2. Ordinance amendment Excess Water Usage Charge 1
411 ,2
CITYOF
I , , :
0 CHANHASSEN
.16„ , 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
II (612) 937-1900 • FAX (612) 937-5739
IIMEMORANDUM
ITO: Mayor and City Council
FROM: Don Ashworth, City Manager —DA I P,....•
IDATE: August 13, 1990
II SUBJ: Best of Intentions Ordinance
The actual item before the City Council is consideration of an
1 accelerated water rate schedule for excessive water usage. I refer
to it as "Best of Intentions Ordinance" in that we had intended to
have this ordinance in place effective for this summer's water
I consumption. However, we also intended to ensure that the general
public was fully knowledgeable as to the ordinance prior to it
becoming effective. The item was first considered in April and
then resubmitted in June. The Council desired to see a public
I hearing set which was then established for July 23rd.
Unfortunately, although the hearing notice was published, the item
did not appear in the printed agenda and tabling to this agenda was
I necessary. I am not aware of any persons who came to City Hall on
July 23rd to provide testimony on the proposed rate change.
Recommendation
I
As this is a public hearing, a formal "opening" and "closing" of
the hearing should occur. If the Council agrees with overall
II purposes being presented, staff should be instructed to include the
resolution establishing the excess usage charge on an upcoming
agenda. It should be noted that the "excess usage" portion of the
I rate adjustment would not become effective until 1991. This action
will ensure that we can publish the effective rate schedule changes
both this fall and next spring.
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II , , CITYOF
I ,..,,,t CHANHASSEN
....,,,..... „F .__
1 ,11E'tt. Art ,•
690 COULTER DRIVE • P.O. BOX 147• CHANHASSEN, MINNESOTA 55317
(612) 937-1900• FAX(612)937-5739
11 MEMORANDUM
TO: Mayor and City Council
IFROM: Don Ashworth, City Manager
IDATE: June 25, 1990
SUBJ: Consider Accelerated Water Rate Schedule for Water
Utility
II
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
I 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 discourage unnecessary sprinkling during the summer
months. The proposed charging method would be based on each
I individual's water const}mption 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
II 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
in their total bill due to the rate increase and, if they watered
11 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 Oilling,] ;� .;
The proposed rate modifications were primarily a result of meetings
11 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
the years, but still remains relatively high.
IAs 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
adjustment is relatively minor, the City Council should strongly
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Mayor and City Council 1
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 I
authorize the City Attorney to draft a resolution which
incorporates the proposed rate changes.
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CITY OF CHANHASSEN
WATER AND SEWER UTILITY
i
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I . PHYSICAL DESCRIPTION
II . GEOGRAPHIC DESCRIPTION
' III . AUTHORITY -
A. ORDINANCES
B. CODE
IV. RATES/CHARGES
A. HISTORY OF RATES
B. REGIONAL COMPARISON
' V. NUMERICAL ANALYSIS
' VI . PROPOSAL
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CITY OF CHANHASSEN 1
WATER AND SEWER UTILITY
I . PHYSICAL DESCRIPTION:
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. I
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 1
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)
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 I
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 I
$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.
11
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rL I pct,y-f5/ i- ii n'1 1 iuy.Linkr1it`r
1 f/ s
FIGURE 1
r
I61713th AVE. S0. • ' --1"haAli"L
II City of Chanhassen
690 Coulter Drive
Chanhassen, Mn. 55 j 91 ' Cold teniat C45-71/14. � It ik
I Attention• Jer n • f
ter ��-�Y !
I •
�, ,ed 1,011,� ) �Q February 16, 1984
egg tafaant0�11 s those o1ldrtkal f00YM0,/0N�11dMd en sample sempwori.
