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9. Consider accelerated water rate schedule I CITYOF .�j _. ,,,, Ar h 1 N :Ifr7 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 I 'fir., (612) 937-1900• FAX (612) 937-5739 IMEMORANDUM TO: Mayor and City Council IFROM: Don Ashworth, City Manager IDATE: June 25, 1990 SUBJ: Consider Accelerated Water Rate Schedule for Water IIUtility Attached please find a report from the Finance Department I recommending that the Council consider modifying water rates on a general basis as well as outlining the basis under which an "excess water usage" charge could be established. Water rates have not II increased for the past five years. No change is being proposed to the sewer fee schedule. The "excess water usage" charge is being recommended to discouraqe unnecessary sprinkling during the summer months. The proposed charging method would be based on each I individual's water consumption during the winter quarter. Once usage exceeded 30% of that base, the excess water charge would then apply. An analysis of the effects of these charges to average I customer groups is included at the rear of the Finance Department report. Generally, senior citizens would see a reduction in their bills. Two and three person families would see a 5%-10% increase I in their total bill due to the rate increase and, if they watered in a similar fashion io last year, they would be paying an additional $10 to $20 per year for that excess water usage. [Note: The above figures are based on a current average of approximately I $200 per year in annual tilling. ] The proposed rate modifications were primarily a result of meetings I between staff and our auditors, Deloitte-Touche. It is their belief that the City should not continue to operate its utility system in a deficit position. The deficit has been decreasing over Ithe years, but still remains relatively high. As noted earlier, Cliff Hoffman and Dan Mayleben will be present to discuss the audit report. Hopefully we can use the question I portion of that item to respond to Council questions regarding the proposed utility rate modifications. Recognizing that it has been five years since a rate adjustment was sought and that the rate Iadjustment is relatively minor, the City Council should strongly 11 Mayor and City Council June 25, 1990 Page 2 consider making the change as recommended. This statement is made recognizing the fact that the Council has placed a priority on not increasing general property taxes. If we are to do such, we must make sure that other revenues do keep pace with our growing community. Accordingly, this office would recommend that the City Council 1 authorize the City Attorney to draft a resolution which incorporates the proposed rate changes. 1 1 1 1 1 i 1 1 1 1 1 1 1 CITY OF CHANHASSEN ' WATER AND SEWER UTILITY I . PHYSICAL DESCRIPTION ' II . GEOGRAPHIC DESCRIPTION III . AUTHORITY - A. ORDINANCES ' B. CODE IV. RATES/CHARGES A. HISTORY OF RATES B. REGIONAL COMPARISON 11 V. NUMERICAL ANALYSIS VI . PROPOSAL 1 CITY OF CHANHASSEN WATER AND SEWER UTILITY I . PHYSICAL DESCRIPTION: I Information compiled as of 3/31/90. A. The city of Chanhassen has 4 wells. Three of the wells have pumping capacity of 1 ,000 gallons per minute each. The fourth well is located in the Minnetonka Intermediate School , and has an estimated pumping capacity of 150 gallons per minute. Water quality tests are done monthly for bacteria and turbidity. The