10. City Code Amendment: Section 19-21(a) & 19-46(a) Re Hookup Charges.CITY OF so.
CHANHASSEN
690 COULTER DRIVE a P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739 Actid - b C' -
MEMORANDUM
TO: Don Ashworth, City Manager
FROM: Charles Folch, Director of Public Works
DATE: January 7, 1996
n Y rty Adminle'(Pto
Endorsed
3Nodifie
Rejecte
Date Submitted to Commisal @N
Date Subm.;ttad to Council
°7
SUBJ: Amendment to City Code Ordinance Chapter 19 Concerning the Sewer and Water
Connection and Hook -Up Charges - PWO11
The last time the trunk sanitary sewer and water hook -up charges were adjusted by the City
Council on April 8, 1996, the City Council directed staff to amend Chapter 19 of the Code to
provide for an automatic adjustment to these charges on the first day of each year based on
construction cost index information for the local area. The attached ordinance amendment
proposal to Chapter 19 of the City Code accomplishes that directive. In addition, this same
premise is proposed for the lateral connection charges. Attached you will find the proposed
ordinance amendment to Section 19 of the City Code, the existing Sections 19 -20, 19 -21, 19 -45
and 19 -46 of the City Code, and the minutes from the April 8, 1996 meeting.
It is recommended that the City Council approve the first reading of the ordinance amendment to
Chapter 19, Sections 19 -20, 19 -21, 19 -45 and 19 -46 of the Chanhassen City Code concerning
trunk sewer and water hook -up and lateral connection charges.
jms
Attachments: 1. Proposed Ordinance Amendment to Section 19 of the Chanhassen City
Code.
2. Sections 19 -20, 19 -21, 19 -45, 19 -46 of the current City Code.
3. Minutes from the April 8, 1996 City Council meeting.
c: Dave Hempel, Assistant City Engineer
Jerry Boucher, Utility Superintendent
Pam Snell, Finance Director
Chris Thibodeau, Finance Department
\ `cfsl \vol2\engbharles\oc\hookup charges reporLdoc
CITY OF CHANHASSEN
COUNTIES OF CARVER AND HENNEPIN, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19 OF THE CHANHASSEN CITY CODE
CONCERNING SEWER AND WATER CONNECTION AND HOOK UP CHARGES
THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
SECTION 1. Section 19 -20(b) and 19 -20(c) of the Chanhassen City Code is amended to read:
(b) The applicant shall pay a connection fee that is just and equitable in an amount
established by the City Council. The amount of the charge shall be automatically adjusted each
year on January 1 to reflect construction cost changes in the local Minneapolis region as
evidenced by the Engineering News - Record Construction Cost Index.
(c) Upon written request of the owner of the benefitted property showing good cause,
the City Council may provide that the connection charge be specially assessed against the
benefitted property payable in semi - annual installments for a term of eight years at an interest rate
set by the City Council. Unless deferred payment is so authorized, all connection charges shall be
payable in full prior to the issuance of building permit.
SECTION 2 . Section 19 -21(a) of the Chanhassen City Code is amended to read:
(a) In addition to the connection charges set forth herein, a hook up charge, unless
charged as a part of a public improvement project, shall be imposed against each lot or tract of
land, or portion thereof served by the system for the usage of wells, pumping stations, water
storage facilities, and equipment of the city water system. The amount of this charge shall be
automatically adjusted each year on January 1 to reflect construction cost changes to the local
Minneapolis region as evidenced by the Engineering News - Record Construction Cost Index.
SECTION 3. Section 19 -45(b) of the Chanhassen City Code is amended to read:
(b) The applicant shall pay a connection that is just and equitable in an amount
established by the City Council. The amount of the charge shall be automatically adjusted each
year on January 1 to reflect construction cost changes for the local Minneapolis region as
evidenced by the Engineering News - Record Construction Cost Index.
