5.2. ERMUSR 06-11-2013 c51
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Elk River 4
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 11, 2013 5.2
SUBJECT:
Water Availability Charge (WAC) Program
BACKGROUND:
At the June 3rd City Council meeting, the Council adopted Ordinance 13-13, which created a
"look back"option for calculating the Service Availability Charge (SAC) for sewer connections.
The ordinance is similar to what the City of Otsego uses. The City also adopted a flexible SAC
financing option based on their 2012 Ordinance 12-17 which allowed for costs associated with
connections to city service be paid as a special assessment.
DISCUSSION:
In ERMU's Policy 5.0 — Water Rules, the Water Availability Charge (WAC) determined by the
City's calculation of SAC units. The philosophy behind the ERMU being lock-step with the City
is that typically water in = water out. The calculation for sewer units should equal the water
units for the same building. There is the potential for specific cases where this would not be true,
for example a building with a large chiller with high water evaporation. However, there is good
justification for the WAC units to be the same as the SAC units.
As a result of the City's adoption of the a "look back" ordinance amendment for SAC, staff has
considered the application to the water department and determined that it is appropriate for
ERMU to adopt a program that would mirror the City's.
To minor the City's "look back" ordinance, ERMU needs to make the following change in the
Water Rules:
SECTION 106 WATER ACCESS FEES & CONNECTION CHARGES
COMMERCIAL/INDUSTRIAL DEVELOPER
a) Connection, access and meter fees (See Base Charge List) must be paid and
plumbing permit number supplied before delivery of the water meter will be
made. The remaining portion of the WAC fee of$2,000 per unit plus tax will
be paid at this time upon determination of total WAC units. The number of
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WAC units shall be calculated the same as Sewer Availably Charges as
provided in Section 78-189 of the City of Elk River Code of Ordinances.
No change to ERMU policy would be required to follow the City's flexible financing because
the ERMU Commission has already approved following the City Ordinance 12-17.
ACTION REQUESTED:
Staff recommends the Commission adopt policy revisions to "ERMU Policy 5.0—Water Rules
Section 106 Water Access Fees & Connection Charges - Commercial/Industrial paragraph a"
which would mirror the City's"look back" ordinance amendment for SAC.
ATTACHMENTS:
• City of Elk River Ordinance 13-13, "Look Back"Amendment to Section 78-189 Service
Availability Charge.
• City of Elk River Ordinance 12-17 Payment and Assessment of Costs to Connect and Repair
Private Utility Lines.
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ORDINANCE 13 - 13
CITY OF ELK RIVER
AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING SECTION 78-189,
SERVICE AVAILABILITY CHARGE, OF THE CITY OF ELK RIVER, MINNESOTA,
CITY CODE
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. That Section 78-189 tided, Service Availability Charge,of the City of Elk River Code
of Ordinances,shall be amended by adding new subsection (e) thereto as follows:
(e) The City Council,at its discretion and upon a finding that the table in
Subsection 78-189 (d) may not apply due to circumstances unique to a
particular user,may enter into an agreement to calculate the number of SAC
units for commercial,public, or institutional facilities based on one of the
following alternative methods:
(1.) Information is provided regarding actual water and sewer use by the
same or a substantially similar use that has been existing for a period
of not fewer than three (3) years; or
(2.) The user shall escrow the SAC charge calculated in accordance with
subsection 78-189 (d) and monitor actual water use for a period of
four (4) years. If the actual average water and sewer use during the
2"d 3's and 4th years is fewer than the SAC units estimated by the
table in subsection 78-189 (d), the city will recalculate the SAC units
and refund the difference to the user without interest. If the actual
water and sewer use during the fourth year is greater than the SAC
units escrowed as calculated by the table in subsection 78-189 (d) the
user will not be obligated to pay additional fees and the escrowed
funds will be released and deposited into the Sewer Fund.
Section 2. Passed and adopted by the City Council of the City of Elk River this 3'' day of June,
2013.