most recent water analysis testing of these wells was done in 1984 ( figure 1 test results attached) . A new analysis is planned for mid-1990. These wells are located at: 1 . Well #1 - W 76th Street (abandoned) 2. Well #2 - W 77th Street at South Shore Drive 3. Well #3 - Galpin Blvd south of Lake Lucy -Road 4. Well #4 - Lake Susan park shelter B. The city currently is in the process of drilling well No. 5 near the site of well No. 2 at an estimated construction cost of $155,000. This well is anticipated to be on-line by July, 1990. Well No. 6 has also been authorized by the City Council at an estimated construction cost of $400,000. C. There are 3 water towers with a total storage capacity of ' 3,800,000 gallons, of which 1 ,800,000 gallons is considered "useable" . Locations and total capacity are: 1 . Cty Rd 17 at Lk Lucy Road - 3.5 million gallons (2.0 million gallons below service pressure zone) 11 2. Murray Hill Road - 200,000 gallons 3. W 76th Street - 100,000 gallons D. There are currently 67 miles of sanitary sewer and force ' main in the city of Chanhassen and 67 miles of watermain. The city maintains 22 wastewater lift stations. E. Roughly 8 square miles or 1/3 of the city is currently serviced by city sanitary sewer and water. F. The city is presently in the process of installing a $200,000 + supervisory control and data acquisition (SCADA) telemetry system to provide more efficient and cost effective management of the utility system and emergency response. -1- 1 , In , 1 pcw+ / h1; /J ;On = I g05ra1 nLT cV\ 'r a FIGURE 1 � �' 7eala c I61713th AVE. SO. • I City of Chanhassen 690 Coulter Drive Chanhassen, Mn. 55 1 9 t I O Ytd. r Cr 7KAL. (A.0 LA dicladt, I Attention• Jer 1-},u. 1 Water D 7 / I I nook NI tra„you ) 00 February 16, 1984 iyed• east tsbentsYll�s ttrs��natytleat nwMs,dst�rrn�s0 o,t�simple idemuiprw Cam' J �;A) v I Well water �eAl.7)i uy n from • ° P city of Chanhassen ✓�1 P� I Well #2 /,' ITotal Hardness (CaCO3) 300.0 mg/1 '_ Calcium Hardness " 175.0 mg/1 Magnesium Hardness " 125.0 mg/1 I Alkalinity to Phenolphthalein 0.0 mg/1 to Methyl Orange 310.0 mg/1 I Sulfates (SO ) 25.0 mg/1 Chlorides (C ) 0.30 mg/1 Iron (Fe) 0.20 mg/1 Manganese (Mn) less than 0.05 mg/1 IpH 7.7 - Copper (Cu) 0.0 mg/1 Nitrate nitrogen (N) 0.0 mg/1 I Nitrite nitrogen (N) 0.0 mg/1 Zinc (Zn) 0.0 mg/1 Foaming Agents None I Hydrogen Sulfide None Odor None Sodium (Na) 5.2 mg/1 Potassium (K) 3.3 /1 I Total Solids 350. mg/1 Total Dissolved Solids 345. mg/1 I Corosivity, Langlier Index, at 50 degrees F. 0.3 + (Water is very slightly corrosive.) • Twin City Water Clinic, Inc. Mtores&1Msrsaq Consurti�g engineer I Waist awahaN newts Bill Van Arsdale Seiko■sta'atomics's \)4,a I - I?I psrtvmuusn 11.046 a I 0 panyNlon • . a • = 706$ et* 1 '4 te't elea le, . 617 13th AVE. SO. • HOPKINS, MINNESOTA 55343 • 935.3556 I/ City of Chanhassen February 29, 1984 II 690 Coulter Drive Chanhassen, Mn. 55317 I Attention; Mr. Jerry Boucher, . Water Department. I REPORT OF WATER ANALYSIS Ow laboratory sports ewe saalytkal►NUMB,dafaetlned en a sumo. (r.cih.d from ieu ) en Fpbrn terry 'I Fk 1984 I Ifabateiyrlts Well water 1 / 1 from /� i City of Chanhassen-=---- Well #3.. - ' Total Hardness (CaCO3) 270.0 mg/1 Calcium Hardness 155.0 mg/1 Magnesium Hardness " 115.0 mg/1 Alkalinity . to Phenolphthalein 0.0 mg/1 II to Methyl Orange 290.0 mg/1 5.0 11 Chlorides (c� I ) 0.30 /1 Iran (Fe) 0.1 mg/1 Manganese (Mn) less than 0.05 mil P H 7.9 - Copper (Cu) 0.0 mg/1 Nitrate. nitrogen (N) 0.0 /1 . Nitrite nitrogen (N) _ 0.0 r g/1 Zinc (Zn) 0.0 mg/1 I Foaming Agent None Hydrogen Sulfide dye Odor None I Sodium (Na) 6.3 mg/1 Potassium (K) 3.8 /1 Total Solids 295. mg/1 Total Dissolved Solids 290. mg/I I Corosivity, Langlier Index, at 50 degrees F. 0.5 + (Water is very slightly corrosive.) I Twin City Water Clinic, Inc. I Bill V Arsdale Aftotrilul I. .,.q Caftevitin!oweemeer W..,iuyN.mewls SOW water oMinteats I . 