98-027
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CITY OF SHOREWOOD
RESOLUTION NO. 98- 027
A RESOLUTION ESTABLISHING
CITY POLICY
REGARDING THE MUNICIPAL WATER SYSTEM
WHEREAS, the City ordinance code authorizes the City Council by resolution to
establish policy regarding the City's municipal water system; and
WHEREAS, the City Council believes that a clearly articulated policy statement will serve
several important functions including, without limitation:
1. provide for the consistent application of rules and procedures;
11. provide the justification for Council decisions in particular circumstances;
lll. adequately inform the public of the circumstances and requirements under which
municipal water may be provided; and
IV. facilitate the development of long-range capital programs for the municipal water
infrastructure; and
WHEREAS, in considering the adoption of such a policy and any future amendments, it
is appropriate for the Council to take into account such matters as expectations based upon past
practice, equity, revenue productivity, political accountability, together with the Council's vision of
the role which municipal water plays in the future of the City.
NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of
Shorewood as follows:
1 . Scope. This resolution shall apply to the City's municipal water utility only, and
none of the provisions contained herein will be deemed, by implication or otherwise, to be
applicable to any other municipal improvements.
2 . Effect on Existing Improvements. Improvements for which assessments are
pending or levied shall be subject to the provisions of Chapter 903 of the City Code in effect on
January 1, 1998, (or on the date of the levy of such assessment if earlier). Improvements which
are the subject of executed development agreements shall be subject to such agreements whether or
not the improvement has been constructed. Future connections to existing City lines shall be
subject to the provisions of Chapter 903 in place on January 1, 1998, unless the Council in its
discretion determines otherwise on a case-by-case basis. A copy of the provisions of Chapter 903
in effect on January 1, 1998, is attached to this Resolution as Attachment A.
3. Agreement and Waiver. No improvement will be ordered until and unless the
petitioners and all affected property owners have executed and delivered to the City an agreement
and waiver in the form substantially shown in Attachment B. and all non-petitioning affected
property owners have executed and delivered to the City a consent agreement in a form acceptable
to the City shown in Attachment C.
18D137416
SH230-2
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Resolution No. 98- 027
Page 2
4. Hook-Up Following Initial Assessment. An individual applying to hook-up to City
water installed after January 1, 1998, will be required to pay an amount equal to the assessment
and other hook-up and connection charges paid by the individuals who initially hooked up to the
improvement, together with interest. The Council may, but is not required to, provide for the
payment of all or part of such charges over time and in a manner similar to a special assessment.
5. Effect of Resolution on Section 903.18. To the extent not inconsistent with the
policy statements contained in this Resolution and any amendments to Chapter 903, the provisions
contained in Section 903.18 of the code as of January 1, 1998, shall serve as guidelines to the
Council in formulating decisions regarding municipal water. The Council is free to disregard such
guidelines when it determines to do so would be in the best interest of the orderly administration of
the municipal water program.
ADOPTED BY THE CITY COUNCIL of the City of Shorewood this ~ day of
April, 1998.
, MAYOR
18D137416
SH230-2
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- . 903.01
SECTION:
903.01:
903.02:
903.03:
903.04:
903.05:
903.06:
903.07:
903.08:
903.09:
903.10:
903.11:
903.12:
903.13:
903.14:
903.15:
903.16:
903.17:
903.18:
903.19:
903.02
CHAPTER 903
WATER USE AND SERVICE
Purpose and Intent
Compliance With Provisions
Water Service Connections
Water Tum-On and Shut-Off Fees
Private Wells
Installation and Construction Requirements and Specifications
Service Pipes
Meters
Water Rates and Charges
Water Connections Served by Adjacent Municipalities
Authorized Water Shut Offs
Conservation Measures
Restricted and Prohibited Acts
Discontinuance of Service
Mandatory Hook Up, Commercial and Multiple-Family
Residential Users
Right of Entry Powers
Disclaimer of Liability
Water Assessment Policy
Violation
903.01: PURPOSE AND INTENT: The City Municipal water system
(hereinafter called the water system) shall be operated as a public
utility and convenience fromwhich revenue will be derived, subject to the provisions
of this Chapter.
