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1f. Revised Sanitary Sewer/Water Hookup Fees.ri MEMORANDUM n Action by City Administrator Endors Y____ e d�7.1�� Modified TO: Don Ashworth, City Manager Detected,L Dat 7 —Z —!Z 6 Date Submitted to Commission FROM: Charles Folch, Director of Public Works o k - Date Submitted to Council DATE: March 28, 1996 SUBJ: Approve Revised Trunk Sanitary Sewer and Water Hookup Fees for 1996 PWO11 Sections 19 -21 and 19 -46 of the City Code (see attached) regulating connection to the municipal sanitary sewer and water system require the collection of hookup charges from properties not previously assessed for a trunk utility project.. These hookup charges are used to offset the construction costs associated with the trunk sanitary sewer and watermain system including lift stations, forcemains, wells, and water storage facilities. When special assessments are levied for trunk utility impro the city, it has been the City Council's policy to initially ass (REU) charge for every 10 acre increment of a large nonde remaining utility REU's are to be collected as a trunk hook the property is developed in the future. Therefore, it is imf revised on a regular basis, based on the Construction Cost I recover the City's these properties are connected to the Ci $1,050 for sanitary sewer and $1,375 fo Engineering News Record, Constructiot than when these rates were established. ment projects in the rural areas of s one residential equivalent unit .loping homesteaded property. The ► charge, at a future year's rate, when 'ative that these hookup charges be Jex (CCI), in order to adequately .st cost) during the time period until he current trunk hookup rates of tblished in the fall of 1993. The Cost Index (CCI) is approximately 6.1% higher now material and labor costs associated with cons percentage increase to the current charges w( for sanitary sewer and $1,460 for watermain. the inrianonary increase in period. Implementing this revised trunk hookup charges of $1,115 These revised trunk hookup rates shall apply to all sanitary sewer and water districts within the city with the exception of the Lake Ann District. Properties located within the Lake Ann Sewer District were assessed in 1991 for capacity in the Lake Ann Interceptor with the understanding that future subtrunk underlying systems would need to be constructed as land develops. In 1993, the City completed one of the subtrunk sewer systems (John son/Dolej s i/Turner Project No. 92 -5) and established an assessment rate of $659 per REU (Residential Equivalent Unit). This, in essence, is the trunk sanitary hookup rate for properties within the Lake Ann District (not CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 Don Ashworth March 28, 1996 Page 2 including the Lake Ann Interceptor charge). Incorporating the CCI increase would revise the , Lake Ann Sewer District subtrunk hookup rate to $700 per REU. All properties within the Lake Ann Sanitary Sewer District would continue to pay the Lake Ann Interceptor charge and the subtrunk hookup charge at the time of connection to city sewer. It is therefore recommended that effective April 9, 1996, the trunk utility hookup charges be adjusted to $1,115 per REU for sanitary sewer and $1,460 per REU for watermain for all utility districts within the city of Chanhassen with the exception that the Lake Ann District sanitary sewer subtrunk hookup charge be revised to $700 per REU, , jms Attachments: 1. Sewer Hookup Ordinance No. 19 -46. 2. Water Hookup Ordinance No. 19 -21. 3. Engineering News Record Construction Cost Indices. 4. Resolution. c: Dave Hempel, Assistant City Engineer Jerry Boucher, Utility Superintendent Pam Snell, Finance Director g:�en&harles\c0hcwkup.96 Il i J Ir 1 WATER, SEWERS AND SEWAGE DISPOSAL § 1946 (b) The applicant shall pay a connection fee equal to the proportionate cost of construc- tion of the sanitary sewer. The cost is to be determined by the city using the same formula as was used for assessments previously levied against other property for the main and shall include equivalency charges as required to arrive at the present day worth of the sewer service. This equivalency charge shall be equal to simple interest calculated from the project assessment date to the connection date at the rate of interest at which the bonds sold to finance the project were issued minus a depreciation factor of three (3) percent per year. If no assessment has been levied, the cost shall be determined by the city council, and in determin- ing said cost the council shall take into consideration the front footage, shape and area of the benefitted lot or tract of land. (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 benefit - ted property payable in semi- annual installments for a term of eight (8) years at an interest rate equal to that at which the project bonds were sold. Unless deferred payment is so authorized, all connection charges shall be payable in full prior to the issuance of a building permit for new construction on said property. (Ord. No. 5, § 5, 3- 11 -85) ' 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 compri se 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. ' 1071 § 19 -46 CHANHASSEN CITY CODE i (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 g P y 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) , Sec. 1947. Service availability charges. In addition to, and not in lieu of, all other charges imposed from time to time by the city ' for building permits, sewer connection permits, sewer usage rates, and sewer hook -up charges, the then prevailing Metropolitan Waste Control Commission service availability charge (SAC) shall be paid to the city at the time a building permit for new construction is issued, or ' at the time a sewer connection permit is issued for the connection of an existing building to the city sanitary sewer system. The amount of the service availability charge shall be by established the Metropolitan Waste Control Commission. ' (Ord. No. 5, § 7.02, 3- 11 -85) Sec. 1948. Persons authorized to make connections, etc.; bond. (a) Any