G-2. City Code Amendment Chapter 4-FeesMEMORANDUM
v
CITY OF C HANHASSE N -
Chanhassen is a Community for Life - Providing forToday and Planning for Tomorrow
TO: Mayor and City Council
FROM: Greg Sticha, Finance Director
DATE: December 12, 2016 0
SUBJ: Adoption of Ordinance, Chapter 4, Chanhassen City Code, Fees C .17
PROPOSED MOTION:
"The City Council adopts the attached ordinance amending Chapter 4 of the Chanhassen City
Code revising the fees for 2017."
Approval requires a simple majority vote of the City Council.
City fees are designed to cover the cost of providing a specific service.
DISCUSSION
Issue: Fees to conduct background investigations on liquor license applications
The Carver County Sheriff s Office currently charges the city for liquor license background
investigations as follows:
Liquor License - New Establishment/New Owner .............. $250 per establishment
Liquor License - Renewal .................................................... $100 per establishment
The current city code includes a fee of $250.00 per person investigated for both new applications
as well as changes in officers or operating managers of existing license holders. It does not
address fees for renewals.
Amend Section 4-15 (a) 3.
The fees to conduct a background investigation on liquor license applications for owners,
officers or operating managers shall be as follows (per application): (peF person iR estigate )
....mow
PH 952.227.1100 • www.d.chanhassen.mn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Chapter 4 Code Amendment
December 12, 2016
Page 2 of 7
New establishment/new owner 1 $250.00
Changes in officers or operating managers of existing license holders $100.00
Renewals $100.00
Issue: Building Minimum Base Valuation
The city building permit fees are based on building valuation. In order to establish a base
minimum valuation, the city will refer to the Minnesota Department of Labor & Industry
Building Valuation Data. We are recommending including this language in the city code for
transparency purposes to show how the city establishes the base minimum valuation.
Amend Section 4-30 (a) 1.
Building permit and fire prevention fees.
1. Building permit fees shall be as set forth in Table 1-A. When submittal of plans is required,
and the valuation is more than $3,000.00, a plan review fee equal to 65 percent of the permit fee,
shall also be charged. Base minimum building valuation shall be as established by the most
current version of the Minnesota Department of Labor & Industry Building Valuation
Data.
Issue: Surface Water Management Fees
The city's Surface Water Management Plan was first adopted in February of 1994. Based upon
recommendations in this plan the city established surface water connection fees as a means of
financing citywide improvements recommended in the plan's implementation section. It was
found in a survey performed by the Metropolitan Council in 2007 that 83 communities in the
Twin Cities Metropolitan Area had established a Storm Water Utility Fee. This was the last year
the survey was completed.
The initial fee was based upon the cost of the recommended pipes and ponds in the 1994 plan.
The fees were apportioned according to acreage and intensity of land use and intended to be a
more equitable distribution of the cost associated with storm water runoff. This did not consider
long-term maintenance of the facilities or increased regulatory requirements.
Since the 1994 plan was adopted, the National Pollution Discharge Elimination System
Municipal Separate Storm Sewer System permit was issued and revised. This has resulted in
increased storm water and surface water management responsibilities. The city has also begun to
look at the life cycle costs of maintaining our existing infrastructure as well as the cost of
mitigating for damage caused by runoff in the past. For example, it is estimated that if all ponds
were cleaned out this year, the cost would be $1.4 million for the excavation alone. This does
not include sampling of sediment and assumes that all soils would not exceed acceptable levels
of polycyclic aromatic hydrocarbons (PAH). These costs will likely increase each year. Other
costs not considered included the findings of the Total Maximum Daily Load plans for the eight
Chapter 4 Code Amendment
December 12, 2016
Page 3 of 7
impaired waters to which Chanhassen is immediately tributary. For instance, the implementation
plan to mitigate for the damage to Bluff Creek could cost approximately $5.8 million.
Chanhassen has been replacing storm sewer infrastructure with every road reconstruction project.
This has ranged in cost from $50,000 to over $400,000 per project. The amount of infrastructure
has increased substantially over what the city had in 1994 and this amount continues to grow
with each new development. In 2017, Ehlers & Associates, the city's financial advisors,
recommends a one percent increase to the surface water development fees.
Amend Section 4-30 (c) 3
Surface water development fees:
Development Type
Per Acre Fee
Parks/Open Space
$4340 4,590
Single -Family Residential
$8-;008 8,080
Medium Density Residential
$9392 9,690
Townhouse/Apartment Complex/High Density Residential
$44374 14,510
Industrial
$20;742 20,950
Commercial
$30-,299 30,600
Fees are based on the developable land. Undeveloped areas such as wetlands and buffers placed
into an outlot, public parks, and public right-of-way are exempt from these 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 remain the same for sewer
at $691.00/unit and increase for water from $2,065.00 to $2,147.00/unit. 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 remains the same at $2,302.00 and the total water hook-up
fee is increasing from $6,882.00 to $7,157.00. 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 remains at $1,971.00 and the sub -trunk fee remains at
$2,068.00. 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.
