2016.04.19 Work Session Packet (2nd)4141 Douglas Drive North • Crystal, Minnesota 55422-1696
CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CRYSTAL
Posted: April 15, 2016
CRYSTAL CITY COUNCIL
SECOND WORK SESSION AGENDA
Tuesday, April 19, 2016
To immediately follow the Regular City Council Meeting
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the second work session of the Crystal City Council was held at p.m. on
Tuesday, April 19, 2016 in Conference Room A located at 4141 Douglas Drive, Crystal,
Minnesota.
I. Attendance
Council members Staff
Dahl
Norris
Deshler Therres
Kolb Ray
Libby Revering
Parsons Gilchrist
Peak
Adams
Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Agreement with Hennepin County Assessors - renewal
2. Open Book process
3. Constituent issues update
4. New business*
5. Announcements*
* Denotes no supporting information included in the packet.
III. Adjournment
The work session adjourned at p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Memorandum
C(ALIN
rass
DATE: April 14, 2016
TO: Mayor and City Council
r
FROM: Anne Norris, City ManagerXL- w
SUBJECT: Agreement with Hennepin County —Assessing Services
Since 1993, Crystal has contracted with Hennepin County to provide assessing
services. The current contract with Hennepin County expires July 31, 2016. The
County is proposing a new 4 year contract which would be renewable for another 4 year
period.
City staff is very satisfied with the services provided by Hennepin County Assessing
staff under the current agreement. The County should discuss this agreement prior
consideration of it on a future Council agenda.
Attach:
Contract No. A16XXXX
AGREEMENT
THIS AGREEMENT, Made and entered into by and between the COUNTY OF
HENNEPIN, a political subdivision of the State of Minnesota, hereinafter referred to as
the "COUNTY", and the CITY OF "CRYSTAL", a political subdivision of the State of
Minnesota, hereinafter referred to as "CITY";
WHEREAS, said CITY lies wholly within the COUNTY OF HENNEPIN and
constitutes a separate assessment district; and
WHEREAS, under such circumstances, the provisions of Minnesota Statutes,
Section 273.072 and Minnesota Statutes, Section 471.59 permit the County Assessor to
provide for the assessment of property; and
WHEREAS, said CITY desires the COUNTY to perform certain assessments
on behalf of said CITY; and
WHEREAS, the COUNTY is willing to cooperate with said CITY by completing
the assessment in a proper manner;
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, it is agreed as follows:
1. The COUNTY shall perform the 2017, 2018, 2019, and 2020 property
assessment for the CITY OF CRYSTAL in accordance with property assessment
procedures and practices established and observed by the COUNTY, the validity and
reasonableness of which are hereby acknowledged and approved by the CITY. Any
such practices and procedures may be changed from time to time, by the COUNTY in
its sole judgment, when good and efficient assessment procedures so require. The
property assessment by the COUNTY shall be composed of those assessment services
which are set forth in Exhibit A, attached hereto and made a part hereof by this
reference, provided that the time frames set forth therein shall be considered to be
approximate only.
2. All information, records, data, reports, etc. necessary to allow the
COUNTY to carry out its herein responsibilities shall be furnished to the COUNTY
without charge by the CITY, and the CITY agrees to cooperate in good faith with the
COUNTY in carrying out the work under this Agreement.
3. The CITY agrees to furnish, without charge, office space needed by the
COUNTY at appropriate places in the CITY's offices. Such office space shall be
sufficient in size to accommodate reasonably V of appraiser(s)" and any furniture
placed therein. The office space shall be available for the COUNTY's use at any and all
times during typical business hours, and during all such hours the COUNTY shall be
provided with levels of heat, air conditioning and ventilation as are appropriate for the
seasons.
4. The CITY also agrees to provide appropriate desk and office furniture as
necessary, clerical and secretarial support necessary and reasonable for the carrying
out of the work herein, necessary office supplies and equipment, copying machines and
fax machines and their respective supplies, and telephone service to the COUNTY, all
without charge to the COUNTY.
