5.d) "201" Community Sewage Treatment System Meeting Date: 2/6/2008
Agenda Item: �� a�
Gl
City Council Agenda Report
City of Scandia
14727 209�h St. North
Scandia, MN 55073 (651)433-2274
Action Requested: Consider adoption of two ordinances for the"201"Community
Sewage Treatrnent system:
1. Draft Ordinance No. 108 Governing the Sewage Treatment
System
2. Draft Ordinance No. 109 Establishing User Charges and
Connection Fees
Deadline/Timeline: N/A
Background: • At the January 15,meeting,the Council received a report on issues
and options for the update of Ordinance No. 24, which currently
governs the sewage treatment system serving residents on Big
Marine Lake. Taking direction from that meeting,two draft
ordinances have been prepared for the Council's consideration.
The first ordinance repeals and replaces Ordinance No. 24, and the
second(which will be amended annually) sets user charges and
connection fees for 2008.
• The ordinances incorporate the following features:
o Costs apportioned equally to all users.
o Continuation of the energy charge adjustment for users
connected to a shared lift station.
o Quarterly billing(March,June, September and December)due
the Sth of the following month.
o A late payrnent fee($10.00),plus interest(12%)on account
balances 30 days or more past due.
o Certification of unpaid balances(for accounts overdue after
September billings) for collection with the next year's property
taxes at an interest rate of 12%, after a City Council hearing.
o Language providing for new connections, for residential users
only and to properties adjacent to the existing collection
system, upon payment of a connection fee.
• The user charge for 2008 would be$548.94 annually/$137.24
quarterly, compare to an average user charge in 2007 of$343.33.
• The energy charge adjustment for 2008 would be$8.00 annually/
$2.00 quarterly, compared to $7.00 for each effected account in
Page 1 of 2
- O1/31/08
2007. This is based on an electric rate increase to $0.08 per KWH
in 2008 from $0.07 per KWH in 2007.
• The recommended connection fee for 2008 is $4,250. This is
based on the increase in the Construction Cost Index since 2003,
when the fee was $3,500.
• The draft ordinances have been reviewed by the City Attorney and
by Pete Ganzel from Washington County,who operates the system
for the city. The ordinances incorporate recommendations from
the League of Minnesota Cities on securing payment of utility
chazges.
• Users will learn of the changes in the sewer ordinances and billing
system when they receive their first invoice in March. A copy of
the draft letter that would accompany their bills is attached for
your information. We have included some historical budget
information to help explain the increase in user chazges.
Recommendation: I recommend that the Council adopt the ordinances. If changes are
necessary,adoption could be delayed to the February 19 meeting. The
ordinances should be published and effective before the first 2008
billing is mailed(by March 5.)
Attachments/ • Draft Ordinance No. 108 Goveming the Sewage Treatment
Materials provided: System
• Draft Ordinance No. 109 Esta.blishing User Charges and
Connection Fees
• Draft letter to Sewage Treatment System Users
Contact(s):
Prepared by: Anne Hurlburt,Administrator
(201 system ordinances)
Page 2 of 2
O1/31/08
CITY OF SCANDIA -
ORDINANCE NO. 108
AN ORDINANCE GOVERNING THE �201" COMMUNITY
SEWAGE TREATMENT SYSTEM
The City Council of the City of Scandia, Washington County,Minnesota hereby ordains:
SECTION 1. TITLE.
This Ordinance shall be known, cited and referred to as th��01 Community Sewage
Treatment System Ordinance, except as referred to herein,wher�e it�shall be know, as"this
Ordinance." �` `' '�
���, � ��.
