The URL can be used to link to this page

00-453ORICINAL Presented by: Referred to: Council File # O O � �S 3 Green Sheet # 1 O 9. �i � O RESOLUTION CITY OF SAINT PAUL, MINNESOTA Committee Date: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Whereas, many private sazritary sewer services are more than eighty years old and have reached the end of then• usefui life; and Whereas, broken sewers can cause depressions in the street, creating a hazard, and Whereas, private sanitary sewer rapairs can cost several thousand dollars, and Whereas, properties are required to separate their storm water from the sanitary sewer system and separation for commercial and industrial properties can cost tens of thousands of dollars, and Whereas, Saint Paul requested and the state legislature passed a law (Chapter 231, Article 16,§ 24, Law of Minnesota 1997) entitled "City of Saint Paul; Rainleader Disconnection and Sewer Coimection Program'�authorizing Saint Paul to undertake a program to disconnect rainleaders, connect buIldings to storm sewers or correct defective sanitary sewer connections located on private property at the request of the property owner and to assess that cost. Now therefore be it Resolved that the Council of the City of Saint Paul does hereby approve and adopt the attached Assessment ProQram for Rainleader Disconnection and Re�air oF Sanitarv Sewer Coimection� Requested by the Depaztment of: Public Works By: ��••oc+�ti Porm Approved by the City Attorney B y' �c � �a- �,�.--, y . - �. � � �. � +� " �.$ ' 0 a Approved by MaV,or: Date: `�' `� � �� Approved by Mayor for Submission to Council B �, .///�/ 9- �iGZG-G--, By: ��-� � �� Adopted by Cowicil: Date: � \ Adoption Certified by Council Secretary DEPARTMEM/OFFICECOUNCIL Public Works Mike Kassan 266-6249 NUST BE ON COUNCIL AGENDA BY (DA"fE) DATEINITIAiED GREEN SHEET Apri126, 2000 iNmNVOA,E � ROGER PUCHREITER ASSIGN NUMBFR FO � DICK RUPERT/ACCT. ROVTING ono�n � DEPARI'MENTD ❑ BUDGEC DIRECLOR ( V No 102670 MAYOR � �1 X / CITY COUNCII. .� CITY CLERK - FIN. SERVICES/ACCT. ��A�� •P � as.0 FOR SIGNATURE) ACTION REQUESTED �. Approve the attached resolufion adopring the Sewer Uffliry's Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connecfions RECOMMENDATIONS: Approve (A) or Reject (R) PLANNING COMMISSION CIB COMMITfEE CIVIL SERVICE COMMISSION PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: 1. Has this persoNfirm ever worked under a contract for this department? YES NO 2. Has this persoNfirtn ever been a city employee? YES NO 3. Does this person/firm possess a skill not normally possessed by any current cily employee? YES NO Explain all yes answers on separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTUNITY (WHO, WHAT, WHEN, WHERE, WH`�: Sewer repairs are expensive. A simple repair to a private sewer connection can cost sevezal thousand dollars. If the repair is in a deep tunnel, the cost can approach $10,000. In recent years, the number of needed repairs has risen because many private sewer connections have reached the end of their useful life. In addi6on, commercial rainleader disconnections are also expensive. Some properties t�ave paid tens of thousands of dollazs to disconnect. There is a need to provide financial assistance to these property owners unable to secure fmancing through other City programs. ADVANTAGES IF APPROVED: This progruu will allow the cost of private sewer work to be paid back through assessments. It will ease the fmancial burden on businesses and homeowners faced with expensive sewer repairs. The Sewer Ufility will provide the Financing for this revolving loan program. �� DISADVANTAGESIFAPPROVED: geTR Z� bvV17 The Utility will use iYs own budgeted funds to finance this program. � �TY AT� �� DISADVAIdTAGES IF NOT APPROVED: Property owners will have to secure financing on their own and some expensive repairs might not get done. TOTAL AMOUNT OF TRANSACTION FUNDING SOURCE COSLREVENUE BUDGETED (CIRCLE ONE) YES NO ACINITY NUMBER CQU� �� FINANCIAL INFORMATION: (EXPLAIN) `s,;,r`�j� � ,, � ao -y53 General Information: City of Saint Paul - Sewer Utility Assessment Program for Rain Leader Disconnection and Repair of Sanitary Sewer Connections Background Property owners are responsible for the installafion and repair of their private sewer services. This responsibiliry extends from the building being served to the point where the private sewer enters the public sewer pipe in the adjacent street, right-of-way or easement. The Saint Paul I.egislative Code requires property owners to repair defective private sewer services. Historically, such orders have been directed most often to property owners whose defective sewer service has caused a street setflement or boulevard depression which endangers public safety. The City's Legislative Code also requires separarion of storm water sewers from the sanitary sewer system on private property. In 1986, Saint Paul began a program to disconnect rainleaders (roof drains) and private catch basins from the sanitary sewer system. The program was very successful; however, a number of properties (generally commercial) still have not complied with the disconnection requirement. Sewer work is very expensive. Some commercial and industrial properties will have to pay tens of thousands of dollars to disconnect their rainleaders or catch basins. Even a simple repair to a homeowner's private sanitary sewer service can cost several thousand dollars. In some cases, these connecrions are to a deep tunnel and repairs can cost more than $10,000. In recent years, the number of services needing repairs has been increased because many sanitary sewer services are more than eighty years old and have reached the end of their projected useful life. Previousiy, the City could not offer any financiai assistauce unless the defecrive connection provided rats a pathway to the surface or caused some other health concern. po -�153 This Program was developed to offer financial assistance to property owners facing expensive rainleader disconnection costs or sanitary sewer service repairs. The City is able to provide this service because connected rainleaders and defective sewer connecrions adversely affect all of us. It is important to note that this program is a voluntary program. Properry owners always have the option of securing their own financing- Le�islative Authoritv In 1997, the City asked the state legislature for special legislative authority to finance the disconnecfion of rainleaders and the repair of sanitary sewer connections on private property, and then to assess those costs to the properry owner. The legislahue passed the necessary legislation (see Appendix A) and the City followed with a resolution adopting this new authority (see Appendis B). If a property owner elects to take advantage of this program, the cost of doing the work will be assessed against his or her properry. This will be a special assessment and will run for ten years. Available Funds for this Program The City Council has provided $300,000 for the year 2000 to begin this program. The following amounts will be available on a first come, first served basis for qualifying property owners: $150,000 for sanitary sewer repairs in areas within a Public Works project and rainleader disconnection. 2. $150,000 for all other sanitazy sewer repairs By September of each year, the Sewer Utility will decide, based on current year projections and need�whether to adjust the budgeted amounts above. Eh�ibilitv To the extent that funds are available, this program is open to any properiy owner in Saint Paul who has been directed by the City to repair a defective sewer connection or to disconnect a rainleader provided that the property owner does not owe delinquent taxes 00-"lS3 on any other properly in Saint Paul. Eligible expenses include disconnection of rainleaders, connecting existing buildings to the City's storm sewer system, repair of defective sanitary sewer connections and associated administrative costs. How the Program will work If a property owner elects to have eligible wark assessed, the first step is to complete an Application for Assessment (green card) and mail it to the Sewer Utiliry. The application will allow the Sewer Utility to verify eligibilit7 before work starts. In the application the property owner agrees that any funds advanced under the Program will be assessed and collected with real property taxes, and waives his or her right to appeal this assessment. The owner shall also submit at least one written estimate from a licensed contractar who will perform the work. Upon approving the application, the Sewer Utiliry will norify the properry owner and the City's Real Estate Division and a Pending Assessment notice will be placed on the property's record. Afrer approval, the properiy may authorize commencement of work. Once the work is completed, the property owner needs to submit a finai invoice of costs and a Completion Form (yellow form) to the Sewer Utility as soon as possible. The Urility will determine all eligible costs including an admivistrative charge and will submit this cost for a special assessment against the properry. At that time the Pending Notice on the properry's record will include an assessment cost. The amount of the special assessment will be payable, together with interest, over a ten-year period but may be paid in full at any time during this period. Several weeks following complerion of the work and receipt of the required documentarion, the City will prepare a check payable to both the owner and the sewer conh�actor. Upon receipt of a signed Lien Waiver from the contractor, either in person at the Sewer Utility offices or via U.S. Mail, the 5ewer Ufility will present a check payable to both the owner and the contractor. In July of each year, the Real Estate Division asks the City Council to ratify all assessments. After the assessments have been ratified, the Real Estate Division will certify those assessments to Ramsey County. The properiy owners will then begin uiaking payments the following year. oo-�S Answers to Common Questions: City of Saint Paul - Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections Q. How do I l�ow if I have a rainleader connected to the sanitary sewer