13a. Surface water utility billing li---
C I TY OF
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1 4 CHANHASSEN
1 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739 ,,,. ,, . . , ,,,,,_
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MEMORANDUM
IITO: Don Ashworth, City Manager Ds,, s,.„ .-
1 FROM: Paul Krauss, Planning Director ----- - a-
DATE: April 9, 1991 =__-- �'f"Z - -
1 SUBJ: Surface Water Utility - Questions Regarding Program
IIBACKGROUND
During discussions pertaining the the establishment of the Surface
1 Water Utility Program, it was originally proposed that agricultural
land be assessed fees on a per acre basis. A credit would have
been built into the program for those farmers who operated under
soil and water conservation guidelines to reduce soil erosion.
I Information was provided that indicated that agricultural runoff is
a significant pollutant affecting Chanhassen waters and most
notably the Lower Minnesota River. This was not to infer that
1 agricultural use was bad or compare it to single family
development, it merely pointed out facts that are commonly
accepted. The City Council ultimately determined that ag lands
I should be assessed one unit per parcel to avoid significant
financial impacts on the many farmers in our community.
The Surface Water Utility fee schedule that was adopted on November
1 19, 1990, establishes a lot size for ag land of 40 acres and a
$3 .22 charge per quarter for the utility district. The $3 .22
charge is equal to the charge that is placed upon a single family
I residential lot. Staff has had calls from several- agricultural
property owners indicating a belief that they should be billed for
only one unit, although their land holdings may be divided into
I several tax parcels. A list of those property owners raising this
question is attached to this memo. These property owners are
requesting that the Council consider assessing them only one unit,
regardless of how many 40 acre parcels they own. They point out
II that often times these parcels were pre-existing or were created
for tax or mortgage purposes. We should also point out that staff
has not attempted to handle the billing on the 40 acre basis as it
I could be strictly interpreted. For example, if someone has an 80
acre agricultural lot, they should technically be billed 2 units.
We have only been applying one.
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Surface Water Utility Program
' April 9, 1991
Page 2 •
We believe that there are two alternatives on the agricultural
billing that should be considered by the City Council. The first
is the method that we have been using to apply the charges
currently. Essentially, we use the Carver County Tax Records so
that each identified tax parcel is assessed one unit. One of the
problems that has arisen with this is when an individual property
owner owns several parcels that may or may not be contiguous and
uses them for ag purposes. We really have no way of knowing if
this is the case and I am not sure that it matters anyway since
each parcel is able to be sold and developed independently. The
Deglers had two parcels as their farm. After raising concerns with
staff regarding being billed for two units under the Surface Water
Utility, they went to Carver County Courthouse and combined their
parcels into a single lot which then eliminated one unit under
' staff's current guideline.
The second alternative is to take the time to compute the size of
' each ag zoned lot and bill the owner one unit per every 40 acres
and one unit for each fraction of 40 acres above the first 40
acres. Thus, an 80 acre parcel would be billed two units, while
' and 81 acre parcel would be billed three units.
Staff is willing to undertake either option but has several
concerns with the second approach. The first is an administrative
issue wherein it will take some time to compute the acreage of each
parcel to complete the billing process. This is a relatively minor
matter but does involve a fair amount of staff time. The second
issue concerns equity. If we are truly to focus in on the 40 acre
standard in the ag district, then we must raise a comparable
question with the 21/2 acre lot size applied in the Rural Residential
District. A parallel can be drawn to the fact that a 21/2 acre lot
in Timberwood is being assessed one unit, while Jerome Carlson or
Prince, with their large land holdings, are also only being
assessed one unit. If the interpretation using a lot area standard
' is applied in the ag district, it should probably also be applied
in the Rural Residential District which will result in sizable
increases in some bills.
Before closing, I wish to make two points. The amount of money
involved is relatively modest. The Surface Water Utility Program
was established under the assumption that approximately $307 per
' quarter would be generated by ag zoned land. We do not believe
that this will change substantially regardless of what billing
alternative is used. We further note, however, that the City
Council has already been very responsive to issues raised by ag
land owners as evidenced by changes made in the program prior to
its adoption. In our opinion, it does not seem unreasonable that
for someone that owns 80 acres is being billed $6.44 every 3
months, particularly when we acknowledge that someone who owns a I/3
acre lot is being $3.22 over the same period.
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Surface Water Utility Program
April 9, 1991
Page 3
RECOMMENDATION 1
Staff recommends that the City Council confirm that billing for
agricultural zoned parcels continue to be based on one unit for
each recorded tax parcel. The City Attorney should review the
ordinance, if necessary, and propose language changes needed to
clarify this point.
ATTACHMENTS
1. List of agricultural property owners.
2 . Resolution #90-149.
3 . Ordinance #132 - Surface Water Utility Management Program.
4. Letter/notice sent to property owners who raised concerns
regarding the program.
5. List of property owners.
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO. 132
AN ORDINANCE AMENDING CHAPTER 19 OF THE
CHANHASSEN CITY CODE BY ADDING AN ARTICLE
ESTABLISHING A SURFACE WATER MANAGEMENT UTILITY
' The City Council of the City of Chanhassen ordains: '
Section 1. Chapter 19 of the Chanhassen City Code is
amended by adding Article VII to read as follows:
ARTICLE VII.