1 ttail/044deZ ' - Well water : •✓
�0umf) from ' . ° L1)n
II city of Chanhassen 11-" t�
Well #2. /-
Total Hardness (CaCO3)� 300.0 mg/1 '_
Calcium Hardness 175.0 mg/1
Magnesium Hardness " 125.0 mg/1
1 • Alkalinity
to Phenolphthalein 0.0 mg/1
to Methyl Orange 310.0 mg/1
1 Sulfates (SO ) 25.0 mg/1
Chlorides (C `) 0.30 mg/1
Iron (Fe) 0.20 mg/1
Manganese (Mn) Tess than 0.05 mg/1
II
pH 7.7 -
Copper (Cu) 0.0 mg/1
Nitrate nitrogen (N) 0.0 mg/1
1 Nitrite nitrogen (N)( ) 0.0 mg/1
Zinc 0.0 mg/1
Foaming Agents None
1 Hydrogen Sulfide None
Odor None
Sodium (Na) 5.2 mg/1
Potassium (K) 3.3 /1
1 Total Solids 350. mggl
Total Dissolved Solids 345. mgil
I Corosivity, Langlier Index, at 50 degrees F. 0.3 +
(Water is very slightly corrosive.)
Vain City Water Clinic, Inc.
&wow,NMgrnp c•augu y*miaow
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I Inter on.p.N no.,.nn Bill Van Arsdale a— grow shmOcal•
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617 13th AVE. SO. • HOPKINS, MINNESOTA 55343 • -135-3556 1
City of Chanhassen February 29, 1984 I
690 Coulter Drive
Chanhassen, Fn. 55317
I
Attention; Mr. Jerry Boucher, •
Water Department.
REPORT OF WATEA ANALYSIS
• OW laboratory reports atom anaiyttoat molts,delonnined on a aantipl• ( &v.d kam you J " February 1 k 1984 I
*_ s —_.._
Well water 7;. S.4, - )
from - ��
City of Qianhass -err =--- '
Well #3.. - . ., /< "`I
Total Hardness (CaCO3) 270.0 mg/1
Calcium Hardness 155.0 mg/1
Magnesium Hardness " 115.0 mg/1
Alkalinity
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to Phenolphthalein 0.0 mg/1
to
Methyl Orange 290.0 5.0 mg/1
Chlorides (c ) 0.30 /1
-
Iron (Fe) 0.1 ng l
Manganese (Mrs) less than 0.05 mil
CH
Copper (Cu) 7.9 —
. Nitrate. nitrogen (N) 0.0 mg/1
Nitrite nitrc>✓PSt (N) -
0.0 rig/1
Zinc (Zn) 0.0 mg/1
I
Foaming Agent None
Hydrogen Sulfide None
Odor lime
Sodium (Na) 6.3 mg/1 I
Potassium (K) 3.8 /1
Total Solids 295. mg/1
Total Dissolved Solids 290. mg/1 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
mort ma bawaw, ` c•R.wruy•e0M••r
W. s &ysle rowers Dow w•1N ewswears
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II61713th AVE. SO. • HOPKINS, MINNESOTA 55343 • 935-3556
II • City of Chanhassen February 29, 1984
690 Coulter Drive
IChanhassen, Mn. 55317
Attention; Mr. Jerry Boucher,
Water Department.
II
REPORT OF WATER ANALYSIS
I t..e.W.e'MI y= ea Fevruary 16, 1984
Out Was1ery n�etia time nwlytkal nwMsr determined en sample 1 .
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I Well water
from fl
City of Chanhassen .s� ;' '
IIWell #4. i
Total Hardness (Ca'CO3) j 260.2) mg/1
II Calcium Hardness 145.0 mg/1
Magnesium Hardness 11 '` 115.0 mg/1
Alkalinity
• to Phenolphthalein 0.0 /1
to Sulfates(ySO4) 270.0 mg/1
I Chlorides (Cl) 0.24 /1
Iron (Fe) 1.1 mg/1
Manganese (Mn) less than 0.05 mg/1
pH
II Copper (Cu) 0.8 mg/I
Nitrate nitrogen (N) 0.0 mg/1
Nitrite nitrogen (N) 0.0 mg/1
1 Zinc (Zn) 0.0 a /l
Foaming Agents None
Hydrogen Sulfide None
Odor Present.
