Title
RESOLUTION AUTHORIZING A FIRST AMENDMENT TO LEASE AGREEMENT WITH THE COUNTY OF ST. LOUIS FOR USE OF REAL PROPERTY NEAR THE PUBLIC SAFETY CAMPUS FOR THE STORAGE OF IMPOUNDED VEHICLES.
Body
CITY PROPOSAL:
WHEREAS, on or about January 1, 2010, the city of Duluth (“City”) entered into an agreement with the County of St. Louis (“County”) for the use of real property near the Public Safety Campus for the storage of impounded vehicles (“Impound Lot”);
WHEREAS, the City has paid to the County annual rent in the amount of $2,800 for the use of its real property;
WHEREAS, since 2009, Comfort Systems incorrectly billed an adjacent property owner of the Public Safety Campus for stormwater utility fees. The adjacent property owner contacted Comfort Systems in 2016 about these charges. After investigation, Comfort Systems credited the property owner for the overcharges and requested that the County back pay the fees that they should have been billed. Comfort Systems will also invoice the County each year for annual stormwater utility fees;
WHEREAS, the County received an invoice for the backpayment of the stormwater utility fees in the amount of $8,433.92 and requests that the City pay for half of the fee ($4,216.00) based upon the City’s use of a major portion of the Impound Lot. The Comfort Systems invoice for the Impound Lot is attached as Exhibit B;
WHEREAS, the County also requests an increase in the annual rent of the Impound Lot to cover one-half of the annual stormwater utility charge. The total annual charge in 2017 is $1,847.76; and
WHEREAS, the City and County need to amend the current lease agreement whereby the City: (a) reimburses the County for the backpayment of charges in the amount of $4,216; and (b) increases its annual rent to the County to cover half of the annual stormwater utility charge, which charge is $924.00 in 2017.
RESOLVED, that the proper city officials are hereby authorized to execute a first amendment to the lease agreement, substantially the same as the agreement attached as Exhibit A, with the County of St. Louis, for the use of real property near the public safety campus for the storage of impounded vehicles.
FURTHER RESOLVED, that the payment to provide for the back payment of stormwater utility charges shall be paid from Fund No. 110-160-1610-5441 (General Fund, Police, Admin & Investigation, Other Services & Charges).
FURTHER RESOLVED, that the annual rent for use of the Impound Lot shall be paid from Fund No. 110-160-1610-5460 (General Fund, Police, Admin & Investigation, Law Enforcement Operating Expenses).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a first amendment to the lease agreement with St. Louis County (“County”) for use of real property near the public safety campus for the storage of impounded vehicles (“Impound Lot”). The first amendment: (a) increases the amount of the yearly rent, (b) provides for back payment of storm water charges arising out of the City’s use of the Impound Lot, and (c) amends the “Notices” section. All other provisions of the original Lease Agreement remain in full force and effect.
Since 2009, Comfort Systems incorrectly billed an adjacent property owner of the Public Safety Campus for stormwater utility fees. The adjacent property owner contacted Comfort Systems in 2016 about these charges, and, after investigation, Comfort Systems credited the property owner for the overcharges and requested that the County back pay the fees that they should have been billed. Comfort Systems will also invoice the County each year for annual stormwater utility fees. For more information about the back charges and repayment of the utility fees, see the Account Explanation and Memo attached as Exhibits C and D, respectively.
Comfort Systems assesses stormwater utility charges based on impervious surface area. They are able to separate out different parts of the Public Safety Campus, including the Impound Lot. Since the City uses a large portion of the impervious service for the Impound Lot, the County requests that the City pay for half of the stormwater utility charges, including the backcharges and annual fee.