ITEM 6.2 Amending city code- 13-09 OrdinanceOtCkTY OF 0
M(NNESOTA g
n1=PAPTMANT 1KIMPMATION
Request for
City Council Action
ORIGINATING DEPARTMENT-
REQUESTOR.'
City Planner Licht
MEETING DATE:
25 February 2013
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Planner Licht
City Administrator Johnson
6.2 — SAC/WAC Fees
$1,550/REC
City Engineer Wagner
7,' 55
Finance Director Groen
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of an ordinance amending the City Code modifying the structure for
SAC/WAC fees for multiple family, commercial, industrial and institutional uses to an area based charge.
ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED?
No. No.
EAC( G RO U N D/J U STI F ICAT 10 N:
City staff has continued with a review of the structure of the fees for sanitary sewer and water utilities.
This effort follows changes made to the SAC/WAC fee structure on 13 August 2012 and completion of
the Water and Sewer Rate Study. The focus of this current review is changes to the fee structure for
sewer and water availability charges that fund construction of the trunk distribution and collection
system pipes.
■ The structure of the water and sewer utility charges were previously divided into
separate availability fees for the trunk distribution/collection pipes and connection fees
for the operational facilities.
Cost For
Water
Sewer
Total
Availability Charge Trunk Pipes
$1,550/REC
$2,135/REC
$3,686/REC
Connection Charge Working Facilities
$1,550/REC
$60405/REC
7,' 55
For residential uses, payment of the utility charges was structured to require payment
of the lesser availability charges at the time of final plat approval and the greater
connection charge at the time of building permit approval. The reason for this fee
structure is to reduce the upfront costs related to utilities at a time when the developer
is also required to input capital into land development and street construction.
Commercial, industrial and institutional uses pay only availability and connection
charges equal to one REC at the time of final plat approval as the actual number of RECs
cannot be determined until the point at which building plans are submitted with
application for a building permit. The balance of the availability and connection charges
are then paid at the time the building permit 'is issued, This structure has the effect of
transferring a significant expense from the developer to the builder if separate
entities), which means the cost is more than likely a direct expense to the end user
business. It can also result in a significant expense if there is a change in occupancy
within an existing building that results in an availability/connection fee upcharge fora
higher demand user. To relieve this issue, City staff has reviewed changing the
calculation and payment of the utility availability charge for the trunk
distribution/collection pipes.
The capacity of the trunk distribution and collection pipes is fixed in the ground and has
a set capacity to serve a given area. The City Engineer used an estimate average flow
of 1,000gpd. per gross acre for commercial, industrial and institutional uses in
relationship to the Future Land Use Plan to design the trunk collection/distribution
system. used on the City's standard of 1 REC = 175gpd it can be established that the
average estimated flow for commercial, industrial or institutional uses is equal to
1,000gpd per gross acre / 175gpd. = 5.57 RECs. per gross acre. However, a survey of
utility ch a rges indicates th at other cities estimated an average flow of 3.5 RECs/gross
acre for commercial, industrial and institutional uses (including some estimates based
on actual water usage). used on this information, City staff recommends the City
Council consider that the City Code be amended to require payment of utility availability
charges for commercial, industrial and institutional uses as 3.5 RECs per gross acre.
Payment of the utility connection charges would also be required to be made at the
time of final plat approval. Payment of the utility connection charges would remain
based on the calculation of the number of RECs for the specific use and pa[d at the time
a building permit is issued. A change in occupancy to a higher service demand use
would require an upcharge in the utility connection charge but there would be no
additional utility availability charges. The proposed structure would also advance the
cash flow to the City for payment of the water and sewer debt.
Multiple family residential uses are also problematic to charge utility fees to under the
current residential structure as the actual number of dwelling units within a proj I ect may
not be determined at the same time as the plat approval. Multiple family uses are
charged one REC per dwelling unit in accordance with the MetropolitanCouncil
Environmental Services Procedures Manual. The manual does provide for a 20 percent
discount in the number of RECs if the building has more than four dwelling units and has
shared laundry facilities. Assisted living facilities are calculated at less than one REC per
dwelling unit or bed. The Sanitary Sewer Plan estimated the average flows for high
density residential uses as 9.0 REC 'gross acre, which is consistent with data from other
cities. City staff recommends that the utility availability charges for multiple family uses
also be changed to a fee based on the gross acreage of the subdivision paid at the time
of final plat approval the same as what is outlined for commercial, industrial and
institutional uses.