SECTION 4. Section 19 -46(a) of the Chanhassen City Code is amended to read:
(a) In addition to the connection charges set forth herein, a hook up charge unless
charged as a part of a public improvement project, shall be imposed against each lot or tract of
land or portion thereof served by the sewer system for usage of the sewer treatment facilities, lift
stations, forcemains, and trunk sewers. The amount of this charge shall be automatically adjusted
each year on January 1 to reflect construction cost changes to the local Minneapolis region as
evidenced by the Engineering News - Record Construction Cost Index.
SECTION 5. This ordinance shall be effective immediately upon its passage and publication.
PASSED AND ADOPTED this
City of Chanhassen.
day of , 1997, by the City Council of the
ATTEST:
Don Ashworth, City Manager /Clerk
Nancy K. Mancino, Mayor
Published in the Chanhassen Villager on , 1997.
\ Icfsl \vol2\eng\charles\cc\connection charge.doc
§ 19 -18 CHANHASSEN CITY CODE
that the amount claimed to be owing is actually due and unpaid and that there is no legal
reason why the water supply of the delinquent customer may not be shut off, the city may shut
off the supply.
(b) It is unlawful for any person, firm, or corporation to turn on or off any water control
valve installed on the city water supply system on city property, right -of -way, or easement.
This includes, but is not limited to, all fire hydrants, water main control valves, water service
control valves for industrial and commercial properties and curb stops for residential water
services. The following are exempted by this prohibition
(1) City employees that are authorized to maintain the city water distribution system, or
who have administrative approval.
(2) Emergency personnel affiliated with the city for use in emergency situations. This
includes the fire department.
(3) Persons having written approval in their immediate possession from the utility su-
perintendent.
Properties with water turned on without authorization shall be charged a one hundred dollar
($100.00) service and water use fee. Properties with new structures under construction shall be
required to pay the fee before the certificate of occupancy is issued.
(Ord. No. 6, § 10.01, 3- 11 -85; Ord. No. 168, § 1, 4- 27 -92)
Sec. 19 -19. Use required; wells prohibited.
(a) Issuance of building permits for new construction where the property is adjacent to a
municipal watermain, or in a block through or to which the watermain extends, or is within
one hundred fifty (150) feet of the water system shall be conditioned upon connection to said
municipal water system, unless in the opinion of the city it is neither feasible nor practical to
make such connection.
(b) The drilling of new wells shall not be permitted for existing dwellings which can be
serviced by the municipal water system. Upon failure of a private water supply, connection to
the municipal system shall be required.
(Ord. No. 6, § 1.01, 3- 11 -85)
State law reference — Authority to require connections, M.S. § 412.221, subd. 31.
Sec. 19.20. Connection charges.
(a) No permit shall be issued to tap or connect with any watermain of the city either
directly of indirectly from any lot or tract of land unless the city clerk shall have certified:
(1) That the lot or tract of land, or portion of said lot or tract, to be served by such
connection to tap has been assessed for the cost of construction of the watermain with
which the connection is made; or
(2) If no assessment has been levied for said construction cost, that proceedings for
levying such assessment have been or will be commenced in due course; or
Supp. No.
1064
.477,40 Al ",,0 /T 0,P
WATER, SEWERS AND SEWAGE DISPOSAL § 19 -21
(3) If no assessment has been levied, and no assessment proceedings will be completed in
due course, that a sum equal to the portion of cost of constructing said watermain has
been paid to the city pursuant to subsection (b).
(b) Unless covered by subsection (a)(1) or (a)(2), the applicant shall pay a connection fee
that is just and equitable in an amount established by resolution of the city council. The
amount of the charge may periodically be revised to reflect construction cost changes evidenced
by the Engineering News - Record Construction Cost Index. Upon written request of the owner
of the benefitted property showing good cause, the city council may provide that the connection
charge be specially assessed as a lien against the benefitted property, payable in semiannual
installments for a term of eight (8) years at an interest rate set by the city council. Unless
deferred payment is so authorized, all connection charges shall be payable in full prior to the
issuance of a building permit.
(Ord. No. 6, § 7, 3- 11 -85; Ord. No. 236, § 1, 3- 27 -95)
Sec. 19 -21. Hook -up charges.
