Report Prepared by: Correnna Randazzo, Engineering Technician, Engineering
Title
SUBJECT: Approval of an Agreement and Lien Affecting Real Property Deferral of Water Connection Fees for 67 S. Coffee Street
REPORT IN BRIEF
Considers approving the Agreement and Lien Affecting Real Property - Deferral of Water Connection Fees for 67 S. Coffee Street.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Agreement and Lien Affecting Real Property- Deferral of Water Connection Fees with, Larry K. Wright, Trustee under Trust A of Wright Family Trust Agreement and Larry K. Wright Trustee under Trust B of Wright Family Trust Agreement dated November 1, 2006, for 67 S. Coffee Street; and,
B. Authorizing the City Manager or Deputy City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as conditioned by Council; or,
3. Deny based on specific findings; or,
4. Refer to staff for reconsideration of specific items as requested by Council; or,
5. Continue to a future meeting.
AUTHORITY
Merced Municipal Code (MMC) Chapter 15.40 - Water Main Connections
MMC Section 15.40.110 - Payment.
CITY COUNCIL PRIORITIES
Not Applicable.
DISCUSSION
Prior to a property connecting to the City’s water system, the Merced Municipal Code (MMC) requires payment of Facility fees. The owner of 67 S. Coffee Street, Larry K. Wright, Trustee under Trust A of Wright Family Trust Agreement and Larry K. Wright Trustee under Trust B of Wright Family Trust Agreement dated November 1, 2006, has applied for the Off-site Water loan as he falls under Median of income established for Merced County by the State of California Department of Housing and Community Development income limits. The owner currently is in a state of emergency as his well has gone dry and needs to be connected as soon as possible. Owner was able to pay the connection deposits required for City forces to install a 1-inch service in the amount of six thousand five hundred dollars ($6,500.00) but is requesting to be financed in the amount of nine thousand three hundred nine dollars ($9,309.00) for the facility fees required for 1-inch connection.
Amount Finance: $9,309.00
Length of Agreement: 20 years
Annual Interest Rate: 1.422%
Monthly Payment: $44.75 starting October 1st, 2022
Security: Lien placed on Real Property
IMPACT ON CITY RESOURCES
None.
ATTACHMENTS
1. Agreement and Lien affecting Real Property.