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Home My WebLink About20100301 - VI-10 To: Mayor Hicks & City Councilmembers From: Melanie Mesko Lee, Assistant City Administrator Re: Ordinance Amendments Related to City Fees Date: February 24, 2010 Council Action Requested : Approve the first reading and order a public hearing and a second reading for an ordinance amendment relating to City fees. Background Information : Twice annually, City staff reviews the comprehensive fee schedule of what is charged for licenses, services, permits, rentals, inspections, and other city services. The following adjustments are being recommended to the existing fee schedule: Proposed Fee Adjustments : Item Current Fee Proposed Fee Justification PARKS & RECREATION Civic Arena Ice Rental (Within ISD 200) Prime $160.00/hr + tax $165.00/hr + tax Incorporated as part of 2010 Non-Prime $132.50/hr + tax $136.50/hr + tax budget process Ice Rental (Outside ISD 200) Prime $165.00/hr + tax $170.00/hr + tax Incorporated as part of 2010 Non-Prime $137.50/hr + tax $141.50/hr + tax budget process COMMUNITY DEVELOPMENT Keeping of Chickens None yet established $100 This is a new permit adopted by the Council ADMINISTRATION This was adopted by the TRAC Token $1.75 $2.25 City Council and reflects mandate by Met Council $2.05/1,000 gallo ngs Item Current Fee Proposed Fee Justification PUBLIC WORKS Fees are reviewed annually—please see Tom Montgomery’s attached Water $1.65/1,000 gallons No change proposed memo with more surcharge rate over information on the winter quarter usage proposed 2010 fees Wastewater $3.05/1,000 gallons $3.15/1,000 gallons WAC $2,750 $2,770 SAC $840 $845 Interceptor Sewer $435 $440 Construction Inspection Currently there is no $500 Once the minimum escrow Escrow Minimums minimum escrow balance is received, all account services would stop until the balance is brought back up to cover the project needs. This would protect the City from having to fund negative balances. As currently is done, once a project is done, any outstanding escrow balance, including the minimum amount would be returned to the developer Engineering Currently charged at Charged annually No change in fee being Administrative Fee end of project charged; proposed change in process to better communicate with developers on administrative fees being incurred during long-term projects BUILDING Fire Sprinkler Fees Current Fee Proposed Fee Commercial $100.50 Based on valuation Recommended change as a Fee is: If total (plus result from feedback that fee valuation of $0.50 is not commensurate with work is: surcharge) smaller jobs. ($100 fee for a $1.00 to $25 $300 job). Also this will $500 address any sprinkler repairs $501 to $50 made to residential dwelling $1000 which did not list a separate $1001 to $75 permit for repairs. One fee $2000 schedule for residential and $2001 and $100 base commercial streamlines the up fee or list which will cut down on 1.25% x calls from online users Valuation Residential $50.50 SAME AS COMMERCIAL ABOVE If you have any questions, please let me know. MEMO To: Honorable Mayor and City Council From: Tom Montgomery Date: February 24, 2010 Re: Annual Utility Rate Review - WR CR: $1.65/1,000GBR ATER ATES URRENT ATE ALLONS ASE ATE $2.05/1,000GS ALLONS URCHARGE ROW ATE VER INTER QU UARTER SAGE R: NC ECOMMENDEDO HANGE No rate increase is recommended for water rates. The 2009 year end Water Fund balance increased by $165,000 over the previous year. While the projected 2010 fund balance is estimated to show a $60,000 loss, this estimate can vary significantly based on weather and how frequently homeowners are watering their lawns. The Water Fund has a healthy reserve, so no water rate increase is recommended. - WR CR: $3.05/1,000G ASTEWATER ATES URRENT ATE ALLONS R $3.15/1,000G ECOMMENDED ALLONS I am recommending a $0.10 per 1,000 gallon increase in wastewater rates to $3.15 per 1,000 gallons. The 2009 year end Wastewater Fund balance increased by $68,000 over the previous year. However, the Metropolitan Council Environmental Services’ wastewater treatment fees will increase $104,000 in 2010 and the Wastewater fund balance (YE 2009 - $875,000) is still below $1,000,000. Sanitary sewer reconstruction has averaged $375,000 per year over the past 5 years. The $0.10 increase (3%) should raise an additional $56,000 toward building the Wastewater Fund reserve. I do need to point out that my recommended $1,000,000 Wastewater Fund reserve is based