(a) In addition to the connection charges set forth herein, a hook -up charge, unless
assessed as a part of public improvement project, shall be levied against each lot or tract of
land, or portion thereof served by the system, for usage of the wells, pumping stations, water
storage facilities, and equipment of the city water system. The amount of this charge shall be
set by the city council and may periodically be revised to reflect construction cost changes
evidenced by the Engineering News - Record Construction Cost Index.
(b) The number of unit hook -up charges to be levied against each benefitted lot or tract of
land, portion thereof, shall be established using the following criteria:
(1) Single - family houses, townhouses, condominiums and duplex units shall each com-
prise one (1) unit;
(2) Apartments shall each comprise eighty (80) percent of a unit;
(3) Mobile homes shall each comprise one hundred (100) percent of a unit;
(4) Other buildings and structures shall be assigned one (1) unit for each two hundred
seventy -four (274) gallons of water usage and sewage flow which it is estimated they
will discharge, and commercial and industrial building units shall be assigned a
minimum of one (1) unit.
(c) The number of unit hook -up charges to be levied against the premises may thereafter
be revised by resolution of the city council to more accurately establish the use, and the council
in making said redetermination may take into account the actual quantity of water consumed
on said premises.
(d) lipon written request of the owner of the benefitted premises showing good cause, the
city council may provide that the hook -up charge be specially assessed against the benefitted
property payable in semi -annual installments for such period and on such terms as the council
Supp. No. 8 1065
§ 19 -44 CHANHASSEN CITY CODE
(g) A surcharge of one hundred dollars ($100.00) per month is hereby imposed and shall
be added to every sewer billing, to property owners who are found not in compliance with this
section. The surcharge shall be added every month until the property is verified to be in
compliance through the city's inspection program.
(h) The city council, upon recommendation of the city engineer, shall hear and decide
requests for temporary waivers from the provisions of this section where strict enforcement
would cause a threat to public safety because of circumstances unique to the individual prop-
erty under consideration. Any request for a temporary waiver shall be submitted to the city
engineer in writing. Upon approval of a temporary waiver from the provisions of this section,
the property owner shall agree to pay an additional fee for sanitary sewer services based on the
number of gallons discharged into the sanitary sewer system as estimated by the city engineer.
(i) Violation of this section is a misdemeanor and each day that the violation continues is
a separately prosecutable offense. The imposition of the surcharge shall not limit the city's
authority to prosecute the criminal violations, seek an injunction in district court ordering the
person to disconnect the nonconforming connection to the sanitary sewer, or for the city to
correct the violation and certify the costs of connection as an assessment against the property
on which the connection was made.
(Ord. No. 5, § 1.05, 3- 11 -85; Ord. No. 108, § 9, 4- 27 -92; Ord. No. 205, § 1, 5 -9 -94)
Sec. 19.45. Connection charges.
(a; No permit shall be issued to connect with the sanitary sewer system of the city either
directly or indirectly from any lot or tract of land unless the city clerk shall have certified:
1 That the lot or tract of land, or portion of the lot or tract, to be served by such
connection has been assessed for the cost of construction of the sanitary sewer lateral
with which the connection is made; or
2; If no assessment has been levied for said construction cost, that proceedings for
levying such assessment have been or will be commenced in due course: or
3J If no assessment has been levied, and no assessment proceedings will be completed in
due course, that a sum equal to the portion of cost of constructing said sanitary sewer
which would be assessable against said lot or tract has been paid to the city as
outlined in subsection (b) below.
Supp. No. 7 1070.6
WATER, SEWERS AND SEWAGE DISPOSAL § 19 -46
(b) The applicant shall pay a connection fee that is just and equitable in an amount
established by the city council. The amount of the charge may periodically be revised to reflect
construction cost changes evidenced by the Engineering News - Record Construction Cost
Index.
(c) Upon written request of the owner of the benefitted premises showing good cause, the
city council may provide that the connection charge be specially assessed against the
benefitted property, payable in semiannual installments for a term of eight (8) years at an
interest rate set by the city council. Unless deferred payment is so authorized, all connection
charges shall be payable in full prior to the issuance of a building permit.
