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I-1. Adoption of Ordinance Chapter 4, city code, feesCITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone 952 2271100 Fax 952 2271110 Building Inspections Phone 952 2271180 Fax 952 2271190 Engineering Phone 952 2271160 Fax 952 2271170 Finance Phone 952 2271140 Fax 952 2271110 Park & Recreation Phone 952 2271120 Fax 952 2271110 Recreation Center 2310 Coulter Boulevard Phone 952 2271400 Fax 952 2271404 Planning & Natural Resources Phone 952 2271130 Fax 952 2271110 Public Works 7901 Park Place Phone 952 2271300 Fax 952 2271310 Senior Center Phone 952 2271125 Fax 952 2271110 Website www ci chanhassen mn us _� 1 MEMORANDUM TO: Todd Gerhardt, City Manager FROM. Greg Sticha, Finance Director DATE: December 8, 2014 SUBJ: Adoption of Ordinance, Chapter 4, Chanhassen City Code, Fees ACTION REQUIRED A simple majority vote of City Council members present is required to adopt the amendment The city attorney's office recommends that the fees be adopted by ordinance BACKGROUND City fees are designed to cover the cost of providing a specific service DISCUSSION Issue• Cemetery Fees not included in ordinance While the need for fees is addressed in City Code Chapter 8, Cemeteries, there are no fees established there. At the November 10, 2014 City Council meeting, Council reviewed the fees and directed staff to establish the following fees for Pioneer Cemetery Add Section 4 -16 establishing cemetery fees as follows. Issue: As -built Surveys Section 4 -30 (a) Building permit and fire prevention fees Add a subsection 7 regarding re- inspection fee for as -built surveys. The requirement for an as -built survey is established in Chapter 7, Article II, Building Code Section 7 -17 requires fees to be in Chapter 4. Section 7 -21 establishes as -built grading surveys Steve has about 70 as -built drawings sitting on his desk that he has looked at more than two times Hopefully with this change, the as -built review and approvals process will take less time. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Resident Non Resident Grave Fee $400.00 $60000 Interment Fee $150.00 $15000 Issue: As -built Surveys Section 4 -30 (a) Building permit and fire prevention fees Add a subsection 7 regarding re- inspection fee for as -built surveys. The requirement for an as -built survey is established in Chapter 7, Article II, Building Code Section 7 -17 requires fees to be in Chapter 4. Section 7 -21 establishes as -built grading surveys Steve has about 70 as -built drawings sitting on his desk that he has looked at more than two times Hopefully with this change, the as -built review and approvals process will take less time. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Todd Gerhardt Chapter 4 Code Amendment December 8, 2014 Page 2 of 7 We are requesting a $50 re- inspection fee if the redlines are not all addressed after the first review and Steve has to revisit the site and mark up the drawing again Issue: Surface Water Management Fees The City's Surface Water Management Plan (SWMP) was adopted in February 1994 The SWMP recommended the City establish surface water connection fees as a means of financing city -wide improvements recommended in the SWMP. Connection fees are charged to subdivisions prior to final plat approval to recoup the costs of the installation and maintenance of public stormwater infrastructure The connection charges were derived from estimating the costs of all the pipes and ponds proposed in the SWMP The total cost has been apportioned so developments are charged according to the number of acres developed and the land use The fee per acre vanes by land use as a result of the amount of impervious surface allowed within that land use category. At that time, the rates were calculated using market values of land in the City of Chanhassen and the construction cost index In the SWMP, it was noted that, "the rates should be increased annually in line with the construction price index," but, until 2002, the fees had not been updated since adoption In 2015, Ehlers & Associates, the City's financial advisors, recommends a four percent increase to the water quality and quantity fees. Water Quality Land Use 2008 2009 2010 2011 2012 2013 2014 Proposed 2015 Single-Family Residential $2,360 $2,360 $2,540 $2,540 $2,670 $2,830 $2,990 $3,110 Duplex $2,640 $2,640 $2,850 $2,850 $2,990 $3,170 $3,340 $3,470 Townhome $4,440 $4,440 $4,790 $4,790 $5,030 $5,330 $5,620 $5,840 School/Church $4,440 $4,440 $4,790 $4,790 1 $5,030 $5,330 $5,620 $5,840 Apartment /multi - family $4,920 $4,920 $5,310 $5,310 $5,580 $5,910 $6,240 $6,490 Industrial $13,680 $13,680 $14,770 $14,770 $15,510 $16,440 $17,340 8, Commercial $17,400 $17,400 $18,790 $18,790 $19,730 $20,910 $22,060 E$$22,9E4O Water Quantity Land Use 2008 2009 2010 2011 2012 2013 2014 Proposed 2015 Single-Family/Low $3,410 $3,410 $3,640 $3,640 $3,820 $4,050 $4,270 $4,440 Density Medium Density $4,700 $4,700 $5,020 $5,020 $5,270 $5,590 $5,900 $6,140 High Density $7,280 $7,280 $7,780 $7,780 $8,170 $8,660 $9,140 $9,510 Commercial/Industrial/ Business $6,820 $6,820 $7,290 $7,290 $7,650 $8,110 $8,560 $8,900 Parks /Open Space $1,930 $1,930 $2,060 $2,060 $2,160 1 $2,290 $2,420 $2,520 Todd Gerhardt Chapter 4 Code Amendment December 8, 2014 Page 3 of 7 Amend Section 4 -30 (c) 3 Surface Water Management Fees (SWMP) - Water Quality and Water Quantity Development Type Single - Family Duplex School /Church Townhome Apartment /High Density Medium Density Industrial Commercial Parks /Open Space Water Quality $2,990 110.00 /Acre $340 3,470 00 /Acre $5-,62-0 5,840 00 /Acre $5-,6W 5,840.00 /Acre $640 6,490 00 /Acre based on development type $34018,030 00 /Acre $22,060 22,940 00 /Acre based on development type Water Quantity $470 4,440 00 /Acre based on land use designation based on land use designation based on land use designation $140 9,510.00 /Acre $5-980 6,140 00 /Acre $8360 8,900 00 /Acre $8,360 8,900.00 /Acre $428 2,520 00 /Acre Fees are based on the developable land Undeveloped areas (wetlands), public parks, and existing development are exempt from the fees Issue: Sewer and Water Fees A lateral connection charge replaces a missed assessment When the City installs a pipe next to a property, some owners choose not to connect In some instances, the City may not have assessed the property owner for their portion of the pipe. When those properties eventually connect, the lateral connection charge approximately covers the cost of the omitted assessment These charges are only levied in rare instances Trunk hook -up charges, on the other hand, are for core utility infrastructure such as wells, lift stations, and trunk main oversizing Every new lot in the city that hooks up to the utility system pays a trunk hook -up charge Hook -up fees paid at the time of final residential subdivision approval increase from $664.00 to $677 00 /unit (sewer) and $1,886 00 to $1,957 00 /unit (water) The remainder of the sewer and water hook -up fee is collected with the building permit at the rate in effect at that time The total sanitary hook -up fee is increasing from $2,213 to $2,257 and the total water hook -up fee is increasing from $6,287 to $6,523 Parcels within the Lake Ann Sewer District will also be subject to the Lake Ann Trunk sewer fees in addition to the sewer trunk hook -up fees The Lake Ann Interceptor hook -up fee is increasing from $1,894 to $1,932 and the sub -trunk fee is increasing from $1,987 to $2,027 Commercial, industrial and institutional developments pay the total hook -up fee at the time of building permit Trunk hook -up fees are based on the number of sanitary access charge (SAC) units assigned by Metropolitan Council for office or industrial /commercial buildings Lateral connection charges are charges for utility infrastructure which has been constructed by the city but were not assessed to or paid for a property Sewer lateral connection charges increase from $7,411.00 to $7,559 00 and water lateral connection charges increase from $7,759.00 to $8,050 00 Todd Gerhardt Chapter 4 Code Amendment December 8, 2014 Page 4 of 7 The Met Council SAC fee for 2015 remains the same as 2014 at $2,485 00 Amend Section 4 -30 (c) 5 Sewer and water fees Residential development Shall pay a portion of the sewer and water hook -up fees (area trunk fees) at the time of final subdivision approval $664 677 00 /unit (sewer) and $61,957 00 /unit (water). The remainder of the sewer and water hook -up fees shall be collected with the building permit at the rate in effect at that time. Parcels previously assessed trunk hook -up fees are exempt Residential trunk hook -up fees are based per unit. Sanitary 2010 2011 2012 2013 2014 Proposed 2015 Water Hook -up $5,393 $5,393 $5,717 $6,060 $6,287 $6,523 Sewer Hook -up $2,026 $2,026 $2,107 $2,170 $2,213 $2,257 Water Connection $6,657 $6,657 $7,056 $7,479 $7,759 $8,050 Sewer Connection $6,783 $6,783 $7,054 $7,266 $7,411 $7,559 Lake Ann Interceptor $1,734 $1,734 $1,803 $1,857 $1,894 $1,932 Sub -trunk $1,818 $1,818 $1,891 $1,948 $1,987 $2,027 The Met Council SAC fee for 2015 remains the same as 2014 at $2,485 00 Amend Section 4 -30 (c) 5 Sewer and water fees Residential development Shall pay a portion of the sewer and water hook -up fees (area trunk fees) at the time of final subdivision approval $664 677 00 /unit (sewer) and $61,957 00 /unit (water). The remainder of the sewer and water hook -up fees shall be collected with the building permit at the rate in effect at that time. Parcels previously assessed trunk hook -up fees are exempt Residential trunk hook -up fees are based per unit. Sanitary $4-,549-1,580 00 /unit, or $2-,24-3 2,257 00 /unit if a portion of the sewer hook -up fee sewer was not paid at the time of final subdivision approval -(Lake Ann Interceptor - $-1-,9941,932 00 /unit and subtrunk $4-,997 2,027 00 /unit)* Water $4,4" 4,566 00 /unit, or $6,297 6,523 00 if a portion of the water hook -up fee was not paid at the time of final subdivision approval SAC As established by the Metropolitan Council and $75 00 city SAC surcharge *Parcels within the Lake Ann Sewer District will be subject to the Lake Ann Trunk sewer fees in addition to the sewer trunk hook -up fees Commercial, industrial and institutional development. Sewer and water trunk hook -up fees (area trunk fees) Fee is paid at the time of building permit Parcels previously assessed trunk hook -up fees are exempt. Trunk hook -up fees are based on the number of sanitary access charge (SAC) units assigned by Metropolitan Council for office or industrial /commercial buildings Todd Gerhardt Chapter 4 Code Amendment December 8, 2014 Page 5 of 7 Sanitary sewer $2-,213 2,257 00 /unit —(Lake Ann Interceptor - $4-;8- 141,932 00 /unit and subtrunk $4-,� 2,027 00 /unit)* Water $tip 6,523 00 /unit SAC As established by the Metropolitan Council and $75 00 city SAC surcharge *Parcels within the Lake Ann Sewer District will be subject to the Lake Ann Trunk sewer fees in addition to the sewer trunk hook up fees All development Lateral connection charges If the lot or tract of land, or portion thereof, to be served by a lateral connection that has not been assessed for the cost of construction, then the applicant shall pay the following lateral connection. • Sewer lateral connection charge $7-,444 7,559 00 • Water lateral connection charge $718,050.00 Issue: Water and Sewage Rates In 2007, the City experienced significant water usage events that lead the City to add tiers to our water rates and adopt the tiered rate structure in 2008 In 2011, the City added a fifth tier for household and irrigation use that is more than 99,000 gallons per quarter For 2015, the Ehlers and Associates analysis recommends a three percent increase to the water utility rates for all tiers and the bulk rate In 2015, multi- family properties will pay a uniform rate of $2 20 per 1,000 gallons. The utility rate analysis also recommends a four percent increase to the sewer utility rates Listed below is the 2010, 2011, 2012, 2013, 2014 and proposed 2015 water consumption rate structure along with the sewer rate structure Water 2010 2011 2012 2013 2014 2015 Fixed Charge (minimum per quarter) 500 501 5.13 750 774 7.98 0 - 5,000 Gallons 1.00 - - - - - 0 - 6,000 Gallons - 1.00 1.02 104 107 1.10 5,001 - 25,000 Gallons 2.00 - - - - _ 6,001 - 24,000 Gallons - 2.00 204 208 214 2.20 25,001 - 50,000 Gallons 249 - - - - _ 24,001 - 48,000 Gallons - 2.49 254 259 267 2.75 50,001+ Gallons 289 - - - - - 48,001 - 99,000 Gallons - 2.89 295 301 3 10 3.19 99,001+ Gallons (Irrigation and Residential Only) _ 361 372 3 83 3.94 4.06 Multi- Family - - - 208 214 2.20 Bulk sales to contractors, landscapers, etc. at City fill stations or other designated locations 5.00 500 5 10 520 5.36 5.52 Todd Gerhardt Chapter 4 Code Amendment December 8, 2014 Page 6 of 7 Sewer 2010 2011 2012 2013 2014 2015 Minimum Charge (includes up to 5,000 gallons) 1945 - - - Minimum Charge (includes up to 6,000 gallons) - 1947 2004 20.64 21.27 22.11 Residential - amounts over 5,000 gallons (based on winter quarter usage) 3.78 - - Residential - amounts over 6,000 gallons (based on winter quarter usage) - 3 78 3 89 401 4 13 4.30 Commerical - amounts over 5,000 gallons (based on actual quarterly 3 78 - - - - - usage) Commerical - amounts over 6,000 gallons (based on actual quarterly - 3 78 3 89 401 4 13 4.30 usage) Amend Section 4 -45 Utility rates are established for each 1,000 gallons of