II Sodium (Na) 5.5 mg/1
Potassium (K) 4.2 /i
Total Solids 275. mg/1
jTotal 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 Host likely the product of the Iron
content and harmless Iron bacteria feeding on the Iron.) •
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Twin City Water Clinic, Inc.
Ar•.yr.at w..•..r C.n.ulun0 oneltawr
IW.w.n.,r.i.Newts Bill Van Arsdale sow,.su•e•• •0+4014
.tt "- )rd61)\"
11•p.q.M1 mm.e,,.,' •0 Orion •IrM
CITY OF CHANHASSEN
WATER AND SEWER UTILITY
I
II. GEOGRAPHIC DESCRIPTION
A. Districts/Billing Cycles: I
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 I
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 I
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 I
Dist. 3 - Dec-Feb Mar-May Jun-Aug Sep-Nov
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— FIGURE 2
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--- '\ - —
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CHANHASSEN i — 5 ' -�
SASE MAP — ■ ` r',. sfwf
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t ',.., t i - 1 1 1 1 1. t 1 t
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-CITY OF CHANHASSEN I
WATER AND SEWER UTILITY
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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 I
restrictions (figure 5) .
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FIGURE 3
19-28 CHANHASSEN CITY CODE
111
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)
1 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
1 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 charged
(1) 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, 16,3-11-85)
Secs. 1930-1940. Reserved.
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1 1068
FIGURE 3
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{ WATER,SEWERS AND SEWAGE DISPOSAL 1 19-65 t
driveway.In such case,the building sewer from the front building may be extended to the rear
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) ,
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 I
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.
111
(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, §4,3-11-55) ,
Secs. 19-52-19-65. Reserved. I
1073
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EIGURE 4
CITY OF CHANHASSEN
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CARVER AND HENNEPIN COUNTIES, MINNESOTA
I C
DATE: January 13 , 1986 RESOLUTION NO: 86-2
IIMOTION BY: Horn SECONDED BY: Swenson
IIA RESOLUTION ESTABLISHING MUNICIPAL SEWER AND WATER RATES
WHEREAS, this municipality maintains a public sewer and
I • water system; and
WHEREAS, Chanhassen Ordinances 5, 5-A, - and 6 provide that
I the City Council may from time to time establish revised rate
schedules for usage of the public sewer system and the public
water system.
II. Water Rates:
NOW, THEREFORE, BE IT RESOLVED that the following water
IIuser 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
II - each industrial structure which is connected to the
municipal water system as follows:
Il. A minimum charge of $8.00 per dwelling unit or
per billing statement generated for quarterly
water usage not exceeding 10,000 gallons;
I . 2. A separate billing statement shall be generated
for each water meter; and
I 3. A charge of $0.85 per 1,000 gallons, or fraction
thereof, of all quarterly water usage in excess
of 10 ,000 gallons.
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IIB. Unconnected Structures
A quarterly charge of $8.00 is hereby imposed on
11 each single family attached dwelling, each single
family detached dwelling, each commercial structure
and each industrial structure which is not connected
Ito the municipal water system when municipal water
service is available.
II. Sewer Rates : •
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BE IT FURTHER RESOLVED that the following sewer user
rates are hereby established for the municipal sewer system:
II
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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
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, I
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 ,
ii. at least one of whom is the owner of
said dwelling unit. ,
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• b. - Alternate System of Billing Computation. The
A � '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 com-
• mercial 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
i 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
of similar land uses actually connected to the
municipal sewer and water systems.
C. Structure Not Connected To Sewer
1 . A quarterly charge is hereby imposed on each single
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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:
$83 . 50 per dwelling unit, provided, however, that
the quarterly charge shall be $18.35 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 commer-
cial 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
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.