(Ord. No. 5, § 5, 3- 11 -85; Ord. No. 236, § 2, 3- 27 -95)
Sec. 19 -46. Hook -up charges.
(a) In addition to the connection charges, a hook -up charge, for all lots not so charged as
a part of public improvement assessment, shall be imposed against each lot or tract of land, or
portion thereof, served by the sewer system for usage of sewer treatment facilities, lift stations,
forcemains, and trunk sewers. The amount of this charge shall be established by resolution of
the city council and may periodically be revised to reflect construction cost changes evidenced
by the Engineering News Record Construction Cost Index.
(b) The number of unit hook -up charges to be levied against each benefitted lot or tract of
land, or portion thereof, shall be established by using the following criteria:
(1) Single - family houses, townhouses, condominiums and duplex units shall each com-
prise one (1) unit;
(2) Apartments shall each comprise eighty (80) percent of a unit;
(3) Mobile homes shall each comprise one hundred (100) percent of a unit;
(4) Other buildings and structures shall be assigned one 1 unit for each two hundred
seventy four (274) gallons of water usage which it is estimated they will discharge,
and commercial and industrial building units shall be assigned a minimum of one (1)
unit.
(c) The number of hook -up charges imposed against the premises may thereafter be
revised by resolution of the city council to more accurately establish the usage of the system,
and the council in making said redetermination may take into account the estimated strength
and quality of sewage to be discharged into the sanitary sewer system.
(d) Upon written request of the owner of the benefitted premises showing good cause, the
city council may provide that the hook -up charge be specially assessed against the benefitted
property payable in semi -annual installments for such period and on such terms as the council
may determine. Unless deferred payment is so authorized, all hook -up charges shall be
payable in full prior to the issuance of a building permit for new construction on the property.
(Ord. No. 5, § 6, 3- 11 -85)
Supp. No 8 1071
City Council Meeting - April 8, 1996
b. Amendment to City Code Concerning Landscaping and Tree Removal for Transitional Buffering Between
Uses; Second and Final Reading and Approval of Summary Ordinance for Publication Purposes.
d. Amendment to Section 20- 1255(9) Temporary Development Signs; Section 20- 1301(2), Area Identification
Signs; and Section 20 -1 Definition; Second and Final Reading and Approval of Summary Ordinance for
Publication Purposes.
e. Resolution 496 -31: Approve New Municipal State Aid Street Designations:
1) MSAS 113:
West 78th Street from Kerber Boulevard to Great Plains Boulevard.
2) MSAS 113:
West 78th Street from Great Plains Boulevard to TH 101.
3) MSAS 119:
Great Plains Boulevard from TH 5 to West 78th Street.
4) MSAS 120:
Townline Road from Vinehill Road to TH 101.
g. TIF Payment to School District 112.
h. Approval of On -Sale Beer/Wine License Renewal, Happy Garden Restaurant.
i. Approval of Bills.
j. City Council Minutes dated March 25, 1996, (Councilman Senn and Councilman Mason abstained)
Park & Recreation Commission Minutes dated March 26, 1996
k. Approval of Temporary On -Sale Non - Intoxicating Liquor License Application, Chanhassen Lions Club, May
18 -19, Lake Ann Park.
1. Preliminary Plat Extension, Lake Ann Highlands, Lotus Realty.
All voted in favor and the motion carried.
Mayor Chmiel: How long will (c) take, Mark? Are there some real concerns in that?
Councilman Senn: I don't know. Could take a little bit. I talked to Kate and to John about it and I'm still not
comfortable. There's a point that I'd like to share with the Council and see what the Council thinks. It will
probably take a little discussion.
Mayor Chmiel: Okay. We'll move that item to 12(c). And Steve, how about your's?
Councilman Berquist: Probably take 3 minutes.
Mavor Chmiel: Okay, let's do it.
