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HomeMy WebLinkAbout7B Ord 94-02 City Code . ............ti. & AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: 7 (B) RALPH TESCHNER FINANCE DIRECTOR CONSIDER ORDINANCE 94-02 AMENDING PRIOR LAKE CITY CODE TITLE 9 CHAPTERS 4 & 5 JANUARY 3,1994 There are a number of enterprise fund fees that are established within the Prior Lake City Code which require an ordinance amendment to change. Therefore Ordinance 94-02 has been drafted to incorporate increases for the following charges: City WAC (connection fee) City SAC (connection fee) Water Tower Charge MWCC SAC (reserve capacity charge) Sewer Billing Rate The water tower charge increase is the amount identified for payable year 1994 in the feasibility report approved by the City Council on 5/11/87 for the construction of the one million gallon water tower on the north side of the lake. The City connection charges were tentatively approved by the Council on 9/20/93 during the CIP hearing process. The increases, as indicated within the proposed ordinance amendment, are outlined below: FEE DESCRIPfION CURRENT PROPOSED Water Connection Fee $350.00 $450.00 Sewer Connection Fee $350.00 $450.00 Water Tower Charge $500.00 $600.00 MWCC SAC $750.00 $800.00 Sewer Billing Rate $2.10 $2.30 The City connection fees have not been increased since 1980 and are necessary to fund greater costs associated with the anticipated future expansion of the City's municipal trunk system as well as escalating expenditures in the area of water and sewage treatment. The water tower charge is based upon projected annual connections of from 220 per year in 1994 to 240 thru the year 2007. This revenue stream provides the underlying financing for the $1,500,000 water revenue bonds sold to construct the tower. 4629 Dakota 51. 5.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLDYER .II 1 .. -'. The Metropolitan Waste Control Commission is responsible for establishing the metro areawide SAC charge which basically has been increased by $50.00 incremental steps each year for the past five years. This charge is therefore adopted by reference within our City Code. Finally, the sewer rate adjustment is necessary because of higher treatment costs attributed to our budgeted MWCC installment of nearly $615,000. This .20 (cent) increase represents an overall water and sewer billing increase of 6.3% on an estimated flow of 310 million gallons during 1994. ALTERNATIVES: The following alternatives are available to the City Council: 1. Adopt Ordinance 94-02 thereby approving all of the related fee increases. 2. Change certain fees to reflect specific fee amounts as desired by the Council. 3. Delay action on the ordinance adoption if additional information is required by the Council. RECOMMENDATION: Staff would recommend that the City Council adopt Ordinance 94-02 in its present form. These charges would then become effective for all building permits applied for at the beginning of the year while the new sewer rate would be implemented upon the 2/1194 water bills which represents the first billing cycle of the year. ACTION REQUIRED: A motion to approve Ordinance 94-02 Amending Prior Lake City Code TItle 9, Chapters 4 and 5. A3.WRT CITY OF PRIOR LAKE ORDINANCE NO. 94-0~ 1 AN ORDINANCE AMENDING PRIOR LAKE CITY CODE TITLE 9, CHAPTERS 4 AND 5. The City Council of the City of Prior Lake does hereby ordain: 1. The first sentence of Section 9-4-4(C) of the Prior Lake City Code is hereby amended to read as follows: (C) A cOnnection fee of four hundred fifty dollars ($450.00) shall be charged per unit connected Subject to an adjustment as determined by the City Council. II. Section 9-4-10(B) of the Prior Lake City Code is hereby amended to read as follows: (B) Water Tower Charge: 1. The water tower charge shall be determined on an annual basis in accordance with a fee schedule effective January 1 of each year as determined by the City Council. The following fee schedule is effective through calendar year 1994: $150.00 for 1973 150.00 for 1974 150.00 for 1975 150.00 for 1976 150.00 for 1977 150.00 for 1978 150.00 for 1/1/79 - 7/31/79 200.00 for 8/1/79 - 12/31/79 200.00 for 1980 200.00 for 1981 200.00 for 1982 $250.00 for 1983 250.00 for 1984 250.00 for 1985 250.00 for 1986 250.00 for 1987 350.00 for 1988 350.00 for 1989 400.00.for 1990 400.00 for 1991 500.00 for 1992 500.00 for 1993 600.00 for 1994 Said fees shall be placed in a fund maintained by the City to accumulate funds for the construction of future water storage facilities and needed future wells. III. The second paragraph of Section 9-4-10(C) of the Prior Lake City Code is hereby amended to read as follows: ,.' __'_'''H. _'~"_._._..."...~....^_~"..."_.,,....._.__.._"....~__ a If water service is terminated by the City for delinquency in the payment of a water usage bill or for any other reason, a fee of twenty-five dollars ($25.00) will be made for turning on said water service, payable in advance. If said water service is turned on during a time other than normal business hours, a fee of fifty dollars ($50.00) shall be charged to cover the City's expense for call-back time. IV. The first sentence of Section 9-5-5(B) of the Prior Lake City Code is hereby amended to read as follows: (B) A connection fee of four hundred fifty dollars ($450.00) shall be charged per unit connected subject to an adjustment as determined by the City Council. V. The first sentence of Section 9-5-9(A) of the Prior Lake City Code is hereby amended to read as follows: (A) Rates: Effective February 1, 1994, a billing charge of two dollars thirty cents ($2.30) per one thousand (1,000) gallons of water consumption. VI. Section 9-5-10(B) of the Prior Lake City Code is hereby amended to read as follows: (B) Establishment of Charges: For the purpose of paying costs of reserve capacity allocated to the City each year by the Metropolitan Sewer Board, there is hereby established a charge for: 1. The availability of treatment works and interceptors comprising the metropolitan disposal systemj and 2. Connections, direct and indirect, to the metropolitan disposal system. The charge imposed on each building or structure in the City, and each connection to the metropolitan disposal system directly or through the City's system, inside any sewer service area established by the Metropolitan Sewer Board, construction of which commenced on or after January 1, 1973. The charge shall be payable upon the issuance of a building permit or a connection permit, as the case may be, but no charge shall be due upon the issuance of a connection permit if a charge was paid upon issuance of a building permit. The charge for each building or structure shall be equal to the """""""-'--"~'----'''''''-''._''-'--'--__'''_'M___~'__.__~""" ....._....,.,. 1 number of units of sewage volume which it will discharge, multiplied by the following: $275.00 for 1973 $425.00 for 1984 300.00 for 1974 475.00 for 1985 325.00 for 1975 475.00 for 1986 350.00 for 1976 525.00 for 1987 375.00 for 1977 525.00 for 1988 400.00 for 1978 575.00 for 1989 425.00 for 1979 600.00 for 1990 425.00 for 1980 650.00 for 1991 425.00 for 1981 700.00 for 1992 425.00 for 1982 750.00 for 1993 425.00 for 1983 800.00 for 1994 A unit of sewage volume shall be one hundred thousand (100,000) gallons per year and shall be assigned as follows: 1. Single-family houses, townhouses and duplex units shall each comprise one unit. 2. Condominiums and apartments shall each comprise eighty percent (80%) of a unit. 3. Mobile homes shall each comprise eighty percent (80%) of a unit. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this ____ day of , 1993. ATTEST: City Manager Mayor Published in the Prior Lake American on the ____ day of 1993. Drafted By: Lommen, Nelson, Cole & Stageberg, P.A. 1800 IDS Center Minneapolis, Minnesota 55402 . .,...-."...'"....,-.,_.__...~.._~_.M...._____,__....."A.."._........_