Title
Resolution Authorizing Water Improvement Charge for 305 Rock Creek Court ($12,559.00)
Memorandum
Your approval is requested to levy the 2009 fixed water improvement charge of $12,559.00 on the property known as 305 Rock Creek Court. The previous owners were given permission to obtain water service by connecting to water main in Orchard Hills Drive although they were not a part of the assessed water main district. The applicable connection charges have been paid and the property is “active” for water service. In order for the City to allow this connection, the owners signed a water agreement in 1989 that indicates the water assessment for this property will become due in the amount in place at the time water main is constructed in Rock Creek Court. There are no current plans in the approved Capital Improvement Plan to construct water main in Rock Creek Court.
The 1989 agreement predates the 2008 Code change which establishes fixed improvement charges. The home sold in July 2009 and in order to satisfy the recorded water agreement and address this outstanding liability against the property, the new owners requested to pay the 2009 fixed water improvement charge with an installment plan. Payment of this improvement charge results in the prepayment of the assessment for the property when water main is constructed in Rock Creek Court. However, it is uncommon for a city parcel to have a utility service without the assessment, or improvement charge, being satisfied. Therefore, staff supports the new owners’ request to fulfill this obligation.
The property owners request to pay now 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. No amount is due for the sewer improvements that service the property. The $12,559.00 Water Improvement Charge is to be levied and then made payable in 11 annual installments at 5.270% interest per annum on the unpaid bala...
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