F. APPROVE REVISED SANITARY SEWER AND WATER HOOKUP FEES FOR 1996.
Councilman Berquist: Is the clock running? Charles and I had a conversation earlier today regarding the index
that's used to compute the increases that are being proposed. My recommendations were that we do one of two
things. We either, or perhaps both things. We get a little bit more detailed on a regional basis as far as the
.14 ...-.- � . - ----
City Council Meeting - April 8, 1996
construction cost index relative to our area, insofar as that the Midwest has a tendency, especially the northern
tier, has a tendency to have a somewhat inflated construction costs for a variety of reasons. So a little bit more
regional data would be advantageous. Secondly, if we're going on a 3 year basis before we re- establish these
things, perhaps language within the ordinance that wou:d speak to increases predicated against the CCI. It
would just take place on an automatic basis would be.
Councilwoman Dockendorf: Reviewed annually?
Councilman Berquist: Yeah, just annually. Annually on January 1st if the construction cost index shows as an
increase, it's plugged into the ordinance and it goes from there. So those are my ideas. Did you have an
opportunity to check with Engineering News?
Charles Folch: Yes I did and it appears that there is regional data. Unfortunately they weren't able to get it for
me today but I suspect they will get back to me either tomorrow or Wednesday so we can either, I guess maybe
two opts. One, you either direct myself to make that adjustment based on those numbers. Or if you wish to
table it, for me to bring the numbers back to you in 2 weeks, that's perfectly fine too. My guess is that the
numbers statistically will probably change maybe plus or minus .2 %, maybe .3% per year, which could amount
to maybe, for the sewer, trunk sewer, maybe could amount to maybe somewhere between a $6.00 to $10.00
change per unit. For the trunk water, it could be anywhere from maybe an $8.00 to a $13.00- $14.00 rate
increase so, whichever the Council prefers we can certainly do.
Mayor Chmiel: Okay. What would be your suggestion on that one Steve?
Councilman Berquist: Well ... make an amendment to the Code. I'd just, I mean I'd like to know what the dollar
differences are going to be but I don't think it's in our best interest to get involved in the minutia of it. I'd just
as soon pass an amendment outlining the change relative to a yearly update based on the CCI.
Councilman Senn: Yeah, this is an average of 2% per year increase which is, at least as I understood from the
data I have, just under both national and midwest average for the last 3 years. So it's just a hair under. Your
concern I think was that the midwest might be high but the midwest actually ranked pretty much par. At Ieast
now in terms of construction materials. Okay, that's all I can really talk about. Not specifically sewer and
water, that type of thing but in terms of general construction...
Councilman Berquist: Well I don't think there's anything in there that I can make a motion on. I can motion to
amend the ordinance and get that, if you have any follow -up paperwork on their part.
Councilman Senn: And do it annually.
Councilman Berquist: Yeah.
Councilman Senn: I would agree with that.
Councilman Berquist: Then I would make a motion to amend the City Code to, on a yearly basis, to be
reflective of the construction cost index relative to establishing trunk hook -up rates for sanitary sewer and water
mains, and let it go at that.
Councilwoman Dockendorf. With a regional cut or.
4
City Council Meeting - April 8, 1996
Councilman Berquist: With regional data applied.
Councilwoman Dockendorf: Question?
Mayor Chmiel: Question.
Councilwoman Dockendorf: Charles, how administratively difficult is that to find? Is it just a phone call?
Charles Folch: Real easy. It's a matter of whether you want to see that number change each year or whether
you just want us to administratively do it. We can do it automatically.
Councilman Mason: You can go with automatic.
Councilman Senn: Automatic, maybe just put it in the Admin packet.
Charles Folch: Yep.
Mayor Chmiel: Okay, any other discussion?
Roger Knutson: Mr. Mayor?
Mayor Chmiel: Yes Roger.
Roger Knutson: If I could point out, under your rules you require two readings for an ordinance.
Mayor Chmiel: Okay.
Councilman Berquist: Will this constitute one?
