9.e Discussion on Assessor's request to modify fee schedule
Staff Report
Date of Meeting: February 20, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Assessor agreement
Background: In April 2015 the City entered into an agreement for Assessment Services with Chase
Peloquin to provide these services for a 5-year period ending with the Board of Appeals and
Equalization meeting in 2020. The fee for the services is $20,615 per year plus $10 for each
residential building permit application. The agreement can be terminated by either party with a 90
day notice.
Due to circumstances described in a letter from Chase dated 2/12/2018 substantial changes
relating to the process of building permits by the State and County and limitations on the
access to the County system, Chase is seeking to increase the annual fee to $24,970. I spoke
with Bruce Munneke regarding the changes and he noted that the Assessor now need to submit
information to the County for all roofing, sidings, and window permits.
In terms of options the County provides assessment services for all but 7 communities. Those 7
communities are served by 3 assessors with Chase service 5 of the 7 communities.
Issue: Should the City modify the agreement to increase the annual fee for assessment
services?
Fiscal Impact: The proposed annual fee would increase the City’s cost by $4,335 or 21%. Currently
the fee is paid in installments of $1,500 per month with a final billing in February. If the monthly
fee did not increase, there would not be an impact on the 2018 budget.
Options:
1. Approve the fee increase and modification of the agreement
2. Provide notice of termination and seek proposals for assessment services
3. Provide notice of termination and contact with Washington County for assessment services
4. Take no action of the request
Recommendation: Option 1 – Based on the increased workload for smaller permit a fee increase is
justified. In speaking with the County the County cost to assess would be greater than the
increased fee.
Chase B. Peloquin | Scandia City Assessor
29067 Machmeier Ct Lindstrom, MN 55045
651-538-6383 | ScandiaAssessor@outlook.com
Monday, February 12, 2018
Scandia City Council
Neil Soltis, City Administrator
14727 209th St. N.
Scandia, MN 55073
Dear Council Members and Administrator Soltis,
During our initial discussion of compensation for Assessing Services, and subsequent
agreement, it was the goal of both the City Council and myself to maintain a fixed Annual
Fee for a period of five assessment years. Thus far we have able to sustain this rate for the
past three assessment years.
Under direction from the Minnesota Department of Revenue, the Washington County
Assessor’s Office has made substantial changes to the procedures relating to the processing
of building permits. Also, limitations to access the County system during crucial assessment
phases has resulted in the compression of an already tight work schedule.
Due to the increased labor involved in meeting these mandatory requirements I am
proposing to update the Annual Fee to $24,970. This updated Annual Fee will be effective
for the 2019 Assessment year and, for the initial year, the increase from the current Annual
Fee will not be due until April, 2019. At this time, I believe this rate can be maintained for
another three assessment years.
I understand the constraints of the local government budgeting process and appreciate the
careful consideration the Council gives to each dollar spent. However, I simply cannot
absorb the workload needed to satisfy these updated conditions.
Sincerely,
Chase Peloquin, SAMA
Scandia City Assessor