purely on an arbitrary comfort level given the large cost and wide variations from year to year of our annual sanitary sewer reconstruction – ranging from a low of $200,000 to a high $560,000 over the past five years. The Council has not set a minimum reserve level for the Wastewater Fund. With the 2009 year end balance of $875,000, the Wastewater Fund would have a balance of 45% of the 2010 Wastewater Fund budget and estimate reconstruction costs. The Council has adopted a policy of requiring the General Fund to maintain a reserve balance of 40% of the annual budget. WAC,SAC,&ISC NTERCEPTOR EWER HARGES Council adopted a resolution in 1993 that updated utility connection fees and indexed these fees to the American City and County magazine construction cost index. This index increased 0.7% last year. Accordingly, staff is recommending increasing the connection fees as shown below. These connection fees are charged to new development to fund expansions of the City’s sewer and water system that are needed to support new development. Examples of system expansion included new wells, water storage, and trunk sewer and water mains. Recommended ChargesCurrent Rate Rate WAC $2,750 $2,770 City SAC $840 $845 Interceptor Sewer $435 $440 CAR OUNCIL CTION EQUESTED Council is requested to amend the City’s fee ordinance to: ? Increase the wastewater rate to $3.15/1,000 gallons ? increase WAC charge to $2,770 ? increase SAC charge to $845 ? increase Interceptor Sewer charge to $440 $2.05/1,000 gallongs CITY OF HASTINGS, MINNESOTA ORDINANCE NO. 2010- , THIRD SERIES AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR LICENSES, PERMITS, RENTALS, LEASES AND MUNICIPAL SERVICES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: Chapter 34 of the Hastings City Code is hereby amended as follows: Section 34.01 Fees Authorized and Defined. The fees for licenses, permits, rentals, leases and municipal services are in the amounts established in this section. Reference in other portions of this code or in other city ordinances to terms including, but not limited to “annual license fee”, “investigation fee”, “fee established by ordinance”, “required license fee”, “license fee,” or “appropriate fee” means the fees specified in this section. Section 34.02 Priority of Application. If fees are specified in other parts of this code or in other city ordinances but not in this section, then the fees specified shall be effective for all purposes. If there are amounts specified in this section as well as other chapters or ordinances, then the amounts appearing in this section supersede the others. Section 34.03 Fee Schedule. The fees for license, permits, municipal services, rentals and leases are amended as set forth below: PARKS & RECREATION Civic Arena Ice Rental (Within ISD 200) Prime $160.00/hr + tax $165.00/hr + tax Non-Prime $132.50/hr + tax $136.50/hr + tax Ice Rental (Outside ISD 200) Prime $165.00/hr + tax $170.00/hr + tax Non-Prime $137.50/hr + tax $141.50/hr + tax COMMUNITY DEVELOPMENT None yet established $100 Keeping of Chickens ADMINISTRATION TRAC Token $1.75 $2.25 PUBLIC WORKS Water $1.65/1,000 gallons No change proposed surcharge rate over winter quarter usage Wastewater $3.05/1,000 gallons $3.15/1,000 gallons WAC $2,750 $2,770 SAC $840 $845 Interceptor Sewer $435 $440 Construction Inspection Escrow Currently there is no $500 Minimums minimum escrow account Engineering Administrative Fee Currently charged at end Charged annually of project BUILDING Fire Sprinkler Fees Current Fee Proposed Fee Commercial $100.50 Based on valuation Fee is: If total valuation (plus of work is: $0.50 surcharge) $1.00 to $500 $25 $501 to $1000 $50 $1001 to $2000 $75 $2001 and up $100 base fee or 1.25% x Valuation Residential $50.50 SAME AS COMMERCIAL ABOVE Section 34.04 Effective Date. This ordinance shall be effective seven (7) days after publication. Moved by Councilmember , seconded by Councilmember to adopt the ordinance as presented. Adopted by the Hastings City Council on this day of , 2010, by the following vote: Ayes: Nays: Absent: CITY OF HASTINGS _______________________ Paul J. Hicks, Mayor ATTEST: _________________________ Melanie Mesko Lee, City Clerk I hereby certify that the above is a true and correct copy of the Ordinance presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the day of , 2010, as disclosed by the records of the City of Hastings on file and of record in the office. ____________________________ Melanie Mesko Lee, City Clerk