MN May 2015 - Present
Commercial Assessor for Chisago County June 2012 - Present
Field Appraiser for FXL, Inc. June 2009 - May 2015
Senior Deputy Assessor for Chisago County June 2010 - June 2012
Deputy Assessor for Chisago County June 2009 - June 2010
Education:
Minnesota State University, Mankato
Bachelor of Science – Business Finance December 2005
Minor Business Administration December 2005
Chisago Lakes High School
High School Diploma June 2001
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MN State Assessor License
As of November 2017, I have held an Senior Accredited Minnesota Assessor
designation. This is the highest licensure level of MN real estate assessment and
property tax administration granted by the Minnesota State Board of Assessors.
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Professional References
The following individuals are available to the City for professional reference
purposes.
Dan Raboin
City Assessor
27697 Woodland Dr
Chisago City, MN 55013
(651) 213-6705
I worked with Mr. Raboin at Chisago County for six years prior to his leaving for
full time work as a Local City Assessor.
Neil Soltis
City of Scandia Administrator
14727 209th Street
Scandia, MN 55073
(651) 433-2274
For the past three years I have contracted with the City of Scandia for its Assessing
Services.
Frank Langer
Former City Assessor
21870 Olinda Lane
Scandia, MN 55073
(651) 433-3059
For six years I worked for Mr. Langer performing appraisal and assessment
services in the City of Scandia, City of Lake Elmo, City of Hugo, City of Marine on
St. Croix, and City of Dellwood.
LAKE ELMO
2018
#
parcels Rate Total
Agriculture 32 $16.88 $540.16
Vacant Land 1,354 $1,871.27
C&I 63 $2.41 $151.83
Ag 81 $2.41 $195.21
Res 753 $1.83 $1,377.99
Exempt 457 $0.32 $146.24
Multi-Family (Townhome/Condo/Duplex)79 $6.04 $477.16
Not included in Residential count
Residential 2,557 $39,377.28
<$500,000 2,695 $13.88 $37,406.60
> or equal to $500,000 76 $25.93 $1,970.68
Manufactured Homes 508 $9.66 $4,907.28
Personal Property & PILT 17 $4.81 $81.77
C&I 140 $8,500.90
<$999,999 115 $54.26 $6,239.90
> or equal to $1,000,000 25 $90.44 $2,261.00
Exempt Improved 39 $235.56
<$999,999 20 $6.04 $120.80
> or equal to $1,000,000 19 $6.04 $114.76
Apartments 5 $162.81
<$999,999 4 $30.15 $120.60
> or equal to $1,000,000 1 $42.21 $42.21 Cost per parcel
2018 Base Fee 4,731 $56,154.19 $11.87
New Construction (count taken out of the lower tier base fee calc)
Residential ESTIMATED
Single Family 214 $31.19 $6,674.66 Start 2017
Townhome/Condo 51 $12.06 $615.06 Start 2017
C&I
New 1 $138.70 $138.70 Start 2017
Apartments
New 1 $66.33 $66.33 Start 2017
Exempt
New 3 $120.58 $361.74 Start 2017
New Construction Fee 270 $7,856.49
2018 Billing 5,001 $64,010.68 $12.80
AGREEMENT FOR ASSESSMENT SERVICES
THIS AGREEMENT, made and entered into this ____ day of _________, 2018 by and between the City of Lake Elmo, a Minnesota municipal corporation, herein referred to as the “City”, and
Washington County, a body politic and corporate, herein referred to as “Washington County” pursuant
to the authority contained in Minnesota Statutes 471.59, which authorizes the joint and cooperative exercise of powers common to contracting parties and Minnesota Statute 273.072 Subd. 1, which provides that a county and city or town may, by agreement entered into under 471.59 provide for the assessment of property in the municipality or town by the county assessor.
