01-09-2012 CCM - Laserfiche WebLink

Home Browse Search

City Council Minutes January 9, 2012 Page 3 the Elk River Municipal Ltilities would e~-aluate water repairs and send requests to their • Board. Attorney Beck stated there has been some case law in the last few years which has opened dle door to allow the city to put these t<-pe of costs through the abatement process. He stated this financing tool could be used for emergencies only or it could be allowed for those homeowners who are supposed to be hooked up to the sewer system (per city ordinance) but haven't done it vet He further stated this is a policy decision the Council should discuss and staff is looking for guidelines from the Council. He stated one example of a requirement could be setting an estimated cost limit on the repair. Councilmember 1\-loon questioned how staff ~~ould be able to distinguish which repairs are considered emergencies because it could be considered a health issue anytime there is a loss of seiner/water. Mayor Dietz preferred only allowing this financing tool to be used for emergency situations. Councilmember Westgaard concurred but further questioned what would constitute an emergency. Councilmember Gumphrey liked the financing tool but questioned other situations such as new hookups or cluster developments with common septic systems that may have issues and want to hookup. Attorney Beck stated the cluster development type requests could be considered under the Minnesota Statute 429 Process and wouldn't follow under this financing tool. • Councilmember Motin questioned what the exposure would be to the city if two requests came up and only one was granted. Attorney Beck stated staff s goal would be to have and apply guidelines uniformly but all requests would come to Council for consideration. He stated the Council could consider various factors in making their decision to finance these projects on an individual basis noting one such example may be the economic situation of the city as a whole at the time of the request. Mayor Dietz and Councilmember Motin stated they were not in favor of allowing existing homeowners, who are required to be on the city system, this financing option but may be open to review it. Councilmember Motin questioned what the priority of the assessment would be as compared to mortgages because some homes may be underwater with their mortgages and the values may be less than what is owed on them. Attorney Beck stated they could require the property owner to the get consent and subordination of their lenders but it would add a complication to the process. Mr. Femrite suggested setting a minimum and maximum cost to lessen the liability. Councilmember Motin suggested setting a cap without the subordination. •