SURFACE WATER MANAGEMENT
' Sec. 19-140. Surface Water Management Utility Established.
Surface water management shall be operated as a public
utility pursuant to Minn. Stat. § 444.075.
Sec. 19-141. Definitions.
The following words, terms, and phrases, when used in this
Chapter, shall have the meaning ascribed to them in this section,
except where the context clearly indicates a different meaning.
' Surface Water Management Budget is the annual budget
approved by the City Council for surface water management
including planning, monitoring, capital expenditures,
personnel, and equipment.
' Surface Water Management Fee means the quarterly charge for
each parcel of non-exempt property in the City for the
management of surface water.
Utility Factor means the ratio of runoff volume, in inches,
for a particular land use, to the runoff volume, in inches
for a 1/3 acre residential lot, assuming a 2" rainfall and
Soil Conservation Service (SCS) "Type B" soil conditions.
Sec. 19-142. Surface Water Management Fees.
The utility factors for various land uses are as
follows:
' Classification Land Use Utility Factor
1 Rural Residential
' (2-1/2 acre lots) 0.21
r09/25/90
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Classification Land Use Utility Factor
2 Single Family Residential
(1/3 acre lots) 1.00
3 Low and Medium Density '
Residential 2.24
4 High Density Residential, 1
Industrial, Office, Institutions
(Churches, Schools, Government
Buildings, Hospitals) 3.34 1
5 Business/Commercial 4.28
6 Agricultural N/A '
7 Undeveloped N/A
8 Parks, Cemeteries, Golf
Courses, Arboretum 0.45
9 Parking Lots as a Principal Use 6.14 '
The Surface Water Management Fee shall be calculated by first
determining the percentage of total runoff in the City which is
attributed to Single Family Residential property. The Fee per
acre for Single Family Residential is computed by equating the
runoff percentage to an equal percentage of one-quarter (1/4) of
the annual Surface Water Management Budget, divided by the
estimated total acres of Single Family Residential land use in
the City.
B. The per acre Fee for all individual parcels shall be 11
defined as the product of the Single Family Residential Fee, the
appropriate utility factor based on land use, and the total
acreage of the parcel with the exception that 1/3 acre shall be
used for each Single Family Residential lot, agricultural and
undeveloped parcels and 2-1/2 acres shall be used for each Rural
Residential lot when calculating the fee for their land uses.
Sec. 19-143. Credits.
The City Council may adopt policies for adjustment of the 11
surface water management fees. Information to justify a fee
adjustment must be supplied by the property owner. Adjustment of
fees shall not be retroactive.
Sec. 19-144. Exemptions.
The following land uses are exempt from the surface water
management fee:
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• a) Public Right-of-Way
b) Lakes
Sec. 19-145. Payment of Pee.
Surface water management fees shall be invoiced quarterly.
The amount due as shown on the invoice shall be payable on or
before the 20th day of the month in which the invoice is issued.
' A penalty of ten percent (10%) per quarter shall be added to all
accounts that are not paid in full by the due date. The penalty
shall be computed on the unpaid balance not paid by the due date
' at the time each quarterly statement is prepared. Any prepayment
or overpayment of charges shall be retained by the City and
applied against subsequent fees.
Sec. 19-146. Appeal of Pee.
If a property owner or person responsible for paying the
' surface water management fee believes that a particular fee is
incorrect, such person may file a written appeal with the City
Clerk. Appeals will be heard by the City Council. No adjustment
will be made to the utility factor for property classifications
1, 2., and 3.
Sec. 19-147. Certification of Delinquent lees.
If a surface water management fee is not paid within three
(3) months after a billing is issued, the City Council may
certify the amount due, together with penalties, to the County
Auditor to be collected with other real estate taxes on the
parcel.
' Sec. 19-148. Surface Water Management Fund.
A separate fund shall be maintained for surface water
management fees and expenditures.
Section 2. This ordinance shall be effective immediately
upon its passage and publication.
PASSED AND ADOPTED by the Chanhassen City Council this 24th
day of September, 1990.
ATTEST:
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/Q ç2aiz
Don Ashworth, rk/Manager Donald J. = .1- ,. Mayo
(Published in the Chanhassen Villager on October 11 , 1990. )
Summary Ordinance
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City of Chanhassen
Carver and Hennepin Counties, Minnesota
DATE: November 19. 1990 RESOLUTION NO: 90-149
MOTION BY: Dimler SECONDED BY: Chmiel
A RESOLUTION ESTABLISHING UTILITY RATES FOR THE
SURFACE WATER MANAGEMENT UTILITY
WHEREAS, on September 24, 1990, the Chanhassen City Council
adopted a Surface Water Management Ordinance.
NOW, THEREFORE, BE IT RESOLVED by the City Council that the 1
fee structure for the Surface Water Management Utility shall be
established as shown on Exhibit A. 1
BE IT FURTHER RESOLVED that the funds received from the sale
of the land described in Exhibit B to Redmond Products shall also
.A be dedicated to the Surface Water Management Utility Account.
