Res 2017-09 Reimbursement of Water & Sanitary Utiliy Chrgs
RESOLUTION NO. 2017 - 09
RESOLUTION APPROVING AGREEMENT RELATING TO
THE REIMBURSEMENT OF WATER AND SANITARY UTILITY
SERVICE OVERCHARGES OCCURRING FROM 2008 THROUGH
MID-2015 IN THE AMOUNT OF $556,067.68 RELATING TO ANOKA
COUNTY TAX PARCEL ID NO. 03-30-24-13-0015
WHEREAS,
the Metropolitan Council (the “Landowner”) owns the real and improved property located
at 8296 Hickory St NE in Fridley (the “Property”); and
WHEREAS,
theLandowner made payments for water and sanitary utility services; and
WHEREAS,
theCity discovered the billing error during conversion of utility billing software; and
WHEREAS,
the City and the Landowner have engaged in discussions regarding the water and sanitary
utility services fees and their calculation, as well the Landowner’s liability for the same; and
WHEREAS,
the City and the Landowner have negotiated a repayment of the overcharges through
issuance of quarterly credits to avoid a financial strain upon the City’s utility funds and uncertainty of
litigation over the same; and
WHEREAS,
the City will execute and record the Agreement Relating to the Reimbursement of Water
and Sanitary Utility Service Overcharges Occurring from 2008 through Mid-2015 in the Amount of
$556,067.68 Relating to Anoka County Tax Parcel ID No. 03-30-24-13-0015 (the “Agreement”) against
the Property and, upon repayment of the overcharges as set forth in the Agreement, the City agrees to
record a Satisfaction of Reimbursement against the Property.
NOW, THEREFORE, BE IT RESOLVED
by the City Council of the City of Fridley:
1. The City Council hereby approves and authorizes the Mayor and City Manager to execute the
Agreement Relating to the Reimbursement of Water and Sanitary Utility Service Overcharges
Occurring from 2008 through Mid-2015 in the Amount of $556,067.68 Relating to Anoka
County Tax Parcel ID No. 03-30-24-13-0015; and
2. The City Council hereby directs the Finance Director to record the Agreement Relating to the
Reimbursement of Water and Sanitary Utility Service Overcharges Occurring from 2008
through Mid-2015 in the Amount of $556,067.68 Relating to Anoka County Tax Parcel ID
No. 03-30-24-13-0015 against the Property.
TH
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 13
DAY OF MARCH, 2017.
____________________________________
SCOTT J. LUND - MAYOR
ATTEST:
_________________________________
DEBRA A. SKOGEN – CITY CLERK
CITY OF FRIDLEY
ANOKACOUNTY, MINNESOTA
AGREEMENT RELATING TO THE REIMBURSEMENT OF WATER AND SANITARY
UTILITYSERVICE OVERCHARGESOCCURRING FROM 2008 THROUGH MID-2015
INTHE AMOUNT OF$556,067.68RELATING TO
ANOKACOUNTY TAX PARCEL IDNO. 03-30-24-13-0015
THIS AGREEMENT RELATING TO UTILITY CHARGES
(hereinafter referred to
as the “Agreement”) is made, entered into and effective this _____day of _________,2017, by
and between the City of Fridley, a Minnesota municipal corporation (hereafter referred to as the
“City”) and the Metropolitan Council, a public corporation and political subdivision of the State
of Minnesota(hereafter referred to asthe“Landowner”). Subject to the terms and conditions
hereafter stated and based on the representations, warranties, covenants, agreements and recitals
of the parties herein contained, the parties do hereby agree as follows:
WHEREAS,
Landowner owns fee title in real property in the City of Fridley,Anoka
County, Minnesota, legally described on the attached Exhibit A and having the tax parcel
identification number shown on Exhibit A (hereafter referred to as the “Property”),with an
address of 8296 Hickory St NE, Fridley, MN, 55432;
WHEREAS,
Landowner warrants and represents that, as of the date of this Agreement,
the undersigned Landowner is the fee title owner of the Property and has sufficient right, title
and interest in the Property to make this Agreement and cause the same tobe binding upon the
Property;
WHEREAS
,theProperty is subject to the City’s water, sewer and storm water utility
charges;
WHEREAS,
during the City’sutility billing software conversion, City staff became
aware of an overbillingissue, asthe water meter that was initially installed during the
construction of the Landowner’sbuilding in 2008 was set up to bill based on an incorrect number