WITNESS: WHEREAS, the City desires to retain Washington County and the Washington County Assessor to perform assessment services for the City; and
WHEREAS, Washington County desires to perform assessment services required by the City; and WHEREAS, the City and Washington County deem it mutually advantageous to set forth the
terms and conditions of their relationship in writing;
NOW, THEREFORE, the parties hereto agree that the following shall constitute joint agreement for assessment services:
SECTION ONE-PARTIES The City hereby contracts with Washington County to perform, and Washington County hereby agrees to perform, the assessment services hereinafter described.
SECTION TWO-SERVICES Washington County Assessor shall perform all assessment services required by State statute and
the City. Such services shall include, but are not limited to the following:
a. Appraisal of all real and personal property located within the City. b. Interprets regulations, rules and legislative changes to the City Council, Realtors,
bankers, citizens and civic groups as necessary or upon request.
c. Answers questions/concerns regarding property values and classifications.
d. Draws and calculates “splits” of real estate sales reflective of joint ownership of land parcels.
e. Maintains a listing of the assessment of each and every parcel of property within the City.
f. Each parcel of property within the City shall be reviewed at least once every five years. It is the intention of the parties that the Washington County Assessor shall make every effort to view and revalue approximately one-fifth of the parcels during each year that
this Agreement remains in force.
g. Holds and staffs an annual Board of Appeal or Open Book Meeting. The format of this
appeals meeting will be at the discretion of the City and guided by Minn. Stat. § 274.01, subd. 1. h. Interprets and applies regulations, rules and legislative changes to other appraisers, real estate professionals, citizens and civic groups, other governmental bodies and personnel
as necessary and upon request. i. Answers property owner questions/concerns regarding appraisal practices, property values and classifications. Draws and interprets maps, charts and other descriptions to assist property owners in understanding the process.
j. Develops land and building valuation schedules; conducts statistical analysis to support appraisal decisions, and oversees Computer Aided Mass Appraisal system (CAMA) table
adjustments; and draws and calculates “splits” of real estate and new plats of property, including land areas, classes and valuations. Conducts statistical surveys to support appraisal decision e.g., current sales study using the CAMA system.
k. Coordinates research of complex appraisal issues, reviews, investigates and makes
recommendations on applications for abatement or other reduction of assessed value. l. Coordinates collection of sales information and annual assessment activities in apartment, commercial, industrial, residential and personal property markets.
m. Coordinates the valuation and classification of exempt properties, including interpreting laws applying to exempt organizations and processing exemption requests. n. Manages state tax court petitions and coordinates TIF assessment functions with the city.
Provides values to city for various projects in which there may be an assessment
agreement. o. Investigates and handles all applications for abatement or reduction of assessed value.
p. Provides a report of assessment activities (Assessment Report) each year prior to the
appeals period.
SECTION THREE-AGREEMENT PRICE
The City shall pay a fee to the County each year for assessment services based on the parcel mix located within each community. The assessment fee schedule is approved by the County Board each year and establishes the fee associated with each property use. The County will utilize the same fee schedule for all of its contract communities. The City will be billed for assessing services upon the
completion of the assessment cycle. The County will provide an invoice to the City no later than June 1
of each year payable on or around July 1. SECTION FOUR-INDEPENDENT CONTRACTOR
It is understood and agreed between the parties that the Assessor is an independent contractor and not an employee of the City. The Assessor shall be responsible for furnishing its own transportation, books and any other documents or items of personal property required to perform the services. The City shall not be required to maintain any insurance coverage needed in connection with
the performance of the Assessor’s services, including but not limited to automobile liability insurance,
workers compensation insurance and public liability insurance. SECTION FIVE-DURATION AND TERMINATION
This Agreement shall commence on July 1, 2018 and remain in force until terminated by either party giving the other party a six-month written notice of its intent to terminate the Agreement per Minnesota Statute 273.072 Subd. 4.
IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement the day
and year first above written.
CITY OF LAKE ELMO WASHINGTON COUNTY
By_______________________ By________________________ Mayor County Board Chair
Attest________________________ By________________________
City Clerk County Administrator
Recommended By:
__________________________
Jennifer Wagenius Director, Property Records and Taxpayer Services
Approved as to form by:
_______________________________ George Kuprian Assistant Washington County Attorney