,r. �� �>;;
/ � 4
SECTION 2. PURPOSE AND INTENT. �` � ���
,��_ `� �-
The purpose of this Ordinance is to estabi�"sh`t��equir �nts and user chaz!ges for the
operation,maintenance and administration of communri��e� ��atment syste�is constructed
with"201"grant assistance and owned and operated by th���i�ty of Scandia. This Ordinance is
intended to provide for the collection o :,£�.cient revenues tb�ancially balance revenues and
expenditures for operation and maintenan ���,ie system, and �4�for operation of the
system in accordance with all applicable lavv's a�t� i��environm ��y sound manner.
� �� �� ,.:�
SECTION 3. RULES AND.�EFINITION `',
In the event o ; nflichn '� visions in ' text of this Ordinan
� ce, and/or other
Ordinances,the mo�� cnve p �sions shall a ',1� The City Council shall determine which
� .,.
is more"restrictive." Wor us a��ae,�resent t shall include the past and future tense;the
singular includ�s-the�lural��c���e�l �1� ��the singular. The word"shall"is mandatory
and the w i�-``m� ;����S,�miss��;�.,, ������
..�- ��
°�he following t �cce de � ��r purposed of this Ordinance:
� . �,
Acce�►�, A record o�.'�enodic costs for sewer service provided to each property.
connected to t���candia"20_��'Community Sewage Treahnent System.
City.The Ci �f �andia,Washington County, Minnesota.
�,.,
Community Sewage Treatment System. A sewage treahnent system conshucted with
"201"grant assistance and owned and operated by the City, which collects sewage from two or
more residences consisting of collector lines,pumps, sewage tanks and soil treatrnent unit.
User. A residential dwelling or other establishment connected to the Community Sewage
Treatment System.
1
SECTION 4. CALCULATION OF USER CHARGES. -
A. Prior to the beginning of each calendar year,the City Administrator shall prepare a
proposed budget for operation of the Community Sewage Treatment System, including
all costs for the operation,maintenance, replacement, and administration of the system.
Upon approval of said budget by the City Council,the amount of user charges needed
to balance revenues with expenditures shall be determined. The user chazges shall be
apportioned among all the users of the system in equal amounts,to determine the base
user charge for the calendar year.
B. The base user charge may be subject to an energy charge ad�u�t�nent. A user who
supplies power from the user's home electrical connection�a`s�iiared lift station may
be entitled to a deduction from the base user charge. Us�i�,who do not supply power
from the user's home electrical connection to an�lif�,�h�i �aut who share a lift
station to which another user supplies electrical powe�,may� �a.bject to an increase in
the base user charge. �,
C. A schedule of user charges and other fees s l be adopted from �o,time by
ordinance of the City Council. � <, � �_ �.�
` ���°=- �
SECTION 5. ACCOUNTS. ��� � �`�� ����
� ,�
� ¢�...
A. All accounts shall be carried in�th� e.name of the o�` ;p£the property,at the mailing
address to which property tax bil�s�are sent by Washin�ton-County unless a written
request for an alternative billing a�d�s' is submitted to t�ie city by the owner.
B. The owner shall be liable for the se�ver s� `ern�"c,e siat��li�to the property,whether he or
she is occupying th,e�roperty or not�and�a,ny� 'rl�eharges sha11 be a lien upon the
Pr�P�3'• �
'� �i
SECTION 6. BII�� �� ��,�� �';�) ,,�,�
, ��
A. Bills , , �e mail ' �acf�� �. �or before the fifth day of March,June,
�e�rt " �;D ���r��f eac�h y�e �and specify the charges in accordance with the
��irrent f�h,edule se t ti�. iardinance of the City Council.
All chazges shajl�;���d� ue upb r�eceipt and considered delinquent after the fifth day of
� � �ollowing mon'��.
� �.
, ` i
� �A'.
SECTION 7 ���.INQUE ACCOUNTS.
� ;,;
A. Late pay�teri�t "�nalties shall be assessed on a11 delinquent accounts in accordance
with the f schedule set by ordinance of the City Council.
B. Partial pa}%ments on delinquent accounts shall first be applied to any penalties and
then to user charges.