5. It shall be the responsibility of the CITY to have available at the CITY's
offices a person who has the knowledge and skill to be able to answer routine questions
pertaining to homesteads and property assessment matters and to receive, evaluate
and organize homestead applications. The CITY shall store all homestead applications
and homestead data in secure storage meeting the requirements set by the COUNTY.
(2)
It shall also be the responsibility of the CITY to promptly refer any homestead
application which needs investigation to the COUNTY.
6. In accordance with Hennepin County Affirmative Action Policy and the
County Commissioners' policies against discrimination, no person shall be excluded
from full employment rights or participation in or the benefits of any program, service or
activity on the grounds of race, color, creed, religion, age, sex, disability, marital status,
sexual orientation, public assistance status, ex -offender status or national origin; and no
person who is protected by applicable Federal or State laws, rules and regulations
against discrimination shall be otherwise subjected to discrimination.
7. It is agreed that nothing herein contained is intended or should be
construed in any manner as creating or establishing the relationship of joint venturers or
co-partners between the parties hereto or as constituting the CITY as the agent,
representative or employee of the COUNTY for any purpose or in any manner
whatsoever. Any and all personnel of CITY or other persons, while engaged in the
performance of any activity under this Agreement, shall have no contractual relationship
with the COUNTY and shall not be considered employees of the COUNTY and any and
all claims that may or might arise under the Workers' Compensation Act of the State of
Minnesota on behalf of said personnel or other persons while so engaged, and any and
all claims whatsoever on behalf of any such person or personnel arising out of
employment or alleged employment including, without limitation, claims of discrimination
against the CITY, its officers, agents, CITY or employees shall in no way be the
responsibility of the COUNTY, and CITY shall defend, indemnify and hold the COUNTY,
its officials, officers, agents, employees and duly authorized volunteers harmless from
any and all such claims regardless of any determination of any pertinent tribunal,
agency, board, commission or court. Such personnel or other persons shall not require
nor be entitled to any compensation, rights or benefits of any kind whatsoever from the
COUNTY, including, without limitation, tenure rights, medical and hospital care, sick and
vacation leave, Workers' Compensation, Re-employment Compensation, disability,
severance pay and retirement benefits.
8. CITY agrees that it will defend, indemnify and hold the COUNTY, its
elected officials, officers, agents, employees and duly authorized volunteers harmless
from any and all liability (statutory or otherwise) claims, suits, damages, judgments,
interest, costs or expenses (including reasonable attorney's fees, witness fees and
disbursements incurred in the defense thereof) resulting from or caused by the
negligent or intentional acts or omissions of the CITY, its officers, agents, contractors,
employees or duly authorized volunteers in the performance of the responsibilities
provided by this Agreement. The CITY's liability shall be governed by Minn. Stat.
Chapter 466 and other applicable law, rule and regulation, including common law.
9. COUNTY agrees that it will defend, indemnify and hold the CITY, its
elected officials, officers, agents, employees and duly authorized volunteers harmless
from any and all liability (statutory or otherwise) claims, suits, damages, judgments,
interest, costs or expenses (including reasonable attorney's fees, witness fees and
disbursements incurred in the defense thereof) resulting from or caused by the
negligent or intentional acts or omissions of the COUNTY, its officers, agents,
contractors, employees or duly authorized volunteers in the performance of the
responsibilities provided by this Agreement. The COUNTY's liability shall be governed
by Minn. Stat. Chapter 466 and other applicable law, rule and regulation, including
common law.
ME
10. The COUNTY shall endeavor to perform all services called for herein in an
efficient manner. The sole and exclusive remedy for any breach of this Agreement by
the COUNTY and for COUNTY's liability of any kind whatsoever, including but not
limited to liability arising out of, resulting from or in any manner related to contract, tort,
warranty, statute or otherwise, shall be limited to correcting diligently any deficiency in
said services as is reasonably possible under the pertinent circumstances.
