5. Adopt Ordinance Amending Chapter 4, 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 Manager
FROM:
Greg Sticha, Finance Director
December 14,2009 ~
Adoption of Ordinance, Chapter 4, Chanhassen City Code
License, Permit and Administrative Fees for 2010
DATE:
SUBJ:
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, 2010.
DISCUSSION
Liquor License Fees (Section 4-15 (a))
Currently the city charges $250 for background investigations associated with a
liquor license application.. This is a flat fee and is charged per application, no
matter how many people are being investigated (typical is 2-4 per application).
The Carver County Sheriff's Department recently changed their billing rate to
$100 per person for a background check. Staff is recommending that the city
code be amended to charge $100 per person, which allows the city to recoup its
actual costs.
Surface Water Management Plan (Section 4-30 (c) 3. and Section 4-50)
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 city-wide 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 14, 2009
Chapter 4, Fees - 2010
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. For 2009, the fees were not changed. Ehler's & Associates, the City's financial
advisors, recommends a water quality fee increase of 8 percent and a water quantity fee increase
of 7 percent.
Water Quality
Proposed
Land Use 2003 2004 2005 2006 2007 2008 2009 2010
Single-Family Residential $994 $1,028 $1,093 $1,600 $1,900 $2,360 $2,360 $2,540
Duplex $1,033 $1,120 $1,191 $1,800 $2,200 $2,640 $2,640 $2,850
Townhome $1,814 $1,967 $2,091 $3,100 $3,700 $4,440 $4,440 $4,790
School/Church $1,772 $1,920 $2,041 $3,100 $3,700 $4,440 $4,440 $4,790
Apartment/multi - famil y $1,945 $2,108 $2,241 $3,400 $4,100 $4,920 $4,920 $5,310
Industrial $5,494 $5,955 $6,330 $9,500 $11,400 $13,680 $13,680 $14,770
Commercial $7,008 $7,596 $8,075 $12,100 $14,500 $17 ,400 $17,400 $18,790
Water Quantity
Proposed
Land Use 2003 2004 2005 2006 2007 2008 2009 2010
Single-Family/Low $2,348 $2,545 $2,705 $2,900 $3,100 $3,410 $3,410 $3,640
Density
Medium Density $3,528 $3,824 $4,065 $4,400 $4,700 $4,700 $4,700 $5,020
High Density $5,171 $5,604 $5,957 $6,400 $6,800 $7,280 $7,280 $7,780
Commercial/Industrial/ $5,171 $5,604 $5,957 $6,400 $6,800 $6,820 $6,820 $7,290
Business
Parks/Open Space $1,411 $1,530 $1,626 $1,700 $1,800 $1,930 $1,930 $2,060
The utility factor for each land use is not changing. The rates are increasing 4 percent for 2010.
The rates for tax parcels classified 1,2 or 3 shall increase from $8.43 to $8.77. The rates for tax
parcels classified 4 through 8 shall increase from $16.46to $17.12.
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 9,2009, the water and sanitary sewer trunk hook-up charges are to be
revised each year. For 2010, the utility study recommends a 7 % increase in the fee for sewer
lateral and a 6 % increase in the fee for water lateral. In 2007, the City began collecting 30
percent of the sewer and water charges at the time of final plat approval.
Mr. Todd Gerhardt
December 14, 2009
Chapter 4, Fees - 2010
Page 3
Sewer Charges/Lot Water Charges/Lot
Lateral Connection $6,783 Lateral Connection Charge $6,657
Charge
Trunk Hookup Charge $2,026 Trunk Hookup Charge $5,393
Lake Ann Sub-Trunk Charge:
Lake Ann Interceptor Charge:
$1,818
$1,734
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 $100.00 for 2010. This
change is incorporated in the proposed ordinance.
Park and Recreation Fees (Section 4-30 (d) 1).
Group Picnic Reservation Fees have been simplified and combined into one table:
Resident
$ 9G 100.00
200.00
45.00
100.00
115.00
250.00
$-100 125.00
~ 250.00
50.00
l-W 150.00
125.00
275.00
Non-resident
District 112/276
All other school districts
Chanhassen businesses
Non Chanhassen business
Mr. Todd Gerhardt
December 14, 2009
Chapter 4, Fees - 2010
Page 4
Resident $100.00 $110.00
Nonresident 220.00 210.00
District 112/276 +G:OO ~
.\11 other school districts 150.00 165.00
Chanhassen businesses 130.00 115.00
Non Chanhassen business 280.00 305.00
Resident $ 15.00 $ 50.00
Nonresident 100.00 110. 00
District 112/276 ~ W:OO
.^JI other school districts ~ ~
Chanhasscn businesses eG-:OO ~
Non Chanhassen business 130.00 115.00
Utility 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. 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. The existing conservation
water rate structure will need to be adjusted to remove the 5,000 gallon minimum consumption
from the base fee in order to be compliant with the new water conservation rate law passed in
2008. The City is required to be compliant by January 1,2010. The attached ordinance calls for
5% increases.
