3. Chapter 4 Ordinance Amendment-Fees
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
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MEMORANDUM
TO:
Todd Gerhardt, City Manger
FROM:
Greg Sticha, Finance Director
DATE:
December 10, 2007
SUBJ:
Adoption of Ordinance, Chapter 4, Chanhassen City Code
License, Permit and Administrative Fees
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,.
ACTION REQUIRED
A simple majority vote of City Council present.
BACKGROUND
The city attorney's office recommends that the fees be adopted by ordinance. These rates
will be effective January 1,2008.
DISCUSSION
SURFACE WATER MANAGEMENT PLAN (Section 4-30 (c) 3.)
The City's Surface Water Management Plan (SWMP) was adopted in February 1994.
The SWMP recommended the City establish surface water connection fees as a means of
financing citywide improvements recommended in the SWMP. Connection fees are
charged to subdivisions prior to final plat approval to recoup the costs of the installation
and maintenance of public storm water infrastructure.
The connection charges were derived from estimating the costs of all the pipes and ponds
proposed in the SWMP. The total cost has been apportioned so developments are
charged according to the number of acres developed and the land use. The fee per acre
varies by land use as a result of the amount of impervious surface allowed within that
land use category.
At that time, the rates were calculated using market values of land in the City of
Chanhassen and the construction cost index. In the SWMP, it was noted that, "the rates
should be increased annually in line with the construction price index," but, until 2002,
the fees had not been updated since adoption.
Proposed
Land Use 2003 2004 2005 2006 2007 2008
Single-Family Residential $994 $1,028 $1,093 $1,600 $1,900 $2,360
Duplex $1,033 $1,120 $1,191 $1,800 $2,200 $2,640
Townhome $1,814 $1,967 $2,091 $3,100 $3,700 $4,440
School/Church $1,772 $1,920 $2,041 $3,100 $3,700 $4,440
Apartment/multi- fami I y $1,945 $2,108 $2,241 $3,400 $4,100 $4,920
Industrial $5,494 $5,955 $6,330 $9,500 $11,400 $13,680
Commercial $7,008 $7,596 $8,075 $12,100 $14,500 17,400
The City of 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,
Mr. Todd Gerhardt
December 10, 2007
Page 2
Water Quantity
Proposed
Land Use 2003 2004 2005 2006 2007 2008
Single-Family/Low Density $2,348 $2,545 $2,705 $2,900 $3,100 $3,410
Medium Density $3,528 $3,824 $4,065 $4,400 $4,700 $4,700
High Density $5,171 $5,604 $5,957 $6,400 $6,800 $7,280
CommercialllndustriallB usiness $5,171 $5,604 $5,957 $6,400 $6,800 $6,820
Parks/Open Space $1,411 $1,530 $1,626 $1,700 $1,800 $1,930
SEWER AND WATER FEES (Section 4-30 (c) 5.)
Based on the recommendations of the Utility Rate Study completed by Ehlers & Associates
discussed on November 27,2006, the water and sanitary sewer trunk hook-up charges are to be
revised each year. For 2008, the utility study recommends a 6% increase in the fee. In 2007, the
City began collecting 30 percent of the sewer and water charges at the time of final plat approval.
Sewer Charges/Lot Water Charges/Lot
Lateral Connection $5,924 Lateral Connection Charge $5,924
Charge
Trunk Hookup Charge $1,769 Trunk Hookup Charge $4,799
Lake Ann sub-trunk Charge:
Lake Ann Interceptor Charge:
$1,587
$1,514
A lateral connection charge replaces a missed assessment. When the City installs a pipe next to a
property, some owners choose not to connect. In some instances, the City may not have assessed
the property owner for their portion of the pipe. When those properties eventually connect, the
lateral connection charge approximately covers the cost of the omitted assessment. These
charges are only levied in rare instances. Trunk hook-up charges, on the other hand, are for core
utility infrastructure such as wells, lift stations, and trunk main oversizing. Every new lot in the
City that hooks up to the utility system pays a trunk hook-up charge.
Additionally, the Metropolitan Council is increasing the sewer access charge (SAC) by $150.00
for 2008. This change is incorporated in the proposed ordinance.
UTILLITY RATES (Section 4-45)
In 2007, we had some significant water usage events that caused staff to consider adding tiers to
our current water rates. We also had recommendations from the DNR and our financial advisors
to consider adding tiers to promote water conservation and help pay for infrastructure
improvements needed because of the water usage events from this summer. After a couple City
Council work session meetings, staff and Council have decided to add one tier to our current
water rate billing structure for water consumed over 50,000 gallons per quarter.
Mr. Todd Gerhardt
December 10,2007
Page 3
Listed Below is the current and proposed water consumption rate structure:
2007 Rates 2008 Proposed Rates 2008 Alternative
0-25,000 Gallons
25,000-50,000
50,000 +
1.81 (5% Inc)
2.26 (5% Inc)
2.62 (22% Inc)
1.72
2.15
N/A
1.79 (2% Inc)
2.26 (5% Inc)
2.69 (25% Inc)
The attached ordinance calls for the 5%, 5%, and 22% increases but could be amended for the
alternative proposal of 2%,5% and 25% increases. We will be notifying residents of the tiered
rate structure and increases through our Maple Leaf and Chanhassen Connection Publications, as
well as on our website.