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Passed and adopted by the Chanhassen City Council this 19th
day of November, 1990.
ATTEST:
/62 L5az,
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Don Ashworth, C y Clerk/Manager Donald J. Cs-: �, Mayor
' S ABSENT
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Chmiel Johnson None 1
Dimler
Wing
Workman
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•*** SURFACE WATER MANAGEMENT UTILITY SPREADSHEET **** 400
1;4';,
I • Exhibit A a',.
• CITY: CHANHASSEN • '
JOB NO. : 90284 .
DATE: OCTOB$R 1, 1990' . •
•
RAINFALL: 2 IN. •
•
5 YR REVENUE: $1,040,400
% OF INITIAL ESTIMATE: 60.00% • •
• REVISED 10/2/90 NLL
***•*****•*****•**••******•*******•***•••*•••••••**••••••******•••*****••••••••••••**•A**••••*********•
. * RUNOFF TOTAL UTILITY QUARTERLY COSTS •
* PROPERTY ' LOT RUNOFF • AREA VOLUME % FACTOR TOTAL PER PER • •
• ZONING SIZE CM . . (INCHES) (ACRES) . (AC.in) RUNOFF (1) (2) ACRE ' •• LOT •
• (ACRE). ' (4) •(3) • • •
a -_____ _emNmiN_Na. •
* RSF,PUD-R 0.33 . 72 • 0.29 • 2065 603.54 39.2% 1 $20,156 $9.76 $3.22 •
• RR 2.5 • 60 •. 0.06 • 1297 78.61 . 5.1% . 0.21 $2,625 • $2.02 $5.06. •
• R-4,R-8 82 0.65 0 0.00 0.0% 2.22 $0 $21.67 • NA •
• R-12 88 0.97 45 43.44 2.8% 3.30 $1,451 . $32.24 NA • •
• BN,BH,CBD,BG,BF 92 1.24 226 279.57 18.2% 4.23 ' $9,337 $41.31' NA *
• OI,IOP 88 . 0.97 394 ' 380.30 • 24.7% 3.30 $12,701 $32.24 ' NA •
* INST. * (1) .
•
• '* DEVELOPED 88 0.97 90 86.87 5.6% 3.30 $2,901' $32.24 NA *
* UNDEVELOPED ** • 0.00 1630 $131 NA $3.22 •
. * PARKS • 65 0.14 486 65.65 4.3% 0.46 '' $2,193 $4.51 N? *
• A2 • 40 . ** 0.00 3814
• U • 40 •• 0.00 . 2708 $307 NA $3:22
• $218 . NA $3.22 •
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. * TOTAL
• 12755 1537.98 •
* (1) UTILITY FACTOR IS RUNOFF (INCHES) DIVIDED BY RUNOFF '(INCHES) FOR SUM• $552020 •
•
* (2) TOTAL QUARTERLY COST FOR SINGLE FAMILY RESIDENTIAL IS A PERCENTAGE OF THE TOTAL QUARTERLY •
`�` * REVENUE EQUAL TO THE PERCENTAGE OF TOTAL RUNOFF •
* (3) COST PER ACRE IS PER ACRE COST OF SINGLE FAMILY RESIDENTIAL MULTIPLIED BY UTILITY FACTOR •
* (4) TOTAL QUARTERLY COSTS FOR PROPERTIES OTHER THAN SINGLE FAMILY RESIDENTIAL EQUAL • *
* COST PER ACRE TIMES TOTAL ACRES. FOR AG AND UNOEVELOPED,THE FIXED FEE FOR THE AVERAGE *
* • AVERAGE PARCEL SIZE IS EQUAL TO THE RSF RATE. *
*•******************************************** tit**••*•**••**••******•••••*•******•*****•A•••••*A••***••
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' O M • M • M OM WM I MO MI M • O I M MO
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CITYOF
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$1 CHANHASSEN .
41/4,N4 1
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690 COULTER DRIVE • P.O. BOX 147• CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX(612) 937-5739 1
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April 16, 1991 1
Dear Property Owner: 1
On Monday, April 22, 1991, at 7:30 p.m. , the City Council will
review proposed amendments to the Surface Water Utility Program. 1
The amendments concern issues raised about rural area billing
policies. You are being notified of this action since you raised
concerns regarding this matter with City Staff. 1
Should you have any questions, please feel free to contact me.
Sincerely, ,
"e7;11,efor."••
Paul Krauss, AICP 1
Director of Planning
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MR AND MRS GAYLE DEGLER RUSSELL BARTO MARLENE BENTZ
1630 LYMAN BOULEVARD 400 LAKOTA LANE 7300 -GALPIN BOULEVARD
CHANHASSEN MN 55317 CHASKA MN 55318 EXCELSIOR MN 55331
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MR AND MRS TIM ERHART MR DON HALLA MARK AND KATHRYN SANDA
I775 WEST 96TH STREET HALLA NURSERY - 1685 STELLER COURT
CHANHASSEN MN 55317 10000 GREAT PLAINS BLVD EXCELSIOR MN 55331
CHASKA MN 55318
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