usage- Water. Fixed Charge (minimum water charge per quarter) 0 to 6,000 gallons per quarter 6,001 to 24,000 gallons per quarter 24,001 to 48,000 gallons per quarter 48,001 to 99,000 gallons per quarter 99,001+ gallons per quarter (Irrigation and Residential Only) Multi - family properties - uniform water rate Bulk sales to contractors, landscapers, etc at City fill stations or other designated locations Sewage. Residential based on winter quarter usage Commercial based on actual quarterly usage Minimum sewage charge per quarter (for amounts up to 6,000 gallons per quarter) Issue: Surface Water Management Fees (Utility Factor) $7-74 7.98 per quarter $4-0'7 1.10 per 1,000 gallons $214-2.20 per 1,000 gallons $2-.6-7 2.75 per 1,000 gallons $34-0 3.19 per 1,000 gallons $3-94 4.06 per 1,000 gallons $214 2.20 per 1,000 gallons $5-.3-6 5.52 per 1,000 gallons $44-3 4.30 per 1,000 gallons $4-44 4.30 per 1,000 gallons $24-2-7 -22.11 The utility factor for each land use is not changing The rates are increasing four percent for 2015 The rates for tax parcels classified 1, 2 or 3 shall increase from $9.66 to $10.05 The rates for tax parcels classified 4 through 8 shall increase from $18 89 to $19 65 Todd Gerhardt Chapter 4 Code Amendment December 8, 2014 Page 7of7 Amend Section 4 -50 Surface Water Management Fees. Classification Land Use Utility Factor 1 Single - family and Rural residential Not Applicable 2 Agricultural Not Applicable 3 Undeveloped Not Applicable 4 Medium density residential 2.22 5 High density residential, Industrial, Office, Institutions (churches, schools, government buildings, hospitals) 3.30 6 Business /Commercial 423 7 Parks, cemeteries, golf courses, arboretum 046 8 Parking lots as a principal use 614 The surface water management fee for each tax parcel classified 1, 2 and 3 shall be $9-66 10.05. The surface water management fee for each tax parcel classified 4 through 8 shall be calculated as follows. $18.89 19.65 multiplied by the utility factor multiplied by the acreage of the parcel. RECOMMENDATION Staff recommends that City Council adopt the attached ordinance amending Chapter 4 of the Chanhassen City Code revising the fees for 2015. ATTACHMENTS 1 Ordinance Amending Chapter 4, Chanhassen City Code, Fees g \plan \city code\2014 \ch 4 fees \cc memo fees doe CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 4 CHANHASSEN CITY CODE, LICENSE, PERMIT AND ADMINISTRATIVE FEES THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS- Section 1. Chapter 4, Article II of the City Code, City of Chanhassen, Minnesota, is hereby amended by adding Section 4 -16 Cemetery Fees to read as follows- Cemetery Fees Section 2 Section 4 -30 (a) of the City Code, City of Chanhassen, Minnesota, is hereby amended by adding subsection 7 to read as follows- Re-inspection fee for as -built surveys $50 per re- inspection Section 3 Section 4 -30 (c) 3 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows Surface Water Management Fees (SWMP) - Water Quality and Water Quantity Development Type Single - Family Duplex School /Church Townhome Apartment /High Density Medium Density Industrial Commercial Parks /Open Space Water Quality $3,110.00 /Acre $3,470 00 /Acre $5,840 00 /Acre $5,840.00 /Acre $6,490 00 /Acre based on development type $18,030 00 /Acre $22,940 00 /Acre based on development type Water Quantity $4,440 00 /Acre based on land use designation based on land use designation based on land use designation $9,510.00 /Acre $6,140 00 /Acre $8,900 00 /Acre $8,900.00 /Acre $2,520 00 /Acre Fees are based on the developable land Undeveloped areas (wetlands), public parks, and existing development are exempt from the fees Resident Non - Resident Grave Fee $40000 $600.00 Interment Fee $15000 $150.00 Section 2 Section 4 -30 (a) of the City Code, City of Chanhassen, Minnesota, is hereby amended by adding subsection 7 to read as follows- Re-inspection fee for as -built surveys $50 per re- inspection Section 3 Section 4 -30 (c) 3 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows Surface Water Management Fees (SWMP) - Water Quality and Water Quantity Development Type Single - Family Duplex School /Church Townhome Apartment /High Density Medium Density Industrial Commercial Parks /Open Space Water Quality $3,110.00 /Acre $3,470 00 /Acre $5,840 00 /Acre $5,840.00 /Acre $6,490 00 /Acre based on development type $18,030 00 /Acre $22,940 00 /Acre based on development type Water Quantity $4,440 00 /Acre based on land use designation