11. Neither party hereto shall be deemed to be in default of any provision of
this Agreement, or for delay or failure in performance, resulting from causes beyond the
reasonable control of such party, which causes shall include, but are not limited to, acts
of God, labor disputes, acts of civil or military authority, fire, civil disturbance, changes in
laws, ordinances or regulations which materially affect the provisions hereof, or any
other causes beyond the parties' reasonable control.
12. This Agreement shall commence on August 1, 2016, and shall terminate
on July 31, 2020. Either party may initiate an extension of this Agreement for a term of
four (4) years by giving the other written notice of its intent to so extend prior to March 1,
2020. If the party who receives said notice of intent to extend gives written notice to the
other party of its desire not to extend prior to, April 15, 2020 this Agreement shall
terminate on July 31, 2020.
Nothing herein shall preclude the parties, prior to the end of this Agreement, from
agreeing to extend this contract for a term of four (4) years. Any extended term hereof shall be
on the same terms and conditions set forth herein and shall commence on August 1, 2020.
Either party may terminate this Agreement for "just cause" as determined by the Commissioner
of Revenue after hearing for such a determination is held by the Commissioner of Revenue
and which has been attended by representatives of COUNTY and CITY or which said
(5)
representatives had a reasonable opportunity to attend, provided that after such determination,
any party desiring to cancel this Agreement may do so by giving the other party no less
than 120 days' written notice. If the CITY should cancel this Agreement, as above provided,
before the completion of the then current property assessment by the COUNTY, the CITY
agrees to defend and hold the COUNTY, its officials, officers, agents, employees and duly
authorized volunteers harmless from any liability that might ensue as a result of the non -
completion of a property tax assessment.
For the purpose of this Agreement, the term "just cause" shall mean the failure of
any party hereto reasonably to perform a material responsibility arising hereunder.
13.A. In consideration of said assessment services, the CITY agrees to pay the
COUNTY the sum of "Contract Dollar Amount" Thousand Dollars ($XXX,XXX) for each
assessment, provided that any payment for the current year's assessment may be
increased or decreased by that amount which exceeds or is less than the COUNTY's
estimated cost of appraising new construction and new parcels for the current year's
assessment. The amount of any increase or decrease shall be specified in the billing
for the current year's assessment.
13.13. Regarding each assessment, in addition to being subject to adjustment in
the above manner, said assessment cost of $XXXXXXX may also be increased by the
COUNTY if:
(1) The COUNTY determines that any cost to the COUNTY in carrying
out any aspect of this Agreement has increased, including but not
limited to the following types of costs: new construction and new
parcel appraisals, mileage, postage, supplies, labor (including
fringe benefits) and other types of costs, whether similar or
dissimilar; and/or
2) The COUNTY reasonably determines that other costs should be
included in the costs of assessment work.
�0�
If the COUNTY desires to increase the assessment cost pursuant to this paragraph
13(B), it shall give written notice thereof by June 15 of any year and such increase shall
apply to the assessment for the calendar year next following the current calendar year. Any
such notification shall specifically set forth the amount of any new construction and new
parcel appraisal charges. Notwithstanding any provisions herein to the contrary, if any such
increase, exclusive of any charge for the estimated costs of new construction and new parcel
appraisals, exceeds seven and one half percent (7.5%) of the amount charged for the
assessment for the then current calendar year, exclusive of any charge for the estimated
costs of new construction and new parcel appraisals, the CITY may cancel this Agreement
by giving to the COUNTY written notice thereof, provided that said cancellation notice must
be received by the COUNTY not later than July 24 of the then current calendar year and said
cancellation shall be effective no earlier than five (5) days after the receipt of said notice by
the COUNTY and not later than July 31 of said next calendar year. Supportive records of the
cost increase will be open to inspection by the CITY at such times as are mutually agreed
upon by the COUNTY and CITY.
