2 Adopt Ordinance, Chapter 4 Fees
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
WIIW.ci .chanhassen.mn. us
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MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
Todd Hoffman, Park & Recreation Director
Greg Sticha, Finance Director
DATE:
December 12,2005
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.
BACKGROUND
In November 2005, our financial advisers Ehlers and Associates prepared a study of
our current utility fees and future projects to determine if the current fees and hook-
up charges being used are appropriate for planned expansion, reconstruction and
maintenance of our current water, sanitary sewer, and storm water systems. Staff is
recommending adoption of the utility rate and storm water fees as recommended by
Ehlers and Associates. Staff is also recommending an inflationary increase in the
water and sewer connection fee of 3% for 2006.
City Code Section 18-79 specifies that park dedication fees be established annually
by the City Council. Park dedication fees are based on the fact that new housing,
commercial and industrial developments generate increased demand for recreational
offerings in a community. Chanhassen's standard for providing parkland that
accommodates "active" play is one acre for every seventy-five residents.
SUMMARY
Liquor License Fee
Staff is recommending the deletion of the reference to the license year from May 1,
2003 to April 30, 2004 and correction of the matrix to specify 3,000 square feet or
under rather than 2000 square feet or under (Section 4-15 (a) 1).
Notification Signs
Many developers are failing to return their development notification signs to the City.
When this happens, the City must make additional signs. To resolve this, the city
will be charging a flat $200 fee for development sign rental and will then install and
remove it for the applicant.
The City 01 Chanhassen . A growing community with clean lakes, quality schools, a channing downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
Mr. Todd Gerhardt
December 12, 2005
Chapter 4 Fees
Page 2
Sign Permits
Staff is recommending that the fee for permanent signs be increase from $75.00 to $100.00 (Section
4-30 (b) 8). Permanent signs are required to be reviewed by Planning staff, Building staff and for
monument signs, Engineering staff. Once approved, the permit is issued by the administrative
secretary .
Surface Water Management Fees (SWMP)
The Ehlers and Associates study recommended an increase in the SWMP water quality fees. Staff is
recommending that the water quantity fees be increased by 7.2 percent based on the consumer cost index.
(Section 4-30 (c) 3). All fees have been rounded to the nearest $100.
Park and Recreation (Section 4-30 (c) 4)
Establishment ofthe park fee rate is based upon the actual value ofraw land in the community. Land
values in Chanhassen have risen steeply over the past 10-15 years. Current prices range from $125,000 to
$225,000+ per acre for all classes of undeveloped land. A value of $125,000 per acre was used in
calculating the 2006 park fee recommendation.
Residential Single FamilvlDuplex Units: In Chanhassen, an average of 3.5 occupants resides in each
single family home. Using this number, we gain 75 new residents for every 21.5 new homes constructed.
Applying our standard of 1 acre of parkland for every 75 residents, the City must obtain another acre of
parkland or increase the capacity for activity on an existing parcel of land to accommodate these new
residents. That new acre of land will cost a minimum of $125,000, which translates to a park dedication
fee of $5,800.00 per home ($125,000/21.5 homes) for single-family dwellings. This is a $1,800 increase
over the 2005 fee of $4,000 per home. (These fees have been rounded to the nearest $100.)
Duplex Units: Using an average of 3 occupants per dwelling, we gain 75 new residents for every 25 new
duplex housing units. Using the same calculation previously noted results in a park dedication fee of
$5,000 per unit. This is a $1,000 increase over the 2005 fee of $4,000 per unit.
Multi-Family/Apartment Units: Using an average of 2 occupants per dwelling, we gain 75 new residents
for every 32.5 new multi-family housing units. Using the same calculation previously noted results in a
park dedication fee of $3,800 per unit. This is a $700 increase over the 2005 fee of $3,100 per unit.
(These fees have been rounded to the nearest $100.)
Commercial/Industrial: Commercial and industrial properties are charged a park dedication fee
established at a rate of 10% of the land value. Using $125,000 per acre, our Commercial/Industrial park
dedication fee should be $12,500 per acre, an increase of $2,500 per acre over 2005.
Sewer and Water Hook-up Fees and Lateral Connection Charges
The Ehlers and Associates study recommended an increase the hook-up fees (Section 4-30 (c) 5).