Roger Knutson: This will count as the first meeting, if you so desire yes. It's not on your agenda. You don't
have a written ordinance. I would recommend that you bring back, or staff bring back a written ordinance for
you at your next meeting. And that wouldn't have to hold up this. You could direct for this year, for example,
if you desire to, that the numbers be adjusted in accordance with the ... and that would do it. And then we could
amend the ordinance at the next meeting...
Councilman Berquist: And insofar as we have, we probably have a fairly high number of applications coming
it, it would behoove us to do that?
Roger Knutson: I think so. I mean at this time of year I suppose you'd be getting permit applications.
Councilman Berquist: Okay. I'll withdraw my first motion, until we act on this and then I'll make a second
motion acting on this.
Mayor Chmiel: Alright.
Councilman Berquist: So I'll move approval of Charles' memo dated 3 -28 -96 approving revised trunk sanitarn
sewer and water hookup fees for 1996.
W
City Council Meeting - April 8, 1996
Councilman Senn: Second.
Resolution #96 -32: Councilman Berquist moved, Councilman Senn seconded to approve the Revised Sanitary
Sewer and Water Hookup Fees for 1996 as presented by the City Engineer in his memo dated March 28, 1996.
All voted in favor and the motion carried.
Councilman Berquist: Then I will also move that we amend the City Code to be reflective of the annual CCI
indexing and make yearly water and sanitary sewer hookup's a matter of routine.
Mayor Chmiel: To continue with that Roger, are you looking to have two readings of an amendment for the
Code, because of the ordinance portion. Okay, then we'd bring this back.
Roger Knutson: Since you've already taken care of this year, there's no urgency.
Mayor Chmiel: There's no rush. Okay, good.
Councilman Senn: Second.
Councilman BeMuist moved, Councilman Senn seconded to direct staff to prepare an amendment to the City
Code to be reflective of the annual CCI indexing and to make yearly adjustments administratively to the water
and sanitary sewer hookup fees. All voted in favor and the motion carried.
VISITOR PRESENTATIONS: CHAN /CHASKA SOCCER CLUB, FIELD AVAILABILITY SUSAN HOFF
David Collett: Mr. Mayor, Council members. My name is David Collett. I live in Chaska. I wanted to Iive in
Chanhassen but my wife wouldn't let me. No. I represent the Chanhassen/Chaska Soccer Club. I'm a
representative. Sue Hoff is here with me tonight. I guess to make it real sweet and simple, we provided you
with a packet of information this evening. Talking about the organization. Jay Johnson, the President of the
organization provided a cover letter to give you some background of what we do and who we are. The sweet
and simple is, there's a dire need out there for fields for the kids to play soccer. Presently there's only one field
in the town of Chanhassen. Regulation field ... and a lot more is needed. ...part of the problem is soccer is kind
of the new kid on the block and when the planners are out there planning, I think I know some of you who
have kids in soccer. I've talked with a couple of you in the past and we've talked soccer stories but when plans
are being made by the school district, about building a new schools, put in parks, the people doing the planning
quite often have not had exposure to soccer. They didn't grow up with it. I didn't. I don't know how many of
you did. But I think most of our kids are playing it. So when they're doing the planning in the rooms late at
night, they right away plan what we all know about and that's baseball, which is great because I also have two
kids who play baseball. I'm sure we all have real needs. Soccer's always left out there in left field so to speak.
...are not getting the fields that we need to take care of our kids in this community. In this community, and the
surrounding communities, if we can represent all the communities combined. Presently we have, in 1996 there
will be over 600 kids in the soccer program that we have here. Last year it was 418. It's growing by 20% a
year. The question is do you stop the growth? Do you limit it? We don't know. We're not sure what to do
with it. We need fields presently to play on. They're not there. We needs fields for growth, and the rest of the
fields that are there. We need to have a regulation field. We have a varsity team in the school, our high school
team doesn't have a regulation field to play on. In your packet, to give you some comparison. Nothing more
than comparison sake... The first one talks about soccer fields in other communities. Other communities have a
lot more. That doesn't make any difference here today because what we have right now, we have to plan for
9