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HomeMy WebLinkAbout[09a] Water/Sewer Access Feecrrv oR sT Jcfs~va Council Agenda Item ~V` MEETING DATE: April 2, 2009 AGENDA ITEM: Water/Sewer Access Fee SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: The City Council adopted Ordinance 44 which administers the Water and Sewer Access Fees. BACKGROUND INFORMATION: The Ordinance assigns perimeters to different uses to establish the appropriate water and sewer access fee. The Ordinance assigns 274 gallons of water per day as one perimeter. Commercial and Industrial uses are then based on the number of single family equivalents or 274 gallons per day. The perimeter values are based on Industry standards and we have found them to be fairly accurate. We have at times made a minor revision based on actual meter reading after reviewing one year's worth of water use. DM Building has submitted a letter questioning how many times a building has to pay for water and sewer access. They currently own Northland Plaza and paid one WAC/SAC for the initial use. After a second tenant used another space the WAC /SAC were reviewed and they were charged for an additional use. They are currently working with a Day Care Facility that will occupy the current Mortgage Lender Space and additional space that has yet to be used. The WAC/SAC remain with the property and as building uses are changed the new use is reviewed for utility intensity and charged additional WAC/SAC if applicable. The City in the past has entered into agreements whereby the actual water/sewer is monitored for one year and the use is divided to establish a per day usage. The usage is then divided by the single family equivalent (274 Gallons per day) to determine the number of perimeters that should have been charged. At that time the property owner balances the fee. Staff is requesting that we review the water use for one year and then determine the WAC/SAC fee based on the Ordinance requirement. The property owner is agreeable to this. BUDGET/FISCAL IMPACT: ATTACHMENTS: delayed collection of WAC/SAC Letter from DM Building REQUESTED COUNCIL ACTION: Authorize the delay of calculation for WAC and SAC for the Day Care at Northland Plaza to monitor the water usage for a one year period. uiidin c o r p o r a t i o n • P.O. Box 797 • St. Joseph, MN 56374 • Telephone 320-363-8732 • Fax. 320-363-0149 March 26, 2009 City of St. Joseph 25 North College Ave. 5t. Joseph, MN 56374 Re: WAC and SAC fees DM Building Corporation is working with a client to place them into an existing lease space located in Northland Plaza.. The business would be a day time daycaze/learning center. They will have the capability of taking Gaze of 45 to 60 children from toddlers to preschool There is no facility of its kind in the City of St. Joseph: At this time we are working on the cost to develop the space into the required design needed for this type of facility which is based upon State of Minnesota Rules. A facility of this style requires certain building requirements in order to obtain. State licensing. Those requirements plus the cost of owning or leasing property to operateahe business and the cost of operating.. a facility of this style (i.e. number of employees required to child ratio, the amount and style of play equipment, outside play area and equipment and teaching tools needed.) makes it very difficult to operate a facility of this ..style and be successful The landlord is working with the potential business owner trying to make her dream' come true. The lease rate is well below mazket value and the 4,500 square feet of outside play area required by the State of Minnesota is being. provided at no charge. The landlord is also'absorbing some of the improvement costs to the space that are needed for this facility. DM Building Corporation is providing the construction work. for smaller construction fees than is the normal. The potential new business owner is doing a lot of the work to save as much money as possible to make the day care possible. In conclusion, after the investment cost analysis and operating analysis .the business is a viable endeavor and would be financed through S.B.A. That is until we add in the WAC and SAC fees as .per the fee schedule of the City of St. Joseph. (One WAC and SAC fee per 14 children. This equates to 4 WAC and SAC fees. (Approximately $22,000.00) This will kill the opportunity for the City of St. Joseph to expand its business. community with general contractors • construction managers t a new business that is not currently available. Northland Plaza paid WAC and SAC fees when the abstract company leased its space 4 years ago. ($5,700.00) The abstract company would be leaving and the daycare would occupy there space. How many times does a space need to pay WAC and SAC fees? The lease for the daycare facility is for 5 years. After this lease time, if another business were to take the space and do something different, there could be additional WAC and. SAC fees. Where does it end? In these tough economic times and the amount of vacant store fronts in this Community, there needs to be give and take by all interested parties. Any consideration you could. give to waive the WAC and SAC fees for this individual so she could start her business would be appreciated. Sincerely John Meyer ~,~` .. ~ _ `' ,~ _ ,. r---~ ~; ~~ ~ ..f.. L_-- r--}-~-~__ _ - ----- -- ~: ~~ ~i Tr\\ { { T T U \lli \ ~ --1 T.- + ; T j' ~._''I ~ ~. i --i +T I I I ~ ,fir l_-t ~~_-~, ~ ~ i;~-' ~`~ 4 ~~~ ii ~; i ~ ,~, , I I ~~ +, ~~ ~~ ~~ I' ~' ~ _ ,! _; ~~ /'r~