Utility Rates
The Ehlers and Associates study recommended an increase the utility rates (Section 4-45).
RECOMMENDATION
Mr. Todd Gerhardt
December 12, 2005
Chapter 4 Fees
Page 2
Staff is recommending that the City Council adopt the attached ordinance for Chapter 4 of the
Chanhassen City Code.
ATTACHMENTS
1. Ordinance Amending Chapter 4, Chanhassen City Code, Fees
g:\plan\bg\city code\2006 fee recommendation.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 4
CHANHASSEN CITY CODE,
LICENSE AND PERMIT FEES
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
Section 1. Section 4-15 (a) 1. of the City Code, City of Chanhassen, Minnesota, is
hereby amended to read as follows:
The annual license fee for an on-sale intoxicating liquor license shall be:
Floor Area: Floor Area: Floor Area:
Under 3,000 Sq. Ft. 3,000-6,000 Over 6,000
Sq.Ft. Sq.Ft.
Restaurant $6,115 $ 9,609 $13,104
Exclusive Liquor Store $7,862 $11,356 $14,851
Section 2. Section 4-30 (b) 5 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Sign Rental $200.00
Section 3. Section 4-30 (b) 8 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Sign permit:
a) Permanent
b) Temporary
$100.00 .
$ 35.00
Section 4. 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
Water Qualitv
Water Quantity
Single-Family
Duplex
School/Church
Townhome
$1,600.00/Acre
$1,800.00/Acre
$3,100.00/Acre
$3,100.00/Acre
$2,900.00/ Acre
based on land use designation
based on land use designation
based on land use designation
Apartment/High Density
Medium Density
Industrial
Commercial
Parks/Open Space
$3,400.00/ Acre
based on development type
$9,500.00/Acre
$12,100.00/Acre
based on development type
$6,400.00/ Acre
$4,400.00/ Acre
$6,400.00/Acre
$6,400.00/Acre
$1,700.00/Acre
Fees are based on the developable land. Undeveloped areas (wetlands), public parks, and
existing development are exempt from the fees.
Section 5. Section 4-30 (c) 4 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Park Fees (varies with land use) - 100% of the fees are paid at time of final plat.
Park Dedication Fees:
Single-Family
Duplex
Multi-Family/Apartment units
Commercial/Industrial
$5,800.00/dwelling
$5,000.00/dwelling
$3,800.00/dwelling
$ 12,500.00/acre
Section 6. Section 4-30 (c) 5 of the City Code, City of Chanhassen, Minnesota, is hereby
amended to read as follows:
Sewer and Water Hook-up Fees (area trunk fees). Fee is paid at time of building
permit. Note: Some parcels may have been previously assessed hook-up fees.
Hook-up fees are based on the number of Sanitary Access Charge (SAC) units
assigned by Metropolitan Council for office or Industrial/Commercial buildings.
Residential hook-up fees are based per unit.
Sanitary Sewer
Water
SAC
$1,575.00/unit-(Lake Ann Interceptor - $1,347.00/unit and
Subtrunk $1,412.00/unit)*
$4,078.00/unit
$1,625.00/unit ($1,550.00 to Metropolitan Council &
$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
hook-up fees.
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 a connection fee that is just and
equitable in an amount established by the city council. The amount of the charge
may be adjusted each year in January.
2
Sewer Lateral Connection Charge
Water Lateral Connection Charge
$5,272.00
$5,272.00
Section 7. 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 -less than 25,000 gallons per quarter
- amount in excess of 25,000 gallons per quarter
- minimum water charge per quarter
(for amounts up to 5,000 gallons per quarter)
$1.59 per 1,000 gallons
$1.99 per 1,000 gallons
$7.97
Sewage - residential based on winter quarter usage
- commercial based on actual quarterly usage
- minimum water charge per quarter
(for amounts up to 5,000 gallons per quarter)
$3.10 per 1,000 gallons
$3.10 per 1,000 gallons
$15.51
Section 8. This ordinance shall be effective January 1,2006 after its passage and
publication.
PASSED AND ADOPTED this 1th day of December, 2005, by the City Council
of the City of Chanhassen, Minnesota
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on
)
g:\plan\bg\city code\Amendment Ordinance Ch 4 2006 Fees.doc
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