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FIGURE 5 I
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA I
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/ I
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:
Don Ashworth, ity Manager Donald J. ie , yor
. YES NO ABSENT ,
Chmiel None
Johnson Boyt
Workman
Dimler
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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 5M
' .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
1 (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
11
I
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= CITY 13F CHANHASSEN t
WATER AND SEWER UTILITY ,
IV. RATES/CHARGES cont. II
B. Regional Comparison - 1
The following is a comparative rate study of the water and
Isewer billing of neighboring communities as of 3/31/90:
- - -WATER- - - - - -SEWER- - -
CITY MINIMUM RATE MINIMUM RATE I
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/M:ov 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 II usage.
I
II
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I
4
1 CITY OF CHANHASSEN
WATER AND SEWER UTILITY
II
V. NUMERICAL ANALYSIS
A. Connections/Accounts
(end of year) -
IYEAR WATER (NEW) SEWER (NEW)
1985 2180 -- 2078 --
' 1986 2326 146 2449 371
1987 2601 275 2732 283
1988 2919 318 3055 323
1 1989 3229 310 3363 308
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
II 1987 322,741 70,221 295,759 66,605 114
1988 394,709 71 ,968 357,612 61 ,853 122
1989 410,545 5.836 374,734 17. 122 116
IITOTAL INCREASE: 161 ,418 176, 147 25
C. Study as of 3/31/90
I1 . Basis: Total number of active accounts/users is 3, 148,
of which 3,046 are residential single family. 3,005
I of the accounts have water and sewer.
For 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/
I fall only users such as sprinkler meters and homeowner
associations. These have not been used in any of the
following comparisons.
II 3. Definition: Because we have 3 different billing/usage
cycles (districts) it is impossible to compile exact
month by month comparisons. The quarterly comparisons
1 are based on usage as follows:
t
Qtr 1 (winter) : 3-month cycle which encompasses January.
II Qtr 2 (spring) : 3-month cycle which encompasses April .
Qtr 3 (summer) : 3-month cycle which encompasses July.
Qtr 4 (fall ) s 3-month cycle which encompasses October.
II -6-
i.
t CITY OF CHANHASSEN II
WATER AND SEWER UTILITY
V. NUMERICAL ANALYSIS cont.
II
D. Comparisons:
QTR 1 QTR 2 OTR 3 QTR 4 1
Average Usage 18M 23M 36M 26M
Median Usage 17M 19M 29M 21M
II
Variation from Otr 1 - (Positive variations only)
Average -- 158% 259%. 202%.
II
Median -- 130% 190% 150%
Negative variation (count) 628 299 522
I
E. Billing Comparisons: (Annual )
Average Median I
Sewer 109.00 95.00
Water 86.60 76.00
Total 195.60 171 .00
II
r
II
II
II
II
II
II
-7- II
_Y
_ _ - -- ----
ir.- : _ _-__ _ _____ _ _ __ _
t.
41 CITY OF CHANHASSEN
1 -WAATER AND SEWER UTILITY
VI . PROPOSAL
_I Modify water rate schedule to:
A. $1 .00 per 1 ,000 gallons (or fraction thereof) .
IIB. $5.00 (5,000 gallon) minimum per quarter.
IC. Establish excess-use charge of .50 per 1 ,000 gallons
(or fraction thereof) for all usage in excess of
130% of winter quarter usage.
II D. Dedicate excess-use revenues to insure positive
over-all balances in operation of the sewer/water
utility fund.
IE. Summary
I Using the proposed new rate schedule with the 1989
data would produce the following results:
Annual Billings: Average Median
II . Sewer (no change) 109.00 95.00
Water 116.50 100.00
Total 225.50 198.00
11 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
ISmall 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
II
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II
Jane S. Partridge
II
6280 Hummingbird Rd.
Excelsior, Minnesota 55331 9 July 3990
IIDear Mayor Chmiel and
C&uncilmembers Boyt, Dimler, Johnson, and Workman:
If I understand the article in the June 28 Villager, the Council 11
is considering an excess water use charge based on an excess •
consumption figure that would vary from household to household.