C. All delinquent accounts as of October 15 of each year shall be certified to the county
auditor for collection with taxes in the following year, according to the following
procedure:
a. Notice shall be sent to each account holder by first class mail of the delinquent
charges not less than 10 days prior to the date of a City Council hearing to
consider the charges proposed to be certified for collection with property taxes.
2
b. The notice shall state that if payment is not made before the date for certification,
the entire amount plus penalties will be certified to the county auditor for
collection as other taxes are collected.
c. A hearing shall be held by the City Council at its first meeting during the month
of November. Property owners with unpaid accounts shall have the opportunity
to object to the certification of unpaid charges to be collect� as taxes are
collected. If, after the hearing,the City Council finds that the amounts claimed as
delinquent are actually due and unpaid, and there is no legal reason why the
unpaid charges should not be certified for collection with taxes in accordance with
this ordinance,the City may certify the unpaid charges to the county auditor for
collection as other taxes are collected.
d. For each certification sustained,the property o�e�lshall have the following
options after the hearing: , �`�
i. To pay the delinquent amount listed on the�prelim�assessment roll,but
without additional interest after the� „within ten days of the hearing
date. '
ii. To pay the certified charges as b��to the roperty owner���Vashington
County on the owner's properfy'�L��atem �th a collection�erm of one
year. "� / �- �``� `
e. Fifteen days after the hearing,the certified�r��;minus any payments, sha11 be
delivered to Washington ua�ty.
�., �,�
3-: �/
SECTION 8. CONNECTIONS TO T ���TITY SE TREATMENT
SYSTEM. � ` ��
'�.�,1'.�._��/
A. New connectio t' e i;ommuni se` � e=treatm 't s stem sha11 be rohibit�unless
tY g Y P
sufficient capacity i��ilable in all do tream facilities. Connections shall be
limited to�esi�iential us � :only, and to p \'pe,�#ies adjacent to the existing collechon
system. - _
B. No unauthorized p o sFiai�- cov�e�make any connections with,or opening into,
us;alter�or+disturb �iortion of e system or appurtenance thereof without first
� , �,.
fl
,�.�'`o b t a i n ing a wn tten,p '�from t he ci t y or coun t y as may be app lica b le.
�' � All sewer connections shall� pform to applicable requirements of the State Building
�and;Plumbing Co\d ,and all Gapplicable rules and regulations of the city or county. All
co�nections sha11 b�made gas-tight and water-tight, and verified by proper testing to
prever�t;the infusio C of infiltration/inflow. Any deviation from the prescribed
procedur�es and mat�als sha11 be approved prior to installation. The connection and
inspecdon shall��made under the supervision of the city Building Official or his
designee.
D. New users connecdng to the system shall pay to the city a sewer connection fee in
accordance with the current fee schedule set by Ordinance of the City Council.
SECTION 9. PROHIBITED WASTE DISCHARGES.
A. No user shall make or maintain connection of roof downspouts, exterior foundation
drains, surface runoff or groundwater to a building sewer or indirectly into the
community sewage treatment system.
3
B. No user shall discharge into the community sewage treatrnent system any incofnpatible
waste,defined as waste that either singly by interacdon with other wastes interferes
with any waste treahnent process, constitutes a hazard to humans or animals,creates a
public nuisance,or creates an hazard in the treahnent system.
C. No user shall discharge into the community sewage treatment system any wastewater
having a strength greater than that primarily produced by residential user,defined as
having a Biochemical Oxygen Demand(BODS) concentration of approxirnately
200/mg/1 and suspended solids concentration of approximately 225 mg/1.
SECTION 10. COST OF REPAIRS. �'
In addition to any penaldes that may be imposed for viola�ion of any provision of this
Ordinance,the City may assess against any user the cost of re�pairing or restoring sewers or
associated facilities damaged as a result of the discharge of pr'ohibited�astes by the user,and
may collect such assessment as an additional charge fo��_�se�of the system or may pursue any
other method of collection of the costs it deems app�p�riate. �" �, ,.