11 L.arg10wuben Mali /0 retni.N.e ,i -. ;.7.., , • ?. el* Zweig tale. lee. 1 617 13th AVE. SO. • HOPKINS, MINNESOTA 55343 • 935.3556 ICity of Chanhassen February 29, 1984 690 Coulter Drive IChanhassen, Mn. 55317 Attention; Mr. Jerry Boucher, Water Department. I REPORT OF WATER ANALYSIS (r•eolvad tron�yeu en February 16, 1984 Our laboratory reports thaw anarytieal mutts.determined on o.ample `1 taiewbarea i I Well water 0; fran , City of 11 IWell #4. Total Hardness (CaCO ) 260.0 mg/1 I Calcium Hardness " 3 y 145.0 mg/1 Magnesium Hardness " f ` 115.0 mg/1 Alkalinity Ito Phenolphthalein 0.0 /1 to Sulfates(ySO4) 270.0 mg/1 I Chlorides (C1) 0.24 /1 Iron (Fe) 1.1 mgg/l Manganese (Mn) less than 0.05 mg/1 pH 8.0 — I Copper (Cu) mg Nitrate nitrogen (N) 0.0 mg/1 Nitrite nitrogen (N) 0.0 mg/1 I Zinc (Zn) 0.0 mg/1 Foaming Agents None Hydrogen Sulfide None Odor Present. I Sodium (Na) 5.5 mg/1 Potassium (K) 4.2 /1 Total Solids 275. mg/1 ITotal Dissolved Solids 271. mg/1 Corosivity, Langlier Index, at 50 degrees F. 0.6 + I (This water is very slightly corrosive.) (The odor present in this water is most likely the product of the Iron content and harmless Iron bacteria feeding on the Iron.) • I - Twin City Water Clinic, Inc. An•ye••1 Won CauUInnv emekaow Ier•w•n•hrN•mom. Bill Van Arsdale •«ar view eh.ntie•U r? '• 013\-In 1 mn•nnuu•n.0.•s '0 O.pn ww, CITY OF CHANHASSEN WATER AND SEWER UTILITY II . GEOGRAPHIC DESCRIPTION A. Districts/Billing Cycles: To allow for a reasonably level flow of work volumes associated with the utility billing process (i.e. , meter reading, statement preparation, payment processing) and provide a reasonably consistent cash flow, the city has been split into 3 separate districts. Billing a different district each month for the previous quarter, provides a smooth cyclical flow of work levels and revenues. The districts and geographic area are depicted on Figure. 2 and are described as follows: 1 . District #1 South of Lotus Lake, East of Kerber Boulevard, the Downtown area, Lake Riley area, and Near Mountain. 2. District *2 East of Galpin Boulevard, West of Kerber Boulevard, the Industrial Park and Shadowmere Development. 3. District #3 ' West of Galpin Boulevard, North of Lyman Boulevard, South of Highway 7, Lake Susan Hills Development and Pheasant Hill area. B. An outline of the billing cycle is as follows: BILLING CYCLE 1 1st Otr 2nd Otr 3rd Otr 4th Otr Dist. 1 - Jan-Mar Apr-Jun Jul-Sep Oct-Dec Dist. 2 - Nov-Jan Feb-Apr May-Jul Aug-Oct 1 Dist. 3 - Dec-Feb Mar-May Jun-Aug Sep-Nov -2- 1 I .... . •■■■■-- Man FIGURE 2 ‘1-fe .. ,y,„„ , .......„.....,....., .., ..., -----_-_, :,------.--....-- ,./.. ...„,. ---: :I.,...... ,. ', ',71, • ;.;.*, .I, _ 110.7.r-•:-- - , - 1 1%iIi. :',0" - 11 --.1".= 414pi ..41fill•a, '•: 1,,,,..„.14 - ...Imp'04.. '4\"..:: —7.. — •. .,„: =PA _". —.0. ll 4"----;'' ..' ":'-7.'•%AP AlertAY\NeilikVir"...ZT I ,.---..-- .,- - _ . -,-...'----.,,,, !.7-44,1%-f.....--i.,-. • .2-,--. ---..., ti..S E I:4U/, 4r "et-. ' q ' L-111.x.:=74-1,7, , *%I 7 iix,:zii.