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HomeMy WebLinkAbout5.C.2. Approve a revised Trunk Sanitary Sewer Charge Policy, Res. No. 7528 Consent Business 5. C. 2• .nr SHAKOI'EE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Joe Swentek, Engineer DATE: 12/16/2014 SUBJECT: Approve a Revised Trunk Sanitary Sewer Charge Policy, Res. No. 7528 (E) Action Sought Adopt Resolution 7528, which approves the Revised Trunk Sanitary Sewer Charge Policy. Background The original policy was developed to establish charges to be applied to developing properties in the City of Shakopee. The charges are used to fund the construction and maintenance of our trunk sanitary sewers. In 1995 the trunk sanitary sewer charge rate was calculated by summing the acreage of each drainage basin in the service area to determine the gross area. The gross area was then reduced by 15%to obtain the net acreage. The 15% reduction was to account for non-developable land, public rights-of-way and other areas not intended to use sanitary sewer service. Using the 1994 Comprehensive Sewer Plan, costs for the extension of trunk sanitary sewer were estimated. The total cost was divided by the net acreage to determine the rate. The revised Trunk Sanitary Sewer Charge Policy will no longer utilize net acreage, but rather it will utilize actual developable area similar to the Trunk Storm Water Charge and Trunk Storm Water Storage and Treatment Charge. The rational is the developable area will more accurately represent non-developable land. Developable area is defined as the total area of the final plat, less areas of outlots, rights-of-way, lakes, wetlands, easement encompassing high water levels of storm ponds, conservation easements and parks. Nine plats were selected to compare the differences between the net acreage and developable acreage. The result is an average of 22.58% decrease from net area calculations to developable area calculations. Therefore, the 2015 Trunk Sanitary Sewer Charge rate will be increased by 20%to account for the decreased area. The result of the revised Trunk Sanitary Sewer Charge Policy is a 2015 rate of $2,652/developable acre. The 2014 rate was $2,210/net acre. Additionally, a change is being made to the acreage charged to existing rural residential properties not subdividing, but wishing to connect to sanitary sewer. They will be charged based on an area of 0.30 acres. The rational is most of these properties are guided low density residential where the minimum lot size is 0.30 acres. Recommendation Offer Resolution Number 7528, a Resolution Approving the Revised Trunk Sanitary Sewer Charge Policy and move its adoption. Budget Impact If the Revised Trunk Sanitary Sewer Charge Policy is approved, there should be no impact to the Trunk Sanitary Sewer Fund as the rate will be increased to account for the loss in area from net acreage to developable acreage. Relationship to Vision This supports Goal F: Housekeeping Item. Requested Action Adopt Resolution 7528, which approves the Revised Trunk Sanitary Sewer Charge Policy. Attachments: Res. No. 7528 Revised Trunk Sanitary Sewer Charge Policy RESOLUTION NO. 7528 A Resolution Revising The Trunk Sanitary Sewer Charge Policy For The City Of Shakopee WHEREAS, the City Council desires to revise the written Trunk Sanitary Sewer Charge Policy; and WHEREAS, the original Trunk Sanitary Sewer Charge Policy was prepared and was reviewed by the City Council at its January 24, 1995 meeting. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,MINNESOTA: 1. The Trunk Sanitary Sewer Charge Policy, a copy of which is attached hereto is hereby adopted. 2. This policy shall become effective December 16,2014. Adopted in session of the City Council of the City of Shakopee, Minnesota,held this day of ,2014. Mayor of the City of Shakopee ATTEST: City Clerk Cit y Shakopee of Trunk Sanitary Sewer Charge Policy Adopted: January 24, 1995 by Resolution No. 4157 Revised: December 16, 2014 by Resolution No. 7528 TABLE OF CONTENTS Section Introduction I Service Area II Trunk Rate Determination III Charge Calculation IV Policy Administration V I. Introduction The purpose of this policy is to establish a Trunk Sanitary Sewer Charge Policy which will be applied to developing areas in the City. This charge will be used to fund the construction and maintenance of the City owned trunk sanitary sewers. This policy is not intended for construction of local sanitary sewers. This policy defines service areas where the charges will be collected, establishes procedures for determining the rates, outlines how the charge is to be computed and defines an administrative procedure for implementing the policy. The policy has been structured so as to accommodate future MUSA expansions and changing construction costs. At the time of platting property, developers/owners will be responsible for extending the minimum allowable diameter sanitary sewer to the property lines, as directed by the City Engineer. The City will reimburse