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Item 3.8 Wright County Assessment Services AgreementTY 06e401 Fo MINNESOTA C DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration City Administrator/Finance Director Flaherty December 14, 2020 PRESENTER(S) REVIEWED BY: ITEM #: Consent City Attorney Kendall 3.8 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/J USTI FICATION: The City of Otsego contracts with Wright County for annual assessment services through a formal Assessment Services Agreement. This agreement would provide for 2022 and 2023 property assessment services, which relates to taxes payable in 2023 and 2024. 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 $112,976 (Actual) 2020 $13.00 $125,118 (Actual) 2021 $14.00 $137,374 (2021 Budget) 2022 $14.00 $137,374 (Same Assumptions as 2021 Budget — NO GROWTH) 2023 $15.00 $149,115 (Same Assumptions as 2021 Budget — NO GROWTH) City Attorney Kendall has reviewed the Assessment Services Agreement, and had no comment. This information was presented to the Administrative Subcommittee at the December 9, 2020 meeting, with recommendation for future consent agenda approval by the City Council. SUPPORTING DOCUMENTS ATTACHED: I • Memo — Tony Rasmuson, Wright County Assessor • Assessment Services Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve the 2022 - 2023 Assessment Services Agreement between the City of Otsego and Wright County. BUDGET INFORMATION FUNDING: BUDGETED: General Fund —Assessor Department 101-41550-390 Yes pf� WRIGHT COUNTY fim M I NN E B OTA ASSESSOR'S OFFICE MEMORANDUM REGARDING PROPERTY ASSESSMENT CONTRACTS November 2, 2020 In October of 2020, the county board reviewed the costs associated with performing the property assessment and the revenue received by the jurisdictions that employ the services of the Wright County Assessor's Office. The Board ratified the contract rates at the October 20th meeting. I have enclosed a copy of the assessment contract for the 2022 and 2023 assessment years, feel free to contact me if you have any questions, If you plan to renew your contract with our office, please send a signed copy by January 15, 2021. Findings by the Board included, • Local assessors have been retiring, districts that were under contract with local assessors haven't been able to find replacements, requiring the County to hire appraisers to perform the assessment for those districts thereby increasing costs to the County, • Legislation requires all assessor's to be accredited within four years of hire, resulting in higher up -front expenses for training, Additional continuing education for all assessors is also being mandated by law. Items ratified by the County Board (changes to the previous contract): Our office will not be adjusting our rate for the 2022 assessment of $14 per parcel from the previous assessment year. • The fee is to be increased to $15 per parcel for the 2023 assessment. This fee is to be charged on all parcels within each jurisdiction. In addition, for districts that issue their own building permits: • The fee for the assessment of any new construction or addition to a residential/commercial/industrial/apartment with a permit value of $499,999 and under will be increased from $50 to $60 per new building/addition. • The fee for the assessment of any new construction or addition to a coinmercial/industrial/apartment with a permit value of $500,000 and greater will be increased from $150 to $160. • Note that most jurisdictions pass these costs on to the property owner as part of the permitting process • This fee change is in effect for both the 2022 and 2023 assessments. If you have any questions regarding the contract or these changes, please contact me via email at Tony.Rasmuson(i7co.wriglit.mn.us or via phone at 763-682-7372. Sincerely, Tony Rasmuson, SAMA Wright County Assessor An Equal Opportunity Employer 1 10 2nd St. NW Buffalo, MN 55313 1 www.co.wright.mmus 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 2022 and 2023 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 furnished 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 to§ks 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. S. This Agreement shall commence on January 2, 2021 and shall terminate on June 30, 2023. 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 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, 2023, 6. In consideration of said assessment services, the City/Township agrees to pay the County a fee of $14,00 per parcel for the 2022 and $15.00 per parcel for the 2023 assessment, In addition, there will be an additional fee of $60,00 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 $160,00 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 P. Rasmuson, Wright County Assessor Wright County Government Center 10 2nd 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 Z Cj- day of o+� , 2020. Dated: LISOZ-0 By Dated: By Dated: By WRIGHT COUNTY City of Otsego 0 EXHIBIT A During the term of this Agreement, the County shall: Physically inspect and value and classify real property, in accordance with State statutes. 2. Physically inspect and value all new construction, additions and renovations. 3. Conduct valuation reviews prior to Board of Review or Open Book Meeting. 4. Attend Board of Review or Open Book Meetings either in person or virtually. Per Board request, make all necessary review appraisals. Keep updated property records including physical characteristics, sales data, current values and classifications. 6. Administer all State mandated property tax programs and maintain proper documentation. 7. Print and mail valuation and classification notices. 8. Respond to taxpayers regarding assessment or appraisal inquiries and concerns. 9. Process all divisions, combinations, new plats, and annexations including revaluation and reclassification of affected parcels. 10. Administer the abatement process pursuant to Minn. Stat. § 375.192 and county abatement policy. 11. Make appraisals for, testify and/or negotiate all District Court and Tax Court filings. 12. Adjust estimated market values on all property annually based upon the market analysis of existing real estate market conditions.