-- I ik -4.-trir-4 3 - '---if I ____ ___ - ^-.../ -1 - i ''" -1 p — -:. -,;;--r.-''.'•-10• - 1-4041 a'..4;,- _/ ,•R f .''PIN t . . — 7.7 7"... -S=11 41. — 4,, --- ________ ,, . __ ,„, , f.Ts. iik.. „,,-1 — ...” __ i s .._AP - ••./I E,, ,,,A l 1:I----. '''-- 1 ' "' '"Iii1- 14. ,(0,......... .:_ ----- -----`--_ r 4011.4%.1'll.M. .n10•:'• _ .,, - --..- ,-4-- . - ....„, a ores _ Vi--•—•"' ,,... -=i;7,-7-, -0- • IIII ---" 4,r.......,,,,,__-„, c....,.„ ___,, .,......,. •. .. .. ..._ Ara/ 4-4 ii-::_... ------#.1-7 -4;WA',„,!---- , /14, -.. --\u-... .....,-, --.. .. --Njjjk •:::-:–tic ',.., ,•ir 4,,,._,-,-. :„----e:Si--9%- -- . A N-.;:,..'' Y''..--4 .- ■ '' '1""'"'"-' - • 4f,. r — , .1,----- Cr r 1 L .. .C, , Of.,„,-.":"'1.iir, _.1.1.....,....1 , a..■- , ... /7 -- — Cs ----! b wr . _ /* I;ape.,riv -P.Stri.0`4•;' -. .=-2H— . IA. ..4! -, :jr ... 1 ... .,. r 44IFZIF i 1 1P3 •-; -.. _____ , ,...117 c,./...._-_ii.c.... • -...., ,.,, ..... I I --._V.... ; .--.--- ,-7A G ci r e . ‘. ......- _ ........... ,,.T__/ ,........__ . 1.....,...___.;:, , ___.„‘„, ."--1 4.:0'-',-.=.8)i ,/,_,.. ; -"-a'-‘'-1!---- '------ I _\ a I .. „_____..., 1,,-., . -------,i1 -- .... ..,...*;‘.. „_.........." ' - . 1 ., _ .-,- _AL _ •_ ',4 kik''=":'-z. ' ' --i: ' - . . - - 4 , CITY OF 1 , 1 i 41c ' • i • ., I S 17.''•■•--.' ,t=s. ,'.: CHANHASSEhl - " , , .- _ LAIC E BASE MAP ,, /N ICS\ —..0 - AILEY • „: _i ----- - • ——i - -r:--/- '' ' asE 4 ._,_ .,,,.._, .4-L ,,,, • ..,,— 5 -=*- -,, ,:,/ r . ..„- , , ---, -- -....- ' : . .... PREPARED SY• t ENGER 1 lio' ir . 1 Eff Ci4ANNASSEN INEING DEPT ,s ri i -- -------..J,.-.... ..,.0.. 6 1 I I---- - 7 ,... .:. ,... - , ...... -1.., :- .. .._ --,- 1.11P.W.MAN=1 - --..11 lEllIti, ' ti 1 I 1 ' , i , ! : 1 , • . i I • . I - -------'-'''‘IM 1 11 CITY OF CHANHASSEN I WATER AND SEWER UTILITY I I III . AUTHORITY A. Section 19, Articles 29 and 51 of the Chanhassen City Code (figure 3) relates to unit rates established by resolution of the City Council . B. Chanhassen Ordinances 5, 5-A, and 6 state that the City Council may establish revised rate schedules as deemed necessary. Resolution 86-2 ( figure 4) passed and adopted by the City Council on January 13, 1986 was the last date the rate schedule was revised. C. City Council Resolution 89-60 established odd/even sprinkling restrictions (figure 5) . I I I -3- FIGURE 3 $ 19-28 CHANHASSEN CITY CODE city water supply system for lawn and garden sprinkling, irrigation, car washing, or other ' uses specified therein. Any water customer who shall cause or permit water to be used in violation of the provisions of the resolution shall be charged fifty dollars($50.00)for each day of such violation,which charge shall be added to his next water bill.Continued violation shall ' be cause for discontinuance of water service. (Ord.No.6, §4.01,3-11-85) Sec. 19-29. User rates and charges. (a) Quarterly water usage rates shall be set on an annual basis by resolution of the city council. (b) The city clerk shall prepare and mail to the consumer a statement for water service furnished each consumer premises during the preceding quarter.All statements shall specify ' the water consumed and the charges therefor. (c) The city clerk shall compute the amount due to the city for water charges and render a quarterly statement thereof. All amounts due as shown on the statement shall be payable at the municipal building or on or before the twentieth day of the