HomeMy WebLinkAboutA001 - Council Action Form dated November 10, 1992 COUNCIL ACTION FORM
Item # C�y
Date: November 10, 1992
SUBJECT: Establishing connection fees for properties that default on
special assessments.
BACKGROUND:
In 1978, the City levied assessments for the installation of sanitary sewers
in the Teagarden Area. Included within this assessment district was 3520
South Duff Avenue. The owner of 3520 South Duff Avenue did not pay on
the special assessments as they became due and payable.
Over time the owner has lost the property due to tax liens and is being
evicted from the property. The County is now the owner of the property.
The City has lost its ability to recover any of the original assessments;
thus the City paid for the entire sewer improvement as it relates to 3520
South Duff Avenue.
Section 28.40 of the City Code establishes a connection fee for properties
for which the City financed the sanitary sewer main construction. This
charge is usually applied when the construction of the sewer main is
accomplished through the capital improvement program. The Code stipu-
lates that the connection fee is imposed ". . .provided that no sewer utility
special assessment has been imposed previously with respect to said land
and the main was financed with funds of the City." The connection fee is
not levied if a special assessment is imposed because the property owner
pays for the improvement as they pay their assessments.
In the case of 3520 South Duff Avenue, the property owners never paid
for the sewer since they didn't pay on the assessments. Although not
initially expected to do so, the City financed the improvement. The
charges for the connection fee are established by Code and would amount
to $2,604.00 if imposed on this parcel. This amount would be payable at
the time a permit was issued for the sewer service construction.
In addition to the sewer connection fee, the City Code (Section 28.8)
provides for a water connection fee. The imposition of this fee is based
on the same principles as the sewer connection fee. In the case of 3520
South Duff Avenue, the City ultimately financed the improvement without
special assessments so the water connection fee should be due when the
owner applies for a plumbing permit to install a water service line. The
cost of the water connection fee totals $1,413.75.
A permanent method to address this type of situation would be to modify
the ordinance to cover nonpayment of assessments, rather than just to
address the current situation at 3520 South Duff Avenue. John Klaus has
prepared language that broadens the ordinance to include payment of the
assessment before the connection fee is waived. The proposed ordinance
is attached.
CAF - Establish Connection Fees
November 10, 1992
Page 2
ALTERNATIVES
1. Establish a sewer connection fee of $2,604.00 for the property known
as 3520 South Duff Avenue since the City financed the construction of
the sanitary sewer and no repayment was made through the special
assessments.
2. Modify the ordinance to not waive the connection fee if the special
assessment is not paid.
3. Do not impose the connection fee for sanitary sewer.
MANAGER'S RECOMMENDED ACTION:
It is recommended by the City Manager that the City Council adopt
alternative #2, modifying the law dealing with sanitary sewer connection
fees (28.40) such that the special assessment must be paid before the
connection fee is waived.
COUNCIL ACTION
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