If my interpretation of this plan is correct, I hope you'll
give a little deeper thought to more sides of the issue.
I'm away a good deal of the winter. Therefore, my winter water r ll
consumption is quite a bit less than in the summer. Normal [
summer bathing and washing activities - without any lawn sprinkling t
at all-could throw me into the excess usage category. I could ill
leave the water running while I'm out of town in the winter, but
I don't think this is what you have in mind. E
What about a family where children are away at school in winter? 11
Augmentation of household size on a seasonal basis for whatever f
reason could create an "excess usage" situation if the city uses
a variable base level. Again, no lawn sprinkling is involved. 1
r
A family of 5 uses far more of the earth's resources than my family
of 2 and my family of 2 uses more than a household of 1. Tying II
conservation to family/household size (which a variable excess rate
does by legitimizing a larger base rate for some) is a very E
i II
sticky issue and one I don't think you want to get into.
i II
Please understand I'm not quarreling with the idea of paying more f
for excess water usage. Graduated or accelerated rates are accept-
able to me and to promote conservation. What I'm taking issue II with is the idea that "excess" will vary from household to house-
hold. NSP charges more for increasedelectrical use in the summer,
but the point at which electricity consumed starts to cost more II
is the same for every household or subscriber. Likewise, the base
level of water use should be the same for all residences in the
city and not vary from household to household. `
Does the city even have the computer system that can vary the ) I
base level from household to household and year to year?
Please think this proposed plan through very carefully. II
Sincerely, f
r
II
II"Pane S. Partridge
•
II
11
3
I .
CITY OF
1
of CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147• CHANHASSEN, MINNESOTA 55317
1 (612) 937-1900 • FAX (612) 937-5739
II August 6, 1990
1 Ms. Jane S. Partridge
6280 Hummingbird Road
1 Excelsior, MN 55331
Dear Ms. Partridge:
I Thank you for your letter of July 9, 1990. Your letter has been
forwarded to the Chanhassen City Council and will be a part of
their consideration prior to adopting an excess usage water charge
Iordinance.
Let me start by responding to your last questions first.
II Specifically, the city does have a computer system that currently
keeps track of the base level of every resident's water
consumption. This system has been operational for the past ten
years. The reason individual usage is maintained is to more
1 accurately establish sanitary sewer charges for each of our
customers. Specifically, the winter quarter (the quarter
encompassing the month of January) has been found to most
I accurately represent sewer discharge volumes on a yearly basis. To
even our workload for meter readers/utility clerk personnel, the
city has adopted a series system of quarterly billings.
Accordingly, a portion of our community may be billed for the
1 period of November, December and January; whereas another portion
of the community may be billed for the months December, January and
February. Again, the computer system maintains not only the series
1 records, but the utility usage during those time frames. The
winter quarter reasonably assures that the sewer charge, during the
remainder of the year, is set during a time frame when typically no
I lawn sprinkling, car washing, swimming pool filling, etc. is
occurring.
The reason the city places an emphasis on the winter quarter usage
II is because it costs approximately twice as much to clean dirty
water as it does to produce clean water. To charge a customer a
sewer charge for water used during the summer would most likely be
Ian overcharge as most of that consumption would be attributable to
sprinkling, car washing, etc. The current system attempts to be as
reasonable as possible for a majority of our utility customers.
IIYou are correct in noting that not all customers have the same
II
II
Ms. Jane S. Partridge
August 6, 1990
Page 2 I
habits/usage. Customers taking winter time vacations or having
students in school during the winter quarter do have a winter
quarter usae which probably is not typical of their actual usage
on a yearly basis. Accordingly, their sanitary sewer charge for
the year has been inappropriately set too low. However, I believe
that the number of customers falling into this category is small in
comparison to the total customer base.