month in which the statement is presented. A penalty of ten(10)percent shall be added to all accounts that are not paid in full by said due date.This penalty shall be computed on the unpaid balance not paid by the appropriate due date at the time each quarterly statement is prepared and presented.The city reserves the right to shut off water service if the account is delinquent for an unreasonable ' length of time as determined by the city. (d) In the event any water service charge is not paid within three (3) months after the time it is rendered,the city council may recover said amount in an action brought in any court of competent jurisdiction, or in the alternative, may certify the amount due together with penalties to the county auditor to be collected with other real estate taxes levied against the ' premises served. (e) When termination of water service is requested by a consumer, the city clerk shall direct the water superintendent to turn off the service to the premises involved. The meter ' shall be read at that time and a final bill rendered to the consumer.Water service shall not be restored to the premises except upon the payment of all prior service charges. (f) In the event a meter is found to have stopped, or to be operating in a faulty manner, the amount of water used by the consumer shall be estimated,which estimate shall be based on prior consumption. ' (Ord.No.6, $ 6,3-11-85) Secs. 19-30-19-40. Reserved. 1 1 1 1068 FIGURE 3 I ( WATER,SEWERS AND SEWAGE DISPOSAL § 19-65 1 driveway.In such case,the building sewer from the front building may be extended to the rear 111 building and the whole considered as the building sewer. Other exceptions may be allowed only by special permission granted by the city. (Ord.No.5, §§ 3.01,2.02,3-11-85) 1 Sec. 19-50. Inspections and city supervision of work. (a) Inspections of all interior plumbing and exterior services,including connections to the municipal sewage disposal system, are required.The permit holder is responsible to arrange for such inspections which are performed between 8:00 a.m.and 4:00 p.m.on weekdays within twenty-four(24)hours of notification. (b) All direct connections to and tappings of the actual city main line shall be supervised ' by the city.Depending on the availability of the inspector,trenches may have to remain open for some period of time and in some instances overnight.In such cases the permit holder shall be responsible to enclose the opening to ensure pedestrian and vehicular safety. (Ord.No.5, § 2.03,3-11-85) Sec. 19-51. User rates and charges. ' (a) A quarterly sewer usage unit rate shall be established by resolution of the city council as a part of the annual budgetary process. (b) The city clerk shall prepare and mail to the owner, occupant or lessee of each con- sumer premises connected with the sanitary sewer system a statement for sewer usage services furnished thereto during the preceding quarter.The quarterly billings will be based on winter quarter water usage unless that consumption proves inaccurate,then actual quar- terly usage measurements shall be employed.Charges for individuals connected to sewer but not water shall be billed on an assumed usage rate. (c) The city clerk shall compute the amount due to the city for sewage charges and render , a quarterly statement thereof.All amounts due as shown on the statement shall be payable at the municipal building on or before the twentieth day of the month in which