4.10. SR 09-08-2020 - Laserfiche WebLink

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Request for Action To Item Number Mayor and Ci T Council 4.10 Agenda Section Meeting Date Prepared by Consent September 8, 2020 Suzanne M. Fischer, Director, Community Development Item Description Reviewed by Participation in the MDA AgBMP Loan Peter Beck, City Attorney Program to secure funds for the Rolling Hills Reviewed by HOA Septic System Repair Cal Portner, City Administrator Action Requested Affirm, by motion, a desire to offer special assessments as security for the AgBMP Loan Program in support of improvements for Rolling Hills Home Owners Association septic system repair. Background/Discussion The Rolling Hills HOA subsurface sewer treatment system was installed in July of 2000. The community system was designed for 29 single residential homes in the far northeastern corner of the city. The system needs substantial repairs and in March of 2020, the HOA invested in $30,000 in maintenance. In recent years, homeowners have experienced cracked pipes and tanks resulting in a discharge of raw sewage onto the ground which is an imminent threat to public health and safety. This area has a high-water table with numerous wetlands which are at high risk for contamination. The City of Elk River was approached by the HOA to help secure loan funds from the Minnesota Department of Agriculture AgBMP Loan Program. To do so, the City Council must indicate the support that the funds will be secured by special assessment. The city will act as their lender. Financial Impact The HOA received a system repair quote is just under $460,000 from the contractor who did the March maintenance. An additional $14,000 is required for soil borings and hydrologic assessments. The city would issue a Tier 2 loan to the HOA, administer the special assessment process, and submit final documents to the County Assessor's Office. Residents would be assessed $20,000 over 10 yrs. at 1.5% interest but can prepay if desired. Project costs are reimbursed upon receipt of approved contractor invoices. Mission/Policy/Goa Sec. 30-1934. - On -site sewage treatment and water supply systems. Attachments ■ MDA AgBMP Loan program information ■ MDA AgBMP Loan Program Participation Agreement for LGU's offering Special Assessment as Security ■ Rolling Hills HOA aerial map The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires pi ospei ly. M TUREJ Updated.• August 2020