Ironically, the excess water use charge could in fact have the
results of more equitably recouping total costs for those people
who do have inordinately low winter quarter usage. While it is
true that the city could establish a fixed minimum charge for all
users, the variable system does appear to have greater equity for
all customers.
Fortunately, I will not vote on this issue. As stated earlier, the
City Council does have your letter and this response. If I
understand you correctly, you are not opposed to the excess usage
charge, but believe that such should be set based on a certain
minimum. Again, I disagree, but respect your opinion.
Sincerely,
'<(2 DaLeZ)
Don Ashworth
City Manager
DA:k
1
1
1
I
1
I
City Council Meeting - June 25, 1990
II Resolution #90-71: Councilman Workman moved, Councilman Johnson seconded to
accept the feasibility study for the upgrading of County Road 17 from Trunk
Highway 5 south to Lake Drive West and to call the public hearing for July 23,
II1990. All voted in favor and the motion carried unanimously.
CONSIDER ACCELERATED WATER RATE SCHEDULE FOR WATER UTILITY.
I/1(
Don Ashworth: Jean Meuwissen and Tom Chaffee are both here. I thought that
they did an excellent job in putting together the report you have in front of
II you there. It's more information regarding our utility system than you probably
ever wanted to know but it does show a number of interesting items and I think
that the primary one is that the City Council started talking about oh, 3-4
I months ago and maybe even going into this past year trying to find some
mechanism to ensure that as a community we were making a statement that we
wanted to see our natural resources, more specifically our water, preserved and
II that any of the existing water schedules where you would see a reduction in
water rates with the more water you consummed is actually counter productive to
any environmental type of efforts. I think we'll probably be tracking in some
new area. here. I do not know of any city in the State of Minnesota and this
II was again part of the thing that Deloitte had brought up, that has taken this
type of a step to put into place a rate structure that will in fact establish a
penalty for excess water useage during the summer months. As a part of that,
I you've got a great deal of flexibility. What do you pick out as the quantifiers
that you're going to use. What we used was establishing, and it's a good thing
we have computers today, but the computer will go in and analyze each individual
account. Determine your. . .water- consumption which is basically your winter
II consumption and will then establish a rate that produces a quantity. We will
provide 30% above that during the summer months but anything .in excess of that
30% useage over your normal winter quarter would go at this higher accelerated
II schedule. What has been used for, in-house purposes is a 50 cents surcharge on
that additional useage. In that process we also reduce the minimums to insure
that senior citizens, those people who were are the very low end of the schedule
II would not have, right now you have certain disadvantages. Disincentives. So
for example if you're hit into the elderly area and you can use 10 or 20,000
gallons at a minimum charge, what advantage is there for you to use less water.
So our rationale was let's cut that down to as minimal a minimum as we can and
II in fact provide some type of an incentive again for those seniors who do not use
that much water. There is a general rate increase. The general rate increase
is, if you take into account that there has not been a rate increase during the
I past 5 years, is actually literally nothing in terms of the overall affects.
With the surcharge, with the rate increase, I think we're still looking and we
could go since I wrote the cover report and as mine's still on here, you're
II looking at a 5% to 10% increase in their total bill. This would be for general
rates. And an average family looking at potentially $10.00 to $20.00 increase
if they maintain the same water useage rates that they did this past summer. So
for Tom's analysis, he had the computer go in. Calculate what the low quarter
II would have been from a year ago. Then provide the 30%. Then analyze what you
actually used this past summer and what your actual surcharge would have been.
Those statistics are what is used to produce the averages on page 8.
ICouncilman Johnson: We should have done Tom and Don's houses and seen what our
actuals would have been.
II 46
I
City Council Meeting - June 25, 1990
Mayor Chmiel: I said look at my bill for an example. 11
Don Ashworth: One is?
Jean Meuwissen: One is your house.
bon Ashworth: My house or Oon's house?
Jean Meuwissen: You. Ashworth.