system? A. If there are rainleaders (down spouts) on the outside of your building and they do not empty onto the ground, they may be connected to the sanitary sewer system. In addifion, if you have storm drains in your pazking lot and you don't have a storm sewer connecrion, they may be connected improperly. If you are in doubt, please ca11 Karl Johnson of the Sewer Utility at 266-6256. Q. Am I required to do the disconnection work? A. Yes. City ordinance prolubits rainleader connecrions to the sanitary sewer system so they must be disconnected. Q. How can I tell if my sanitary sewer service is defective? A. If all of the drains in your house are slow, then there may be a problem in your service connecfion. Usually it is plugged and can be corrected by a sewer cleaning service. Sometimes, however, the connecrion may be broken somewhere between your house and the street. If it has been broken for some time, a depression may occur at the surface of the street or yard. A broken sanitary service can allow groundwater and soil to enter the sewer. The groundwater wiil end up at the Metro Treatment Plant and the City will be charged for the extra flow. Eventually the soil entering the sewer break could cause a collapse of your sewer and possibly the street ar a large hole could appear in your yard. In some cases a break will allow rats a path to the surface. This is a health concem and there is an ordinance requiring these breaks to be fixed. Q. How much will the repairs cost? Oc -`�S3 A. For commercial rainleader disconnection, there are so many variables that it is almost impossible to say. If the work involves a new connecfion to the storm sewer and interior plumbing changes, it could cost several tens of thousands of dollars. Far sanitary sewer repairs it is also very difficult to estimate. If the sewer is broken on your properly, the cost could be several thousand dollars. If it is in a paved street, the cost could increase because of street restorafion charges. If the needed repair is in a tunnel, the cost could approach ten thousand dollars. The only real way to determine the cost is to have a sewer contractor give you a bid. Q. How does the sewer contractor get paid if I choose to have the costs assessed? A. The Sewer Utility will process the Complerion Form and provide a check payable to you and the contractor. Allow several weeks far processing and mailing. Q. Can I disconnect rainleaders or repair my sanitary sewer service and pay the sewer contractor directly? A. Yes. Participation in the assessment program is voluntary. Q. I need some additional plumbing work done. Can I have that assessed also? A. No. Only work associated with the disconnecrion of rainleaders or the repair of your sanitary sewer service connecfion is eligible foz assessment. Do not inciude non-eligible work on the sewer contractor's invoice. Q. Wl�at is the interest rate for the assessment program? A. For 1999, the interest rate was 5.50%. The interest rate is established in Ju1y of each year. Work completed after May will likely cany the interest rate set by the Council in the foilowing July. The assessment will not change during the ten-year assessment period. Q. Can I pay the assessment early? A. Yes. The assessment balance may be paid partially or completely at any time without penalty. oo- `ls3 Instructions: City of Saint Paul - Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections Eli '�bilitv: This program is open to any property owner in Saint Paul who has been directed by the Ciry to repair a defective sanitary sewer connecrion or to disconnect a rainleader provided that the properry owner does not owe delinquent taxes on any property in Saint Paul. Eligible expenses include disconnection of rainleaders, connecting e�sting buildings to the storm sewer system, and repair of defective sanitary sewer connections. Notification: In most cases, the City will notify you if your rainleader needs to be disconnected or if your sanitary sewer service is defecUve. Included in that norice will be informafion about this program. If you discover that you have a defective sewer connection or a rainleader to be disconnected, you can apply for this program by calling the Public Works Sewer Utility at 266-6234. ConstrucUon: The next step is to obtain written estimates from at least one (and preferably three) licensed sewer contractors. For your convenience, a list of sewer contractors licensed to work in Saint Paul is enclosed. If you decide to take advantage of this program, you must send in the Application For Assessment (green postcard) before the work starts. Please be advised that this is a voluntary program. You may arrange financing on your own if you choose. Assessment Process: After approval of your applicafion, you may commence construction. Once the work is completed, you need to submit a final invoice of costs and a Completion Form (yellow form) to the Sewer Utility as soon as possible. The Utility will determine all eligible oo-�s3 costs including an adnvnistrative charge and will submit this cost for a special assessment against your property. At that time the Pending Notice on your properiy's record will include an assessment cost. The amount of the special assessment will be payable, together with interest, over a ten-year period but may be paid in full at any time during this period. Several weeks following completion of the work and receipt of the required documentarion, the City will prepare a check payable to both you and the sewer contractor. Upon receipt of a signed Lien Waiver from the contractor, either in person at the Sewer Utility offices or via U.S. Mail, the Sewer Utility will present a check payable to both you and the contractor. oo-yS3 The following is a copy of a postcazd that a property owner will complete and sign to request participation in the program. Application for Assessment: City of Saint Paul Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections By signing this eard, I am applping for assessment against my property listed below for rainleader disconneetion or repair of my property�s sanitary sewer service. I have reviewed the Defective Sewer Connection Repair and Rainleader Disconnection Assessment Progam Instructions and understand and a�ee to the conditions and administrative fee stated below. Administration Fee: A one-time fee of $50.00 will be chatged for assessment administration. It will be included in the cost assessed againstthis property. Payback period: Rainleader disconnection and sewer repair costs, aduunistrakve fees, and interest will be collected through real estate taxes over a ten-year period. Interest charges will be based on the rate approved by the Saint Paul City Council. The 1999 rate was 5.50%. Waiver. As owner of this property, I agree to waive my right to appeal this assessment. � pTYOP$A11�TlA[�l 6q9CU� 2U�CP70� �ppp�N�ILAaaee 2S @�CLpDY�tl� 6CRL � 6a�t�au4�J SS� D Property Address: Owner's Name: Tel. No. Please return to the above address within 30 days of receipt. The Sewer Utility must verify eligibility before work starts. Owner's Signature: Completion Form: bo —"�53 Defective Sewer Connection Repair and Assessment Program Request for Assessment: The work outlined 'm the Defective Sewer Connection Repair and Assessment Program has been completed to my satisfaction. I request the Sewer Utility pay the attached invoice and assess the costs of this work against my property. I understand that the City does not wanant the work done by my conuactor. I further understand that the contractual relationship between me and my contractor does not include the City and so all questions relating to the sewer work done must be directed to my contractor. Assessment Adwinistration: I understand that the assessed charge against my property for this work will also include a one-time $50.00 fee to process this assessment. Assessment Interest Rate: I understand that the interest rate chazged on this assessment will be the rate approved by the Saint Paul City Council (the 1999 rate is 5.50%). The City Council sets the assessment rate on or about 7uly 1 of each year. Mechanic's Lien Waiver: I understand that I need to submit a completed Mechanids Lien Waiver with this form Payback Period: I understand that the conuactor's cost and adminisuation fee will be collected through my real estate taxes over a ten-yeaz period. I also understand that I may pay the unpaid assessed balance in full at any tune during this ten-year period without penalty. Waiver of Appeal : As owner of the property identified below, I agree to waive my right to appeal tlus assessment. Amount of Invoice: Property Owner's Name: Owner's Signature: Telephone Number: Property Address: For Office Use Only :$ to: Property Owner's Address: (if different from property) Contractor's Name and Address: Return this form, along with the lien waiver and final contractor's invoice, to: 5aint Paul Public Works Sewer Utility 700 CYty Hall Annex 25 West Fourth Street Saint Paui, MN 55102 (651) 266-6234 RECEIPT AND WAIVER OF MECHANIC'5 LIEN RIGHTS �� yS3 Dated: , 20 The undezsigned hereby acl�owledges receipt of the sum of CHECB ONLY ONE 1) [� as partial payment for labor, skill and material futnished 2) [] as payment for all labor, skill and material fiunished or to be fiunished (except the sum of $ retamage or holdback) 3) [] as full and final payment for all labor, skill and material furnished ar to be fntnished to the following described real property: (legal description, street address or project name) and far value received hereby waives all rights acquired by the undersigned to file or record mechanid s liens against said real property for labor, skill or material fiunished to said real property (only far the amount paid if Box 1 is checked and except far retainage shown if Box 2 is checked). The undersigned affiuns that all material fiu�nished by the undersigned has been paid for, and all subcontractors employed by the undersigned have been paid in fiill, EXCEPT: � NOTE: If this instrament is executed by a corporation, it must be signed by an Title: _ officer, and if executed by a partnerslup, it must be signed by a partner. Address: Appendix A: 0 o-tis3 State Authorization Minnesota Session Laws -1997 CHAPTER 