Mr. Todd Gerhardt
December 14, 2009
Chapter 4, Fees - 2010
Page 5
Listed Below is the 2007, 2008, 2009 and proposed water consumption rate structure:
Fixed Charge
0- 5,000 Gallons
5,001- 25,000 Gallons
25,001-50,000 Gallons
50,000 + Gallons
Minimum Water Charge per quarter
(equal to fixed charge)
2007
NA
1.72
1.72
2.15
NA
2008
NA
1.81
1.81
2.26
2.62
Bulk sales to contractors, landscapers, etc.
City fill stations or other designated locations.
RECOMMENDA TION
2009
NA
1.90
1.90
2.37
2.75
2010
5.00
1.00
2.00
2.49
2.89
5.00
2009 2010
4.75 5.00
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\city code\2009 code amendments\cc memo ch 4 fees 2010.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 4-15 (a) 3 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
The fees to conduct a background investigation on new liquor license applications for owners,
officers or operating managers shall be $250.00100.00 per person investigated. This
includes new applications as well as changes in officers or operating managers of existing
license holders.
Section 2. Section 4-30 (c) 3 ofthe City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Surface Water Management Fees (SWMP) - Water Quality and Water Quantity
Development Tvpe
Single-Family
Duplex
School/Church
Townhome
Apartment/High Density
Medium Density
Industrial
Commercial
Parks/Open Space
Water Quali tv
$~ 2,540.00/ Acre
$M4Q 2,850.00/ Acre
$4,44Q 4,790.00/ Acre
$4,44Q 4,790.00/ Acre
$~ 5,310.00/ Acre
based on development type
$13,680 14,770.00/Acre
$17,100 18,790.00/ Acre
based on development type
Water Quantity
$MW 3,640.00/Acre
based on land use designation
based on land use designation
based on land use designation
$~ 7,780.00/ Acre
$4;+00 5,020.00/ Acre
$~ 7,290.00/Acre
$~ 7,290.00/Acre
$-l-;-9W 2,060.00/ 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:
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Sewer and Water Fees.
Residential Development:
Shall pay a sewer and water connection fee of $~ 608.00 (sewer) and $~ 1,618.00 (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.
Sanitary Sewer
$~ 1,418.00/unit or $~ 2,026.00/unit if the sewer connection fee
has not been paid at the time of final subdivision approval - (Lake Ann
Interceptor - $~ 1,734.00/unit and Subtrunk $+,699 1.818.00/unit)*
$~ 3,775.00/unit or $~ 5,393.00 if the water connection fee has
not been paid at the time of final subdivision approval
$~ 2,175.00/unit ($~ 2,100.00 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
$~ 2,026.00/unit - (Lake Ann Interceptor - $~ 1,734.00/unit and
Subtrunk $M99 1,818.00/unit)*
$~ 5,393.00/unit
$~ 2,175.00/unit ($~ 2,100.00 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
$~ 6,783.00
$~ 6,657.00
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Section 4. Section 4-30 (d) 1 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Group picnic reservation fees:
Resident $ 00 100.00 $-1-00 125.00
Non-resident 200.00 22G 250.00
District 112/276 45.00 50.00
All other school districts 100.00 -l-W 150.00
Chanhassen businesses 115.00 125.00
Non Chanhassen business 250.00 275.00
All other school districts
Chanhassen businesses
Non Chanhassen business
$100.00
220.00
-1Q.;OO
150.00
130.00
280.00
$110.00
210.00
~
165.00
115.00
305.00
Resident
Nonresident
District 112/276
Resident
Nonresident
District 112/276
}JI other school districts
Chanhassen businesses
Non Chanhassen business
$ 15.00
100.00
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~
~
130.00
$ 50.00
110.00
W:OO
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~
115.00
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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 Fixed Charge $5.00 per quarter
- 0 to 5,000 gallons per quarter $1.00 per 1,000 gallons
- less than 5,001 to 25,000 gallons per quarter $-1-:00 2.00 per 1,000 gallons
- 25,OmH to 50,000 gallons per quarter $~ 2.49 per 1,000 gallons
- amount greater than 50,000 gallons per quarter $~ 2.89 per 1,000 gallons
- minimum water charge per quarter $~5.00
(for amounts up to 5,000 gallons per quarter equal to fixed charge)
Bulk sales to contractors, landscapers, etc. at
City fill stations, or other designated locations.
$~ 5.00 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)
$~ 3.78 per 1,000 gallons
$~ 3.78 per 1,000 gallons
$~ 19.45
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 $~ 8.77.
The surface water management fee for each tax parcel classified 4 through 8 shall be calculated
as follows: $.f..6.A.e 17.12 multiplied by the utility factor multiplied by the acreage of the parcel.
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Section 6. This ordinance shall be effective January 1,2010 after its passage and publication.
PASSED AND ADOPTED this 14th day of December, 2009, 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\city code\2009 code amendments\amendment ordinance chapter 4 fees 2010.doc
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