Utility rates are established for each 1,000 gallons of usage:
Water
- less than 25,000 gallons per quarter
- 25,000 to 50,000 gallons per quarter
- amount greater than 50,000 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)
SURFACE WATER MANAGEMENT FEES (Section 4-50)
$1.81 per 1,000 gallons
$2.26 per 1,000 gallons
$2.62 per 1,000 gallons
$9.00
$4.50 per 1,000 gallons
$3.43 per 1,000 gallons
$3.43 per 1,000 gallons
$17.50
The utility factor for each land use is not changing. The rates are increasing 4 percent for 2008.
The rates for tax parcels classified 1, 2 or 3 shall increase from $7.80 to $8.11. The rates for tax
parcels classified 4 through 8 shall increase from $15.22 to $15.83.
RECOMMENDA TION
Staff recommends that City Council adopt the attached ordinance amending Chapter 4 of the
Chanhassen City Code.
A TT ACHMENTS
1. Ordinance Amending Chapter 4, Chanhassen City Code.
g:\plan\bg\city code\cc memo ch 4 fees 2008.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 4
CHANHASSEN CITY CODE,
LICENSE, PERMIT AND ADMINISTRATIVE FEES
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
Section 1. Section 4-30 (c) 3 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Surface Water Management Fees (SWMP) - Water Quality and Water Quantity
Development Type
Single-Family
Duplex
School/Church
Townhome
Apartment/High Density
Medium Density
Industrial
Commercial
Parks/Open Space
Water Quality
$2,360.00/ Acre
$2,640.00/ Acre
$4,440.00/Acre
$4,440.00/ Acre
$4,920.00/ Acre
based on development type
$13,680.00/Acre
$ 17,400.00/Acre
based on development type
Water Quantity
$3,41O.00/Acre
based on land use designation
based on land use designation
based on land use designation
$7,280.00/ Acre
$4,700.00/Acre
$6,820.00/ Acre
$6,820.00/ Acre
$1,930.00/Acre
Fees are based on the developable land. Undeveloped areas (wetlands), public parks, and
existing development are exempt from the fees.
Section 2. Section 4-30 (c) 5 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Sewer and Water Fees.
Residential Development:
Shall pay a sewer and water connection fee of $530.00 (sewer) and $1,439.00 (water) at the time
of final subdivision approval.
Sewer and Water Trunk Hook-up Fees (area trunk fees). Fee is to be paid at time of building
permit. Parcels previously assessed trunk hook-up fees are exempt. Residential trunk hook-up
fees are based per unit.
1
Sanitary Sewer
$1,239.00/unit or $1,769.00/unit if the sewer connection fee has not been
paid at the time of final subdivision approval - (Lake Ann Interceptor-
$1,514.00/unit and Subtrunk $1,587.00/unit)*
$3,360.00/unit or $4,799.00 if the water connection fee has not been paid
at the time of final subdivision approval
$1,900.00/unit ($1,825.00 to Metropolitan Council & $75.00 city SAC
surcharge)
Water
SAC
*Parcels within the Lake Ann sewer district will be subject to the Lake Ann Trunk sewer fees in
addition to the sewer trunk hook-up fees.
Commercial, Industrial and Institutional Development:
Sewer and Water Trunk Hook-up Fees (area trunk fees). Fee is paid at the time of building
permit. Parcels previously assessed trunk hook-up fees are exempt. Trunk Hook-up fees are
based on the number of Sanitary Access Charge (SAC) units assigned by Metropolitan Council
for office or Industrial/Commercial buildings.
Sanitary Sewer
$1,769.00/unit - (Lake Ann Interceptor - $1,514.00/unit and Subtrunk
$1,587.00/unit)*
$4,799.00/unit
$1,900.00/unit ($1,825.00 to Metropolitan Council & $75.00 city SAC
surcharge)
Water
SAC
*Parcels within the Lake Ann sewer district will be subject to the Lake Ann Trunk sewer fees in
addition to the sewer trunk hook-up fees.
All Development:
Lateral Connection Charges: If the lot or tract of land, or portion thereof, to be served by a
lateral connection that has not been assessed for the cost of construction, then the applicant shall
pay the following lateral connection:
Sewer Lateral Connection Charge
Water Lateral Connection Charge
$5,924.00
$5,924.00
Section 3. 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
- 25,000 to 50,000 gallons per quarter
- amount greater than 50,000 gallons per quarter
- minimum water charge per quarter
(for amounts up to 5,000 gallons per quarter)
$1.81 per 1,000 gallons
$2.26 per 1,000 gallons
$2.62 per 1,000 gallons
$9.00
2
Bulk sales to contractors, landscapers, etc. at
City fill stations, or other designated locations.
$4.50 per 1,000 gallons
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)
$3.43 per 1,000 gallons
$3.43 per 1,000 gallons
$17.50
Section 4. Section 4-50 of the City Code, City of Chanhassen, Minnesota, is hereby amended to
read as follows:
Surface Water Management Fees.
Classification Land Use Utility Factor
1 Single-family and Rural residential Not Applicable
2 Agricultural Not Applicable
3 Undeveloped Not Applicable
4 Medium density residential 2.22
5 High density residential, Industrial, Office, Institutions 3.30
(churches, schools, government buildings, hospitals)
6 Business/Commercial 4.23
7 Parks, cemeteries, golf courses, arboretum 0.46
8 Parking lots as a principal use 6.14
The surface water management fee for each tax parcel classified 1, 2 and 3 shall be $8.11.
The surface water management fee for each tax parcel classified 4 through 8 shall be calculated
as follows: $15.83 multiplied by the utility factor multiplied by the acreage of the parcel.
Section 5. This ordinance shall be effective January 1,2008 after its passage and publication.
PASSED AND ADOPTED this 10th day of December, 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 )
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