1g. Chapter 4 City Code Amendment: Establishing Rate for Bulk Water Sales
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952,227.1180
Fax: 952.227.1190
Engineering
Phone: 952,227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
~
MEMORANDUM
TO:
Todd Gerhardt, City Manager
Paul Oehme, City Engineer/Dir. of Public Works? () .
6~'
FROM:
DATE:
July 9, 2007
SUBJ:
Approval of Amendment to Chapter 4 of City Code: Establishing
Rate for Bulk Water Sales
BACKGROUND
Staff is requesting that the City Council consider amending City Code to include a
"bulk" water rate. This rate would be used for contractors/landscapers that use
water for construction projects or for watering purposes. The City currently has
two fill stations that contractors can use to fill water trucks and tanks. One is
located on Galpin Boulevard and other is located at the new east water treatment
plant. The City does not usually allow contractors to take water from fire
hydrants. However, the city has made exceptions for ZRC, the contractor
working on the 212 project, and PCI, the pavement contractor for the 212 project.
Both contractors are using water from hydrants that are metered. Staff is billing
both contractors monthly.
The contractors that use the fill stations are required to pay upfront, at the public
works building, for the estimated amount of water they intend to use. They are
then given a code number for their payment. The contractor may go to either
station to fill a water truck or tank. The fill stations have meters and a number
pad to punch in a code, and the station dispenses water at 100 gallon increments.
The city has spent some upfront money to get the fill stations operational. Also
these bulk water sales do take some time for staff to administer. Staff is
proposing a higher rate for the bulk water sales to cover staff time and fill station
equipment and maintenance.
Currently the residential rate for water is $1.72/1000 gallons. The proposed bulk
water rate proposed at $4/1,000 gallons. Last year's fill station usage at the
Galpin Boulevard station was about 400,000 gallons. A rate of $4/1000 gallons
would equal about $1,600 in revenue. Using the current $1.72/1000 gallon rate,
the revenue is only $688. The new fill station at the east water treatment plant is
expected to sell about the same amount of water as the Galpin Boulevard fill
station. Each fill station costs about $12,000. The pay-back for the stations at the
$4/1,000 gallon rate is 7.5 years. The payback does not include the bulk rate sales
to the 212 contractors.
The City ot Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Bulk Water Rate Code Amendment
July 9, 2007
Page 2
Staff has contacted other cities that have fill stations and most have established a
bulk water rate they charge contractors. The following is the information staff has
received from other cities:
City
Prior Lake
Lakeville
Eagan
Savage
Eden Prairie
Bulk Rate
$5.00/1,000 Gallons
$2.32/1,000 Gallons!
$2.50/1 ,000 Gallons
$7.50/1 ,000 Gallons
$1.00/1 ,000 Gallons2
Notes: ! No fill station-City gives contractors meters to hook up to hydrants.
2 City is looking at changes to bulk sales rate and procedures.
RECOMMENDA TION
Staff recommends approval of an amendment to Chapter 4 of City Code
establishing a rate of $4.00/1,000 gallons for bulk water sales. Approval requires
a simple majority vote of those City Council members present.
ATTACHMENT
1. Proposed City Code Amendment
G:\enG\pAUL\mEMOS\hkgd 07(J)07 hulk w rUle upda.e.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 4
CHANHASSEN CITY CODE,
LICENSE, PERMIT AND ADMINISTRA T A TIVE FEES
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
Section 1. Section 4-45 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Utility rates are established for each 1,000 gallons of usage:
Water
-less than 25,000 gallons per quarter
- amount in excess of 25,000 gallons per quarter
- minimum water charge per quarter
(for amounts up to 5,000 gallons per quarter)
Bulk sales to contractors, landscapers, etc. at
City fill stations, or other designated locations.
Sewage - residential based on winter quarter usage
- commercial based on actual quarterly usage
- minimum sewage charge per quarter
(for amounts up to 5,000 gallons per quarter)
$1.72 per 1,000 gallons
$2.15 per 1,000 gallons
$8.60
$4.00 per 1,000 gallons
$3.27 per 1,000 gallons
$3.27 per 1,000 gallons
$16.35
Section 2. This ordinance shall be effective immediately upon its passage and
publication.
PASSED AND ADOPTED this _ day of _, 2007, by the City Council of
the City of Chanhassen, Minnesota
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on
)
g:\plan\bg\city code\amendment ordinance bulk water fee