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B. Storm Sewer Connection Charges 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 B - ~ MEMORANDUM . . //,0. TO: Paul Oehme, CIty Engmeer \ t Terry Jeffery, Water Resources Coordinator r January 12, 2009 tJ~. FROM: DATE: SUBJ: Storm Sewer Connection Charges EXECUTIVE SUMMARY I have completed my review of storms ewer connection charges assessed in other communities. The comparison was limited in that the assessment methodology and land use classifications differed, often significantly, between cities. The attached spreadsheet shows the cost on a square foot basis trying to match zoning districts as closely as possible. The following table lists the average charge per land use in eight (8) metropolitan communities during 2008 and the proposed rate for 2009 in Chanhassen. Land Use Category Average (2008) Proposed Chanhassen Rates 2009 Percent Overt (under) Avera e Commercial 0.236 0.615 +1.61 Note: Costs are in dollars per square foot. Average rates are based upon 2008 rate schedules. DISCUSSION Chanhassen has eight different zoning classes which are assessed. Other communities use a variety of zoning classifications but the most common schema is to use three zoning classes: low-density residential, high-density residential and commercial/industrial. The City of Shakopee charges every development a flat rate of $0 .118/ft2. In addition, they charge a treatment and storage fee at varying rates per land use. This rate is changed to a flat rate of $0.024/ft2 ifthe developer employs alternative treatment and storage best management practices. Chanhassen is a Community for Life. Providing for Today and Planning for Tomorrow Paul Oehme January 12, 2009 Storm Sewer Connection Charges Page 2 The City of Rosemount charges a "trunk area charge" of either $0. 153/ft2 or $0.204/ft2 depending upon land use. This is paid at the time of final plat. An additional treatment and storage fee is assessed with the SAC/WAC charges when the building permit is issued. This fee is $745/lot for single-family and duplex - assuming a typical lot of 1/3 acre, this amounts to $0.052/ft2 for single-family. The fee is $280/unit for multi-family housing. At 12 units per acre (the minimum density to be classified as high-density) this equals an additional $0.077/ft2. The City of Savage applies five different rates: $0.212/ft2 for single-family residential, $0.256/ft2 for multi-family residential and then three classes for commercial/industrial based upon percent cover by impervious surface up to a maximum of $0.309/ft2. The Cities of Princeton, Bumsville and Waconia use a flat trunk area fee ranging from 0.05/ft2 to $0.260/ft2. Eagan uses a more complicated formula based upon per-acre land values plus the cost of excavation at a rate of $8.00/yard. The figures included in the Eagan fee also show the fee with a 50% reduction. The Cities of Farmington, Chaska and Prior Lake all charge a similar fee but the information was not readily available on their websites. As of the time of this memorandum, I had not yet heard back from the respective agents for these cities. According to conversations with the City Engineer for Farmington, they are anticipating a 40% increase in stormwater fees. Even with the proposed rate increase, the City of Chanhassen charges are consistent with what the other communities charge for residential development. Chanhassen does charge two times more than the other communities for industrial and commercial development. This difference in cost between residential and commercial/industrial is intended to reflect the difference in total hardcover and, therefore total runoff from the site which needs to be stored and treated. It is also important to note that several communities include land in their calculations that would be considered "undevelopable" in the City of Chanhassen. For instance, Chanhassen does not assess for any land within a drainage and utility easement which would typically include the entire outlot in which a stormwater pond or wetland is located. Conversely, many ofthe other cities including Rosemount, Shakopee, and Savage charge for everything outside of the high water level for storm water ponds and the normal water level for wetlands. The fees indicated for the City of Chanhassen does not reflect any reduction resulting from SWMP credits. This could be as much as 25% ofthe total assessed fee. Several other communities do not provide credit for features and some, as in Savage, charge additional fees if a development is "unable to provide adequate on-site ponding". This additional fee is $0.104 for single-family residential, $0.178 for multi-family residential, and $0.357 for commercial and industrial. Given the calculation of "developable land", the credits available in Chanhassen and the additional fees charged by some other cities, the stormwater fees charged in Chanhassen is less g:\eng\terry\surface water\swmp fees\other city fees\Ol1209 storm sewer connection charges.doc Paul Oehme January 12, 2009 Storm Sewer Connection Charges Page 3 than shown in the above table in relation to other communities. Currently the credits granted to a development are strictly based upon water quality features and do not address volume reduction. It may be feasible to tier the industrial and commercial by total impervious coverage so that rates are reduced for those commercial site which seeking to minimize the total area paved. Still other credit options might be available such as cisterns, green roofs, preservation of woodlands in conservation easements or other accepted best management practices for volume reduction. 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