"The City Previously approved changes to the City Code that allowed for the City toenter
into agreements for specific projects to defer payment of the utility fees either to the
time of building permit, by assessment to be paid over time or other options that would
beprovided for byanagreement. These provisions allow the City flexibility asa
potential incentive for new development. However, City staff's experienceis that the
lack of development activity, especially for residential plats, has been due to the overall
economyand the abundant supply offinished lots. Asthe economy improves and the
inventory offinished lots has been drawn down, the City is again seeing interest and
applications for plat approvals and expect this trend tocontinue. Asaresult, vve
believe that the changes already implemented and those outlined above provide
balance the need to encourage new development while ensuring the City maintains
adequate revenue tomeet its debt andoperadona|finance needs.
The Public Works Subcommittee reviewed the information outlined herein, at their meeting on 19
February 2013 and recommends approval.
SUPPORTING DOCUMENTS: ii ATTACHED omowE
A. Draft ofordinance 2Ol3'O9
B. Ordinance 2013-09
C. Development Fee Survey
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion toadopt Ordinance 2O13-09amending the City Code torevise provisions
sewer availability charges.
BUDGET INFORMATION
BUDGETED: o YES
D NO
ACTION TAKEN
oAPPROVED myREQUESTED oosw|Eo oTABLEo oOTHER (List changes)
rnMM=m�q-
ORDINANCE NO.: 2013-09
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE To REVISE PROVISIONS RELATED
To WATER AND SEWER AVAILABILITY CHARGES.
THE CITY COUNCIL OF THE CITY of OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 6-14D of the City Code is hereby amended to read as
follows:
D. Expansion and Redevelopment. If an existing use connected to the municipal
utility systems is expanded or redeveloped so as to increase the number of
RECs, additional water u4tyconnection charges and sever utg4gginnection
charges shall be paid for the additional RECs at the current rate established by
Section 2-4-2 of the City Code. There shall be no refund of water
i yconnecti n charges or surer connection charges already paid if the
expansion or redevelopment results in a reduction of the number of RECs.
Section 2. Section 6-1-5.13 of the CityCode is hereby amended to read as
follows;
B. Water Availability Charges (WAC):
'I. The Water Availability Charge for one 1 REC shall be adopted by the
City Council in Section 2-4-2 of the City Code and calculated by the City
Engineer to include those current and future costs related to the
construction of the trunk distribution system for the municipal water utility.
. The calculation of the Water Availability Charge rewired to be paid for a
specific use shall be calculated by multiplying the Water Availability
Charge set forth in Section 2--2 of the City Code by:
a. Single Family, Two Famil and
Townhouse Residential Use►ctual RECs.
b. Multiple Familv Residential Uses: 9.0 RECs/Gross Acre
1
Commercial, Industrial or
Institutional uses- 3.5 RECs/Gross Acre.,
3.
rm n r- r Gje-nfinl-U&&S_jhe Water Availability Charge shall be paid at the
1 %d I I LI %A
time of final plat approval except a$_provided for by Section 6-1-6.13.4 of
I -r- -,
this Chapter or as may be., Pr,e'L. -"I allowed by an agreement entered
into by the City Council at its discretion.
4. For multiple family residential commercial I industrial and institutional uses
to be constructed on lots of record existing as of EFFECTi'E DAIELE
a. 9R.Q., 0), -The Water Availability Charge as provided for b Section 6-
ft-xr nctri I
101 I%AI %A IWI 1 1%0% %A
1-5.13.3 of this Chapter shall be nhwnee4 GO
I
VI 1%101 611. --
aid at the time of issuance of a building
ffica lAhzf&F
permit for the initial construction
in ki
inhil,41i (hnrn,-% =n1inab4a fn the-bui I d nuf af tho fimqQhind -Q paoe
JIM
wiifill] r%ri^r tn thp
of hi d; r) ci LAI III I%AII
thn �11 nr n nnrfina %. n A
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n hwiJ -ffi�f nnnSff-U�,,.
%0%-f W I %A W"I"k.1-filtj Peff:R# I %.ON 161 16AL NO%of
5
Mran thinr b. The Water Availability Charge, or fl
V'WKLI%-Pll %11%r required to be
nf finn, nl�t nmr-riximl
VC11 or building permit is
paid 'noth t the time
W I NIL I I e., F- a
issued shall be the current fee in effect as set forth by Section 2-4-2
of the City Code,
Section 3, Section 6-1-6.13.4 of the City Code is hereby amended to read as
follows:
B. Sewer Availability Charges:
The Sewer Availability Charge for one (1) REC shall be adopted by the
City Council in Section 2-4-2 of the City Code and calculated by the City
Engineer to include those current and future costs related to the
construction of the trunk collection system for the municipal sewer utility.
2. The calculation of the Sewer Availability Charge required to be paid for a
specific use shall be calculated by multiplying the Water Availability
Charge set forth in Section 2-4-2 of the City Code by:
Single Family, Two Faril and
Townhouse Residential Uses: Actual RECs.
- 2
b. Multiple Family -Residential Uses: .o I ECs Gross Acre.