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ATTEST:
Tina Allard, City Clerk
s
ORDINANCE NO. 12-17
CITY OF ELK RIVER
AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING CHAPTER 78,
ARTICLE I, DIVISION I OF THE ELK RIVER CODE OF ORDINANCES, WHICH
PROVIDES FOR PAYMENT AND ASSESSMENT OF THE COSTS TO CONNECT
AND REPAIR PRIVATE UTILITY LINES
The City Council of the City of Elk River hereby ordains as follows:
Section 1. That Chapter 78, Article I, Division 1 of the City of Elk River Code of Ordinances shall
be amended to read as follows:
Division 1.
Payment and Assessment of Costs to Connect or Repair Private Utility Lines.
Section 78-1. Finding of Public Health and Safety Hazard.
a) The City Council finds that failure to connect to the city water system as required by section
78-21 of this code, failure to connect to the city sewer and sewage disposal system as
required by section 78-97(d) of this code, and failure to maintain in good, operable condition
private water and sanitary sewer utility lines, creates public health and safety hazards on
private property which must be eliminated.
b) In addition to the provisions of section 78-22 and section 78-97(d),which authorize the city
to make connections to the city water and sanitary sewer systems and to assess the costs
therefore to the affected property, and the provisions of chapter 46, article II of this code,
which declares defective sewage systems and plumbing a nuisance affecting the public's
• safety and health and authorizes the City to abate such nuisances and to assess the costs
therefor to the affected properties, the City Council finds that it is necessary and in the
public interest to provide a mechanism for costs incurred by private property owners to
eliminate such public health and safety hazards on private property to be assessed against the
property as a special assessment.
Section 78-2. Petition Authorized.
Property owners who are required to connect to the city water and/or sanitary sewer system
pursuant to section 78-21 and section 78-97(d) of this code, or who have private water and/or
sanitary sewer lines which have failed, and such failure has been determined by City land
development staff to be a public health or safety hazard, may petition the City, on a form provided
by the City, to pay the costs to connect (including any outstanding lateral/trunk assessments and
applicable water and sewer connection charges) or repair the private utility lines and to assess
amounts paid as a special charge under Minnesota Statutes, Section 429.101. The City may accept or
reject such petitions in its sole discretion, and may impose such conditions and requirements to
acceptance as it deems appropriate.
Section 78-3. Work to be Completed b Proser Owner.
If a petition to pay and assess the costs of connection or repair is accepted by the City,
installation of the required connections and/or repairs to private utility lines on private property
shall be the responsibility of the property owner, shall be contracted for by the property owner, shall
be completed by the property owner as required by the policies and ordinances of the City of Elk
River and Elk River Municipal Utilities, and shall be inspected and accepted by the city building
official before payment of costs is made.
Section 78-4. Payment and Assessment of Costs Authorized.
a) Upon completion and acceptance by the City of all work required, the City will make
payment to the party or parties who performed the work in an amount not to exceed
that set forth in the petition accepted by the City. Such payment by the City, and all
other outstanding fees and charges required for connection to the public systems, shall
constitute a special charge against the affected property pursuant to Minnesota Statutes,
Section 429.101 and shall be specially assessed against the property by the City pursuant
to the provisions of Minnesota Statutes, Section 429.101. Special assessments levied
under this Section shall be payable in a single installment, or by up to 10 equal annual
installments, as provided by the City Council.
b) The City Council shall establish,and may amend from time to time, policies regarding:
(1) projects eligible for this program; (ii) petitions which may be accepted by the City
Administrator; (iii) petitions which may only be accepted by the City Council; (iv) the
number of annual installments over which amounts paid and assessed will be levied; and,
(v) the interest rate applicable to unpaid installments.
Section 78-5. Sunset on Payment and Assessment for Connections.
Petitions to pay and assess the costs of connection to the City water system and the City
sewer and sewage disposal system will not be accepted by the City for any connection
project which is completed after December 31, 2015.
Section 2. That this Ordinance shall be published and take effect as provided by law.
Passed and adopted by the City Council of the City of Elk River this 10th day of December 2012.
John J. Dietz
Mayor
Attest:
Tina Allard
City Clerk