231-H.F.No. 2163 Sec. 24. [CIT'Y OF ST. PAUL; RAINLEADER DISCONNECTION AND SEWER CONNECTION PROGRAM.] Subdivision 1. [PUBLIC PURPOSE.] The legislature finds that the disconnection of rainleaders and the repair of defective sanitary sewer connections is a public purpose and that providing financmg to owners of residences and businesses to disconnect rainleaders and repair defective sanitary sewer connections located on their private property is a public purpose. Subd. 2. [PROGRAM AUTHORYZED.] The city of Saint Pau1 may undertake a program to disconnect ramieaders, connect buildings to storm sewers, or correct defective sanitary sewer connections located on private property at the written request of the owner of the property. The city may contract for the disconnection of rainleaders, the connection of buildings to storm sewers, and the repair of defective sanitary sewer connections, or may pay or reimburse the cost for disconnection of rainleaders, the connection of buildings to storm sewers, and the repair of defective sanitary sewer connections for which the owner of the property has entered into contracts. As part of the program, the city may identify criteria for private contractors and may limit the payment or reimbursement of costs to those situations in which the work has been performed by contractors whose participation in the program has been approved by the city in advance. The city need not hold any hearing in connection with the request of individual property owners for participation m the program. Subd. 3. [CHARGES AUTHORIZED.] The city may charge the cost of the program to the owners who have requested the disconnection of their ramleaders, the connection of build'mgs to storm sewers, ar the repair of their sanitary sewer connections. The amount charged may include the full amount paid or reimbursed, the cost of adttvnistration, and the cost of financing. The amount cbarged may be inade payable with interest at a rate deternvned by the city m installments over a period determined by the city not to exceed 20 years and the installments may be certified, added to, and collected in the same mauner as iunnicipal taxes by the county department of property tasation or smulaz department and paid over to the city in the san�e mauner as are municipal taxes. The city may certify due and unpaid installments to the county auditor along with tases against the benefited property for collection as other real property taxes are collected, in wluch event the mstalluients may be enforced in the manner required for enforcement of real property taxes m accordance with state law. Subd. 4. [CHARGES TO PROPERTY OWNERS.] Instead of charging the cost of the program as provided above, the city may charge the cost of the program to the owners who have requested the disconnection of their rainleaders, the connection of buildings to storm sewers, or the repair of their defecrive sanitary sewer connections. The amount charged may include the full amount paid or reimbursed, the cost of administration, and the cost of fmancing. The amount charged must be payable with interest at a rate detemvned by the city in installments over a period determined by the city not to exceed 20 years. All charges for the program are valid and enforceable without regard to valuation of the property or the benefit conferred. After the amount to be charged has been determmed, whether or not tbe work has been performed, the city must hold a public hearmg on the charges after notice mailed to the owner of the property to be ��4� charged not less than 14 days before the published hearmg. Notice of the hearmg is not required. The city shall select Minnesota Statutes, chapter 429, or the city charter to govem the procedure for the levy and collection of the charges, and except as a different procedure is provided 'm this section, proceedings for the nnposirion, appeal, repeal, supple�ntation, and collection of the charges must conform to the procedures selected. Subd. 5. [NATURE OF CHARGES.] The chazges, with accrning mterest, are a lien upon all private and public property included m the charges, from the date of the resolution adopting the charges, concurrent with general taxes. All charges and interest on themmust be collected and paid over in the same manner as municipal taxes. Subd. 6. [OBLIGATIONS AUTHORIZED.] To pay the costs of the program, the city may issue general or special obligations in one or more series without an election and without being subject to I�its on net debt, but otherwise in accordance with Minnesota Statutes, chapter 475. To the payment of the obligations, the city must pledge receipts of the chazges, and may in addition pledge revenues or net revenues of the city's sewer service fund. The city may pledge its full faith, credit, and taxing powers to pay the obligations, and may levy taxes to pay the obligations. Subd. 7. [LOCAL APPROVAL.] This section is effective the day after the governing body of the city of Saint Pau1 complies with Minnesota Statutes, section 645.021, subdivision 3. AppendiY B: Presented Referred 2 0 8 9 10 11 12 13 14 15 16 17 18 19 20 21 po-�1s3 Council File # l t "' ,� �5 MINNESOTA �� WHEREAS, Chapter 231, Article 16, § 24, Law of Minnesota 1997, entitied "Ciry of Saint Paul; Rain Leader Disconnection and Sewer Connection Program" authorizes the City of Saint Paul to undertake a proa am to disconnect rain leaders, connect buildings to stortn sewers, or conect defective sanitary sewer connections located on private property at the written request of the property owner, and to chazge the costs thereof to the landowner and collect the same in the same manner as municipal taxes over a period not to exceed twenty yeazs; and WHEREAS, Chapter 213, Article 16, § 24, Subdivision 7, Laws of Minnesota 1997 required the City of Saint Paul to approve the said program in compliance with Minu. Stat. § 645.021, Subd.3; NOW, TI�REFORE, BE IT RESOLVED, by the Council of the City of Saint Paul, pursuant to Chapter 213, Article 16, § 24, Subdivision 7, Laws of Minnesota 1997, that Chapter 231, Article 16, § 24, Law of Minnesota 1997, enutled "City of Saint Paul; Rain Leader Disconnection and Sewer Connection Program" is in all things approved and adopted herein by reference; AND, BE IT FURTHER RESOLVED, that the City Clerk, as the chief clerical officer of the City of Saint Paul, shall forthwith file with the Secretary of State, in a form prescribed by the Attorney General, a certificate stating the essential facts necessary to the adoption and approval of the said law in compliance with Minn. Stat. § 645.021, Subd3 RequeSted by Department of: Hy: Form Approv�d by City Attorney Certified by Council Secretary By. —� Approved by Mayoz: �� City Council Resolution } By: �!/Url�'_ �- � � — Appr ed b M o fo mission to Council By: ay: AdopCed by Council: Date �� \ ` \ ORICINAL Presented by: Referred to: Council File # O O � �S 3 Green Sheet # 1 O 9. �i � O RESOLUTION CITY OF SAINT PAUL, MINNESOTA Committee Date: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Whereas, many private sazritary sewer services are more than eighty years old and have reached the end of then• usefui life; and Whereas, broken sewers can cause depressions in the street, creating a hazard, and Whereas, private sanitary sewer rapairs can cost several thousand dollars, and Whereas, properties are required to separate their storm water from the sanitary sewer system and separation for commercial and industrial properties can cost tens of thousands of dollars, and Whereas, Saint Paul requested and the state legislature passed a law (Chapter 231, Article 16,§ 24, Law of Minnesota 1997) entitled "City of Saint Paul; Rainleader Disconnection and Sewer Coimection Program'�authorizing Saint Paul to undertake a program to disconnect rainleaders, connect buIldings to storm sewers or correct defective sanitary sewer connections located on private property at the request of the property owner and to assess that cost. Now therefore be it Resolved that the Council of the City of Saint Paul does hereby approve and adopt the attached Assessment ProQram for Rainleader Disconnection and Re�air oF Sanitarv Sewer Coimection� Requested by the Depaztment of: Public Works By: ��••oc+�ti Porm Approved by the City Attorney B y' �c � �a- �,�.--, y . - �. � � �. � +� " �.$ ' 0 a Approved by MaV,or: Date: `�' `� � �� Approved by Mayor for Submission to Council B �, .///�/ 9- �iGZG-G--, By: ��-� � �� Adopted by Cowicil: Date: � \ Adoption Certified by Council Secretary DEPARTMEM/OFFICECOUNCIL Public Works Mike Kassan 266-6249 NUST BE ON COUNCIL AGENDA BY (DA"fE) DATEINITIAiED GREEN SHEET Apri126, 2000 iNmNVOA,E � ROGER PUCHREITER ASSIGN NUMBFR FO � DICK RUPERT/ACCT. ROVTING ono�n � DEPARI'MENTD ❑ BUDGEC DIRECLOR ( V No 102670 MAYOR � �1 X / CITY COUNCII. .