ITEM 6.2 Assessment Services-Wright Countyalp
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MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
November 26, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Administration
City Attorney MacArthur
6.2
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve the Assessment Services Agreement with Wright
County.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?<
Yes No
BACKGROUND/JUSTIFICATION:
The City of Otsego contracts with Wright County for annual assessment services through a formal
Assessment Services Agreement. This agreement would provide for 2020 and 2021 property assessment
services, which relates to taxes payable in 2021 and 2022.
The Wright County Board has increased their per parcel rate for their assessment services. Some
explanation of the increase is included in the memo from Tony Rasmuson which is attached.
For reference, here is a summary of rates by year and respective actual costs and/or budget amounts. The
2020 and 2021 estimates do not factor any new development, which would increase the number of
parcels, and respectively the cost.
2018 $11.50 $101,911 (Actual)
2019 $12.00 $112,680 (2019 Budget)
2020 $13.00 $120,820 (Same Assumptions as 2019 Budget— NO GROWTH)
2021 $14.00 $128,960 (Same Assumptions as 2019 Budget — NO GROWTH)
City Attorney MacArthur has reviewed the Assessment Services Agreement, and had no comment.
SUPPORTING DOCUMENTS ATTACHED:
• Memo — Tony Rasmuson, Wright County Assessor
• Assessment Services Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR 1N THE MINUTES:
Motion to approve the 2020 - 2021 Assessment Services Agreement between the City of Otsego and
Wright County.
BUDGET INFORMATION
FUNDING:
BUDGETED:
General Fund —Assessor Department
101-41550-390
Yes
O .)oT Y Ok
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X
lasts
WRIGHT COUNTY ASSESSOR'S OFFICE
Memo
To: City Administrators and Township Supervisors
From: Tony Rasmuson, SAMA, Wright County Assessor
Date: 11/1/2018
RE: 2020 and 2021 Assessment Contracts
In October of 2018, the County Board reviewed the costs associated with performing the
assessment and the revenue received by the jurisdictions that employ the services of the Wright
County Assessor's Office.
Findings by the Board included:
• The current deficit for the Assessor's Office is in excess of one million dollars.
• Our office will be replacing Xerox software that is antiquated and will no longer be
supported by the company that is providing it to us — cost to the County to replace is in
excess of $125,000.
• Local assessors have been retiring, districts that were under contract with local assessors
haven't been able to find replacements, requiring the County hire and pay to have
assessors trained and licensed to perform the assessment for those districts.
IS Legislation has made it so all assessor's will have to be accredited within four years of hire,
resulting in higher up front expenses for training. There are also increased requirements for
continuing education for existing assessors required by legislation.
Items ratified by the County Board (changes to the previous contract):
To more equitably share costs, our office will be adjusting our rate for the 2020 assessment from
$12 to $13 per parcel and the 2021 assessment to $14 per parcel. Keep this in mind as you
budget for 2020 and 2021.
All other charges will remain the same throughout the term of the contract.
We appreciate the relationships that we have with all districts that we work with and I want to
personally thank you for choosing the Wright County Assessor's Office for your assessment needs.
We will continue to work hard and remember that we are here for youl Please find the enclosed
contract; sign, date and mail the contract back to our office before January 2, 2019.
WRIGHT COUNTY ASSESSOR'S OFFICE
Wright County Government Center - 10 Second Street NW Room 100 - Buffalo, MN 55313
MAIN:763/682-7367 • FAX:763/684-4553
www.comright.mn.us
ASSESSMENT SERVICES AGREEMENT
THIS AGREEMENT, made and entered into by and between the County of Wright, a
political subdivision of the State of Minnesota, hereinafter referred to as the "County" and the
City of Otsego a political subdivision of the State of Minnesota, hereinafter referred to as
"City/Township";
WHEREAS, said City/Township lies either wholly or partially within the County and
constitutes a separate assessment district; and
WHEREAS, under such circumstances the provision of the Minnesota Statutes, Sections
273.072 and 471.59 permit the County Assessor to provide for the assessment of property; and
WHEREAS, said City/Township desires the County to perform certain assessments on
behalf of said City/Township; and
WHEREAS, the County is willing to cooperate with said City/Township by completing
the assessment in a proper manner;
NOW, THEREFORE, in consideration of the mutual covenants contained herein it is
agreed as follows:
1. The County shall perform the 2020 and 2021 property assessment for the
City/Township in accordance with the property assessment procedures and practices established
and observed by the County, the validity and reasonableness of which are hereby acknowledged
and approved by the City/Township. The property assessment by the County shall be composed
of those assessment services which are set forth in Exhibit A, attached hereto and made a part
hereof by reference.