C. Commercial, Industrial or
Institutional uses: 3.5 F ECs/Gross Acre.
3.,-� t+,a��s The Sewer availability Charge e shall b paid at the
time of final plat approval except as provided for by section 6-1-6.8.4 of
this Chanter or as may be.. nroyialer f allowed by an agreement entered
into by the City Council at its discretion.
. For multiple fami1v residential commercial, industrial and institutional uses
to be constructed on lots of record eistin{g as of [EFFECTIVE DATE_:
a. e. 00 -The severer Availability Charge as r)rovided for -by Section 6-
1-6.13.3
of this Cha ter shall be nI Iar erlf '
. aid at the time of issuance of a building
permit for the initial construction���e�t � �" ��;hor
Awnil holowANn nW `harr-i�nn►r Iir>_� - she finis.%
r- :�i nr relinn ch=L ha nnir*� in fi ill nri rf e
it#hni eorrI Wit %.A *�R%eqll%Alt NU %wr I I I if fnr- r��,rw� ,
r
b. The Severer Availability Charge, thil required to be
pe P r.aid . at the time � m ry r bu"Ldinq permit is
issued shall be the current fee in effect as set forth by Section 2-4-2
of the City Code.
Section 4. This Ordinance shall become effective immediately upon its passage
and publication.
MOTION BY:
SECOND Y:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this t" day of
February, 2013.
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tam Loff, City Clerk
ORDINANCE NO.: 2013-09
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE TO REVISE PROVISIONS RELATED
TO WATER AND SEWER AVAILABILITY CHARGES.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 6-1-4.D of the City Code is hereby amended to read as
follows:
D. Expansion and Redevelopment. If an existing use connected to the municipal
utility systems is expanded or redeveloped so as to increase the number of
RECs, additional water connection charges and sewer connection charges shall
be paid for the additional RECs at the current rate established by Section 2-4-2
of the City Code. There shall be no refund of water connection charges or sewer
connection charges already paid if the expansion or redevelopment results in a
reduction of the number of RECs.
Section 2. Section 6-11-5.13 of the City Code is hereby amended to read as
follows:
B. Water Availability Charges (MVAC):
The Water Availability Charge for one (1) REC shall be adopted by the
City Council in Section 2-4-2 of the City Code and calculated by the City
Engineer to include those current and future costs related to the
construction of the trunk distribution system for the municipal water utility.
2. The calculation of the Water Availability Charge required to be paid for a
specific use shall be calculated by multiplying the Water Availability
Charge set forth in Section 2-4-2 of the City Code by:
a. Single Family, Two Family and
Townhouse Residential Uses: Actual RECs.
b. Multiple Family Residential Uses: 9.0 RECs/Gross Acre
I
C. Commercial, Industrial or
Institutional uses: 3.5 RECs/Gross Acre.
3. The Water Availability Charge shall be paid at the time of final plat
approval except as provided for by Section 6-1-6.B.4 of this Chapter or as
may allowed by an agreement entered into by the City Council at its
discretion.
4. For multiple family residential, commercial, industrial and institutional uses
to be constructed on lots of record existing as of February 26, 2013:
a. The Water Availability Charge as provided for by Section 6-1-5.13.3
of this Chapter shall be paid at the time of issuance of a building
permit for the initial construction.
b. The Water Availability Charge required to be paid at the time
building permit is issued shall be the current fee in effect as set
forth by Section 2-4-2 -of the City Code.
Section 3. Section 6-1-6.B.4 of the City Code is hereby amended to read as
follows:
B. Sewer Availability Charges:
The Sewer Availability Charge for one (1) FEC shall be adopted by the
City Council in Section 2-4-2 of the City Code and calculated by the City
Engineer to include those current and future costs related to the
construction of the trunk collection system for the municipal sewer utility.
2. The calculation of the Sewer Availability Charge required to be paid for a
specific use shall be calculated by multiplying the Water Availability
Charge set forth in Section 2-4-2 of the City Code by. -
a. Single Family, Two Family and
Townhouse Residential Uses: Actual TECs.
b. Multiple Family Residential Uses: 9.0 RECs/Gross Acre.
0. Commercial, Industrial or
Institutional uses. 3.5 TECs/Gross Acre.
2
3. The Sewer Availability Charge shall be paid at the time of final plat
approval except as provided for by Section 6-1-6.13.4 of this Chapter or as
may allowed by an agreement entered into by the City Council at its
discretion.
4. For multiple family residential, commercial, industrial and institutional uses
to be constructed on lots of record existing as of February 25, 2013:
a. The Sewer Availability Charge as provided for by Section 6-1-6.13.3
of this Chapter shall be paid at the time of issuance of a building
permit for the initial construction.
b. The Sewer Availability Charge required to be paid at the time
building permit is issued shall be the current fee in effect as set
forth by Section 2-4-2 of the City Code.
