1i. 1997 Water Rates Modification.1
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CITY OF 1A1
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
DATE: December 6, 1996
TO: Don Ashworth, City Manager f�
FROM: Pam Snell, Finance Director
SUBJ: 1997 Municipal Sewer & Water Rates
Attached is "A Resolution Establishing Municipal Sewer and Water Rates" for 1997. These rates are in
accordance with the projected revenues for the proposed 1997 budget. I have also attached a copy of the
Deloitte & Touche 1995 Management Recommendation referencing the City's utility rates.
J
City of Chanhassen
Carver and Hennepin Counties, Minnesota
DATE: December 16, 1996 RESOLUTION NO:
MOTION BY: SECONDED BY: '
A RESOLUTION ESTABLISHING MUNICIPAL SEWER AND WATER RATES
WHEREAS, this municipality maintains a public sanitary sewer system and public water ,
system; and
WHEREAS, Chanhassen City Code Chapter 19 provides that the City Council may from '
time to time establish revised rate schedules for usage of the public sanitary sewer system and the
public water system. '
NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen City Council:
1. The following water use rates are hereby established: '
A. Connected Structures
'
The following charges are imposed on each structure connected to the
municipal water system:
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(1) A minimum charge of W.7-5 $6.35 per dwelling unit or per billing
statement generated for quarterly water usage not exceeding 5,000
'
gallons.
(2) A charge of $44-5 $1.30 per 1,000 gallons, or fraction thereof, for all
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quarterly water usage up to 25,000 gallons; and
(3) A charge of 4-.� $1.50 per 1,000 gallons, or fraction thereof, for all
'
quarterly water usage in excess of 25,000 gallons.
(4) A charge of $8.00 per year for each connection to the municipal
'
water system to support mandated water quality testing services.
B. Unconnected Structures
'
A quarterly charge of $10.00 is hereby imposed on each single family '
attached dwelling, each single family detached dwelling, each commercial
structure and each industrial structure which is not connected to the
municipal water system when municipal water service is available. '
' 2. The following sewer usage rates are hereby established:
'
A.
Structures Connected to Both Sewer and Water
A quarterly charge, based on winter quarter municipal water usage,
'
is hereby imposed on each single family dwelling, each commercial
structure and each industrial structure, which is connected to both the
municipal water system and the municipal sewer system as follows:
'
(1)
A separate billing statement shall be generated for each water meter,
'
and
O 2
A charge of $2.60 per 1,000 gallons or fraction thereof for all
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quarterly water usage provided however, that the minimum quarterly
charge shall be $13.00.
'
Alternate System of Billing Computation
If water consumption during the winter billing quarter does not
'
accurately approximate actual sewer usage throughout the entire
billing year, the quarterly sewer charge shall be based upon water
consumption during such other billing quarter as most accurately
'
reflects actual sewer usage during the entire billing year. If water
consumption during any particular billing quarter does not accurately
approximate actual sewer usage, the quarterly sewer charge shall be
based upon average quarterly water consumption during the entire
'
billing year, or such other method as in the opinion of the City
Engineer which most closely approximates actual sewer usage.
'
B.
Structures Connected to Sewer But Not to Water
(1)
Regular Residential Rate
A quarterly charge is hereby imposed on each single family attached
dwelling and each single family detached dwelling which is
'
connected to the municipal sewer system but not to the municipal
water system as follows:
'
$52.00 per dwelling unit.
(a) Senior Citizen Discount. Provided, however, that the
'
quarterly charge shall be $26.00 per quarter if said dwelling
unit is occupied by no more than two persons:
A
i) at least one of whom is at least 65 years of age, and I
at least one of whom is the owner of I
said dwelling unit.
(b) Alternate System of Billing Computation.
,
The quarterly sewer charge shall be based upon actual private
source water consumption and upon the rates set forth in
Section A, above, if a water metering system acceptable to
'
the City has been installed, through which accurate water
consumption records can be established.
