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HomeMy WebLinkAbout#07 - Assessing Services AgreementSTAFF REPORT DATE: May 15, 2018 CONSENT #7 AGENDA ITEM: Agreement with Washington County for SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: Late 2017 we learned from Dan Raboin that he intended to terminate his contract with the City following the Local Board of Appeals and Equalization. The City then received proposals from Chase Peloquin and Washington County. Those were brought to the Finance Committee and Council in January with direction to prepare a contract with Mr. Peloquin. Shortly after, Mr. Peloquin informed us that he no longer wished to enter into an agreement as he was pursuing another opportunity. The City partnered with the cities of Hugo and Scandia who also were reviewing assessing services in light of changes to their contractor. A Request for Proposals was issued in March and one candidate was interviewed in April. Since then that candidate has also withdrawn their proposal. After repeated unsuccessful attempts to fins a local assessor, staff reached out to Washington County again. ISSUE BEFORE COUNCIL: Should the City Council approve the agreement for assessing services with Washington County? PROPOSAL DETAILS/ANALYSIS: Included in your packet is a proposed agreement for assessing services. The agreement has been reviewed by the city attorney and language regarding indemnification was added at the city’s request. The agreement outlines the duties to be performed as required by statute. As indicated in letter g of the Services Section, the City does have the option to continue holding the Local Board of Appeals and Equalization. Also, since it was a concern mentioned previously, staff has confirmed with County staff that a postcard will be mailed to those properties scheduled for the quintile inspection. A copy of the notice is also included in your packet. FISCAL IMPACT: The fee is set per parcel type annually by the County Board. The 2018 expenses will come in significantly under budget since the County does not bill until the following June for the work completed for the prior assessment year. In 2019 the budget for assessing services will likely have to increase by $15-20,000 depending on the number and types of parcels created and structures built. OPTIONS: 1) Approve the proposed lease 2) Amend and then approve the lease RECOMMENDATION: If removed from the consent agenda: Motion to approve the agreement for assessing services with Washington County ATTACHMENTS: • Agreement for Assessing Services • Post Card Example 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. SECTION SIX-INDEMNIFICATION Each party shall be liable for its own acts and the results thereof to the extent provided by law and agrees to defend, indemnify, and hold harmless the other party (including their officials, employees, volunteers, and agents) from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including reasonable attorneys’ fees, resulting directly or indirectly from any act or omission of themselves, anyone they directly or indirectly employ, and anyone for whose acts or omissions they may be liable in the performance or failure to adequately perform their obligations under this Agreement. The provisions of the Municipal Tort Claims Act, Minnesota Statutes, chapter 466 and other applicable law shall govern the parties’ liability. Pursuant to Minnesota Statute 471.59 subd. 1a, nothing in this Agreement shall be construed to allow a claimant to obtain separate judgments or stack separate liability caps as to the parties collectively or each individual party. 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