903.02: COMPLIANCE WITH PROVISIONS: No person shall make,
construct or install any water service installation, or make use of any
water service connected to the water system except in the manner provided in this
Chapter, nor shall any person make, construct, install or make use of any installation
connected to the water system contrary to the regulatory provisions of this Chapter.
293
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903,03
903.05
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Subd. 2. New Service Stubs; Application for Water Service Connection: In the event
additional connections or stubs are required or desired, applications shall be made at
the City Hall on forms furnished by the City.
a. Applications: All such applications for service stubs shall be made by the owner
of the property to be served, or his duly authorized agent, and shall state the size
and location of the service connection required, and the applicant shall, at the time
of making application, pay to the City the amount of fees required for the
installation of the service connection as hereinafter provided. The application shall
also contain the name of the owner, a description of the property, lot, block and
addition. name of road upon which the property fronts and the signature of the
applicant, or his agent, agreeing to conform to the rules and regulations that may be
established by the City as conditions for the use of water.
b, Performance Bond: For the purpose of assuring and guaranteeing to the City
that the installation of the service connection shall fully comply with all of the other
terms and provisions of this Chapter, the applicant agrees to furnish to the City
either a cash deposit or a corporate surety bond in the sum of two thousand dollars
($2,000.00), approved by the City and naming the City as obligee thereunder.
c. Inspections: All property service stubs shall be inspected by the City Water
Inspector before the stubs are covered to insure proper construction of the stubs and
connection to the water main.
.
d. Additional Requirements: All requirements set forth in Subdivision 1 of this
Section shall be applicable to this subdivision.
Subd.
3. Connection Charge: If no assessment has been levied and no assessment
proceedings will be completed in due course, a connection charge shall be made to
the owners of the lot or tract of land to be served. Such charge will be in accordance
with and pursuant to resolution of the City Councill.
903,04: WATER TURN-ON AND SHUT-OFF FEES: A fee as
established by resolution of the City Councill shall be charged for turning
on or shutting off water except in instances where a connection permit has been obtained by
the property owner.
903.05. PRIV A TE WELLS: 2 Private wells may be constructed or maintained
and continued in use whether or not connection is made to the water
svstem. In no event shall there be a means of cross-connection between the private well
and the Municipal water system at any time. Hose bibbs that will enable the cross-
connection of the two (2) systems are prohibited on internal piping of the well supply
svstem. The threads of the boiler drain of the well volume tank shall be removed of the
b'oiler drain hose bibb replaced with a sink faucet. (Ord 313, 9-23-96)
I. s~~ S~ctlon DO I.o:! of this Code,
2, See Chapter 506 of this Code,
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903,06
903,08
f. All joints and connections shall be left uncovered until inspected and
tested at normal water line pressure,
g, Connections at mains for domestic supply shall be at least one inch
(1 Of).
h, No water pipe shall be connected with any pump, well, tank or piping
that is connected with any other water supply other than the Municipal
water system,
i, Not more than one building shall be supplied from one servIce
connection unless by special permission from the City Council.
j, When two (2) or more buildings are supplied from one pipe, each
building must have a separate stop box and separate meter.
k. Prior to connection with the Municipal water system, all means of
cross-connection to a retained private water supply shall be eliminated,
903,07:
SERVICE PIPES:
Subd. 1. Maintenance and Repair: It shall be the responsibility of the property
owner to maintain the service pipe from the curb box into the structure,
In the case of failure upon the part of the property owner to repair any
leak occurring in his pipe within twenty four (24) hours after verbal or
written notice thereof, the water will be shut off and will not be turned on
until the service charge, as established by resolution of the Council, has
been paid and the leak repaired. When the waste of water is great, or
when damage is likely to result from the leak, water may be turned off
immediately pending repairs.
