Title
Resolution to Appropriate Funding for Sanitary Sewer and Water Improvement Charges for Stone School Circle ($853.13 General Fund) ($2,934.13 Sewage Disposal System) (8 Votes Required)
Memorandum
Attached for your consideration is a resolution to appropriate funding in the amount of $2,934.13 from the Sewage Disposal System (Walnut Ridge reserve) and General Fund to pay improvement charges for the Stone School Circle properties, also known as Stone School Townhomes. The original improvement charges were for four parcels on Stone School Road that were later developed to become 55 townhomes. Annexation from Pittsfield Township was completed on March 10, 2003, as notified by the State of Michigan.
Historically improvement charges were levied following annexation. Upon file review, we found that the sanitary sewer and water improvement charges for this property were never levied nor paid. An investigation revealed that the owner and architect, Marvin L. Vanek, passed away on August 7, 2006. Additionally, it was found that Mr. Vanek worked in conjunction with the City's Office of Community Development in the development of these townhomes. The majority of the units received some amount of subsidy.
The 55 units are clustered and each cluster is currently connected and active for sanitary sewer and water service. According to the procedures in place at the time of annexation, the property owner needs to now pay the property's share of the existing utilities through the City improvement charge levy as required under section 1:278, Chapter 12, of the Ann Arbor Code. The standard procedure is that the $2,934.13 Utilities Improvement Charge is to be levied and then made payable in one installment. Each of the 55 units would be required to pay 1/55th of the $2,934.13, or approximately $53.35 each.
In keeping with the City's commitment to providing continuing assistance to these affordable residences, we recommend that Council approve an appropriation of $853.13 from the Walnut Ridge reserve (which is a part of the Sewage Disposal System Fund Balance) put into place for use to offset sanitary sewer expense to serve the needs of affordable housing. We further recommend an appropriation of $2,081.00 from the General Fund fund balance to cover the remaining pending water improvement charge balances.
Staff
Prepared by: Beverly J. Selvig, Management Assistant, Public Services
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, The City has previously constructed improvements described as follows:
Parcels Previously Known as:
12-10-360-008, -009, -010, and -011 (3625, 3659, 3685, 3697 Stone School Road)
Sanitary Sewer
Job No. 2840
Research Park Sanitary, $63.50/acre x 4.31 acres = $ 274.12
Pittsfield Valley Trunkline, $134.34/acre x 4.31 acres = $ 579.01
Sanitary Sewer Trunkline Improvement Charges = $ 853.13
Water Main
16" Water Main in Stone School Road,
Non-District Job No. A-408W, Constructed in 1969
$520.25/connection x 1 connection/parcel x 4 parcels = $2,081.00
Total Improvement Charges = $2,934.13
Whereas, Martin L. Vanek, owner and architect, worked in conjunction with the City's Office of Community Development in the development of what is now referred to as Stone School Townhomes located on Stone School Circle;
Whereas, The development is being furnished sanitary sewer and water service;
Whereas, The practice in place at the time of annexation of the property was to levy improvement charges immediately following annexation;
Whereas, Mr. Vanek has recently passed away in 2006;
Whereas, Pursuant to Section 1:278, Chapter 12, of the Code of the City of Ann Arbor, the fair share of the cost of said improvements is levied against certain properties and this fair share has not been previously paid nor contracted for; and
Whereas, There are 55 townhomes in the development which would each be required to pay a prorated share of the total improvement charge, and the majority of these residents qualified for some sort of subsidy;
RESOLVED, That Council appropriate $853.13 from the Walnut Ridge Project, Sewage Disposal System Fund Balance, for the purpose of subsidizing payment of the sanitary sewer trunkline improvement charge to Sanitary Sewer Revenue Fund 0043-073-8000-7151 for the Stone School Townhomes;
RESOLVED, That Council appropriate $2,081.00 from the General Fund fund balance for the purposes of subsidizing payment of the water improvement charge to Water Revenue Fund 0042-073-8000-7151 for the Stone School Townhomes; and
RESOLVED, That the City Administrator be authorized to take any necessary action to complete this process.