the developer/owner for oversizing the pipe if a larger pipe is required to serve additional properties. II. Service Area The Trunk Sanitary Sewer Charge Policy will be applied to properties within the City Limits, which are south of US-169, and all property annexed into the City. Rural residential plats are excluded,but may be added at a later date. Rural plats, other than residential, are included in the service area. III. Trunk Rate Determination In 1995 the trunk sanitary sewer charge rate was calculated by summing the acreage of each drainage basin in the proposed service area to determine the gross area. The gross acreage was then reduced by 15% to obtain the net acreage. The 15% reduction was to account for non- developable land, public rights-of-way and other areas which do not utilize sanitary sewer service. At that time the gross area was 7,194.58 acres. The resulting net area (15% reduction) was 6,115.40 acres. Based on the 1994 Comprehensive Sewer Plan, costs for the extension of trunk sanitary sewer were estimated. The 1995 estimate for construction and right-of-way acquisition to install the trunk sanitary sewers was $7,654,400. The following outlines how the trunk sanitary sewer charge rate was determined. Net Area= Total Gross Area x 0.85 = 7,194.58 x 0.85 =6,115.40 Acres Trunk Sanitary Sewer Charge Rate= Total Cost to Extend Trunk Sanitary Sewer to the Service Area/Net Area =$7,654,400/6,1 15.40 Acres= $1,251.66/Net Acre The costs for the extension of trunk sanitary sewer to the service area have been reviewed regularly since the original calculation above. These costs were adjusted using the Engineering News Record Construction Cost Index. The result as of 2014 was a Trunk Sanitary Sewer Charge Rate of$2,210/Net Acre. For 2015, it is desired to utilize actual developable area rather than net area. The rational is this will more accurately represent non-developable land, public rights-of-way and other areas which do not utilize sanitary sewer service. The developable area is defined as the total area of the final plat, less areas of outlots, rights-of-way, lakes, wetlands, easements encompassing high water levels of storm ponds, conservation easements and parks. Nine plats were selected to compare the differences between net acreage and developable acreage as defined above. The result is an average of 22.58% decrease from net area calculations to developable area calculations. Therefore, the 2015 Trunk Sanitary Sewer Charge Rate will be increased by 20%to account for the decrease in area. The result is as follows: Trunk Sanitary Sewer Charge Rate= $2,652/Developable Acre IV.Charge Calculation The trunk sanitary sewer charge will be based on the developable area identified in the final plat for a property. The developable area is defined as the total area of the final plat, less areas of outlots, rights-of-way, lakes, wetlands, easements encompassing high water levels of storm ponds, conservation easements and parks. V. Policy Administration New Plats: The Trunk Sanitary Sewer Charge Policy will be administered by a combination of several City departments, as outlined in the following procedure. 1. The developer/owner will submit certified area calculations (as outlined in Section IV above)to the planning and engineering departments as part of the final plat submittal. 2. The planning and engineering departments will review the area calculations. 3. The planning department will include a condition of approval for the final plat requiring payment of the trunk sanitary sewer charge prior to recording of the plat. 4. The engineering department will calculate the charge based on the areas above. The total amount due will then be forwarded to the City Clerk. 5. The City Clerk will collect payments from the developer/owner. Other Properties: For any property requesting sewer service, whether platted or un-platted, the trunk sanitary sewer charge will be collected with the building permit issued for sewer connection according to the following procedure: 1. For properties wishing to subdivide, the property owner will submit certified area calculations (as outlined in Section IV above) of the property to be served by sanitary sewer with the building permit. 2. For existing rural residential properties not subdividing, the property owner will be charged based on a land area of 0.30 acres. The rationale behind charging these properties based on 0.30 acres is most of the rural residential areas are guided low density residential(R1-A)where the minimum lot size is 0.30 acres. 3. The engineering department will calculate the charge based on the land areas above. The total amount due will then be forwarded to the building department. 4. The building department will collect payments from the property owner. Other administrative functions including updates to the City of Shakopee Fee Schedule and any service area expansions will be the responsibility of the engineering department, subject to City Council approval.