ITEM 4.9 Assessment Services w/ Wright CountyOtsTV F o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE:
Administration Adam Flaherty, Finance Director January 9, 2017
PRESENTER(s): REVIEWED BY: ITEM #:
Consent Agenda 4.9
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff 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 2018 and 2019 property assessment
services, which relates to taxes payable in 2019 and 2020.
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 Rasmusson which is attached.
2016/2017 $10.50 (current)
2018 $11.50
2019 $12.00
For reference, the City budgeted $81,623 for 2017 assessment services. With the parcels provided by
the County, the budget for 2018 assessment services would be $84,111. This does not factor any new
development, which would increase the number of parcels, and respectively the cost.
The topic was discussed at the December 2016 Administrative Subcommittee with recommendation for
the agreement to go to the full City Council.
SUPPORTING DOCUMENTS: ATTACHED NONE
• Cover Letter — 2018 - 2019 Assessment Services Agreement
• Memo from Tony Rasmusson, Wright County Assessor
0 2018 - 2019 Assessment Services Agreement
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
-Motion to approve the 2018 - 2019 Assessment Services Agreement with Wright County.
BUDGET INFORMATION
FUNDING: BUDGETED:
General Fund —Assessor Department Yes —101-41550-390
,Anthony A Rasmuson
eight County .Assessor
Wright County Government Center
_ x 2nd ,Street NW, Room 100
Buffalo, MN55313-1183
Phone: (763) 682-7367/(800) 362-3667
(763) 684-4553
w w w. c o . wr igla t, m n. us
November 18, 2016
City of Otsego
13400 90th Street NE
Otsego, MN 55330
RE: 2018 and 2019 Assessment Services Agreement
Dear City of Otsego,
We would like to thank you for your continued support of the Wright County Assessor's Office.
Please find the enclosed contract for the 2018 and 2019 assessment services.
Also enclosed is a memo regarding new contract rates determined by the County Board in May
2016. The latest jurisdiction parcel totals are calculated at the bottom of the memo to Help with
your 2018 budget. We look forward to continuing to provide the best services possible to the
cities and townships, it is my goal to provide you with a constant in professional service.
The Wright County Assessor's Office is dedicated to providing property owners, local
govemment and our communities with fair, equitable and accurate property assessments. We
appreciate the relationship we have with the City of Otsego and we look forward to fostering and
improving that relationship in the years to come,
If you have any questions or concerns regarding this contract, please contact me by e-mail at
tony.rasmusonga�co.wright.mn.us or by phone at (763) 6827372 I 1-800-362-3667 ext. 7372.
Sincerely,
Anthony P. Rasmuson
Wright County Assessor
TO: Wright County Cities and Townships with County Assessment Contracts
FROM: Tony Rasmuson, Wright County Assessor
DATE: November 18, 2016
RE: New Contract rates determined by the Wright County Board
Memo
In May of 2016, the Wright 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.
• Wright County has not increased this rate in more than ten years, even though costs to run the
office have continued to increase annually in that time frame.
• 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 appraisers to perform the
assessment for those districts.
• Legislation has mandated that 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):
In an effort to more equitably share costs, our office will be adjusting our rate for the 2018 assessment
to $11.50 per parcel, and the 2019 assessment to $12 per parcel.
Historically we have not charged for any exempt or personal property parcels even though the contract
states all parcels. We will follow the language of the contract beginning with the 2018 assessment and
beyond.
For districts that issue their own building permits —
• The charge for the assessment of a new construction/addition residential property will be $50
per new home/addition.
• The charge for the assessment of a new construction/addition of a
commercial/industrial/apartment/exempt with a permit value of $499,999 and under will be
$50 per new building/addition.
• The charge for the assessment of a new construction/addition of a
commercial/industrial/apartment/exempt with a permit -value $500,000 and over will be $150.
• Our office has never charged for any exempt or personal property parcels even though the
contract states all parcels. This will be a change beginning with the 2018 assessment and
beyond.
For Budgeting purposes for 2018 your city/township (Otsego) currently has:
_6795_ taxable parcels
_283._ exempt parcels
220 mobile home parcels
—18_ personal property parcels
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 2018 and 2019 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/Townsbip. The property assessment by the County shall be composed
of those assessment services which are set forth in Exhibit A, attached hereto and made apart
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 tinder 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 frill 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, 2017 and shall terminate on June 30,
2019. 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, 2019.
6. In consideration of said assessment services, the City/Township agrees to pay the
County a fee of $11.50 per parcel for• the 2018 and $12.00 per parcel for the 2019 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 P. 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 A day of hf, 2016.
Dated: )i I �� V� By
Dated:
By
Dated: By
WRIGHT COUNTY
City of Otsego
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 Book 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.
ll. 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.