2. All information, records, data, reports, and the like that are necessary to allow the
County to carry out its responsibilities under this Agreement shall be fiirnished to the County
without charge by the City/Township and the City/Township agrees to cooperate in good faith
with the County in carrying out the work under this Agreement.
3, The City/Township agrees to furnish, without charge, work space, if needed, for an
appraiser to perform such tasks as document review, with such tasks to be performed during
normal business hours for the City/Township.
4. The County agrees to indemnify and hold harmless the City/Township and all of its
agents and employees against any and all claims, demands, actions or causes of action arising out
of or by reason of the performance of work provided for herein to be performed by the County.
It is further agreed that any and all full time employees of the County engaged in the
performance of any work or services required or provided for herein shall be considered
employees of the County only and not of the City/Township and that any and all claims that may
arise under the Workman's Compensation Act of the State of Minnesota and any and all claims
made by any third parties as a consequence of any act or omission on the part of said County
employees shall be the sole obligation and responsibility of the County.
5, This Agreement shall commence on January 2, 2019 and shall terminate on June 30,
2021. Either party may initiate an extension of this Agreement for a term of two years by giving
the other party written notice of its intent to extend no less than 120 days prior to the termination
of this Agreement. If the party who receives said notice of intent to extend gives written notice
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to the other party of its desire not to extend the Agreement at least 60 days prior to the
termination of this Agreement, this Agreement shall terminate on June 30, 2021,
6. In consideration of said assessment services, the City/Township agrees to pay the
County a fee of $13.00 per parcel for the 2020 and $14.00 per parcel for the 2021 assessment. In
addition, there will be an additional fee of $50.00 for each new construction residential or
commercial/industrial building permit with an estimated construction cost of $499,999.00 or less,
There will also be an additional fee of $150.00 per parcel for each new construction residential
or commercial/industrial building permit with an estimated construction cost of $500,000.00 or
more. These additional fees shall be only applicable in those cities or townships which issue
their own building permits.
7. Any notice which may be given or made by a party hereto under the terms of this
Agreement shall be in writing and shall be sent by United States Mail or personally delivered to
the other party addressed as follows;
To City; City of Otsego
13400 90th Street NE
Otsego, MN 55330
To County; Anthony R Rasmuson, Wright County Assessor
Wright County Government Center
10 2,d Street NW, Room 100
Buffalo, MN 55313
8, The Agreement may be amended or modified only by written agreement signed by
authorized representatives of the parties hereto.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by its
duly authorized officers and delivered on its behalf, this 1st _day of November ,
2018,
Dated: 11/1/2018
Dated: By
Dated: - By
WRIGHT COUNTY
By .
Anthony P. smuson
Wright Cou ty Assessor
City of Otsego
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EXHIBIT A
During the term of this Agreement, the County shall;
1. Physically inspect and revalue real property, as required by law.
2, Physically inspect and value all new construction, additions and renovation
3. Conduct valuation reviews prior to Board of Review or Open Book Meeting,
4. Attend Board of Review or Open Boole Meeting. Per Board request, make all necessary
review appraisals.
5. Keep updated field card file - current values, homestead and classification data,
6, Print, mail and post valuation notices,
7. Respond to taxpayers regarding assessment or appraisal problems or inquiries
periodically.
8. Make divisions and combinations periodically.
9. Administer the abatement process pursuant to Minn..Stat. § 375.192.
10. Make appraisals for, testify or negotiate all District Court or Tax Court filings.
11. Post values from appraisal cards to assessment rolls.
12. Adjust estimated market values on those properties not physically inspected as needed
and per sales analysis.
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