based on land use designation based on land use designation $9,510.00 /Acre $6,140 00 /Acre $8,900 00 /Acre $8,900.00 /Acre $2,520 00 /Acre Fees are based on the developable land Undeveloped areas (wetlands), public parks, and existing development are exempt from the fees Section 4 Section 4 -30 (c) 5 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows- Sewer and water fees Residential development. Shall pay a portion of the sewer and water hook -up fees (area trunk fees) at the time of final subdivision approval $677 00 /unit (sewer) and $1,957 00 /unit (water) The remainder of the sewer and water hook -up fees shall be collected with the building permit at the rate in effect at that time. Parcels previously assessed trunk hook -up fees are exempt Residential trunk hook -up fees are based per unit Sanitary $1,580 00 /unit, or $2,257 00 /unit if a portion of the sewer hook -up fee was not paid Sewer at the time of final subdivision approval —(Lake Ann Interceptor - $1,932 00 /unit SAC and subtrunk $2,027 00 /unit)* Water $4,566 00 /unit, or $6,523.00 if a portion of the water hook -up fee was not paid at the time of final subdivision approval SAC As established by the Metropolitan Council and $75.00 city SAC surcharge *Parcels within the Lake Ann Sewer District will be subject to the Lake Ann Trunk sewer fees in addition to the sewer trunk hook up fees Commercial, industrial and institutional development Sewer and water trunk hook -up fees (area trunk fees) Fee is paid at the time of building permit. Parcels previously assessed trunk hook -up fees are exempt. Trunk hook -up fees are based on the number of sanitary access charge (SAC) units assigned by Metropolitan Council for office or industrial /commercial buildings Sanitary Sewer $2,257 00 /unit —(Lake Ann Interceptor - $1,932.00 /unit and subtrunk $2,027.00 /unit)* Water $6,523 00 /unit SAC As established by the Metropolitan Council and $75 00 city SAC surcharge *Parcels within the Lake Ann Sewer District will be subject to the Lake Ann Trunk sewer fees in addition to the sewer trunk hook -up fees All development Lateral connection charges- If the lot or tract of land, or portion thereof, to be served by a lateral connection that has not been assessed for the cost of construction, then the applicant shall pay the following lateral connection • Sewer lateral connection charge $7,559 00 • Water lateral connection charge $8,050 00 2 Section 5 Section 4 -45 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows Utility rates are established for each 1,000 gallons of usage. Water. Fixed Charge (minimum water charge per quarter) $7 98 per quarter 0 to 6,000 gallons per quarter $1 10 per 1,000 gallons 6,001 to 24,000 gallons per quarter $2.20 per 1,000 gallons 24,001 to 48,000 gallons per quarter $2 75 per 1,000 gallons 48,001 to 99,000 gallons per quarter $3 19 per 1,000 gallons 99,001+ gallons per quarter (Irrigation and Residential Only) $4 06 per 1,000 gallons Multi - family properties — uniform water rate $2 20 per 1,000 gallons Bulk sales to contractors, landscapers, etc at City fill stations or other designated locations $5 52 per 1,000 gallons Sewage Residential based on winter quarter usage $4 30 per 1,000 gallons Commercial based on actual quarterly usage $4 30 per 1,000 gallons Minimum sewage charge per quarter $2211 (for amounts up to 6,000 gallons per quarter) Section 6 Section 4 -50 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows. Surface Water Management Fees. Classification Land Use Utility Factor 1 Single - family and Rural residential Not Applicable 2 Agricultural Not Applicable 3 Undeveloped Not Applicable 4 Medium density residential 2.22 5 High density residential, Industrial, Office, Institutions (churches, schools, government buildings, hospitals) 3.30 6 Business /Commercial 423 7 Parks, cemeteries, golf courses, arboretum 046 8 Parking lots as a principal use 614 The surface water management fee for each tax parcel classified 1, 2 and 3 shall be $10 05. The surface water management fee for each tax parcel classified 4 through 8 shall be calculated as follows. $19.65 multiplied by the utility factor multiplied by the acreage of the parcel. 3 Section 7 This ordinance shall be effective January 1, 2015 after its passage and publication PASSED AND ADOPTED this 8th day of December, 2014, by the City Council of the City of Chanhassen, Minnesota Todd Gerhardt, City Manager Thomas A. Furlong, Mayor (Published in the Chanhassen Villager on