the statement is presented.A penalty of ten(10)percent shall be added to all accounts that are not paid in full by the due date. This penalty shall be computed on the unpaid balance not paid by the appropriate due date at the time each quarterly statement is prepared and presented. (d) In the event any sewer usage charge is not paid within three(3)months after the time it is rendered, the council may recover said amount in an action brought in any court of competent jurisdiction, or in the alternative, may certify the amount due together with ' penalties to the county auditor to be collected with other real estate taxes levied against the premises served. - (Ord.No.5, § 4,3-11-85) ' Secs. 19-52-19-65. Reserved. ' 1073 FIGURE 4 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES , MINNESOTA DATE: January 13 , 1986 RESOLUTION NO: 86-2 MOTION BY: Horn SECONDED BY: Swenson A RESOLUTION ESTABLISHING MUNICIPAL SEWER AND WATER RATES WHEREAS, this municipality maintains a public sewer and ' • water system; and WHEREAS, Chanhassen Ordinances 5, 5-A, and 6 provide that the City Council may from time to time establish revised rate schedules for usage of the public sewer system and the public water system. ' I. Water Rates : NOW, THEREFORE, BE IT RESOLVED that the following water ' user rates are hereby established for the municipal water system: A. Connected Structures A quarterly charge is hereby imposed on each single family attached dwelling, each single family detached dwelling, each commercial structure, and each industrial structure which is connected to the municipal water system as follows: ' 1. A minimum charge of $8.00 per dwelling unit or per billing statement generated for quarterly water usage not exceeding 10,000 gallons; ' 2. A separate billing statement shall be generated • for each water meter; and ' 3. A charge of $0.85 per 1,000 gallons, or fraction thereof, of all quarterly water usage in excess of 10,000 gallons. ' B. Unconnected Structures A quarterly charge of $8.00 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. II. Sewer Rates : • BE IT FURTHER RESOLVED that the following sewer user rates are hereby established for the municipal sewer system: 1 • • 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 attached dwelling, each single family detached 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 minimum charge of $9.50 per dwelling unit , per com- mercial structure, per industrial structure and per billing statement generated, for all quarterly water usage not exceeding 5,000 gallons, 2. A separate billing statement shall be generated for each water meter, and 3 . A charge of $2.15 per 1,000 gallons or fraction I thereof for all quarterly water usage in excess of 5 ,000 gallons. 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 quar- terly sewer charge shall be based upon water consump- tion 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: $41.75 per dwelling unit. a. Senior Citizen Discount. Provided, however, ' that the quarterly charge shall be $20.85 per quarter if said dwelling unit is occupied by no more than two persons: , i. at least one of whom is at least 65 years of age, and I ii. at least one of whom is the owner of said dwelling unit. -2- 1 . fi- ... - - d ill . b. Alternate System of Billing Computation. The ■ ` quarterly sewer charge shall be based upon IlL actual private source water consumption and upon the rates set forth in Section A, above, if a