Chapter 4 Code Amendment
December 12, 2016
Page 4 of 7
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 remain
the same at $7,710.00 and water lateral connection charges increase from $8,493.00 to
$8,833.00.
The Met Council SAC fee for 2017 remains the same as 2016 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: $691.00/unit (sewer) and $2,i ov5 2,147.00/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
2012
2013
2014
2015
2016
Proposed
2017
Water Hook-up
$5,717
$6,060
$6,287
$6,523
$6,882
$7,157
Sewer Hook-up
$2,107
$2,170
$2,213
$2,257
$2,302
$2,302
Water Connection
$7,056
$7,479
$7,759
$8,050
$8,493
$8,833
Sewer Connection
$7,054
$7,266
$7,411
$7,559
$7,710
$7,710
Lake Ann Interceptor
$1,803
$1,857
$1,894
$1,932
$1,971
$1,971
Sub -trunk
$1,891
1 $1,948
1 $1,987
$2,027
$2,068
$2,068
The Met Council SAC fee for 2017 remains the same as 2016 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: $691.00/unit (sewer) and $2,i ov5 2,147.00/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
$1,611.00/unit, or $2,302.00/unit if a portion of the sewer hook-up fee was not paid
sewer
at the time of final subdivision approval -(Lake Ann Interceptor - $1,971.00/unit and
subtrunk $2,068.00/unit)*
Water
$4-,94-7 5,010.00/unit, or $6,88-2 7,157.00 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.
Chapter 4 Code Amendment
December 12, 2016
Page 5 of 7
Sanitary
sewer
$2,302.00/unit—(Lake Ann Interceptor - $1,971.00/unit and subtrunk
$2,068.00/unit)*
Water
$6492 7,157.00/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 $7,710.00
Water lateral connection charge $8149-3 8,833.00
Issue: Group Picnic Reservation Fees
Chanhassen's picnic facilities continue to be a popular destination for many events. That
popularity has brought many company and larger picnics, which has forced staff to invest more
time and energy into exceeding our customers' expectations. Staff is recommending to
implement a large -group fee that would be in addition to the normal rate our customers qualify
for. The large -group fee would cover expenses such as garbage, extra cleanings for portable
restrooms, and additional staff cleaning. Staff is recommending groups of 100 or more pay an
additional $50 for resident groups and $100 for non-resident groups.
Amend Section 4-30 (d) 1.
Park and recreation fees.
1. Group picnic reservation fees:
Lake Susan Shelter
Lake Ann:
Lakeside Pavilion Hilltop ShelteF or Al Klingelhutz
Memorial Pavilion
Monday—Thursday
Friday—Sunday
Resident– groups less than 100
$100.00
$125.00
Resident – groups of 100 or more
$150.00
$175.00
Nonresident –groups less than 100
$200.00
$250.00
Nonresident – groups of 100 or more
$300.00
$350.00
District 112/276
$45.00
$50.00
All other school districts
$100.00
$150.00
Issue: Water and Sewage Rates
In 2007, the city experienced significant water usage events that led 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
Chapter 4 Code Amendment
December 12, 2016
Page 6 of 7
household and irrigation use that is more than 99,000 gallons per quarter. For 2017, the Ehlers
and Associates analysis recommends a 5.5% increase to the water utility rates for all tiers and the
bulk rate. In 2017, multi -family properties will pay a uniform rate of $2.45 per 1,000 gallons.
The utility rate analysis also recommends a 4.25% increase to the sewer utility rates.
Listed below is the 2012, 2013, 2014, 2015, 2016 and proposed 2017 water consumption rate
structure along with the sewer rate structure:
Water
2012
2013
2014
2015
2016
2017
Fixed Charge (minimum per quarter)
5.13
7.50
7.74
7.98
8.43
8.88
0 - 6,000 Gallons
1.02
1.04
1.07
1.10
1.16
1.22
6,001 - 24,000 Gallons
2.04
2.08
2.14
2.20
2.32
2.45
24,001 - 48,000 Gallons
2.54
2.59
2.67
2.75
2.90
3.06
48,001 - 99,000 Gallons
2.95
3.01
3.10
3.19
3.37
3.56
99,001+ Gallons (Irrigation and
Residential Only)
3.72
3.83
3.94
4.06
4.28
4.52
Multi -Family
-
-
2.08
2.20
2.32
2.45
Bulk sales to contractors, landscapers,
etc. at City fill stations or other
designated locations
5.00
5.10
5.20
5.52
5.82
6.14
Sewer
2012
2013
2014
2015
2016
2017
Minimum Charge (includes up to 6,000
20.04
20.64
21.27
22.11
22.89
23.85
gallons)
Residential - amounts over 6,000
3.89
4.01
4.13
4.30
4.45
4.64
gallons (based on winter quarter usage)
Commerical - amounts over 6,000
gallons (based on actual quarterly
3.89
4.01
4.13
4.30
4.45
4.64
usage)
Amend Section 4-45.
Water and sewage rates.