� CITY CLERK - FIN. SERVICES/ACCT. ��A�� •P � as.0 FOR SIGNATURE) ACTION REQUESTED �. Approve the attached resolufion adopring the Sewer Uffliry's Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connecfions RECOMMENDATIONS: Approve (A) or Reject (R) PLANNING COMMISSION CIB COMMITfEE CIVIL SERVICE COMMISSION PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: 1. Has this persoNfirm ever worked under a contract for this department? YES NO 2. Has this persoNfirtn ever been a city employee? YES NO 3. Does this person/firm possess a skill not normally possessed by any current cily employee? YES NO Explain all yes answers on separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTUNITY (WHO, WHAT, WHEN, WHERE, WH`�: Sewer repairs are expensive. A simple repair to a private sewer connection can cost sevezal thousand dollars. If the repair is in a deep tunnel, the cost can approach $10,000. In recent years, the number of needed repairs has risen because many private sewer connections have reached the end of their useful life. In addi6on, commercial rainleader disconnections are also expensive. Some properties t�ave paid tens of thousands of dollazs to disconnect. There is a need to provide financial assistance to these property owners unable to secure fmancing through other City programs. ADVANTAGES IF APPROVED: This progruu will allow the cost of private sewer work to be paid back through assessments. It will ease the fmancial burden on businesses and homeowners faced with expensive sewer repairs. The Sewer Ufility will provide the Financing for this revolving loan program. �� DISADVANTAGESIFAPPROVED: geTR Z� bvV17 The Utility will use iYs own budgeted funds to finance this program. � �TY AT� �� DISADVAIdTAGES IF NOT APPROVED: Property owners will have to secure financing on their own and some expensive repairs might not get done. TOTAL AMOUNT OF TRANSACTION FUNDING SOURCE COSLREVENUE BUDGETED (CIRCLE ONE) YES NO ACINITY NUMBER CQU� �� FINANCIAL INFORMATION: (EXPLAIN) `s,;,r`�j� � ,, � ao -y53 General Information: City of Saint Paul - Sewer Utility Assessment Program for Rain Leader Disconnection and Repair of Sanitary Sewer Connections Background Property owners are responsible for the installafion and repair of their private sewer services. This responsibiliry extends from the building being served to the point where the private sewer enters the public sewer pipe in the adjacent street, right-of-way or easement. The Saint Paul I.egislative Code requires property owners to repair defective private sewer services. Historically, such orders have been directed most often to property owners whose defective sewer service has caused a street setflement or boulevard depression which endangers public safety. The City's Legislative Code also requires separarion of storm water sewers from the sanitary sewer system on private property. In 1986, Saint Paul began a program to disconnect rainleaders (roof drains) and private catch basins from the sanitary sewer system. The program was very successful; however, a number of properties (generally commercial) still have not complied with the disconnection requirement. Sewer work is very expensive. Some commercial and industrial properties will have to pay tens of thousands of dollars to disconnect their rainleaders or catch basins. Even a simple repair to a homeowner's private sanitary sewer service can cost several thousand dollars. In some cases, these connecrions are to a deep tunnel and repairs can cost more than $10,000. In recent years, the number of services needing repairs has been increased because many sanitary sewer services are more than eighty years old and have reached the end of their projected useful life. Previousiy, the City could not offer any financiai assistauce unless the defecrive connection provided rats a pathway to the surface or caused some other health concern. po -�153 This Program was developed to offer financial assistance to property owners facing expensive rainleader disconnection costs or sanitary sewer service repairs. The City is able to provide this service because connected rainleaders and defective sewer connecrions adversely affect all of us. It is important to note that this program is a voluntary program. Properry owners always have the option of securing their own financing- Le�islative Authoritv In 1997, the City asked the state legislature for special legislative authority to finance the disconnecfion of rainleaders and the repair of sanitary sewer connections on private property, and then to assess those costs to the properry owner. The legislahue passed the necessary legislation (see Appendix A) and the City followed with a resolution adopting this new authority (see Appendis B). If a property owner elects to take advantage of this program, the cost of doing the work will be assessed against his or her properry. This will be a special assessment and will run for ten years. Available Funds for this Program The City Council has provided $300,000 for the year 2000 to begin this program. The following amounts will be available on a first come, first served basis for qualifying property owners: $150,000 for sanitary sewer repairs in areas within a Public Works project and rainleader disconnection. 2. $150,000 for all other sanitazy sewer repairs By September of each year, the Sewer Utility will decide, based on current year projections and need�whether to adjust the budgeted amounts above. Eh�ibilitv To the extent that funds are available, this program is open to any properiy owner in Saint Paul who has been directed by the City to repair a defective sewer connection or to disconnect a rainleader provided that the property owner does not owe delinquent taxes 00-"lS3 on any other properly in Saint Paul. Eligible expenses include disconnection of rainleaders, connecting existing buildings to the City's storm sewer system, repair of defective sanitary sewer connections and associated administrative costs. How the Program will work If a property owner elects to have eligible wark assessed, the first step is to complete an Application for Assessment (green card) and mail it to the Sewer Utiliry. The application will allow the Sewer Utility to verify eligibilit7 before work starts. In the application the property owner agrees that any funds advanced under the Program will be assessed and collected with real property taxes, and waives his or her right to appeal this assessment. The owner shall also submit at least one written estimate from a licensed contractar who will perform the work. Upon approving the application, the Sewer Utiliry will norify the properry owner and the City's Real Estate Division and a Pending Assessment notice will be placed on the property's record. Afrer approval, the properiy may authorize commencement of work. Once the work is completed, the property owner needs to submit a finai invoice of costs and a Completion Form (yellow form) to the Sewer Utility as soon as possible. The Urility will determine all eligible costs including an admivistrative charge and will submit this cost for a special assessment against the properry. At that time the Pending Notice on the properry's record will include an assessment cost. The amount of the special assessment will be payable, together with interest, over a ten-year period but may be paid in full at any time during this period. Several weeks following complerion of the work and receipt of the required documentarion, the City will prepare a check payable to both the owner and the sewer conh�actor. Upon receipt of a signed Lien Waiver from the contractor, either in person at the Sewer Utility offices or via U.S. Mail, the 5ewer Ufility will present a check payable to both the owner and the contractor. In July of each year, the Real Estate Division asks the City Council to ratify all assessments. After the assessments have been ratified, the Real Estate Division will certify those assessments to Ramsey County. The properiy owners will then begin uiaking payments the following year. oo-�S Answers to Common Questions: City of Saint Paul - Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections Q. How do I l�ow if I have a rainleader connected to the sanitary sewer system? A. If there are rainleaders (down spouts) on the outside of your building and they do not empty onto the ground, they may be connected to the sanitary sewer system. In addifion, if you have storm drains in your pazking lot and you don't have a storm sewer connecrion, they may be connected improperly. If you are in doubt, please ca11 Karl Johnson of the Sewer Utility at 266-6256. Q. Am I required to do the disconnection work? A. Yes. City ordinance prolubits rainleader connecrions to the sanitary sewer system so they must be disconnected. Q. How can I tell if my sanitary sewer service is defective? A. If all of the drains in your house are slow, then there may be a problem in your service connecfion. Usually it is plugged and can be corrected by a sewer cleaning service. Sometimes, however, the connecrion may be broken somewhere between your house and the street. If it has been broken for some time, a depression may occur at the surface of the street or yard. A broken sanitary service can allow groundwater and soil to enter the sewer. The groundwater wiil end up at the Metro Treatment Plant and the City will be charged for the extra flow. Eventually the soil entering the sewer break could cause a collapse of your sewer and possibly the street ar a large hole could appear in your yard. In some cases a break will allow rats a path to the surface. This is a health concem and there is an ordinance requiring these breaks to be fixed. Q. How much will the repairs cost? Oc -`�S3 A. For commercial rainleader disconnection, there are so many variables that it is almost impossible to say. If the work involves a new connecfion to the storm sewer and interior plumbing changes, it could cost several tens of thousands of dollars. Far sanitary sewer repairs it is also very difficult to estimate. If the sewer is broken on your properly, the cost could be several thousand dollars. If it is in a paved street, the cost could increase because of street restorafion charges. If the needed repair is in a tunnel, the cost could approach ten thousand dollars. The only real way to determine the cost is to have a sewer contractor give you a bid. Q. How does the sewer contractor get paid if I choose to have the costs assessed? A. The Sewer Utility will process the Complerion Form and provide a check payable to you and the contractor. Allow several weeks far processing and mailing. Q. Can I disconnect rainleaders or repair my sanitary sewer service and pay the sewer contractor directly? A. Yes. Participation in the assessment program is voluntary. Q. I need some additional plumbing work done. Can I have that assessed also? A. No. Only work associated with the disconnecrion of rainleaders or the repair of your sanitary sewer service connecfion is eligible foz assessment. Do not inciude non-eligible work on the sewer contractor's invoice. Q. Wl�at is the interest rate for the assessment program? A. For 1999, the interest rate was 5.50%. The interest rate is established in Ju1y of each year. Work completed after May will likely cany the interest rate set by the Council in the foilowing July. The assessment will not change during the ten-year assessment period. Q. Can I pay the assessment early? A. Yes. The assessment balance may be paid partially or completely at any time without penalty. oo- `ls3 Instructions: City of Saint Paul - Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections Eli '�bilitv: This program is open