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clty <br /> Elk Request for Action <br /> R.iVer <br /> To Item Number <br /> Mayor and Ci Council 8.2 <br /> Agenda Section Meeting Date Prepared by <br /> General Business August 15, 2016 Justin Femrite, P.E., City Engineer <br /> Item Description Reviewed by <br /> Highland Road Sewer and Water Connection Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Discussion on collection of interest fees from property owner at 12095 Highland Road. <br /> Background/Discussion <br /> This item is brought before the Council at the request of Councilmember Burandt. <br /> The property owner is requesting the city provide the incentive for their connection to the public sewer and <br /> water systems on Highland Road that was in place for connections made before January 1, 2016. The <br /> incentive offered between December,2012 and January, 2016,waived the interest on the outstanding sewer <br /> and water assessment. <br /> The current payment required on this assessment is the original$15,000,plus interest calculated from 2006, <br /> for a current total of$20,158. The incentive dropped the interest charge for connections made before <br /> January, 2016, saving the property owners $5,158. <br /> Letters were sent to all qualifying property owners of this incentive in December of 2012 and a reminder <br /> letter was sent in October of 2015 with direction of the City Council on October 5, 2015. <br /> Dennis & Patricia Gorman claim they never received those letters because they have not been living at the <br /> property and stated it is a rental property. Neither letter was returned as undeliverable. The property is not <br /> legally licensed as a rental property. The addresses for courtesy letters were cross-referenced with the rental <br /> license database. If licensed, the owner's current address would have been noticed. <br /> This is the same owner name and address that was on file and used for all of the notices sent out during the <br /> original Highland Road project in 2006 when the services were made available. From that date, they <br /> presumably would not have had any expectation of a savings for the incentive. <br /> The Council discussed the sunset provision of the incentive on October 5, 2015, and unanimously approved <br /> (4-0, Council Member Westgaard was absent) to end the program per ordinance. <br /> Financial Impact <br /> The sanitary sewer fund will receive $5,158 less revenue if direction is given to waive the interest charge. <br /> Attachments <br /> ■ Excerpt of minutes (Item 8.1) from City Council meeting on October 5, 2015 <br /> POWERED 6T <br /> Template Updoted 4/14 INAWRE] <br />