Title
Resolution Authorizing Water and Sanitary Sewer Capital Recovery Charges for 3039 Stone School Rd.
Memorandum
Your approval is requested to levy water capital recovery charges totaling $2,696.00 and sanitary sewer capital recovery charges totaling $5,982.00 on the property known as 3039 Stone School Rd.
City of Ann Arbor Code section 1:278, Chapter 12, requires the property owner to pay the property’s share of the existing utilities through the City Capital Recovery charge. The $2,696.00 Water Capital Recovery Charge is to be levied and then made payable in 3 annual installments and will accrue interest at 5.035687% per annum on the unpaid balance. The $5,982.00 Sanitary Sewer Capital Recovery Charge is to be levied and then made payable in 5 annual installments and will accrue interest at 3.06468% per annum on the unpaid balance.
The water main was constructed by the City in 2002.
The sanitary sewer main was constructed by the City in 1960.
A credited recovery charge applies for a parcel that was part of the city before 2004, or whose parent parcel was part of the city before 2004, and connects to a utility main built before 2004. This parcel was in the City of Ann Arbor prior to 2004.
It is therefore recommended that City Council levy these capital recovery charges according to the terms described above.
Staff
Prepared by: Crystal Allen, Deputy Treasurer
Reviewed by: Marti Praschan Financial Services Area Administrator and CFO
Jennifer Richards, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City constructed a Water Main in 2002 located in Eisenhower Pkwy, which is a part of the City’s water system;
Whereas, The City constructed a Sanitary Sewer Main in 1960 located in Eisenhower Pkwy, which is a part of the City’s Sanitary Sewer System;
Whereas, The owner of the real property commonly referred to as 3039 Stone School Rd. (which has a Parcel ID No. 09-12-10-201-026) connected to the Water and Sanitary Sewer Mains on or about September 15, 2023;
Whereas, Pursuant to Chapter 27 (Section 2:22b) of the City Code, a property that newly connects to the City’s Water System is required to pay a Water Capital Recovery Charge in accordance with the Code;
Whereas, Pursuant to Chapter 27 (Section 2:22b (2)(B)) of the City Code, The capacity generating assets charge component is reduced by a credit of 51% for a parcel that was part of the city before 2004, or whose parent parcel was part of the city before 2004, and connects to an existing water main built before 2004.;
Whereas, The net (and total) Water Capital Recovery Charge for such connection, calculated as set forth per Section 2.22b(2) of Chapter 27 of City Code, is $2,696.00;
Whereas, Pursuant to Chapter 28 (Section 2.42.4) of the City Code, a property that newly connects to the City’s Sanitary Sewer System is required to pay a Sanitary Sewer Capital Recovery Charge in accordance with the Code;
Whereas, Pursuant to Chapter 28 (Section 2.42.4(3)(B)) of the City Code, The capacity generating assets charge component is reduced by a credit of 11% for a parcel that was part of the city before 2004, or whose parent parcel was part of the city before 2004, and connects to an existing sanitary sewer main built before 2004.
Whereas, The net (and total) Sanitary Sewer Capital Recovery Charge for such connection, calculated as set forth per Section 2.42.4(3) of Chapter 28 of City Code, is $5,982.00; and
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 capital is levied against certain properties and the fair share for this property has not been previously paid;
RESOLVED, That Council levy a capital recovery charge against the following property which is specifically benefited by the above improvements:
Property Address: 3039 Stone School Rd
City Assessor Code: 09-12-10-201-026
COM NW COR SEC 10, T3S, R6E, TH S 1 DEG 46 MIN W 265 FT TO POB, TH N 89 DEG 55 MIN 40 SEC E 159.20 FT, TH S 23 DEG 30 MIN E 148.26 FT, TH N 70 DEG 54 MIN W 172.54 FT, TH N 1 DEG 46 MIN E 91.64 FT TO POB, EXC THE WLY 33 FT OF ROW City of Ann Arbor, Washtenaw County, State of Michigan
RESOLVED, That the full water capital recovery charge levied is $2,696.00 and the full sanitary sewer capital recovery charge levied is $5,982.00;
RESOLVED, That this capital recovery charge be divided into 3 equal installments with the first installment to be due on July 1, 2024, and the 2 subsequent installments to be due on July 1 of each and every year thereafter, with the deferred installments of the capital recovery charge to bear interest at the rate of 5.035687% per annum on water;
RESOLVED, That this capital recovery charge be divided into 5 equal installments with the first installment to be due on July 1, 2024, and the 4 subsequent installments to be due on July 1 of each and every year thereafter, with the deferred installments of the capital recovery charge to bear interest at the rate of 3.06468% per annum on sanitary sewer;
RESOLVED, That the Treasury Services Area be directed to send a copy of this resolution by electronic mail or first-class mail to the owners of the property and to promptly have this resolution recorded in the office of the Register of Deeds of Washtenaw County, Michigan;
RESOLVED, That this levied water capital recovery charge is to be invoiced to the owner, LEE, JAE MAN, of the property known as 3039 Stone School Rd., City of Ann Arbor, Washtenaw County, Michigan 48103, and to be credited in the amount of $2,696.00 to Fund 0042-070-1000-0000-7145; and
RESOLVED, That this levied sanitary sewer capital recovery charge is to be invoiced to the owner, LEE, JAE MAN, of the property known as 3039 Stone School Rd., City of Ann Arbor, Washtenaw County, Michigan 48103, and to be credited in the amount of $5,982.00 to Fund 0043-070-1000-0000-7145.