to any property owner in Saint Paul who has been directed by the Ciry to repair a defective sanitary sewer connecrion or to disconnect a rainleader provided that the properry owner does not owe delinquent taxes on any property in Saint Paul. Eligible expenses include disconnection of rainleaders, connecting e�sting buildings to the storm sewer system, and repair of defective sanitary sewer connections. Notification: In most cases, the City will notify you if your rainleader needs to be disconnected or if your sanitary sewer service is defecUve. Included in that norice will be informafion about this program. If you discover that you have a defective sewer connection or a rainleader to be disconnected, you can apply for this program by calling the Public Works Sewer Utility at 266-6234. ConstrucUon: The next step is to obtain written estimates from at least one (and preferably three) licensed sewer contractors. For your convenience, a list of sewer contractors licensed to work in Saint Paul is enclosed. If you decide to take advantage of this program, you must send in the Application For Assessment (green postcard) before the work starts. Please be advised that this is a voluntary program. You may arrange financing on your own if you choose. Assessment Process: After approval of your applicafion, you may commence construction. Once the work is completed, you need to submit a final invoice of costs and a Completion Form (yellow form) to the Sewer Utility as soon as possible. The Utility will determine all eligible oo-�s3 costs including an adnvnistrative charge and will submit this cost for a special assessment against your property. At that time the Pending Notice on your properiy's record will include an assessment cost. The amount of the special assessment will be payable, together with interest, over a ten-year period but may be paid in full at any time during this period. Several weeks following completion of the work and receipt of the required documentarion, the City will prepare a check payable to both you and the sewer contractor. Upon receipt of a signed Lien Waiver from the contractor, either in person at the Sewer Utility offices or via U.S. Mail, the Sewer Utility will present a check payable to both you and the contractor. oo-yS3 The following is a copy of a postcazd that a property owner will complete and sign to request participation in the program. Application for Assessment: City of Saint Paul Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections By signing this eard, I am applping for assessment against my property listed below for rainleader disconneetion or repair of my property�s sanitary sewer service. I have reviewed the Defective Sewer Connection Repair and Rainleader Disconnection Assessment Progam Instructions and understand and a�ee to the conditions and administrative fee stated below. Administration Fee: A one-time fee of $50.00 will be chatged for assessment administration. It will be included in the cost assessed againstthis property. Payback period: Rainleader disconnection and sewer repair costs, aduunistrakve fees, and interest will be collected through real estate taxes over a ten-year period. Interest charges will be based on the rate approved by the Saint Paul City Council. The 1999 rate was 5.50%. Waiver. As owner of this property, I agree to waive my right to appeal this assessment. � pTYOP$A11�TlA[�l 6q9CU� 2U�CP70� �ppp�N�ILAaaee 2S @�CLpDY�tl� 6CRL � 6a�t�au4�J SS� D Property Address: Owner's Name: Tel. No. Please return to the above address within 30 days of receipt. The Sewer Utility must verify eligibility before work starts. Owner's Signature: Completion Form: bo —"�53 Defective Sewer Connection Repair and Assessment Program Request for Assessment: The work outlined 'm the Defective Sewer Connection Repair and Assessment Program has been completed to my satisfaction. I request the Sewer Utility pay the attached invoice and assess the costs of this work against my property. I understand that the City does not wanant the work done by my conuactor. I further understand that the contractual relationship between me and my contractor does not include the City and so all questions relating to the sewer work done must be directed to my contractor. Assessment Adwinistration: I understand that the assessed charge against my property for this work will also include a one-time $50.00 fee to process this assessment. Assessment Interest Rate: I understand that the interest rate chazged on this assessment will be the rate approved by the Saint Paul City Council (the 1999 rate is 5.50%). The City Council sets the assessment rate on or about 7uly 1 of each year. Mechanic's Lien Waiver: I understand that I need to submit a completed Mechanids Lien Waiver with this form Payback Period: I understand that the conuactor's cost and adminisuation fee will be collected through my real estate taxes over a ten-yeaz period. I also understand that I may pay the unpaid assessed balance in full at any tune during this ten-year period without penalty. Waiver of Appeal : As owner of the property identified below, I agree to waive my right to appeal tlus assessment. Amount of Invoice: Property Owner's Name: Owner's Signature: Telephone Number: Property Address: For Office Use Only :$ to: Property Owner's Address: (if different from property) Contractor's Name and Address: Return this form, along with the lien waiver and final contractor's invoice, to: 5aint Paul Public Works Sewer Utility 700 CYty Hall Annex 25 West Fourth Street Saint Paui, MN 55102 (651) 266-6234 RECEIPT AND WAIVER OF MECHANIC'5 LIEN RIGHTS �� yS3 Dated: , 20 The undezsigned hereby acl�owledges receipt of the sum of CHECB ONLY ONE 1) [� as partial payment for labor, skill and material futnished 2) [] as payment for all labor, skill and material fiunished or to be fiunished (except the sum of $ retamage or holdback) 3) [] as full and final payment for all labor, skill and material furnished ar to be fntnished to the following described real property: (legal description, street address or project name) and far value received hereby waives all rights acquired by the undersigned to file or record mechanid s liens against said real property for labor, skill or material fiunished to said real property (only far the amount paid if Box 1 is checked and except far retainage shown if Box 2 is checked). The undersigned affiuns that all material fiu�nished by the undersigned has been paid for, and all subcontractors employed by the undersigned have been paid in fiill, EXCEPT: � NOTE: If this instrament is executed by a corporation, it must be signed by an Title: _ officer, and if executed by a partnerslup, it must be signed by a partner. Address: Appendix A: 0 o-tis3 State Authorization Minnesota Session Laws -1997 CHAPTER 231-H.F.No. 2163 Sec. 24. [CIT'Y OF ST. PAUL; RAINLEADER DISCONNECTION AND SEWER CONNECTION PROGRAM.] Subdivision 1. [PUBLIC PURPOSE.] The legislature finds that the disconnection of rainleaders and the repair of defective sanitary sewer connections is a public purpose and that providing financmg to owners of residences and businesses to disconnect rainleaders and repair defective sanitary sewer connections located on their private property is a public purpose. Subd. 2. [PROGRAM AUTHORYZED.] The city of Saint Pau1 may undertake a program to disconnect ramieaders, connect buildings to storm sewers, or correct defective sanitary sewer connections located on private property at the written request of the owner of the property. The city may contract for the disconnection of rainleaders, the connection of buildings to storm sewers, and the repair of defective sanitary sewer connections, or may pay or reimburse the cost for disconnection of rainleaders, the connection of buildings to storm sewers, and the repair of defective sanitary sewer connections for which the owner of the property has entered into contracts. As part of the program, the city may identify criteria for private contractors and may limit the payment or reimbursement of costs to those situations in which the work has been performed by contractors whose participation in the program has been approved by the city in advance. The city need not hold any hearing in connection with the request of individual property owners for participation m the program. Subd. 3. [CHARGES AUTHORIZED.] The city may charge the cost of the program to the owners who have requested the disconnection of their ramleaders, the connection of build'mgs to storm sewers, ar the repair of their sanitary sewer connections. The amount charged may include the full amount paid or reimbursed, the cost of adttvnistration, and the cost of financing. The amount cbarged may be inade payable with interest at a rate deternvned by the city m installments over a period determined by the city not to exceed 20 years and the installments may be certified, added to, and collected in the same mauner as iunnicipal taxes by the county department of property tasation or smulaz department and paid over to the city in the san�e mauner as are municipal taxes. The city may certify due and unpaid installments to the county auditor along with tases against the benefited property for collection as other real property taxes are collected, in wluch event the mstalluients may be enforced in the manner required for enforcement of real property taxes m accordance with state law. Subd. 4. [CHARGES TO PROPERTY OWNERS.] Instead of charging the cost of the program as provided above, the city may charge the cost of the program to the owners who have requested the disconnection of their rainleaders, the connection of buildings to storm sewers, or the repair of their defecrive sanitary sewer connections. The amount charged may include the full amount paid or reimbursed, the cost of administration, and the cost of fmancing. The amount charged must be payable with interest at a rate detemvned by the city in installments over a period determined by the city not to exceed 20 years. All charges for the program are valid and enforceable without regard to valuation of the property or the benefit conferred. After the amount to be charged has been determmed, whether or not tbe work has been performed, the city must hold a