1c. Chapter 4, License Permit & Administrative 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
i~
MEMORANDUM
TO:
Todd Gerhardt, City Manger
FROM:
Greg Sticha, Finance Director
r~>
DATE:
December 8, 2008
SUBJ:
Adoption of Ordinance, Chapter 4, Chanhassen City Code
License, Permit and Administrative Fees for 2009
PROPOSED MOTION
"The Chanhassen City Council adopts the attached ordinance amending
Chapter 4 of the Chanhassen City Code."
City Council approval requires a simple majority vote.
BACKGROUND
The city attorney's office recommends that the fees be adopted by ordinance.
These rates will be effective January 1,2009.
DISCUSSION
BUILDING PERMIT FEES
The building code fees have not been increased since 1997. Staff is proposing a
three (3) percent increase in the building permit fees, rounded to the nearest
$0.05.
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.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mr. Todd Gerhardt
December 8, 2008
Chapter 4, Fees - 2009
Page 2
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.
Water Quality
Proposed
Land Use 2003 2004 2005 2006 2007 2008 2009
Single-Family Residential $994 $1,028 $1,093 $1,600 $1,900 $2,360 $2,840
Duplex $1,033 $1,120 $1,\91 $1,800 $2,200 $2,640 $3,170
Townhome $1,814 $1,967 $2,091 $3,100 $3,700 $4,440 $5,330
School/Church $1,772 $1,920 $2,041 $3,1 00 $3,700 $4,440 $5,330
Apartment/multi- famil y $1,945 $2,108 $/,241 $3,400 $4,100 $4,920 $5,910
Industrial $5,494 $5,955 $6,330 $9,500 $11,400 $13,680 $16,420
Commercial $7,008 $7,596 $8,075 $12,100 $14,500 $17 ,400 $20,880
Water Quantity
Proposed
Land Use 2003 2004 2005 2006 2007 2008 2009
Single-Family/Low $2,348 $2,545 $2,705 $2,900 $3,100 $3,410 $3,650
Density
Medium Density $3,528 $3,824 $4,065 $4,400 $4,700 $4,700 $5,030
High Density $5,171 $5,604 $5,957 $6,400 $6,800 $7,280 $7,790
Commercial/Industrial/B usiness $5,171 $5,604 $5,957 $6,400 $6,800 $6,820 $7,300
Parks/Open Space $1,411 $1 ,530 $1,626 $1,700 $1,800 $1,930 $2,070
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 2009, the utility study recommends a 7 % increase in the fee for sewer
and a 6 % increase in the fee for water. 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 $6,339 Lateral Connection Charge $6,280
Charge
Trunk Hookup Charge $1,893 Trunk Hookup Charge $5,087
Lake Ann Sub-Trunk Charge:
Lake Ann Interceptor Charge:
$1,699
$1,620
Mr. Todd Gerhardt
December 8, 2008
Chapter 4, Fees - 2009
Page 3
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 $175.00
for 2009. 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.
Listed Below is the 2007, current and proposed water consumption rate structure:
2007 Rates 2008 Rates
0-25,000 Gallons
25,000-50,000
50,000 +
1.81
2.26
2.62
(5% Inc)
(5% Inc)
(22% Inc)
1.72
2.15
N/A
2009 Alternative
1.90
2.37
2.75
The attached ordinance calls for 5% increases. We adopted the tiered rate structure in 2008.
Residents were notified through our Maple Leaf and Chanhassen Connection Publications, as
well as on our website, about the tiered structure.
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)
$1.90 per 1,000 gallons
$2.37 per 1,000 gallons
$2.75 per 1,000 gallons
$9.45
$4.75 per 1,000 gallons
$3.60 per 1,000 gallons
$3.60 per 1,000 gallons
$18.50
Mr. Todd Gerhardt
December 8,2008
Chapter 4, Fees - 2009
Page 4
SURFACE WATER MANAGEMENT FEES (Section 4-50)
The utility factor for each land use is not changing. The rates are increasing 4 percent for 2009.