,� �`a , �F
SECTION 11. SEVERABILITY. ��. ;� ��a} �
�� � ��, .
` �;
If any provision of this Ordinance is found to be m``v.�1�`"d for any reason by a court of
competent jurisdiction,the validity of th�e-remaining protnsioi�t�s.��a,all not be affected.
\ ` �
�?�,` ��.
SECTION 12. ADMINISTRATION AND EN�'O7tCEMENT.
�
� ,_�
A. The City Adminis ator shall be resp�nsilile for a�_' "stration and enforcement of the
Ordinance, an� �I�.�ction of the us�'chazges as'set forth in this Ordinance. The
City Counci��;"all h�d,decide app�s and review any order,decision or
determina��` �de by �Administrato z�garding the enforcement of this Ordinance.
B. The City hereb \; blis ��Se`wage Tre.iment Service Fund into which a11 revenue
coll e�-�m us ���-� �'T���t�� _ s��"��fid from which all expenditures necessary for
o��#��►�'�d mai�Y�ance of e 'stem shall be paid.
C Any person�v �i��olat e`s��,��r�ision of this Ordinance shall be guilty of a
anisdemeanor,an �i on co�vi�hon thereof,the violator shall be subject to a fine,
�,s: : P ` .
D. �nsonment or b �i,plus�ie cost of prosecution.
,���ty reserves right to disconnect service to any user found to be in violation of
this C��aance. S `ce shall not be disconnected undl notice and an opportunity for a
hearing�c�re the.;'ty Council have been provided to the occupant and to the owner of
the premis 'iu� ��ved.
SECTION 13. REP AL.
Any ordinance or provision of an ordinance heretofore existing pertaining to the subjects
treated in this ordinance, including Ordinance No. 24 (Wastewater Services Charge Ordinance),
shall be deemed repealed from and after the effective date of this ordinance.
4
.
Passed and adopted by the City Council of the City of Scandia this day of Febnyary,
2008.
Dennis D. Seefeldt,Mayor
ATTEST:
�
Anne Hurlburt, Clerk/Administrator 7�,7 �"�._
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5
CITY OF SCANDIA
ORDINANCE NO.: 109
AN ORDINANCE ESTABLISHING USER CHARGES AND CONNECTION FEES FOR
THE"201" CONIMUNITY SEWAGE TREATMENT SYSTEM
,
The City Council of the City of Scandia,Washington Co t�,Minne`sota hereby ordains:
�..
User charges and fees for the "201" Community Se�vage T�ieatment System sha11 be as
follows: '� � `
-� �. ,``�
� � �
�` Fee
(A) Base use chazge: -:� $5�8,94 annually/
�'< '_�.; $1��24 quarterly
(B) Energy charge adjushnent: �� ;�; $8.00 annually/
`'�°.�,
� $2.00 quarterly
��
(C) Late payment fee: $10.00
(D) Annual interest rate on a �'[un���a�ces 30 da � � 12%
past due: � ,��� �
Annual interest rate on delin u�t a un r��,e�� 12%
�) �, q
for collec o�� :��roperty taxe �'`� �
(F) Conn 'ori�fee,p dwelling unit: $4,250.00
, #. �,
�, _
x."'� r:� ,<<.
Passed ;_:,d_.adopt l� t�`i�it�Cou�ciT of the City of Scandia this day of
�' � - - �`�-
Februat�2008. ` `�
� _��
f �T �
� _
2 :` Dennis D. Seefeldt,Mayor
ATTEST: �
���
__
Anne Hurlburt,Clerk/Administrator
e
Q�r`Q���� � � f�/i/� ���
���$����'���/r/�f /��v��� �
zo� s�✓��r°�fe.r.s
March 3, 2008 -�
�
TO: All Users of the Scandia"201"Community Sewage ;�e�atme�h System
�
RE: Changes to Your Bill Starting in 2008 � ,
4hy_.