of digits causing the quarterly billings for water and sewerto be higher by the power of ten;
WHEREAS,
these higher water consumption calculationsalso directly affectedand
resulted in overcharging the Landowner’s for sanitary sewer service;
WHEREAS,
the City has a legal obligation to correct overcharges to its customers;
WHEREAS,
theimmediate repayment of the Landowner’s overcharges, calculated to be
a combined$556,067.68from 2008through mid-2015for water and sanitary sewer service (the
“Overcharges”), would put excess burden on the financial position of the City’swater and
sanitary sewer funds;
WHEREAS,
upon discussion withtheLandownerrepresentatives, the Landowner
agreed theOverchargescould be applied as quarterly creditsover time onthe Landowner’s
accountsandagreedthatit would waive any claim ofinterest on the Overcharges balance;
WHEREAS,
the City appreciates the Landowner’s willingness to minimize the financial
strain the immediate repayment of the Overchargeswould causethe City;
WHEREAS,
the Landowner’s quarterly credit on its accountswill likely take many
years to eliminate;
WHEREAS,
if at any point the Landowner sells the Property including the metered
premises on the property the City will be required to reimburse the remainingcredit balancefor
the Overchargesat the time of closing; and
WHEREAS,
in exchange for the mutual promises set forth above,Landownerand City
agree to execute this Agreement.
NOW, THEREFORE,
the parties agree as follows:
1.The City and Landowner mutually agree that the amount of the Overcharges is
$556,067.68;
2.The City agrees to repay and the Landowner agrees to accept the Overcharges
through quarterly credits on the Landowner’s water and sanitary sewer accounts;
3.The Landowner agrees to waive interest on the unpaid balance of the Overcharges;
4.The City agrees to pay the remaining balance of the Overcharges at closing in the
event the Landowner sells the Property;and
5.The parties mutually recognize and agree that the all terms and conditions of this
recordable Agreement shall run with the Property and shall be bindinguponthe
parties and successors until such time as the City haspaid the Overcharges. At such
time of full repayment of the Overcharges, whether at closing or otherwise, the
parties shall execute and record a Satisfaction of Reimbursement against the Property.
IN WITNESS WHEREOF,
the Landowner and the City have executed this Agreement
effective on the latter date of approval by the two parties, and identified above.
CITY OF FRIDLEY
By:
Scott Lund, Mayor
By:
Walter Wysopal, City Manager
STATE OF MINNESOTA)
)ss.
COUNTY OF ANOKA)
On this ______ day of _________________, 2017,before me a Notary Public within and
for said County, personally appeared Scott Lund and Walter Wysopal, to me personally known,
who being each by me duly sworn, each did say that they are respectively the Mayor and City
Manager of the City of Fridley, themunicipality named in the foregoing instrument, and that the
seal affixed to said instrument was signed and sealed on behalf of said municipality by authority
of its City Council and said Mayor and City Manager acknowledged said instrument to be the
free act and deed of said municipality.
________________________________________
Notary Public
LANDOWNER
By:
Wes Kooistra, Regional Administrator
STATE OF MINNESOTA)
)ss.
COUNTY OF __________)
On this _____ day of _______________, 2017, before me, the undersigned, a Notary
Public in and for the jurisdiction aforesaid, personally appeared Wes Kooistra, known to me to
be the person whose name is subscribed to the foregoing instrument, and acknowledged to me
that the same was his/her act and deed for the purposes therein expressed for and on behalf of
Metropolitan Council.
Notary Public
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The following real property located in the City of Fridley, County of Anoka, State of Minnesota:
THAT PART OF THE SW¼ OF THE NE ¼OF SEC 3-30-24LYING
EASTERLYOF THE EASTERLYRIGHT-OF-WAYLINE OF THE BNSF
RAILROAD,SOUTHERLYOF THE NORTH135FEETOF SAIDSW¼ OF
THE NE ¼&NORTHERLYOF THE SOUTH844FEETOF SAIDSW¼ OF
THE NE ¼EXCEPTROAD RIGHT-OF-WAY;SUBJECTTO EASEMENTS
OF RECORD
AnokaCounty TaxParcel Identification No. 03-30-24-13-0015