Failure of the COUNTY to give the CITY a price -change notice by June 15 shall
not preclude the COUNTY from giving CITY such notice after said date but prior to
September 1 of any year, provided that if such price increase exceeds said ten (10%) -
all as above set forth - the CITY may cancel this Agreement if the COUNTY receives
notice thereof not later than thirty-nine (39) days from the date of receipt by the CITY of
any said late price -change notice, provided further that any such cancellation shall be
effective not earlier than five (5) days after COUNTY's receipt of said cancellation notice
and not later than forty-six (46) days after the CITY's receipt of any said price -increase
notice.
t7�
Payment for each assessment shall be made in the following manner:
Approximately one-half (1/2) of the cost of an assessment (the amount payable being
set forth in a bill sent by the COUNTY to the CITY) shall be paid by the CITY no later
than the fifteenth (15th) day of the December which precedes the pertinent assessment
year; and the remaining portion of said cost (the amount payable being set forth in a bill
sent by the COUNTY to the CITY) shall be paid by the CITY no later than July 15 of the
pertinent year.
The COUNTY may bill the CITY after the aforesaid dates and in each such case,
the CITY shall pay such bill within thirty (30) days after receipt thereof.
14. Any notice or demand, which may or must be given or made by a party
hereto, under the terms of this Agreement or any statute or ordinance, shall be in writing
and shall be sent registered or certified mail to the other party addressed as follows:
TO CITY: Mayor, City of Crystal
4141 Douglas Drive
Crystal, MN 55422
TO COUNTY: Hennepin County Administrator
2300A Government Center
Minneapolis, MN 55487
copies to: County Assessor
Hennepin County
2103A Government Center
Minneapolis, MN 55487
copies to: Assistant County Assessor
Hennepin County
2103A Government Center
Minneapolis, MN 55487
im
Any party may designate a different addressee or address at any time by giving
written notice thereof as above provided. Any notice, if mailed, properly addressed,
postage prepaid, registered or certified mail, shall be deemed dispatched on the
registered date or that stamped on the certified mail receipt and shall be deemed
received within the second business day thereafter or when it is actually received,
whichever is sooner. Any notice delivered by hand shall be deemed received upon
actual delivery.
15. It is expressly understood that the obligations of the CITY under
Paragraphs 7, 8, 11, and 12 hereof and the obligations of the CITY which, by their sense
and context, are intended to survive the performance thereof by the CITY, shall so survive
the completion of performance, termination or cancellation of this Agreement.
THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK
(9)
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by its duly authorized officers and delivered on its behalf, this day of
2016.
Reviewed by County
Attorney's Office:
Date:
City organized under:
COUNTY OF HENNEPIN
STATE OF MINNESOTA
By: _
Chair of the County Board
And:
Assistant/Deputy/County Administrator
ATTEST:
Deputy/Clerk of the County Board
CITY OF CRYSTAL
By: _
Its
And:
Its
Statutory _ Option A Option B
(10)
Charter
Contract No. A16XXXX
EXHIBIT A
CITY OF CRYSTAL
During the contract term, the County shall:
1. Physically inspect and revalue 20% of the real property, as required by
law.
2. Physically inspect and value all new construction, additions and
renovation.
3. Adjust estimated market values on those properties not physically
inspected as deemed necessary per sales ratio analysis.
4. Prepare the initial assessment roll.
5. Print and mail valuation notices.
6. Respond to taxpayers regarding assessment or appraisal problems or
inquiries.
7- Conduct valuation reviews prior to Board of Review or Open Book
Meetings, as determined by the City — approximate dates: March through
May 15.
3. Attend Board of Review or conduct Open Book Meeting. Prepare all
necessary review appraisals. Approximate dates: April 1 — May 31.
9. Maintain an updated property file — current values, classification data and
characteristic data.