The rates for tax parcels classified 1, 2 or 3 shall increase from $8.11 to $8.43. The rates for tax
parcels classified 4 through 8 shall increase from $15.83 to $16.46.
RECOMMENDA TION
Staff recommends that City Council adopt the attached ordinance amending Chapter 4 of the
Chanhassen City Code.
ATTACHMENTS
1. Ordinance Amending Chapter 4, Chanhassen City Code.
g:\plan\bg\city code\cc memo eh 4 fees 2009.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 (a) of the City Code, City of Chanhassen, Minnesota, is hereby amended
to read as follows:
(a) Building Permit and Fire Prevention Fees
1. Building permit fees shall be as set forth in Table I-A. When submittal of plans is
required, and the valuation is more than $3,000.00, a plan review fee equal to 65% of the
permit fee, shall also be charged.
2. Individual Sewage Treatment System permit fees shall be as set forth in Table I-A.
When submittal of plans is required, a plan review fee equal to 65% of the permit fee
shall also be charged.
3. Fire suppression and fire alarm permit fees, and fees for other construction permits issued
in accordance with the Minnesota State Fire Code, shall be as set forth in Table I-A.
When submittal of plans is required, a plan review fee equal to 10% of the permit fee
shall also be charged.
TABLE I-A
TOTAL VALUATION FEE
$1.00 to $500.00 $24.20 ~
$501.00 to $2,000.00 $24.20 ~ for the first $500.00 plus $3.15 ~ for each additional $100.00,
or fraction thereof, to and including $2,000.00
$2,001.00 to $25,000.00 $71.35 ~ for the first $2,000.00 plus $14.40 -l4-,OO for each additional
$1,000.00, or fraction thereof, to and including $25,000.00
$25,001.00 to $50,000.00 $403.00 391.25 for the first $25,000.00 plus $10.40 W:-l-O for each additional
$1,000.00, or fraction thereof, to and including $50,000.00
$50,001.00 to $100,000.00 $663.05 613.75 for the first $50,000.00 plus $7.20 +:OG for each additional
$1,000.00, or fraction thereof, to and including $100,000.00
$100,001.00 to $500,000.00 $1,023.55 993.75 for the first $100,000.00 plus $5.75 ~ for each additional
$1,000.00, or fraction thereof, to and including $500,000.00
$500,001.00 to $1,000,000.00 $3,330.75 3,233.75 for the first $500,000.00 plus $4.90 ~ for each
additional $1,000.00, or fraction thereof, to and including $1,000,000.00
$1,000,001.00 and up $5,777.00 5,608.75 for the first $1,000,000.00 plus $3.75 ~ for each
additional $1,000.00, or fraction thereof
1
Other Inspections and Fees:
1. Inspections outside of normal business hours........................... ............................$50.00 4-+-,QQ per hourI
(minimum charge - two hours)
2. Reinspection fees.................. . ..... ... . .. ... .. . . .. . ......... ., .... .. ... ... . .. . . . .., ..... .. ...$50.00 4-+-,QQ per hourI
3. Inspections for which no fee is specifically indicated.................................... ....$50.00 4-+-,QQ per hour'
(minimum charge - one-half hour)
4. Additional plan review required by changes, additions or revisions to plans........... .$50.00 4-+-,QQ per hourI
(minimum charge - one-half hour)
5. For use of outside consultants for plan checking and inspections, or both.. . .,. .. ... .... ... ... ... .. . .Actual costs2
Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment, hourly
wages and fringe benefits of the employees involved.
2 Actual costs include administrative and overhead costs.
4. HV AC (heating, ventilation & air conditioning), mechanical, plumbing and gas piping
permit fees shall be as set forth in Table I-B. When submittal of plans is required, a plan
review fee equal to 10% of the permit fee shall also be charged.