public hearmg on the charges after notice mailed to the owner of the property to be ��4� charged not less than 14 days before the published hearmg. Notice of the hearmg is not required. The city shall select Minnesota Statutes, chapter 429, or the city charter to govem the procedure for the levy and collection of the charges, and except as a different procedure is provided 'm this section, proceedings for the nnposirion, appeal, repeal, supple�ntation, and collection of the charges must conform to the procedures selected. Subd. 5. [NATURE OF CHARGES.] The chazges, with accrning mterest, are a lien upon all private and public property included m the charges, from the date of the resolution adopting the charges, concurrent with general taxes. All charges and interest on themmust be collected and paid over in the same manner as municipal taxes. Subd. 6. [OBLIGATIONS AUTHORIZED.] To pay the costs of the program, the city may issue general or special obligations in one or more series without an election and without being subject to I�its on net debt, but otherwise in accordance with Minnesota Statutes, chapter 475. To the payment of the obligations, the city must pledge receipts of the chazges, and may in addition pledge revenues or net revenues of the city's sewer service fund. The city may pledge its full faith, credit, and taxing powers to pay the obligations, and may levy taxes to pay the obligations. Subd. 7. [LOCAL APPROVAL.] This section is effective the day after the governing body of the city of Saint Pau1 complies with Minnesota Statutes, section 645.021, subdivision 3. AppendiY B: Presented Referred 2 0 8 9 10 11 12 13 14 15 16 17 18 19 20 21 po-�1s3 Council File # l t "' ,� �5 MINNESOTA �� WHEREAS, Chapter 231, Article 16, § 24, Law of Minnesota 1997, entitied "Ciry of Saint Paul; Rain Leader Disconnection and Sewer Connection Program" authorizes the City of Saint Paul to undertake a proa am to disconnect rain leaders, connect buildings to stortn sewers, or conect defective sanitary sewer connections located on private property at the written request of the property owner, and to chazge the costs thereof to the landowner and collect the same in the same manner as municipal taxes over a period not to exceed twenty yeazs; and WHEREAS, Chapter 213, Article 16, § 24, Subdivision 7, Laws of Minnesota 1997 required the City of Saint Paul to approve the said program in compliance with Minu. Stat. § 645.021, Subd.3; NOW, TI�REFORE, BE IT RESOLVED, by the Council of the City of Saint Paul, pursuant to Chapter 213, Article 16, § 24, Subdivision 7, Laws of Minnesota 1997, that Chapter 231, Article 16, § 24, Law of Minnesota 1997, enutled "City of Saint Paul; Rain Leader Disconnection and Sewer Connection Program" is in all things approved and adopted herein by reference; AND, BE IT FURTHER RESOLVED, that the City Clerk, as the chief clerical officer of the City of Saint Paul, shall forthwith file with the Secretary of State, in a form prescribed by the Attorney General, a certificate stating the essential facts necessary to the adoption and approval of the said law in compliance with Minn. Stat. § 645.021, Subd3 RequeSted by Department of: Hy: Form Approv�d by City Attorney Certified by Council Secretary By. —� Approved by Mayoz: �� City Council Resolution } By: �!/Url�'_ �- � � — Appr ed b M o fo mission to Council By: ay: AdopCed by Council: Date �� \ ` \ ORICINAL Presented by: Referred to: Council File # O O � �S 3 Green Sheet # 1 O 9. �i � O RESOLUTION CITY OF SAINT PAUL, MINNESOTA Committee Date: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Whereas, many private sazritary sewer services are more than eighty years old and have reached the end of then• usefui life; and Whereas, broken sewers can cause depressions in the street, creating a hazard, and Whereas, private sanitary sewer rapairs can cost several thousand dollars, and Whereas, properties are required to separate their storm water from the sanitary sewer system and separation for commercial and industrial properties can cost tens of thousands of dollars, and Whereas, Saint Paul requested and the state legislature passed a law (Chapter 231, Article 16,§ 24, Law of Minnesota 1997) entitled "City of Saint Paul; Rainleader Disconnection and Sewer Coimection Program'�authorizing Saint Paul to undertake a program to disconnect rainleaders, connect buIldings to storm sewers or correct defective sanitary sewer connections located on private property at the request of the property owner and to assess that cost. Now therefore be it Resolved that the Council of the City of Saint Paul does hereby approve and adopt the attached Assessment ProQram for Rainleader Disconnection and Re�air oF Sanitarv Sewer Coimection� Requested by the Depaztment of: Public Works By: ��••oc+�ti Porm Approved by the City Attorney B y' �c � �a- �,�.--, y . - �. � � �. � +� " �.$ ' 0 a Approved by MaV,or: Date: `�' `� � �� Approved by Mayor for Submission to Council B �, .///�/ 9- �iGZG-G--, By: ��-� � �� Adopted by Cowicil: Date: � \ Adoption Certified by Council Secretary DEPARTMEM/OFFICECOUNCIL Public Works Mike Kassan 266-6249 NUST BE ON COUNCIL AGENDA BY (DA"fE) DATEINITIAiED GREEN SHEET Apri126, 2000 iNmNVOA,E � ROGER PUCHREITER ASSIGN NUMBFR FO � DICK RUPERT/ACCT. ROVTING ono�n � DEPARI'MENTD ❑ BUDGEC DIRECLOR ( V No 102670 MAYOR � �1 X / CITY COUNCII. .� CITY CLERK - FIN. SERVICES/ACCT. ��A�� •P � as.0 FOR SIGNATURE) ACTION REQUESTED �. Approve the attached resolufion adopring the Sewer Uffliry's Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connecfions RECOMMENDATIONS: Approve (A) or Reject (R) PLANNING COMMISSION CIB COMMITfEE CIVIL SERVICE COMMISSION PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: 1. Has this persoNfirm ever worked under a contract for this department? YES NO 2. Has this persoNfirtn ever been a city employee? YES NO 3. Does this person/firm possess a skill not normally possessed by any current cily employee? YES NO Explain all yes answers on separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTUNITY (WHO, WHAT, WHEN, WHERE, WH`�: Sewer repairs are expensive. A simple repair to a private sewer connection can cost sevezal thousand dollars. If the repair is in a deep tunnel, the cost can approach $10,000. In recent years, the number of needed repairs has risen because many private sewer connections have reached the end of their useful life. In addi6on, commercial rainleader disconnections are also expensive. Some properties t�ave paid tens of thousands of dollazs to disconnect. There is a need to provide financial assistance to these property owners unable to secure fmancing through other City programs. ADVANTAGES IF APPROVED: This progruu will allow the cost of private sewer work to be paid back through assessments. It will ease the fmancial burden on businesses and homeowners faced with expensive sewer repairs. The Sewer Ufility will provide the Financing for this revolving loan program. �� DISADVANTAGESIFAPPROVED: geTR Z� bvV17 The Utility will use iYs own budgeted funds to finance this program. � �TY AT� �� DISADVAIdTAGES IF NOT APPROVED: Property owners will have to secure financing on their own and some expensive repairs might not get done. TOTAL AMOUNT OF TRANSACTION FUNDING SOURCE COSLREVENUE BUDGETED (CIRCLE ONE) YES NO ACINITY NUMBER CQU� �� FINANCIAL INFORMATION: (EXPLAIN) `s,;,r`�j� � ,, � ao -y53 General Information: City of Saint Paul - Sewer Utility Assessment Program for Rain Leader Disconnection and Repair of Sanitary Sewer Connections Background Property owners are responsible for the installafion and repair of their private sewer services. This responsibiliry extends from the building being served to the point where the private sewer enters the public sewer pipe in the adjacent street, right-of-way or easement. The Saint Paul I.egislative Code requires property owners to repair defective private sewer services. Historically, such orders have been directed most often to property owners whose defective sewer service has caused a street setflement or boulevard depression which endangers public safety. The City's Legislative Code also requires separarion of storm water sewers from the sanitary sewer system on private property. In 1986, Saint Paul began a program to disconnect rainleaders (roof drains) and private catch basins from the sanitary sewer system. The program was very successful; however, a number of properties (generally commercial) still have not complied with the disconnection requirement. Sewer work is very expensive. Some commercial and industrial properties will have to pay tens of thousands of dollars to disconnect their rainleaders or catch basins. Even a simple repair to a homeowner's private sanitary sewer service can cost several thousand dollars. In some cases, these connecrions are to a deep tunnel and repairs can cost more than $10,000. In recent years, the number of services needing repairs has been increased because many sanitary sewer services are more than eighty years old and have reached the end of their projected useful life. Previousiy, the City could not offer any financiai assistauce unless the defecrive connection provided rats a pathway to the surface or caused some other health concern. po -�153 This Program was developed to offer financial assistance to property owners facing expensive rainleader disconnection costs or sanitary sewer service repairs. The City is able to provide this service because connected rainleaders and defective sewer connecrions adversely affect all of us. It is important to note that this program is a voluntary program. Properry owners always have the option of securing their own financing- Le�islative Authoritv In 1997, the City asked the state legislature for special legislative authority to finance the disconnecfion of rainleaders and the repair of sanitary sewer connections on private property, and then to assess those costs to the properry owner. The legislahue passed the necessary legislation (see Appendix A) and the City followed with a resolution adopting this new authority (see Appendis B). If a property owner elects to take advantage of this program, the cost of doing the work will be assessed against his or her properry. This will be a special assessment and will run for ten years. Available Funds for this Program The City Council has provided $300,000 for the year 2000 to begin this program. The following amounts will be available on a first come, first served basis for qualifying property owners: $150,000 for sanitary sewer repairs in areas within a Public Works project and rainleader disconnection. 