HomeMy WebLinkAbout7A-2, Motion to Adopt the Water Connection Fee at $300
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Request for Council Action
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Prepared By: Sue Iverson, Finance Director
Council Meeting Date: December 8, 2008
Motion to Adopt the Water Connection Fee at $300 per unit, Water Availability at
$800 per acre, Sewer Connection Fee at $300 per unit, and Sewer Availability at
$800 per acre.
Budgeted Amount:
None
Actual Amount:
None
Funding Source:
None
Supporting Documents:
1. See the attached memo from Sue Iverson dated December 3, 2008
2. Memo from Jonathan North, Ehlers & Associates Inc., dated December 2, 2008
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."HIEES
MEMORANDUM
DATE: December 3, 2008
TO: Honorable Mayor and City Council
Ron Moorse, City Administrator
FROM: Sue Iverson, Finance Director
SUBJECT: Water and Sewer Availability and Connection Charges
Back2round:
The City of Arden Hills currently does not charge an availability charges for new water and sewer users.
These new users typically are allowed to connect into the existing system with out a fee except a $300
sewer connection fee. Typically cities charge a fee to new users for accessing the system and are
collected with the building permit fees. These fees are structured to cover the cost of infrastructure
replacement and maintenance as current users have already paid for the system.
Discussion:
During rate study discussions, the Council expressed interest in establishing such a fee. When TCAAP
develops an in depth study will be performed for that area, but staff strongly feels that the current
undeveloped property in the City needs to be addressed. We have asked our financial consultants to take
a look at the surrounding areas to see what fees are being charge in conjunction with our rate study.
Attached is their report for Council review. Since there is a wide range of charges, staff feels that a
conservative approach similar to Shoreview would be best to establish the fees at this time. Further
analysis can be done when the TCAAP analysis is done.
Recommended Action:
Motion to adopt the Water Connection Fee at $300 per unit, Water Availability Fee at $800 per acre,
Sewer Connection Fee at $300 per unit, and Sewer Availability Fee at $800 per acre.
Attachment
EHLERS
LEADE.RS tN PUBLIC fINANCE
To:
Sue Iverson, City of Arden Hills
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From:
Jonathan North and Liz Diaz, Ehlers
Date:
December 2, 2008 .
Subject:
2009 SAC / WAC
BACKGROUND
The City is reviewing the SAC / WAC (Sewer Availability Charges and Water Availability
Charges) fees for 2009. Typically, the fees are structured to cover the costs related to accessing
the system (ie: capital costs associated with the installation of water reserve capacities), and are
collected with the building permit fees.
As TCAAP development - and its related costs - will not affect the 2009 fee structure, the 2009
fees would be applicable to: 1) lots yet to be developed, 2) redevelopment lots, and 3) expansion
of existing lots. Further, as TCAAP is not expected to impact the 2009 fee structure, the basis
for the fee would be based on the capital cost previously incurred and prevailing fee structures.
Neighboring communities have a wide range of SAC / WAC fees, reflecting 1) the broad latitude
given to cities in determining hovl they can fund their water and sewer systems, and 2) the
different policy objectives of each community. For example, some communities may take an
aggressive pro-development stance, in which case the SAC / WAC fees may be lower. HQwever,
they would likely compensate for this with higher operating fees.
RECOMMENDATION
F or the non- TCAAP area (and impacting 2009), we recommend that the City look to its
neighbors and maintain a competitive SAC / WAC fee structure. Therefore, we recommend the
City adopt the attached rates for activity on existing lots:
Ehlers & Associates Inc.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
Phone: (651) 697-8545 Fax: (651) 697-8555
jnorth@ehlers-inc.com
EHLERS
LEAD E.RS IN P U SltC FUtANCE
Water Sewer
Connection Availability Connection Availability
Arden Hills-20Q9 Proposed $300 per unit $8QO per acre $300 per unit $800 per acre
Brooklyn Park $50 per unit $1,600 per unit $150 per unit $1,675 per unit
Eden Prairie $2,190 per unit $520 per unit
Little Canada $300 per unit None $260 per unit None
Maple Grove $1,785 per unit $725 per unit
Mounds View 30.5 per unit $500 30.5 per unit None
New Brighton $515 per unit None $175 per unit None
Plymouth-2009 Proposed $1,076 per unit $3,107 per acre $420 per unit $998 per acre
rShoreview $275 er unit $825 er acre $275 er unit $825 er acre
Ehlers & Associates Inc.
306Q Centre Pointe Drive
RQseville, MN 55113-1105
Phone: (651) 697-8545 Fax: (651) 697-8555
jnorth@ehlers-inc.cQm