Tom Chaffee: We were going to use the term normal too. . .but normalcy.
Councilman Johnson: Not if you had Don's included on there. How much was Don's
increase then? I
Tom Chaffee: In order to compensate for the variances in the schedule we put in
the fact that the City Manager's bill would increase by 230%. I
Councilman Johnson: Well one of his daughters is in college now so the water
useagc and phone useage is way down.
Jean Meuwissen: Except for the summer when they're home.
Don Ashworth: I'm a 3 person household? 1
Jean Meuwissen: Yes.
Mayor Chmiel: Your's looks pretty much like mine. I think mine comes to about 1
90 something per month. Or per 3 months. Excuse me.
Ton Chaffee: These are annual figures here.
Don Ashworth: Recognize that when I give my 5% to 10%, I am using the total
billing that goes out from the City. So we're not proposing any increases in
the sewer rates and so when I'm making those types of comparisons, I'm saying
that the average is $200.00 per year for sewer and water and so the increase in
water rate in comparison to your total bill is the 5; to 10%.
Councilman Workman: Are you saying that no other community in the State has
done this?
Don Ashworth: I'm not aware of any that has an incentive or disincentive
program or penalty to.
Councilman Johnson: It's an incentive to conserve. 1
Mayor Chmiel: Basically to save water.
Don Ashworth: Most rate schedules still go on the older philosophy that the
more you use, the less you'd get some type of a cost breakdown.
Councilman Workman: NSP works like that. I think it's a good idea. I'd be
waiting to hear some of the flack on it but it certainly is a good idea. I just
have one question and that is how it relates to water consumption by industry I
47
11
City Council Meeting - June 25, 1990
•
that , like Rosemount uses I think an awful lot of water down there for cooling,
IIetc. . How is that going to impact them? Are they going to go through the roof?
Mayor Chmiel: Are many of these people aware as to how it 's going to affect
IItheir particular balance?
Cary Warren: We're taking their winter quarter use and giving them that plus
30% so unless they outrageously change some process or something.
ICouncilman Johnson: I think that they chose to. . .
I Councilman Workman: But 30% of $100,000.00 water bill or whatever is a lot of
bill.
Councilman Johnson: Rosemount uses a lot of water but in their final
IIdevelopment they chose to go with a recirculating system versus a once through
non-contact for their cooling which is what would have really increased in the
summer. I don't know if they've switched back on that .
1 Gary Warren: We haven't seen that . The Rosemount useage was pretty up there
the last quarter.
IIJean Meuwissen: 16 million.
II Gary Warren: So maybe they haven't got that system going yet but there's a l
of Ovate,-. lot
Cc::ncilman Workman: We're talking about a large financial impact .
IIDon ,,:shuorth: Out Councilman Workman, just so you understand. See you
calculate the winter quarter. Say during the summer months, the first 130% of
I that would be calculated at the lower rate. So you would not pay at the higher-
rate until you get to that.
Councilman Workman: But it 's going to impact them proportionally like an
IIindividual.
Don Ashworth: Until you brought out the question I really hadn't thought about
I it but I think you might have just the opposite situation. If you had a large
industrial type of user and you give them 30% for their winter quarter, you can .
almost assuredly, they would not pay any additional for watering during the
II . summer just because of the size of that account. Probably the watering would be
very minor in comparison.
Gary Warren: They have such a large base that they're working from.
IIDon Ashworth: Tom, did I make a mis-statement?
I Tom Chaffee: I wanted to point out that in the process of our study, and I did
point out that there were 92 unique connections here if you will here in the
City that sprinkler meters, homeowners associations, etc. and we didn't
I specifically address to the 130% item because the example of a sprinkler meter,
ill
you don't run in it in the winter. So typically then, depending upon the
position that the Council wanted to take, all of their useage for the second and
II 48
City Council Meeting - June 25, 1990 •
fourth quarter could be considered excessive useage. You look at it purely from
a conservationist standpoint . Or again going back to using our sophisticated
computers for analyzing, we can come up with a median or a means from which to
derive their 130; basis to work from for the excess useage.