2. $150,000 for all other sanitazy sewer repairs By September of each year, the Sewer Utility will decide, based on current year projections and need�whether to adjust the budgeted amounts above. Eh�ibilitv To the extent that funds are available, this program is open to any properiy owner in Saint Paul who has been directed by the City to repair a defective sewer connection or to disconnect a rainleader provided that the property owner does not owe delinquent taxes 00-"lS3 on any other properly in Saint Paul. Eligible expenses include disconnection of rainleaders, connecting existing buildings to the City's storm sewer system, repair of defective sanitary sewer connections and associated administrative costs. How the Program will work If a property owner elects to have eligible wark assessed, the first step is to complete an Application for Assessment (green card) and mail it to the Sewer Utiliry. The application will allow the Sewer Utility to verify eligibilit7 before work starts. In the application the property owner agrees that any funds advanced under the Program will be assessed and collected with real property taxes, and waives his or her right to appeal this assessment. The owner shall also submit at least one written estimate from a licensed contractar who will perform the work. Upon approving the application, the Sewer Utiliry will norify the properry owner and the City's Real Estate Division and a Pending Assessment notice will be placed on the property's record. Afrer approval, the properiy may authorize commencement of work. Once the work is completed, the property owner needs to submit a finai invoice of costs and a Completion Form (yellow form) to the Sewer Utility as soon as possible. The Urility will determine all eligible costs including an admivistrative charge and will submit this cost for a special assessment against the properry. At that time the Pending Notice on the properry's record will include an assessment cost. The amount of the special assessment will be payable, together with interest, over a ten-year period but may be paid in full at any time during this period. Several weeks following complerion of the work and receipt of the required documentarion, the City will prepare a check payable to both the owner and the sewer conh�actor. Upon receipt of a signed Lien Waiver from the contractor, either in person at the Sewer Utility offices or via U.S. Mail, the 5ewer Ufility will present a check payable to both the owner and the contractor. In July of each year, the Real Estate Division asks the City Council to ratify all assessments. After the assessments have been ratified, the Real Estate Division will certify those assessments to Ramsey County. The properiy owners will then begin uiaking payments the following year. oo-�S Answers to Common Questions: City of Saint Paul - Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections Q. How do I l�ow if I have a rainleader connected to the sanitary sewer system? A. If there are rainleaders (down spouts) on the outside of your building and they do not empty onto the ground, they may be connected to the sanitary sewer system. In addifion, if you have storm drains in your pazking lot and you don't have a storm sewer connecrion, they may be connected improperly. If you are in doubt, please ca11 Karl Johnson of the Sewer Utility at 266-6256. Q. Am I required to do the disconnection work? A. Yes. City ordinance prolubits rainleader connecrions to the sanitary sewer system so they must be disconnected. Q. How can I tell if my sanitary sewer service is defective? A. If all of the drains in your house are slow, then there may be a problem in your service connecfion. Usually it is plugged and can be corrected by a sewer cleaning service. Sometimes, however, the connecrion may be broken somewhere between your house and the street. If it has been broken for some time, a depression may occur at the surface of the street or yard. A broken sanitary service can allow groundwater and soil to enter the sewer. The groundwater wiil end up at the Metro Treatment Plant and the City will be charged for the extra flow. Eventually the soil entering the sewer break could cause a collapse of your sewer and possibly the street ar a large hole could appear in your yard. In some cases a break will allow rats a path to the surface. This is a health concem and there is an ordinance requiring these breaks to be fixed. Q. How much will the repairs cost? Oc -`�S3 A. For commercial rainleader disconnection, there are so many variables that it is almost impossible to say. If the work involves a new connecfion to the storm sewer and interior plumbing changes, it could cost several tens of thousands of dollars. Far sanitary sewer repairs it is also very difficult to estimate. If the sewer is broken on your properly, the cost could be several thousand dollars. If it is in a paved street, the cost could increase because of street restorafion charges. If the needed repair is in a tunnel, the cost could approach ten thousand dollars. The only real way to determine the cost is to have a sewer contractor give you a bid. Q. How does the sewer contractor get paid if I choose to have the costs assessed? A. The Sewer Utility will process the Complerion Form and provide a check payable to you and the contractor. Allow several weeks far processing and mailing. Q. Can I disconnect rainleaders or repair my sanitary sewer service and pay the sewer contractor directly? A. Yes. Participation in the assessment program is voluntary. Q. I need some additional plumbing work done. Can I have that assessed also? A. No. Only work associated with the disconnecrion of rainleaders or the repair of your sanitary sewer service connecfion is eligible foz assessment. Do not inciude non-eligible work on the sewer contractor's invoice. Q. Wl�at is the interest rate for the assessment program? A. For 1999, the interest rate was 5.50%. The interest rate is established in Ju1y of each year. Work completed after May will likely cany the interest rate set by the Council in the foilowing July. The assessment will not change during the ten-year assessment period. Q. Can I pay the assessment early? A. Yes. The assessment balance may be paid partially or completely at any time without penalty. oo- `ls3 Instructions: City of Saint Paul - Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections Eli '�bilitv: This program is open to any property owner in Saint Paul who has been directed by the Ciry to repair a defective sanitary sewer connecrion or to disconnect a rainleader provided that the properry owner does not owe delinquent taxes on any property in Saint Paul. Eligible expenses include disconnection of rainleaders, connecting e�sting buildings to the storm sewer system, and repair of defective sanitary sewer connections. Notification: In most cases, the City will notify you if your rainleader needs to be disconnected or if your sanitary sewer service is defecUve. Included in that norice will be informafion about this program. If you discover that you have a defective sewer connection or a rainleader to be disconnected, you can apply for this program by calling the Public Works Sewer Utility at 266-6234. ConstrucUon: The next step is to obtain written estimates from at least one (and preferably three) licensed sewer contractors. For your convenience, a list of sewer contractors licensed to work in Saint Paul is enclosed. If you decide to take advantage of this program, you must send in the Application For Assessment (green postcard) before the work starts. Please be advised that this is a voluntary program. You may arrange financing on your own if you choose. Assessment Process: After approval of your applicafion, you may commence construction. Once the work is completed, you need to submit a final invoice of costs and a Completion Form (yellow form) to the Sewer Utility as soon as possible. The Utility will determine all eligible oo-�s3 costs including an adnvnistrative charge and will submit this cost for a special assessment against your property. At that time the Pending Notice on your properiy's record will include an assessment cost. The amount of the special assessment will be payable, together with interest, over a ten-year period but may be paid in full at any time during this period. Several weeks following completion of the work and receipt of the required documentarion, the City will prepare a check payable to both you and the sewer contractor. Upon receipt of a signed Lien Waiver from the contractor, either in person at the Sewer Utility offices or via U.S. Mail, the Sewer Utility will present a check payable to both you and the contractor. oo-yS3 The following is a copy of a postcazd that a property owner will complete and sign to request participation in the program. Application for Assessment: City of Saint Paul Sewer Utility Assessment Program for Rainleader Disconnection and Repair of Sanitary Sewer Connections By signing this eard, I am applping for assessment against my property listed below for rainleader disconneetion or repair of my property�s sanitary sewer service. I have reviewed the Defective Sewer Connection Repair and Rainleader Disconnection Assessment Progam Instructions and understand and a�ee to the conditions and administrative fee stated below. Administration Fee: A one-time fee of $50.00 will be chatged for assessment administration. It will be included in the cost assessed againstthis property. Payback period: Rainleader disconnection and sewer repair costs, aduunistrakve fees, and interest will be collected through real estate taxes over a ten-year period. Interest charges will be based on the rate approved by the Saint Paul City Council. The 1999 rate was 5.50%. Waiver. As owner of this property, I agree to waive my right to appeal this assessment. � pTYOP$A11�TlA[�l 6q9CU� 