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Item No. 7B <br />Type of Business: CB <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Public Hearing to Consider Resolution 5760 Certifying Special <br />Assessment of the Service Availability Charge to Gas ‘N Splash <br />Date of Report: May 6, 2002 <br /> <br />The City Council has set a Public Hearing on Monday, May 13, 2002 at 7:10 P.M. or as soon <br />thereafter as the matter may be heard to receive public input and pass upon the special assessment of <br />the Service Availability Charge to Gas ‘N Splash <br /> <br />This matter had its origin in 1999 when the Gas ‘N Splash took out a building permit to repair its car <br />wash. The car wash was instead replaced with a much larger car wash that used far more water. <br />This increased water use required the payment of a Service Availability Charge (SAC) to the Metro <br />Council Environment Services Division. Normally the SAC would be collected as the building <br />permit was issued. This didn’t happen since the true nature of the construction was hidden from city <br />staff. <br /> <br />Staff made repeated efforts to collect the SAC from Gas ‘N Splash. The City is responsible for <br />collecting the SAC and paying it to Metro Council. Legally the City must pay the SAC even if it <br />doesn’t collect anything from the property owner. The City of Mounds View made payment of <br />$43,050.00 to Metro Council for the SAC on January 15, 2002. <br /> <br />The proposed special assessment includes the following components: <br />SAC fee: $43,050.00 <br />Kennedy & Graven legal fees $432.00 <br />Administrative costs $250.00 <br />Interest from 1/15/2002 to 5/13/2002 $974.00 <br />Total $44,706.00 <br /> <br />Administrative costs far exceed $250.00. They weren’t tracked since no one anticipated the issue <br />would go to this extreme solution. Additional interest will be calculated for the period after May 13, <br />2002 to the actual date of payment. State law prescribes that the assessment may be paid within 30 <br />days of the date of assessment, without interest. If Gas ‘N Splash offers to pay in full by June 14, <br />2002, it will be necessary to accept payment without the interest listed above. <br /> <br />Gas ‘N Splash’s owner has informed staff that he is selling the property and the sale will close in <br />May. The City shouldn’t allow any further delay in this assessment since this is the best process for