� • - /J�
�._ ��:. ��� L� 7!
Starting this year,the City of Scandia will bill your shar�e af�,sts�t�z the 201 :i�nmunity
Sewage Treatment System to you in four quarterly install�r��n�. Your first invoice is enclosed.
���
There are some other changes that you sh�uld� _ow about: �, �
� - ,-
• Billing procedures have been updated:5'�he o uia�ce-,�ov� -`''g the sewage treatment
system had not been updated in 20 years d�ld�rach'�ce;-6f invoicing was not consistent
with the ordinance. d' , ordinance �1���a11ow us�n�bill quarterly,on a more
predictable cycle _ smal �istallments d �`each quarter. Bills will be mail�by the 5`�
of the month i �.�June, �tember and 1� �ember,and will be due by the 5 of the
following mon����chaz ;���� be applied t�o�'overdue bills. Balances overdue by 30
h� ��
days or mo v�l be ch��' , �.�, .�
:,�.�� �'�..?\ . ,_,,
• All �rs of the s � �:�are n ��b.�lled an equal amount for service. Previously,dif�erent
ra , �+ere charged d ��iing up`�a�,�number of bedrooms in a home and whether it is a
seaso �br permanent r idence. ,�s was originally set up as a way to estimate the volume
of wast�' ���r generated ��a residence. However,it is not a reliable measure and as
property c � ;ges hands o"?�§remodeled,these factors change. Installing meters at each
home,at a co �`�able 'st to the property owner,would be the only equitable way to
charge for servi ���'on volume. Since only a small portion(less than 10%)of the cost of
operating and mair`�i�iung the system is related to volume,the City Council found that it
would be much m�e equitable for each property to be charged equally.
• Energy charge adjustments will continue. If your home is served by a lift station shared
with other users, which is connected to your home electrical system, your bill will be
adjusted downward to reflect the energy cost you contribute to the operation of the system.
If your home is served by a shazed lift station, for which another user pays the electric bill,
your bill will be adjusted upward. (Most users will not see any energy charge adjustment.)
DRAF'T LETTER TO USERS �
Page 2 of 2
• Rates for 2008 are higher than in 2007. User charges for the sewer system are based on
the city's actual cost for operating and maintaining the system, including a small amount set
aside each year for replacement of system components. The budget has fluctuated as some
costs(repairs,pumping)have varied greatly from year-to-year. User charges must cover
costs. Property tax revenues are not used to pay for sewage treatment.
The following chart shows the total budget for the 2008 and the previous 5 years, along with
the average user charge for that year.
�`:> ,
$60,000 $soo.00 \
$50,000 $500.00
I-
m �;. ,
� $40,000 $400.00 �
H L
Q $��0� $��.�0 �
K � ;��
W $20,000 $ZOO.00 �
Q
$10,000 $100.00
$� $0.00
2003 2004 2005 2006 2007 2008
Year
�Expenses —♦—Avg. Charge
, -_, �
' ' , �
In 2009 and beyond, �e�c�ty .1 strive to redu e need for significant budget and user
charge increa��s by pl •��` g�oi���`ct�rn�ng_p;� ping and maintenance costs in each yeaz's
rn
budget ,�, �o,�ex �the res � ��the fund, as the city has been criticized by the
Stat,�;��r tha �;�.a no .�a'�e been se tt i n a s i d e s u f fi c i
Y ,� g ent funds for long-term
r +�ment costs. ��- '�
� {k.
\ ��
,
Please feel fre �r�r�ontact ei +�r myself or City Treasurer Colleen Firkus if you have any
questions about ixaform �n. You can reach us at 651 433-2274. My e-mail address is
a.hurlburt ci.scan ia:�,�and Colleen's is c.firkusna,ci.scandia.mn.us.
Sincerely,
Anne Hurlburt
City Administrator