10. Prepare divisions and combinations as required.
11. Administer the abatement process pursuant to Minn. Stat. §375.192.
12. Prepare appraisals; defend and/or negotiate all Tax Court cases.
Memorandum
CITY of
CRYSTAL
DATE: April 14, 2016
TO: Mayor and City Council
FROM: Anne Norris, City Manager
SUBJECT: Open Book Option in Place of Board of Appeal and Equalization
In order for the City Council to act as the Board of Appeal and Equalization, at least 2
councilmembers need to receive the required training from the Department of Revenue.
While going through the training this year, the question came up of whether Crystal
should utilize the "open book" meeting in place of the annual Board of Appeal and
Equalization for residents with questions on property valuations.
Currently, the City Council acts as the Board of Appeal and Equalization at which
property owners can appeal the valuation of their property. Hennepin County assessing
staff provides the Council with background information prior to the Board meeting.
Residents who wish to appeal their valuations first submit their appeal to the Board and
the Council, acting as the Board, generally requests information from County staff and
bases any action on County staff recommendations.
The City Council also has the option of turning over the Board of Appeal to the County
in which County appraisers conduct an "open book" process where they are available to
discuss valuations with property owners. Appeals are made to the County board of
equalization. Hennepin County would provide the City Council with a report on all
appeals.
Open book meetings are held in locations convenient for property owners and are often
held over several days during both daytime and evening hours. The open book
meetings provide a forum for property owners to meet with County assessing staff on
an informal basis to review information about properties and to ask questions about the
valuation. Property owners do not need to make an appointment to meet with County
assessing staff. They simply show up at dates and times stated on the Notice of
Valuation and Classification and an appraiser will discuss the property and valuation.
Based on other cities using the "open book" process, benefits to the parties involved
are:
Benefits to property owners:
- less intimidating than presenting to the local Board of Appeal and
Equalization;
- more private setting for having questions answered;
- don't have to make appeals in front of neighbors or friends;
- meetings are generally one-on-one and assessing staff have more
time to spend with each property owner;
- process is efficient because concerns and questions often can be
resolved during the meeting; and
- appeals are still sent on to the County Board of Appeal and
Equalization.
Benefits to local Board of Appeal and Equalization (City Council):
- saves time for Board members; and
- Board members don't have to deal with matters regarding real estate
and valuations.
Benefits to County:
- allows County assessing staff to deal immediately with issues and
many cases are resolved so that there is no need to go the County
Board of Appeal and Equalization.
The cities of Golden Valley, Hopkins, Richfield, Robbinsdale and St. Anthony use the
open book option. Below are comments from each city regarding their experiences with
the open book option.
Golden Valley
This was the best thing we ever did. It takes the emotional
part out of the discussion especially if a couniclmember
knows the party.
Hopkins
Extremely happy about it. It's better for residents that don't
feel comfortable attending a council meeting.
Richfield
This was a great move for Richfield. The Open Book
process ...places the review of property values in a non -
formal face to face meeting between the property owners
and the experts. Property owners still have the option of
appealing the values to the County Board if they are not
satisfied with the Open Book review. We haven't had any
complaints or problems with the process.
Robbinsdale
Like it.
St. Anthony
Works great. Residents like not having to come to a Council
meeting.
The City Council should discuss its interest in switching to the open book option.
1of1
Open Issues (JIRA)
Displaying 3 issues at 04/14/16 5:46 PM.
Issue Type
Key
Summary
Assignee
Reporter
Status
Created
Updated
Issue
CRCI-48
Noise from basketball courts at North
Lions Park
Olga Parsons
Anne Norris
New Issue
3/25/2016 12:51
3/31/2016 12:30
Issue
CRCI-42
60XX Rockford Road
Anne Norris
Anne Norris
In Progress
9/10/2015 21:51
4/1/2016 12:23
Issue
CRCI-33
ADA Accessibility of Council meetings
Anne Norris
Anne Norris
In Progress
7/1/2015 15:21
3/31/2016 12:31
Generated at Thu Apr 14 17:46:26 CDT 2016 by Anne Norris using JIRA 7.2.0-OD-05-030#72002-shat:7e8526a5cf740f6elf5ecfa94ee287db31dcO82d.
1of1