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
$8:43 8.88 per quarter
$4,4-61.22 per 1,000 gallons
$2-.32-2.45 per 1,000 gallons
$2-.903.06 per 1,000 gallons
$3-.3-7 3.56 per 1,000 gallons
$449 4.52 per 1,000 gallons
$2:32 2.45 per 1,000 gallons
$-5-.P 6.14 per 1,000 gallons
Chapter 4 Code Amendment
December 12, 2016
Page 7 of 7
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)
$445 4.64 per 1,000 gallons
$4.4-5 4.64 per 1,000 gallons
$22.89 23.85
The utility factor for each land use is not changing. The rates are increasing four percent for
2017. The rates for tax parcels classified 1, 2 or 3 shall increase from $10.26 to $10.68. The
rates for tax parcels classified 4 through 8 shall increase from $20.04 to $20.84.
Amend Section 4-50.
Surface water managementfees.-
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
4.23
7
Parks, cemeteries, golf courses, arboretum
0.46
8
Parking lots as a principal use
6.14
The surface water management fee for each tax parcel classified 1, 2 and 3 shall be $40.2610.68
per quarter.
The surface water management fee for each tax parcel classified 4 through 8 shall be calculated
for each quarter as follows: $20.04 20.84 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 2017.
ATTACHMENTS
1. Ordinance Amending Chapter 4, Chanhassen City Code, Fees.
gAplan\city code\2016\cc memo fees. doc
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. Section 4-15 (a) 3 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
The fees to conduct a background investigation on liquor license applications for owners,
officers or operating managers shall be as follows (per application):
New establishment/new owner 1 $250.00
Changes in officers or operating managers of existing license holders $100.00
Renewals $100.00
Section 2. Section 4-30 (a) 1 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Building permit fees shall be as set forth in Table 1-A. When submittal of plans is required, and
the valuation is more than $3,000.00, a plan review fee equal to 65 percent of the permit fee,
shall also be charged. Base minimum building valuation shall be as established by the most
current version of the Minnesota Department of Labor & Industry Building Valuation Data.
Section 3. Section 4-30 (c) 3 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Surface water development fees:
Development Type
Per Acre Fee
Parks/Open Space
$4,590
Single Family Residential
$8,080
Medium Density Residential
$9,690
Townhouse/Apartment Complex/High Density Residential
$14,510
Industrial
$20,950
Commercial
$30,600
Fees are based on the developable land. Undeveloped areas such as wetlands and buffers placed
into an outlot, public parks, and public right-of-way are exempt from these 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: $691.00/unit (sewer) and $2,147.00/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
$1,611.00/unit, or $2,302.00/unit if a portion of the sewer hook-up fee was not paid
Sewer
at the time of final subdivision approval—(Lake Ann Interceptor - $1,971.00/unit
SAC
and subtrunk $2,068.00/unit)*
Water
$5,010.00/unit, or $7,157.00 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
$2,302.00/unit—(Lake Ann Interceptor - $1,971.00/unit and subtrunk
$2,068.00/unit)*
Water
$7,157.00/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 $7,710.00
Water lateral connection charge $8,833.00
Section 5. Section 4-30 (d) 1 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
1. Group picnic reservation fees:
Lake Susan Shelter
Lake Ann:
Lakeside Pavilion or Al Klingelhutz Memorial Pavilion
Monday—Thursday
Friday—Sunday
Resident - groups less than 100
$100.00
$125.00
Resident — groups of 1.00 or more
$1.50.00
$175.00
Nonresident—groups less than 100
$200.00
$250.00
Nonresident — groups of 100 or more
$300.00
$350.00
District 112/276
$45.00
$50.00
I1 other school districts
$100.00
$150.00
Section 6. 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) $8.88 per quarter
0 to 6,000 gallons per quarter $1.22 per 1,000 gallons
6,001 to 24,000 gallons per quarter $2.45 per 1,000 gallons
24,001 to 48,000 gallons per quarter $3.06 per 1,000 gallons
48,001 to 99,000 gallons per quarter $3.56 per 1,000 gallons
99,001+ gallons per quarter (Irrigation and Residential Only) $4.52 per 1,000 gallons
Multi -family properties - uniform water rate $2.45 per 1,000 gallons
Bulk sales to contractors, landscapers, etc. at
City fill stations or other designated locations $6.14 per 1,000 gallons
Sewage
Residential based on winter quarter usage $4.64 per 1,000 gallons
Commercial based on actual quarterly usage $4.64 per 1,000 gallons
Minimum sewage charge per quarter $23.85
(for amounts up to 6,000 gallons per quarter)
Section 7. 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
4.23
7
Parks, cemeteries, golf courses, arboretum
0.46
8
Parking lots as a principal use
6.14
The surface water management fee for each tax parcel classified 1, 2 and 3 shall be $10.68 per
quarter.
The surface water management fee for each tax parcel classified 4 through 8 shall be calculated
for each quarter as follows: $20.84 multiplied by the utility factor multiplied by the acreage of
the parcel.
Section 8. This ordinance shall be effective January 1, 2017 after its passage and
publication.
PASSED AND ADOPTED this 121h day of December, 2016, by the City Council of the
City of Chanhassen, Minnesota
Todd Gerhardt, City Manager Denny Laufenburger, Mayor
(Published in the Chanhassen Villager on
10