3b. Sewer and Water Connection ChargesI
CITY OF 3b
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council �
FROM: Don Ashworth, City Manager l p fit-►
DATE: August 3, 1994
SUBJ: Sewer and Water Connection Charges:
a. Request to Waive Charges, Kurvers Point Homeowners Association
b. Request to Defer Charges, St. Hubert's Church/School District 112
a. Request to Waive Charges, Kurvers Point Homeowners Association This request has
been deleted and is a moot issue. No action is necessary.
b. Request to Defer Charges, St. Hubert "s Church/School District 112 I hope that this
will also turn into a moot issue. However, in case the church changes their position
prior to Monday evening, some background is in; order.
Both the St. Hubert's Church and School District 1112 saw the opportunity for a
win /win situation if St. Hubert's Church were to lease the Kenny's building.
Specifically, the school district has an enormous need for classroom space during the
next 3 -5 years. Portable classroom space is nearly identical in cost to permanent
classroom space. Accordingly, they are willing to negotiate leased space at a
premium - -such still being far less than purehasing.portable space which is virtually
junked at the end of the crisis.period. For St. Hubert's Church, entering into a
purchase /re- lease agreement should provide a means by which future space is obtained
today at a fraction of.the cost of what new construction would be five years from
today. All of the above produces the win/win situation referred to earlier- -with one
exception. The metropolitan and local'sewer and water units are determined by the
type of occupancy. For example, laundromats and car washes require significant
sewer and water capacity and, therefore "heir sewer and water unit charges are very
high. A school use is also a high generator with the Metropolitan Council considering
that occupancy to be equal to approximately seven single family residential units.
[One unit was given for the existing private restroom and wash basin for a net
increase of six units.] Although the church/school would like to obtain a waiver from
the metropolitan sewer and water charges, they recognize that that request would
MEMORANDUM
Mayor and City Council
August 3, 1994
' Page 2
probably not be considered. By contrast, they are hoping to receive a more favorable
' ear at the local level recognizing that we know of their integrity, community needs,
and our knowledge that their request for temporary relief is truly that - -a request to
defer the local sewer and water charges (6 x $2,400 = $14,550).
I started this memorandum stating that the above issue will probably be moot. The
reason for this statement is a recognition that the church does have expansion needs
' which will cause new construction within the next 3 -5 years. Those plans would
probably call for the Kenny's structure to be remodeled for some other use, potentially
church related. If not used for a school, the new use would assuredly produce a sewer
' and water use (unit charges) of far less than that of a school. That new use would
produce "credits" in the eyes of the Metropolitan Council. As the true expansion for
the church would likely occur on the church/school property, their question is, would
' these credits be transferrable to the church property? If the answer to that question is
yes, then they would proceed with payment of the metropolitan and local sewer and
water charges at this time, recognizing that they could transfer those credits in 3 -5
' years to the church property. I have verified with the Metropolitan Council that the
credits are transferrable, but at the discretion of the city. For example, if the church
' ceased using the Kenny's building for a school in 3 -5 years and that change produced
six net credits, the city is the one who would be in a position to decide where those
credits should apply. Hypothetically, if the city were carrying out a city hall
' expansion at that same time, the city could decide to assign those credits to the new
city hall expansion. I can fully understand why St. Hubert's Church would be
disturbed by the thought of that potentially occurring. In reviewing this matter with
' the City Attorney, he assures me that his office would be in a position to draft a
document which would legally ensure that the "credits" would in fact be transferrable
to the church if the Metropolitan Council continued its policy of recognizing "credits"
' and made a determination that the new use at the Kenny's site did in fact produce
whatever number of credits for reassignment. I am anticipating that the city council
would authorize the City Attorney's office to draft that type of document if St.
' Hubert's decides to withdraw its request to have the local sewer and water unit
charges be deferred. In case I am wrong and the church does wish to continue to
pursue a deferment, I would suggest that the City Attorney's office prepare a special
' assessment deferment form which would allow the city to assess the local sewer and
water units charges should the Kenny's building continue to be used as a school.
'
Recommendation:
1. If St. Hubert's decides to withdraw their request for deferment of the local
' sewer and water unit charges, the city council should instruct the City
Attorney's office to prepare a document which will assure that future sewer
1
Mayor and City Council
Y tY
August 3, 1994
Page 3 '
and water "credits" would be assigned to St. Hubert's Church if they were to ,
become available; or
2. If St. Hubert's decides to continue their request for a deferment of the local ,
sewer and water unit charges, the City Attorney's office should draft a special
assessment deferment form which would allow the city to assess the local
sewer and water unit charges after a 3 -5 year period if the use at the Kenny's '
continues as a school or becomes a use having unit charges of greater than one
(1).
Update (8- 4 -94)
St. Hubert's written request was received after the above report was prepared (last minute ,
delivery was anticipated). Their primary request now appears to be a request to "waive" the
local sewer and water connection charges. I hope that they meant "defer" the local charges
(option #2 above). Staff would support a request to "defer," but would strongly recommend t
against "waiving" these charges. "Waiving" the charges would set a dangerous precedent
which could haunt the city for years. Staff continues to recommend "deferment" of the local
unit charges in accordance with No. 2, above. I
0
An
MIM
St. Hubert Catholic Community
Parish Office: 7707 Great Plains Blvd. • Chanhassen, Minnesota 55317 • (612) 934 -9106
August 3, 1994
Mr. Don Ashworth
City Manager
City of Chanhassen
690 Coulter Drive
' Chanhassen, MN. 55317
RE: St. Hubert/School District #112
Temporary Classrooms
' Dear Don:
On behalf of St. Hubert Catholic Community, we are writing this letter to request that the Chanhassen City Council consider
' waiving the city's sewer and water access charges for the temporary classrooms being constructed in the Colonial Center building
located at 410 West 78th Street.
' We would like to request that the City of Chanhassen consider waiving these charges based upon the following considerations:
1. These classrooms are being constructed on a temporary basis in space which is being leased. School District
#112 is in the process of building additional schools and anticipates occupying their classrooms in this building for a
' two year period. St. Hubert's is in the process of preparing a long range facilities plan to accommodate the
tremendous growth of Chanhassen and St. Hubert's. We anticipate a decision on our long range plan will take some
time to finalize and look at this space to cover our short term needs for the next three to six years.
' 2. No additional utilities will be provided to the building as a result of our intended use.
3. The space was previously utilities for a commercial kitchen and also included two privacy restrooms. It
' is our understanding that part of the reason the water and sewer charges are calculated higher than we would expect
is due to the fact that the facility had not been previously accessed charges for use of the kitchen.
Based upon the above, we request your consideration in waiving the City's water and sewer access charges which amount to
' $14,550.00, which is based upon six additional SAC units. We also intend to request that the Metropolitan Waste Control
Commission consider waiving their charge of $4,800.00 based upon the same considerations.
It is our understanding that should the City Council require that these connection charges be paid rather than waived, it is within
' the City Council's jurisdiction to authorize that these additional SAC credits be transferrable to another property. While our
preference is clearly to waive the charges, we request that if these charges are paid that they be transferrable to another St.
Hubert property.
'
Thank you for your consideration in this matter.
If you have any questions or comments concerning the above, please dont'
hesitate to call Dave at 936 -4457
Sincerely,
Sincerely,
'
'6 0
Go"
David F. Bangasser
OPUS
t x , ._ Timothy D. Helmeke
Corporation
Parish Administrator
St. Hubert Catholic Community