Subd, 2, Abandoned Service Installations: All service installations that have not
been used for one year, or for any reason have become useless for further
service, shall be shut off at the curb stop. Any expense of the City shall
be charged to the property and, if not paid within thirty (30) days, shall
be treated as a delinquent account pursuant to this Chapter.
903,08: METERS:
Subd. 1. Meter Use Required: Except for extinguishing of fire, no person except
authorized City employees shall use water from the water supply system
or permit water to be drawn therefrom unless the same be metered by
passing through a meter supplied by the City,
Subd. 2, Installation of Meters: All water meters shall be installed bv a licensed
plumber in accordance with the following rules: .
a, The service pipe from the water main to the meter shall be brought
through the floor in a vertical position, The stop and waste valve shall be
installed approximately twelve inches (12") above the noar,
293
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903.09
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Subd. 5. Unauthorized Tampering With Meter: All water meters shall be
inspected and sealed by the CityW ater Inspector. No person not
authorized by the City shall connect, disconnect, take apart, remove the
seal, or in any manner change or cause to be changed or interfere with
any such meter or the action thereof. (Ord. 210, 5-23-88)
Subd. 6. Calibration of Water Meter and Remote Reader: On or before May 1
each year, the City shall mail to each consumer a meter reading card. The
consumer shall be responsible for recording the readings for the water
meter and remote reader upon such card and shall return such card to the
City on or before May 20. Failure of the consumer to return such card to
the City by May 20 will result in a late fee being assessed to the
consumers account, such fee to be established by City Council resolutionI.
The City shall analyze such cards and identify those which indicate a
difference in excess of ten thousand (10,000) gallons. The City shall
calibrate water meters and remote readers which have a difference in
excess of ten thousand gallons (10,000) and shall inform the consumer of
any difference in the readings and of the amount due thereon. From and
after May 20, 1993, the consumer shall be responsible to pay for any and
all differences in readings between the water meter and remote reader
which indicate amounts due for water consumption. (Ord. 249, 1-13-92)
903.09: WATER RATES AND CHARGES:I
Subd. 1. Rates and Charges Established:
.
a. Water Service Rates: The water rate due and payable to the City by
each water user for water taken from the Municipal water system shall be
at a quarterly rate established by a resolution of the City Council I . Where
service is for less than a quarterly period, the quarterly charge will be
prorated on a monthly basis. (Ord. 210, 5-23-88)
(1) Minimum Rate for Low Income Residents: A minimum charge
is established for residents having low incomes. The charge shall be at
two-thirds e13) of the regular minimum rate; provided, that consumption
is under ten thousand (10,000) gallons per quarter. Should the consump-
tion exceed this minimum, the minimum rate reverts to the regular
minimum rate. The criteria for determining low income is as set by the
Hennepin County CDBG Program Income Limits for Very Low Income
and family size. Residents must submit the proper application and income
disclosure to be eligible for this rate. (Ord. 274, 5-10-93)
b. Meter Charges: A charge for a water meter shall be made by the City.
Property owners or users shall pay in advance before delivery of the
water meter for installation. Said charge shall be as established by the
City Council by resolution.
.
1. See Section 1301.02 of this Code,
993
City of Shorewood
.
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903.09
903.11
.
the curb stop. Prior to the water being turned back on again. the property
owner or user shall be required to pay all delinquent charges. plus penalties
and shut-off fees. and the prescribed turn-on fee.
d. Appeals to Discontinuance of Service: The property owner or user may
appeal the notice to the City Council during the fIfteen (15) day period set
forth in Subd. 3(b). Water service shall continue to the appealing property
owner or user pending the decision of the Council on the appeal. Upon the
determination of the Council. the water may be shut off pursuant to Subd.