Councilman Workman: Well we've got that same bridge to cross for the storm
water utility somewhat don't we? Who to assess, the individual or the
homeowner's association.
Councilman Johnson: We have homeowner's associations that have water meters? 1
Mayor Chmiel: Sure.
Councilman Johnson: So for their sprinkling it's all. . .
Councilman Workman: All the outdoor spigots are homeowner association
controlled and so I would then therefore have no storm water utility problem
would I?
Councilman Johnson: No. '
Councilman Workman: But that 's the thing.
Councilman Johnson: Yeah, because there there would be. Now Rosemount would I
have an average winter useage and if they've got also a watering system that's
on a separate meter, which if they don't they should have, I would say that
their watering would be part of the 30% above their normal flow. The homeowners
association, I have no idea how to handle that because there won't be any flow
in the winter.
Jean Meuwisen: Rosemount would not be. . .
Councilman Johnson: Yeah, but you would take their industrial use and allow
them 30% for their sprinklers. So you add them to because they're both at
physically the same location. You could add them together.
Tom Chaffee: You add the consumption together in order to arrive at your 130%
though.
Councilman Johnson: Right . You could do that with the homeowner's association
except you have to add everybody's water use together throughout the
neighborhood or somehow or another.
Gary Warren: Well even like in the storm water utility district we're saying 1
that there's an opportunity for somebody to appeal on a rate. There are some
exceptions that maybe need to be specifically looked at and calculated but the
idea is to get at giving some credit for the fact that you've got a base useage
which everybody needs and then you've got people who can get excessive and I
think that 's the policy that we're looking at.
Councilman Johnson: There are a lot of people out there, I don't know how many 1
in this town, but in various other suburbs that use drinking water to cool their
buildings with. They run it through a chilling system. One time through and
then dump it down the storm sewer. It 's something that is wasting our ground ,
49
I
11 . City. Council Meeting - June 25, 1990
water considerably. I think there's a shopping center right over there that
does a couple million gallons a day for just cooling the shopping center.
' Because ground water is so cheap, it encourages that and this is the proper step
and is an example for the whole State to take. The legislature ought to be
looking at something like this in requiring this so that they discourage that
type of abuse of ground water. •
' Councilman Workman: Well I would move to authorize the City Attorney to draft a
resolution which incorporates the proposed rate changes.
Councilman Johnson: What kind of public notice should we do on this?
' Mayor Chmiel: That 's one of the things my concern is. Making sure that
everybody is aware as to what we're proposing and having some kind of a public
notice for this.
' Councilman Workman: We're going to need to have something drafted.
Mayor Chmiel : And I'd like to see some comparisons rather than just one or two
' or three to look at it from residential as well as commercial and industrial.
Tom Chaffee: Would you like to see those now?
Mayor Chmiel: No. I'd like to have them ready at that time.
Don Ashworth: So you're saying probably the second meeting in July and we have
a larger notice in the newspaper.
Councilman Johnson: Did I second that yet?
' Mayor Chmiel: Yes.
Cary Warren: No.
Councilman Workman: Did you?
' Councilman Johnson: No I didn't.
Jim Chaffee: Gary did.
1 Mayor Chmiel: Okay, there's a motion on the floor with a second.
Councilman Workman moved, Councilman Johnson seconded to authorize the City
Attorney to draft a resolution which incorporates the proposed rate changes.
All voted in favor and the motion carried unanimously.
1 CONSIDER PURCHASE OF BUILDING INSPECTION VEHICLE.
Don Ashworth: We did get a very excellent bid from earlier this evening. That
process did save us, I would say $4,000.00 to $5,000.00 over what we originally
looked to. I sincerely believe that we could look to again that same type of
dollar savings if we literally went back out again. That coupled with the fact
that we have both the Escort and the Lynx that are really on their last legs.
50