Section 4. This Ordinance shall become effective immediately upon its passage
and publication.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 25t" day of
February, 2013.
ATTEST:
Tami Loff, City Clerk
3
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
Development Fee Type
$
Rogers
$
Monticello
$
St. Michael
$ 18,818 +
Ramsey
17,928
Dayton
Avg
Otsego
WAC
$
3,200 REC
$
907 REC
101,440-50
2,675 REC
$
1,701 REC
$
2,465 Res
10 Acre Comm (use 3.25 REC/Acre $444,250
$
WAC
$
2,700 Unit Multi Family
$
2,267 Acre (2-5x)
$ 420,750 +
$
$
1,701 REC
$
9,995 Acre - Other �4x)
$
77,648.50
Water Trunk
$
2,400 Acre
84,510.50
$ 83,650 +
$
92,947
$
2,308 Res
$
300 Res
345,498.50
1,550 REC
568,297.50
$
479,827.50
$ 418,250 +
$
447,225
$
$
8,465 Acre
$
1,.200 [Acre - Other (4x)
$
144,832
Water Lateral
98,867
$ 97,974 +
$
107,835
$
128,700
$
9,102 Acre - Res
$
67 JCF- Res
$
1,550 REC
+ Need to know what CF is
$
9,102 Acre - Other
$
84 CF - Other
Water Connection Fee
1$801 to $5231 Size of Line
SAC
4,300 REC
$
4,030 REC
$
4 ,712 REC
2,230 R F C
2,970 REC
SAC
3,400 Unit Multi Family
$
2,230 REC
5,940
Sewer Trunk
$
1IP223 REC
$1163 or $1379 REC
$
1,318 Res
$
1,770 Res
$
6,405 REC
3,065 REC
$
3,965 Acre
$
3,530 Acre - Other (2x)
Sewer Lateral
$756 or $1163 REC
$
3,989 Acre
$
78 CF
2,135 REC
$
3,989 Acre
Parr
3,500 Res Unit
$
1,704 Acre
$
3,000 Res Unit
$2104 to $2475 Res Unit
$
2,000 Acre Res
$
2,635 Res Unit
110/o Acre
8% to 14%
Acre
15% to 10% Acre **
$
7,000 Acre Comm
$
1,530 Acre
$
4,738 Acre Comm
4,000 Acre Comm
$
7,000 Acre Com m
10% Acre Comm
$
5,000 Acre Ind
$
1,530 Acre
$
3,966 Acre Ind
$
3,750 Acre Ind
3,500 Acre Ind
10% Acre Comm
Trail
$
400 Res Unit*
$
600 Res Unit
$
1,303 Res Equivalent
$
750 Acre*
$
1,090 Acre Other
Storm Water Impact Fee
$2,300 Acre
3,490 Res
465 Res
$
5,510 Acre
$2075 to $3070 Acre
6,997 Acre - Comm
4,630 Acre Other
8,176 Acre - Ind
Storm Water Utility Fee
4 Month - Res
$
2 Month REC
9 Res/Quarter
$7 to $10 Month/Acre Other
$
37 REC/Quarter
Transportation
$
4,225 Res Equivalent*
$
1,546 Res
$
2,500 Res
$
1,360 Sand
$
7,600 Acre*
$
499 Acre - Other
$
11,900 Acre - Other
1,610 Clay
Infrastructure Fee
S
8,723 Single Family
$
6,507 Twin Home
$
5,507 Town Home
$
4,071 Apt.
$
20674 Senior Housing
$
2.45 SF Comm Bldg
$
0.28 SF Comm Lot
$
1,84 SF Ind/Office Bldg
$
0.22 SF Ind/Office Lot
Greater of
J -
** or
Single Family Home $ 18,325
$
14,815
$
22,656
$
15,026
$ 18,818 +
$
17,928
$
16,775
2 Acre Comm (use 3.25 REC/Acre) $ 97,850
$
77,648.50
$
142,479.10
S
101,440-50
$ 84,150 +
$
109,714
$
117,550
10 Acre Comm (use 3.25 REC/Acre $444,250
$
345,498.50
$
647,503,50
$
487,547.50
$ 420,750 +
$
469,110
$
446,050.00
2 Acre Industrial $ 92,350
$
77,648.50
$
126,576.90
$
84,510.50
$ 83,650 +
$
92,947
$
117,550
10 Acre Industrial $424,250
$
345,498.50
$
568,297.50
$
479,827.50
$ 418,250 +
$
447,225
$
437,320.00
cult! Family (8 Plex) $ 116,100
$
81.0404
$
144,832
$
98,867
$ 97,974 +
$
107,835
$
128,700
+ Need to know what CF is