Table 1-B
V ALVA TION FEE
$0 to $1,000.00 3% of valuation, minimum $30.00
$1,001.00 to $10,000.00 $30.00 for the first $1,000.00 plus 2.25% of the valuation over
$1,000.00
$10,001.00 to $232.50 for the first $10,000.00 plus 1.75% of the valuation
$50,000.00 over $10,000.00
$50,001.00 and up $932.50 for the first $50,000.00 plus 1.5% of the valuation
over $50,000.00
5. Industrial heating equipment permit fees shall be as set forth in Table l-C.
TABLE 1-C
V ALVA TION FEE
$0 to $50,000.00 1.2% of valuation, minimum $30.00
$50,000 to $250,000.00 $600.00 for the first $50,000.00 plus .4% of the valuation
over $50,000.00
$250,001.00 to $1,400.00 for the first $250,000.00 plus .3% of the valuation
$500,000.00 over $250,000.00
$500,001.00 to $2,150.00 for the first $500,000.00 plus .2% of the valuation
$750,000.00 over $500,000.00
$750,001.00 and up $2,650.00 for the first $750,000.00 plus .1 % of the valuation
over $750,000.00
6. Fees for other inspections and services shall be as set forth in Table I-A.
2
Section 2. 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
$2,840.00 2,360.00/ Acre
$3,170.00 2,610.00/ Acre
$5,330.00 1,110.00/Acre
$5,330.00 1,110.00/Acre
$5,910.00 1,920.00/ Acre
based on development type
$16,420.00 13,680.00/ Acre
$20,880.00 17,100.00/Acre
based on development type
Water Quantity
$3,650.00 3,1l0.00/Acre
based on land use designation
based on land use designation
based on land use designation
$7,790.00 7,280.00/Acre
$5,030.00 1,700.00/ Acre
$7,300.00 6,820.00/ Acre
$7,300.00 6,820.00/Acre
$2,070.00 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 3. 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 $568.00 530.00 (sewer) and $1,526.00 1,139.00
(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.
$1,325.00 1,239.00/unit or $1,893.00 1 ,769.00/unit if the sewer
connection fee has not been paid at the time of final subdivision approval -
(Lake Ann Interceptor - $1,620.00 1 ,511.00/unit and Subtrunk $1,699.00
1,587.00/unit)*
$3,561.00 3,360.00/unit or $5,087.00 1,799.00 if the water connection fee
has not been paid at the time of final subdivision approval
$2,075.00 1,900.00/unit ($2,000.00 1,825.00 to Metropolitan Council &
$75.00 city SAC surcharge)
Sanitary Sewer
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.
3
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.
$1,893.00 1,769.00/unit - (Lake Ann Interceptor - $1,620.00 1,51'1 .OO/unit
and Subtrunk $1,699.00 1,587.00/unit)*
$5,087.00 1,799.00/unit
$2,075.00 1,900.00/unit ($2,000.00 1,825.00 to Metropolitan Council &
$75.00 city SAC surcharge)
Sanitary Sewer
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
$6,339.00 5,921.00
$6,280.00 5,921.00
Section 4. 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)
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)
4
$1.90 -h&-l- per 1,000 gallons
$2.37 ~ per 1,000 gallons
$2.75 ~ per 1,000 gallons
$9.45 9-:00
$4.75 4,.W per 1,000 gallons
$3.60 ~ per 1,000 gallons
$3.60 ~ per 1,000 gallons
$18.50 -:l:-+.-W
Section 5. 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 $8.43 &-1-+.
The surface water management fee for each tax parcel classified 4 through 8 shall be calculated
as follows: $16.46 ~ multiplied by the utility factor multiplied by the acreage of the parcel.
Section 6. This ordinance shall be effective January 1,2009 after its passage and publication.
PASSED AND ADOPTED this 8th day of December, 2008, 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 2009 fees.doc
5