water metering system acceptable II to the City has been installed, through which accurate water consumption records can be established. II2. Non-Residential Rates. A quarterly charge is hereby imposed on each corn- ' mercial structure and each industrial structure, which is connected to the municipal sewer system but not to the municipal water system, at rates II 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 approxi- mating as closely as possible actual sewer usage 1 of similar land uses actually connected to the municipal sewer and water systems. IC. Structure 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: II $83 . 50 per dwelling unit , provided, however, that the quarterly charge shall be $18.35 per dwelling II 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. II2. A quarterly charge is hereby imposed on each commer- cial structure and each industrial structure, which I 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 • I 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 IIsewer and water systems. D. Effective Date. IBE IT FURTHER RESOLVED That these rates shall be effective from the 13th day of January, 1986. Passed and adopted by the City Council of the City of Chanhassen, Minnesota this 13th day of January, 1986. 1 -3- II FIGURE 5 I i CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: April 24, 1989 RESOLUTION NO: 89-60 MOTION BY: Johnson SECONDED BY: Workman A RESOLUTION ESTABLISHING ODD/EVEN SPRINKLING RESTRICTIONS WHEREAS, the Chanhassen Public Safety Commission has recom- mended unanimously that, the City institute sprinkling restric- tions for 1989. The Commission feels restrictions are necessary because of the drought conditions created in the summer of 1988 and the general need to conserve water. NOW, THEREFORE, BE IT RESOLVED BY THE CHANHASSEN CITY COUNCIL that effective May 1, 1989 sprinkling will be allowed on an odd/ even schedule. There will be no hourly restrictions at this time. Permits will also be issued for persons with new seed/sod. Passed and adopted by the Chanhassen City Council this , 24th day of April , 1989. ATTEST: ::14r6•5 Don Ashworth, City Manager Donald J. ie , ayor 1 . YES NO ABSENT I Chmiel None Johnson Boyt Workman Dimler I 1 1 I CITY OF CHANHASSEN WATER AND SEWER UTILITY IIIV. RATES/CHARGES ' A. History of Rates - - -WATER- - - - - -SEWER- - - MINIMUM RATE MINIMUM RATE =1976 N/A $5.00 $1 .00/M: 5M .81/M:Ov 5M 1979 $7.50 = .75/M: 10M 6.50 = 1 .30/M: 5M .40/M:Ov 11M 1 .27/M:Ov SM ' .35/M:Ov 40M 1982 Same 7.50 = 1 .50/M: 5M 1 .70/M:Ov 5M 1986 8.00 = .80/M: 10M 9.50 - 1 .90/M: 5M .85/M:Ov 10M 2. 15/M:Ov 5M (Proposed) 1990/91 5.00 = 1 .00/M: 5M ' 1 .00/M: Ov 5M plus (Excess use charge) .50M: ov 130% of winter quarter use M = 1000 gallons Ov = Over I 1 I I -4- r II CITY OF CHANHASSEN 1 WATER AND SEWER UTILITY II IV. RATES/CHARGES cont. II B. Regional Comparison - I The following is a comparative rate study of the water and sewer billing of neighboring communities as of 3/31/90: II - - -WATER- - - - - -SEWER- - - CITY MINIMUM RATE MINIMUM RATE II Chaska 6.00 .65/M:Ov 7M 11 .55 1 .70/M Eden Prairie 24.00 .95/M -- 1 .90/M I 12.50/qtr misc. chg. for trunk repair/maintenance Excelsior 22.09 1 . 13/M:ov 13M 28.81 1 .54/M:ov 13M II Sr. Citizen 16.37 1 . 13/M:ov 13M 19.21 1 .54/M:ov 13M Minnetonka 28.50 1 .90/M -- 1 . 10/M II Mound -- 1 .00/M 25.41 1 .67/M:ov 10M Shorewood 22.00 1 .40/M:ov 10M 49.75 flat fee I **Shakopee 5.00 .60/M:ov 6M 9.00 + 1 .22/M .55/Msov 14M II .43/M:ov 40M Prior Lake -- 1 .40/M -- 1 .40/M II *Chanhassen 8.00 .85/M:ov 10M 9.50 2. 