3(c) as set forth above.
e. Tax Assessments; All delinquent accounts may be certified by the Clerk
who shall prepare an assessment roll each year providing for assessment of
the delinquent accounts against the respective property served. This
assessment roll shall be delivered to the City Council for adoption on or
before October 10 of each year and upon approval thereof. the Clerk shall
certify to the County Auditor the amount due. plus a certification fee as
established by resolution of the City Council. and the County Auditor shall
thereupon enter such amount as part of the tax levy on such premises to be
collected during the ensuing year. Such action may be optional or subsequent
to taking legal action to collect delinquent accounts. (Ord. 260. 10-12-92)
.
903.10: WATER CONNECTIONS SERVED BY ADJACENT MUNIC-
IPALITIES: The City Council has heretofore and will in the future
enter into contracts with adjacent municipalities to provide water service to properties
located within the City. All permits to be issued under this Chapter shall comply with
the terms of such agreements. In instances where the cost of the water hook-up from the
supplying city is included in full or in part as a quarterly charge. then such shall be
added to the billing for the minimum quarterly water charge to be paid by the recipient.
903.11: AUTHORIZED WATER SHUT OFFS: In case of fire or alarm
of fire. water may be shut off to insure a supply for the fire fighting; or
in making repairs or construction of new works. water may be shut off at any time and
kept shut off as long as necessary.
993
City of Shorewood
.
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903.18
903.18
.
i. PROJECT COST (Total Cost of Improvements): All construction costs,
plus costs for administration, engineering, legal, fiscal, easement acquisition
assessing, and any project related work previously done but not assessed.
j. RESIDENTIAL UNIT: A residential unit is a platted single family
residential lot which, in accordance with the City's zoning and subdivision
regulation, cannot be further subdivided.
Subd. 3. Special Assessments:
.
a. Benefit Principle: Special assessments, as authorized by Minnesota
State Law, Chapter 429, may be levied only upon property receiving a
special benefit from the improvement. In Minnesota, the Constitution and
courts apply this general rule by placing the following limitations upon the
power to levy special assessments: 1) the rate must be uniform and consistent
upon all property receiving special benefit; 2) the assessment must be
confined to property specially benefited; and 3) the amount of the assessment
must not exceed the special benefit:
The special assessment is a financial tool employed by the City as a means of
allocating the costs of specific improvement projects to the benefited
properties and spreading those costs over a number of years as specified by
the City Council.
Special assessments are billed to the property owner along with real estate
taxes. There is, however, a distinct difference between taxes and special
assessments. Real estate taxes are a function of the real estate value as
determined by the municipal assessor, while special assessments are a direct
function of the enhancement of value or the benefit which a specific
improvement gives to the property.
b. Consistent & Equitable: Once an improvement project is initiated and it is
determined that the improvements are necessary and desirable, the special
assessment procedure is intended to equitably and consistently allocate and
levy the cost of specific improvements to the benefited properties.
The City must recover the appropriate portion of the expense of installing
public improvements, if undertaken, while ensuring that each parcel pays its
fair share of the project cost in accordance with these assessment guidelines.
.
This policy sets forth the general assessment methods and policies to be
utilized by the City Administrator and City Engineer when preparing
assessment rolls for approval by the City Council so as to assure uniform and
consistent treatment to the various properties from year to year. The following
policy is general in nature, and certain circumstances may justify deviations
from stated policy as determined by the City Council.
Subd. 4. Special Assessment Procedure: A flow chart on the Shorewood Public
Improvement Process for Special Assessment projects giving a detailed
explanation of the process is shown on the next page.
a. Initiating the Proceedings: Improvement proceedings may be initiated in
anyone (1) of the following three (3) ways:
1195
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903.18
(1) By a petition signed by the owners of not less than thirty-five
percent (35%) of the frontage of the real property abutting on the streets
named as the location of the improvement;
.