(2) Non - Residential Rates
A quarterly charge is hereby imposed on each commercial '
structure and each industrial structure, which is connected to
the municipal sewer system but not to the municipal water
system, at rates set forth in Section A, above, and on the '
basis of deemed sewer usage as estimated by the City
Engineer on a case -by -case basis approximating as closely as
possible actual sewer usage of similar land used actually '
connected to the municipal sewer and water systems.
Structures Not Connected to Sewer '
(1) A quarterly charge is hereby imposed on each single family
attached dwelling and each single family detached dwelling, '
which is not connected to the municipal sewer system though
connection is required by City ordinance as follows:
$104.00 per dwelling unit, provided, however, that
the quarterly charge shall be $52.00 per dwelling unit
if said dwelling unit is occupied by no more than two '
persons, at least one of whom is at least 65 years of
age, and at least one of whom is the owner of said
dwelling unit. '
(2) A quarterly charge is hereby imposed on each commercial '
structure and each industrial structure, which is not
connected to the municipal sewer system though connection
is required by City ordinances, at the rates set forth in Section '
A, above, on the basis of deemed sewer usage as estimated
by the City Engineer on a case -by -case basis approximating
as closely as possible two times actual sewer usage of similar
land uses actually connected to the municipal sewer and
water systems.
D. Effective Date
BE IT FURTHER RESOLVED, that these rates shall be effective in
entirety commencing with billings after January 1, 1993.
Passed and adopted by the Chanhassen City Council this 16th day of December, 1996.
ATTEST:
Don Ashworth, City Clerk/Manager
YES
NO
Donald J. Chmiel, Mayor
ABSENT
Utility Fees. DELOITTE & TOUCNE 1995 MANAGEMENT RECOMENDATION
Observation:
The Metropolitan Council Environmental Service (Met Council) provides sewer and water to the City.
Generally, the Met Council increases the rates for sewer and water services on a yearly basis. However,
the City has not changed its billing rates for utilities since early 1993. The City recognized operating
income of $71,000 in the Enterprise funds during fiscal 1995.
Recommendation:
The City should review the sewer and water charges and consider adjusting them on a yearly basis so that
they can pass - through the increased cost to their customers. The following graphs were included to
provide additional information on how the City compares to the rates that other cities charge for sewer
and water services.
Quarterly Combined Charges
$
$90
$e0
$70
$60
$50
$40
$30
$20
$10
$0
$1 00
$90
$s0
$70
$60
$50
$40
$30
$20
$10
$0
Water Charges
Based on water usage of 24, 000 gallons per quarter during 1994
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Sewer Charges
$100
$90
$80
$70
$60
$50
$4D
$30
$20
$10
$0
Based on water usage of 18,000 gallons per quarter during 1994
Source: Municipal Utility Billing Departments for respective cities
Management Response:
Management defends the City's higher- than - average sewer charges in recognition of the higher sewer
rates paid to Metropolitan Council Environmental Services (MCES) to treat clean water due to the higher
clay content in Chanhassen soil. Water rates are lower than average when compared to comparable cities,
' and management would propose an increase in water rates as a part of the 1997 budgetary process.
Duties of the Volunteer Fire Fighting Department:
Observation:
' The City currently uses volunteers for first responder and fire fighting services. Using volunteers is the
most cost effective means to provide these services. As a result, most of the administrative duties such as
purchasing, maintaining fixed assets, keeping records of the pension plan, and ensuring that the fire-
fighters have met the proper education requirements are also the responsibility of the volunteers. These
' duties are beyond the reasonable expectations of volunteers where responsibilities are not typically
consistently performed.
' Recommendation:
Due to the growth in the size of the City and the related reporting and operational demands placed on the
' fire department, we recommend that an administrator with the appropriate background to perform these
duties be added to assist the volunteers.
Management Response:
Management would propose that this recommendation be submitted to the Public Safety Commission, and
' they be requested to prepare a study of suggestions back to City Council that would address this issue.
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