15/M:ov 5M 1 . Rates are expressed as quarterly for comparison purposes even if I billing cycle other than quarterly. * Chanhassen sewer rate based on winter quarter except certain II commercial/industrial accounts. ** Shakopee sewer rate figured on an average of the six winter months usage. II I I -5- II u : 1 CITY OF CHANHASSEN WATER AND SEWER UTILITY II V. NUMERICAL ANALYSIS IA. Connections/Accounts (end of year) IYEAR WATER (NEW) SEWER (NEW) 1985 2180 -- 2078 -- II 1986 2326 146 2449 371 1987 2601 275 2732 283 1988 2919 318 3055 323 1989 3229 310 3363 308 I TOTAL INCREASE: 1049 1285 II B. Water pumped/billed (000 omitted) ACCT YEAR PUMPED INCREASE BILLED INCREASE AVG. II1985 239, 127 -- 198,587 -- 91 1986 252,520 13,393 229, 154 30,567 98 1987 322,741 70,221 295,759 66,605 114 II 1988 394,709 71 ,968 357,612 61 ,853 122 1989 410,545 5,836 374,734 17, 122 116 1 TOTAL INCREASE: 161 ,418 176, 147 25 C. Study as of 3/31/90 II1 . Basis: Total number of active accounts/users is 3, 148, of which 3,046 are residential single family. 3,005 of the accounts have water and sewer. IIFor the annual comparisons shown we had 2,517 residential single family with 5 quarters usage of which 2,478 were Ialso connected to city sewer. 2. Oddities: We have 92 accounts that are spring/summer/ 1 fall only users such as sprinkler meters and homeowner associations. These have not been used in any of the following comparisons. I 3. Definition: Because we have 3 different billing/usage cycles (districts) it is impossible to compile exact month by month comparisons. The quarterly comparisons IIare based on usage as follows: t Otr 1 (winter) : 3-month cycle which encompasses January. Otr 2 (spring) : 3-month cycle which encompasses April . II Otr 3 (summer) : 3-month cycle which encompasses July. Otr 4 ( fall ) : 3-month cycle which encompasses October. II -6- CITY OF CHANHASSEN I WATER AND SEWER UTILITY V. NUMERICAL ANALYSIS cont. I D. Comparisons: QTR 1 QTR 2 QTR 3 QTR 4 Average Usage IBM 23M 36M 26M Median Usage 17M 19M 29M 21M Variation from Qtr 1 - (Positive variations only) Average -- 158% 259% 202% Median -- 130% 190% 150% Negative variation (count) 628 299 522 E. Billing Comparisons: (Annual ) Average Median Sewer 109.00 95.00 Water 86.60 76.00 Total 195.60 171 .00 I I I I I I I I -7- 1 IICITY OF CHANHASSEN _ ' WATER AND SEWER UTILITY VI . PROPOSAL IIModify water rate schedule to: $1 .00 per 1 ,000 gallons (or fraction thereof) . IA. B. $5.00 (5,000 gallon) minimum per quarter. I C. Establish excess-use charge of .50 per 1 ,000 gallons (or fraction thereof) for all usage in excess of 130/ of winter quarter usage. I D. Dedicate excess-use revenues to insure positive over-all balances in operation of the sewer/water utility fund. II E. Summary I Using the proposed new rate schedule with the 1989 data would produce the following results: Annual Billings: Average Median I Sewer (no change) 109.00 95.00 Water 116.50 100.00 Total 225.50 198.00 I Previous Year 195.60 171 .00 Net Change 29.90 N/A I Some examples of Annual Water Charges using previous year data. Old - - -New (proposed) rate- - - ' Bills Base Excess Total IISmall user (sr. citizen) 32.00 20.00 -- 20.00 2 person household 72.80 88.00 17.50 105.50 II3 person household 91 .50 110.00 11 .50 121 .50 Multi-person household 107.65 129.00 .50 129.50 II I II -8- II