(2) By a petition signed by 100% of the owners of real property
abutting any street named as the location of the improvement. Upon receipt of
a petition of 100% of the abutting property owners, the City Council must
deternrine that it has been signed by 100% of the owners of the affected
property. After making this determination, a feasibility report shall be
undertaken and the project may be ordered without a public hearing, or
(3) By the initiative of the City Council. Petitions for improvement
shall be referred for Administrative report and estimated budget. A simple
majority vote of the City Council is needed to start the proceedings. Whether
initiating the proceedings or accepting a petition requesting such proceedings,
the City Council may simultaneously order a feasibility report on the proposed
improvement. Feasibility reports shall be paid for by the City in the case of
water construction projects and recouped once the project as completed under
the terms of this policy.
b. Preparing the Feasibility Study: An improvement project which is
initiated by action of the City Councilor by a 35% petition may be ordered
only after a public hearing. Prior to adopting a resolution calling a public
hearing on an improvement, the Council must secure from the City Engineer
a report advising it in a preliminary way as to:
.
(1) Whether the proposed improvement is feasible;
(2) Whether the proposed improvement is consistent with Capital
Improvement Planning;
(3) Whether the improvement should be made as proposed or in
connection with some other improvement;
(4) The estimated cost of the improvement;
(5) A proposed project schedule; and
(6) Any other information thought pertinent and necessary for
complete Council consideration.
.
1195
City of Shorewood
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81'S06
903.18
903,18
.
(3) A statement that no bids will be considered unless they are sealed
and accompanied by cash, a cashier's check, bid bond or certified check for
such percentage of the bid as specified by the City Council.
f, A warding Contracts: Following receipt of the bids, the City Council
must either:
( 1) A ward the contract to the lowest responsible bidder; or
(2) Reject all bids.
The contact must be awarded no later than one (1) year after the adoption of
the resolution ordering the improvement unless that resolution specifies a
different time limit.
The City Council may purchase the materials and order the work done by day
labor or in any manner it deems proper if:
.
(1) The initial cost of the entire work does not exceed $25,000;
(2) No bid is submitted after advertisement; or
(3) The only bids are higher than the engineer's estimate.
g. Preparing Proposed Assessment Roll: The City Engineer and
Administrator/Clerk must calculate the amount to be specially assessed
against every parcel of land benefited by the improvement. The area to be
assessed may be less than, but not more than, the area proposed to be
assessed as stated in the notice of public hearing on the improvement. After
fees and charges are prepared per Subd. 6 of this Ordinance, the assessment
roll will be prepared, The assessment roll should contain a description of
each parcel of property and the assessment amount including any deferred
assessments. The assessment roll must be filed with the City Administrator/
Clerk and be available for public inspection, (Ord. 306, 10-23-95)
h. Holding Public Hearing on Proposed Assessments: A public hearing on
the special assessments must be held following published and mailed notice
thereof. The notice of the assessment public hearing must include the
following information:
(1) The date, time and place of the meeting;
(2) The general nature of the improvement;
(3) The area proposed to be assessed;
.
1195
City of Slrorewood
.
.
.
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903.18
903.18
.
a. Establishing an Assessment Rate: Using a base rate as established in
Subdivision 5 b below, the City Council may change the assessment rate
annually to allow for inflation. For the purposes of this subdivision, the
inflation rate shall be established using the index of construction costs for the
City's region, as published by the "Engineering News Record" or the
"Consumer Price Index". (Ord. 306, 10-23-95)
b. Base Rates: The City Council may change the base rate due to changes in
construction methods or materials, changed capital improvement costs,
difficult topography or construction areas, or other changes inherent to the
cost of providing water service to the remainder of the City. The Base Rate
will only be changed after careful study and report by the City Engineer
indicating a need for a change. This report shall include, but not be limited
to, the changes that have occurred or are anticipated with regard to
construction methods, capital improvement costs, and the remaining
geographical area(s) of the City to be served by City water.