2U�CP70� �ppp�N�ILAaaee 2S @�CLpDY�tl� 6CRL � 6a�t�au4�J SS� D Property Address: Owner's Name: Tel. No. Please return to the above address within 30 days of receipt. The Sewer Utility must verify eligibility before work starts. Owner's Signature: Completion Form: bo —"�53 Defective Sewer Connection Repair and Assessment Program Request for Assessment: The work outlined 'm the Defective Sewer Connection Repair and Assessment Program has been completed to my satisfaction. I request the Sewer Utility pay the attached invoice and assess the costs of this work against my property. I understand that the City does not wanant the work done by my conuactor. I further understand that the contractual relationship between me and my contractor does not include the City and so all questions relating to the sewer work done must be directed to my contractor. Assessment Adwinistration: I understand that the assessed charge against my property for this work will also include a one-time $50.00 fee to process this assessment. Assessment Interest Rate: I understand that the interest rate chazged on this assessment will be the rate approved by the Saint Paul City Council (the 1999 rate is 5.50%). The City Council sets the assessment rate on or about 7uly 1 of each year. Mechanic's Lien Waiver: I understand that I need to submit a completed Mechanids Lien Waiver with this form Payback Period: I understand that the conuactor's cost and adminisuation fee will be collected through my real estate taxes over a ten-yeaz period. I also understand that I may pay the unpaid assessed balance in full at any tune during this ten-year period without penalty. Waiver of Appeal : As owner of the property identified below, I agree to waive my right to appeal tlus assessment. Amount of Invoice: Property Owner's Name: Owner's Signature: Telephone Number: Property Address: For Office Use Only :$ to: Property Owner's Address: (if different from property) Contractor's Name and Address: Return this form, along with the lien waiver and final contractor's invoice, to: 5aint Paul Public Works Sewer Utility 700 CYty Hall Annex 25 West Fourth Street Saint Paui, MN 55102 (651) 266-6234 RECEIPT AND WAIVER OF MECHANIC'5 LIEN RIGHTS �� yS3 Dated: , 20 The undezsigned hereby acl�owledges receipt of the sum of CHECB ONLY ONE 1) [� as partial payment for labor, skill and material futnished 2) [] as payment for all labor, skill and material fiunished or to be fiunished (except the sum of $ retamage or holdback) 3) [] as full and final payment for all labor, skill and material furnished ar to be fntnished to the following described real property: (legal description, street address or project name) and far value received hereby waives all rights acquired by the undersigned to file or record mechanid s liens against said real property for labor, skill or material fiunished to said real property (only far the amount paid if Box 1 is checked and except far retainage shown if Box 2 is checked). The undersigned affiuns that all material fiu�nished by the undersigned has been paid for, and all subcontractors employed by the undersigned have been paid in fiill, EXCEPT: � NOTE: If this instrament is executed by a corporation, it must be signed by an Title: _ officer, and if executed by a partnerslup, it must be signed by a partner. Address: Appendix A: 0 o-tis3 State Authorization Minnesota Session Laws -1997 CHAPTER 231-H.F.No. 2163 Sec. 24. [CIT'Y OF ST. PAUL; RAINLEADER DISCONNECTION AND SEWER CONNECTION PROGRAM.] Subdivision 1. [PUBLIC PURPOSE.] The legislature finds that the disconnection of rainleaders and the repair of defective sanitary sewer connections is a public purpose and that providing financmg to owners of residences and businesses to disconnect rainleaders and repair defective sanitary sewer connections located on their private property is a public purpose. Subd. 2. [PROGRAM AUTHORYZED.] The city of Saint Pau1 may undertake a program to disconnect ramieaders, connect buildings to storm sewers, or correct defective sanitary sewer connections located on private property at the written request of the owner of the property. The city may contract for the disconnection of rainleaders, the connection of buildings to storm sewers, and the repair of defective sanitary sewer connections, or may pay or reimburse the cost for disconnection of rainleaders, the connection of buildings to storm sewers, and the repair of defective sanitary sewer connections for which the owner of the property has entered into contracts. As part of the program, the city may identify criteria for private contractors and may limit the payment or reimbursement of costs to those situations in which the work has been performed by contractors whose participation in the program has been approved by the city in advance. The city need not hold any hearing in connection with the request of individual property owners for participation m the program. Subd. 3. [CHARGES AUTHORIZED.] The city may charge the cost of the program to the owners who have requested the disconnection of their ramleaders, the connection of build'mgs to storm sewers, ar the repair of their sanitary sewer connections. The amount charged may include the full amount paid or reimbursed, the cost of adttvnistration, and the cost of financing. The amount cbarged may be inade payable with interest at a rate deternvned by the city m installments over a period determined by the city not to exceed 20 years and the installments may be certified, added to, and collected in the same mauner as iunnicipal taxes by the county department of property tasation or smulaz department and paid over to the city in the san�e mauner as are municipal taxes. The city may certify due and unpaid installments to the county auditor along with tases against the benefited property for collection as other real property taxes are collected, in wluch event the mstalluients may be enforced in the manner required for enforcement of real property taxes m accordance with state law. Subd. 4. [CHARGES TO PROPERTY OWNERS.] Instead of charging the cost of the program as provided above, the city may charge the cost of the program to the owners who have requested the disconnection of their rainleaders, the connection of buildings to storm sewers, or the repair of their defecrive sanitary sewer connections. The amount charged may include the full amount paid or reimbursed, the cost of administration, and the cost of fmancing. The amount charged must be payable with interest at a rate detemvned by the city in installments over a period determined by the city not to exceed 20 years. All charges for the program are valid and enforceable without regard to valuation of the property or the benefit conferred. After the amount to be charged has been determmed, whether or not tbe work has been performed, the city must hold a public hearmg on the charges after notice mailed to the owner of the property to be ��4� charged not less than 14 days before the published hearmg. Notice of the hearmg is not required. The city shall select Minnesota Statutes, chapter 429, or the city charter to govem the procedure for the levy and collection of the charges, and except as a different procedure is provided 'm this section, proceedings for the nnposirion, appeal, repeal, supple�ntation, and collection of the charges must conform to the procedures selected. Subd. 5. [NATURE OF CHARGES.] The chazges, with accrning mterest, are a lien upon all private and public property included m the charges, from the date of the resolution adopting the charges, concurrent with general taxes. All charges and interest on themmust be collected and paid over in the same manner as municipal taxes. Subd. 6. [OBLIGATIONS AUTHORIZED.] To pay the costs of the program, the city may issue general or special obligations in one or more series without an election and without being subject to I�its on net debt, but otherwise in accordance with Minnesota Statutes, chapter 475. To the payment of the obligations, the city must pledge receipts of the chazges, and may in addition pledge revenues or net revenues of the city's sewer service fund. The city may pledge its full faith, credit, and taxing powers to pay the obligations, and may levy taxes to pay the obligations. Subd. 7. [LOCAL APPROVAL.] This section is effective the day after the governing body of the city of Saint Pau1 complies with Minnesota Statutes, section 645.021, subdivision 3. AppendiY B: Presented Referred 2 0 8 9 10 11 12 13 14 15 16 17 18 19 20 21 po-�1s3 Council File # l t "' ,� �5 MINNESOTA �� WHEREAS, Chapter 231, Article 16, § 24, Law of Minnesota 1997, entitied "Ciry of Saint Paul; Rain Leader Disconnection and Sewer Connection Program" authorizes the City of Saint Paul to undertake a proa am to disconnect rain leaders, connect buildings to stortn sewers, or conect defective sanitary sewer connections located on private property at the written request of the property owner, and to chazge the costs thereof to the landowner and collect the same in the same manner as municipal taxes over a period not to exceed twenty yeazs; and WHEREAS, Chapter 213, Article 16, § 24, Subdivision 7, Laws of Minnesota 1997 required the City of Saint Paul to approve the said program in compliance with Minu. Stat. § 645.021, Subd.3; NOW, TI�REFORE, BE IT RESOLVED, by the Council of the City of Saint Paul, pursuant to Chapter 213, Article 16, § 24, Subdivision 7, Laws of Minnesota 1997, that Chapter 231, Article 16, § 24, Law of Minnesota 1997, enutled "City of Saint Paul; Rain Leader Disconnection and Sewer Connection Program" is in all things approved and adopted herein by reference; AND, BE IT FURTHER RESOLVED, that the City Clerk, as the chief clerical officer of the City of Saint Paul, shall forthwith file with the Secretary of State, in a form prescribed by the Attorney General, a certificate stating the essential facts necessary to the adoption and approval of the said law in compliance with Minn. Stat. § 645.021, Subd3 RequeSted by Department of: Hy: Form Approv�d by City Attorney Certified by Council Secretary By. —� Approved by Mayoz: �� City Council Resolution } By: �!/Url�'_ �- � � — Appr ed b M o fo mission to Council By: ay: AdopCed by Council: Date �� \ ` \