work which in any way affects the city's sewer lines or connections thereto shall be performed only under the direct supervision of a master plumber licensed by the state. ' (b) In the event that the permitted work includes any direct contact with the city's sewer system the or alteration of a city street, the plumber shall file with the city a corporate surety ' bond approved by the city in the sum of two thousand dollars ($2,000.00) conditioned that he will perform competently all work with due care and skill, and in accordance with state and city laws, ordinances, rules and regulations. The bond shall provide that the principal and ' surety shall indemnify and save harmless the city and the owner of the premises for which the work is to be performed against all damages, costs, expenses, and claims of every nature arising out of violation of state and city laws, ordinances, rules and regulations, lack of skill, or negligence on the part of the principal in connection with the performance of any work hereunder or the furnishing of materials therefore. Said bond shall remain in force for a period of one (1) year, except that on such expiration it shall remain in force as to all penalties, ' claims and demands that may have arisen thereunder prior to such expiration. (Ord. No. 5, § 2.01, 3- 11 -85) ' Sec. 1949. Sewer specifications. (a) Sanitary sewer mains, manholes and service installation shall be as specked by the , most recent edition of the state plumbing code. (b) A separate and independent building sewer shall be provided for every building ' except where a building stands at the rear of another on "an interior lot and no building sewer can be constructed to the rear building through an adjoining street, alley, courtyard, or ! ' 1072 R WATER, SEWERS AND SEWAGE DISPOSAL § 19 -22 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 semi- annual installments for a term of eight (8) years at an interest rate equal to that at which the project bonds were sold. Unless deferred payment is so authorized, all connection charges shall be payable in full prior to the issuance of a building permit for new construction of said benefitted property. (Ord. No. 6, § 7, 3- 11-85) 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 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) 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. 6, § 8.01, 3- 11 -85) Sec. 19 -22. Persons authorized to make connections, etc.; bond. (a) Any work which in any way affects the city's water lines or connections thereto shall be performed only under the direct supervision of a master plumber licensed by the state. 1065 ENGINEERING NEWS RECORD Construction Cost Index History 20 -City Average (1913 = 100) Annual Averaae Year Index Year Index Monthly Year Index Jan. Fe b. M ar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Annual Ave. 2212 Year Index 1906 95 1929 207 1952 569 1975 2103 2128 2128 2135 2164 2205 2248 2274 2275 2293 2292 2297 1907 101 1930 203 1953 600 1976 2305 2314 2322 2327 2357 2410 2414 2445 2465 2478 2486 2490 2401 1908 97 1931 181 1954 628 1977 2494 2505 2513 2514 2515 2541 2579 2611 2644 2675 2659 2660 2576 1909 91 1932 157 1955 660 1978 2672 2681 2693 2698 2733 2753 2821 2829 2851 2851 2861 2869 2776 1910 96 1933 170 1956 692 1979 2872 2877 2886 2886 2889 2984 3052 3071 3120 3122 3131 3140 3003 1911 93 1934 198 1957 724 1980 3132 3134 3159 3143 3139 3198 3260 3304 3319 3327 3355 3376 3237 1912 91 1935 196 1958 759 1981 3372 3373 3384 3450 3471 3496 3548 3616 3657 3660 3697 3695 3535 1913 100 1936 206 1959 797 1982 3704 3728 3721 3731 3734 3815 3899 3899 3902 3901 3917 3950 3825 1914 89 1937 235 1960 824 1983 3960 4001 4006 4001 4003 4073 4108 4132 4142 4127 4133 4110 4066 1915 93 1938 236 1961 847 1984 4109 4113 4118 4132 4142 4161 4166 4169 4176 4161 4158 4144 4146 1916 130 1939 236 1962 872 1985 4145 4153 4151 4150 4171 4201 4220 4230 4229 4228 4231 4228 4195 1917 181 1940 242 1963 901 1986 4218 4230 4231 4242 4275 4303 4332 4334 4335 4344 4342 4351 4295 1918 189 1941 258 1964 936 1987 4354 4352 4359 4363 4369 4387 4404 4443 4456 4459 4453 4478 4406 1919 198 1942 276 1965 971 1988 4470 4473 4484 4489 4493 4525 4532 4542 4535 4555 4567 4568 4519 1920 251 1943 290 1966 1019 1989 4580 4573 4574 4577 4578 4599 4608 4618 4658 4658 4668 4685 4615 1921 202 1944 299 1967 1074 1990 4680 4685 4691 4693 4707 4732 4734 4752 4774 4771 4787 4777 4732 1922 174 1945 308 1968 1155 1991 4777 4773 4772 4766 4801 4818 4854 4892 4891 4892 4896 4889 4835 1923 214 1946 346 1969 1269 1992 4888 4884 4927 4946 4965 4973 4992 5032 5042 5052 5058 5059 4985 1924 215 1947 413 1970 1381 1993 5071 5070 5106 5167 5262 5260 5252 5230 5255 5264 5278 5310 5210' 1925 207 1948 461 1971 1581 1994 5336 5371 5381 5405 5405 5408 5409 5424 5437 5437 5439 5439 5408 1926 208 1949 477 1972 1753 1995 5443 5444 5435 5432 5433 5432 5484 5506 5491 5511 5519 5524 5471 1927 206 1950 510 1973 1895 1996 5523 5532 5528 1928 207 1951 543 1974 2020 1997 MNES�, Rte, A�LIK �OC�, INS M M M M M M M M M r CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA I DATE: MOTION BY. RESOLUTION NO: SECONDED BY. A RESOLUTION REVISING THE RATE OF TRUNK UTILITY HOOKUP CHARGES WHEREAS, the Chanhassen City Council has previously approved ordinances concerning the regulation of its municipal sanitary sewer and water systems and corresponding trunk hookup charges, and WHEREAS, the City Council may periodically revise these rates to reflect the Construction Cost Index changes. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby revise its trunk utility hookup charges effective April 9, 1996 as follows: $1,115 per sanitary sewer residential equivalent unit (REU), $1,460 per water residential equivalent unit (REU) for all utility districts within the city with the exception of the Lake Ann sanitary sewer district which shall have a hookup charge of $700 per sanitary sewer residential equivalent unit (REU) Passed and adopted by the Chanhassen City Council this 8th day of April 1996. ATTEST: I Don Ashworth, City Clerk /Manager YES NO Donald J. Chmiel, Mayor ABSENT