.
c. Term of Assessment: Assessments for water should be assessed for a
fIfteen (15) year period unless the City Council determines that some other
period of time is more appropriate.
d. Government Owned Properties: Properties belonging to government
jurisdictions, including the City, will be assessed the same as privately
owned property.
e. Non-developable Land: Special Assessments shall not be levied on
properties deemed unbuildable due to the existence of undeveloped lands
lying wholly and completely within zoned wetlands, flood plains, DNR
protected wetlands and/or having restricted soils as determined by the City
Building Inspector. However, all parcels of land are assumed to be buildable
until proven otherwise by the owner.
f. Interest Rate: The interest rate charged on assessments for all projects
fmanced by debt issuance shall not exceed two percent (2%) of the net
interest rate of the bond issue. This is necessary in order to insure adequate
cash flow when the City is unable to reinvest assessment prepayments at an
interest rate sufficient to meet the interest cost of debt or when the City
experiences problems of payment collection delinquencies. In the event no
bonds are issued then the rate of interest on assessments shall not exceed two
(2) percent greater than the average rate of interest on all bonds issued in the
previous calendar year or the current market municipal bond rate. Interest on
initial special assessment installments shall begin to accrue from the date of
the resolution adopting the assessment. Owners must be notifIed by mail of
any changes adopted by the City Council regarding interest rates or
prepayment requirements which differ from those contained in the notice of
the proposed assessment.
g. Payment Procedures: The property owner has four available options
when considering payment of assessments:
.
(1) Tax Payment - If no action is undertaken by the property owner,
then special assessment installments will appear annually on the individual's
property tax statement for the duration of the assessment term.
1195
City of Shorewood
.
.
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8 I' t:06
8 I' t:06
903.18
903.18
Subd, 6, Assessment Method:
.
a,
Unit Method
Assessments for City water shall be made in accordance with the formula in the
following table:
.
Formula
Land Use Existing Future
Lot of RecordlUnits Newly Created Lots or
U ni ts
Single Family R T
Multiple Family* R + 0,25 RU T + 0,25 TV
Property Zoned 1.5R ,75 T Uc+,5 T Uc
Commercial But Not
Yet Used As Such
Zoned and 1.5 R U c ,75 T Uc+,5 T Uc
Developed as
Commercial
Property
Schools, Churches, R (40,000 sJ. of land or less) T (40,000 s,f, of land or less)
Government, and
Other 1.5R (over 40,000 sJ. of 1,5 T (over 40,000 sJ, of land)
Nonresidential land)
In addition to the above, developers of new subdivisions will be required to install lateral
mains, services and appurtenant items at the time of platting.
New assessment charges applied against newly divided or developed land shall be credited
the amount of assessment charges against the original parcel.
T = Trunk Charge: An assessment due at the tjme a new lot is created, This charge
may be levied under any of the following circumstances: a) water is available,
b) water will be made available pursuant to a subdivision agreement, or c) the
developer requests that the assessment be levied to avoid the obligation to pay
water connection fees at a later date.
R = An assessment levied against a lot when water becomes available.
.
U = # of dwelling units,
Uc = Number of equivalent residential units.
0198
City of Shorewood
.
.
.
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8 I" S06
8I"S06
.
.
.
. .
903.18
903.19
Income specified in the application should be the income of the year proceeding the
year in which the application is made, or the average income of the three years
prior to the year in which the application is made, whichever is less, and
c. Permanent and/or total disability shall be determined by using the criteria
established for "permanent and total disability" for Workman's Compensation, to
wit:
(1) The total and permanent loss of the sight of both eyes.
(2) The loss of both arms at the shoulder.
(3) The loss of both legs so close to the hips that no effective artificial
members can be used.
(4) Complete and permanent paralysis.
(5) Total and permanent loss of mental faculties.
(6) Any other injury which totally incapacitates the owner from working at
an occupation which brings himlher an income.
An applicant must substantiate the retirement by reason of permanent and/or total
disability by providing a sworn affidavit by a licensed medical doctor attesting that
the applicant is unable to be gainfully employed because of a permanent and/or total
disability. (Ord. 300, 6-12-95)
Subd. 8. City Council may adjust the final assessment as appropriate to satisfy the
requirements of Minnesota Statutes Section 429. (Ord. 302,7-10-95)
903.19:
VIOLATION: Any person violating any provision of this Chapter shall be
guilty of a misdemeanor. (Ord. 210, 5-23-88)
1195
City of Shorewood