CRANE LAKE WATER AND SANITARY DISTRICT

ORDINANCE NO. 3

ORDINANCE ESTABLISHING RATES AND CHARGES FOR THE CRANE LAKE WATER AND SANITARY DISTRICT

The Board of Managers (the “Board”) of the Crane Lake Water and Sanitary District (the “District”) ordains as follows:

Section 1.        Findings.

1.01     There are continuing and persistent issues of water quality in the Crane Lake area watershed which need to be addressed through the provision of adequate public systems for the collection and treatment of wastewater.

1.02     The District was created for the purpose of promoting the public health and welfare by providing an adequate and efficient system and means of collecting, conveying, pumping, treating and disposing of domestic sewage and garbage and industrial wastes within the District and there is need throughout the territory of the District for the accomplishment of these purposes.

Section 2.        Recitals.

2.01     The Board has adopted its Ordinance No. 1 creating a sewer utility (the “Utility”); regulating the use of public and private sewers; establishing methods for a sewer service charge system and a septage service charge system; and providing penalties for violations of the regulations therein defined.

2.02     The Board intends in this ordinance to set forth the actual rates and charges for the use and availability of the Utility, among other services.

2.03     Capitalized terms not otherwise defined in this ordinance have the meanings given in Ordinance No. 1 of the District.

Section 3.        Equivalent Domestic Unit.  The Board assigns EDUs on types of Users within classes of Users.  A minimum of one (1) EDU per grinder station will be assigned for all Users.

Section 4.        Residential Equivalent Domestic Unit.  The following table provides the EDU assignments on Residential Users:

TABLE I

Section 5.        Residential EDU Combined with Non-residential EDU.  The following table provides the EDU assignments on all classes of residential use combined with non-residential or commercial use:

TABLE II

*See Table III for EDU assignments to non-residential and commercial uses.

Section 6.        Commercial Equivalent Domestic Unit.  The following table provides the EDU assignments on all classes of Non-residential Users and Commercial Users:

TABLE III

Section 7.        Rights Reserved.  The Board reserves the right to adjust the EDU assignments contained in this ordinance at any time by an amendment to this ordinance.  The Board further reserves the right to create new classes of Users at any time at the recommendation of the District’s Engineer and to impose User Charges on such Users by resolution, pending an amendment to this ordinance.

Section 8.        Monthly User Charges.

8.01     User Charge.  The District’s monthly User Charge will be composed of the following:

65. Base Charge. A base charge of $65.00 per month per EDU is payable by each User.  Base charges are payable year round by all customers and shall never be less than $61.00 per month for any customer.
66. Volume Charge. A charge of $14.50 per thousand gallons of metered wastewater payable by Users.
67. Excess Volume Charge. A charge of $23.30 per thousand gallons of metered wastewater that exceeds 7,500 gallons per month multiplied by the User’s EDU assignment.
68. Extra Strength Charge: The Extra Strength Charge will be payable by Users as follows:

(i)         Users with Loads in excess of 250 mg/L of BOD shall be subject to an Extra Strength Charge of $0.25 per pound of BOD.

(ii)        Users with Loads in excess of 250 mg/L of TSS shall be subject to an Extra Strength Charge of $0.40 per pound of TSS.

8.02     Rights Reserved.  The Board will set the User Charge rates annually and reserves the right to adjust the monthly User Charge at any time by resolution, pending an amendment to this ordinance.

Section 9.        Sewer Access Charge or Hook-Up Fee.

9.01     New User in an Area with Service.  The Sewer Access Charge addresses the capital cost of that portion of the capacity of the Wastewater Treatment Facilities necessary to accommodate the anticipated Flow and Load from a new User.  User class and EDU assignments for new Users will be determined by the Board in accordance with the definitions provided in Ordinance No. 1 and this Ordinance No. 3.  All Users with Normal Domestic Strength Waste shall be charged a Sewer Access Charge as follows beginning in calendar year 2014:

TABLE IV

[1]        The Sewer Access Charge includes the actual installed cost of the grinder pump station, service connection and service lateral (from mainline to grinder pump station), and related costs, including but not limited to construction, engineering, legal and inspection costs.  Users expected to exhibit wastewater Load in excess of NDSW will be subject to additional fees to be determined by the District on a case by case basis based on the nature of the discharge.  The Public Sewer terminates at the grinder pump station and the User is responsible for all costs from the grinder pump station to the Building Drain.

[2]        Based on the cost of system capacity including the cost of construction, engineering, and planning for the District’s system which now serves both the eastern and the western service area.  Expected Wastewater in excess of NDSW Loads shall be determined on a case by case basis based on the nature of the discharge.

9.02     New User in an Area to Which Sewer is Being Extended.  The Board reserves the right to levy special assessments rather than charge a Sewer Access Charge in new areas to which service is being extended. The amount of the special assessment will be determined in accordance with Minnesota Statutes, Chapter 429.

9.03     Reconnection.  A Sewer Access Charge will not apply where the Board authorized removal of and then reinstallation of a pump; however, the User must pay the Reconnection Fee and all costs of reinstallation including but not limited to the cost of the pump, control box, service connection, labor, engineering, legal and inspection.  Estimated fees are payable prior to installation of the pump and reconnection to the system with adjustments made on the first payment of Sewer Service Charges.

9.04     Rights Reserved.  The Board reserves the right to adjust the Sewer Access Charge contained in this ordinance at any time and to impose such Sewer Access Charge on Users by resolution, pending an amendment to this ordinance.

Section 10.      New Use; EDU Modification and Sewer Access Charge.

10.01   New Use.  If a User modifies the use of property within the District thereby increasing or decreasing the Flow and/or Load on the Utility or by removal or installation of any portion of the Wastewater Treatment Facilities (the “New Use”), the Board may assign additional or reduced EDUs, or fractions of an EDU, to the property in accordance with this Ordinance.

10.02   New Use Reporting.  A User must report a New Use to the Board, the District’s Engineer, or the District’s Superintendent immediately.

10.03   Modification of EDU Assignment.

1. Failure to Report. If the Board, the District’s Engineer, or the District’s Superintendent becomes aware of a New Use by a User that has not been reported, the Board shall provide a written notice to the User containing a determination of any additional or reduced EDUs allocable to the specified property.  The revised EDU determination shall become effective on the specified property on the date specified in the notice.  If an affected User does not agree with the Board’s determination, the User may appear before the Board at the regular Board meeting following receipt of the notice described in this section and provide testimony on the Board’s determination.
2. Temporary Reduction. The Board may reduce the EDU assignment for a property with a New Use for a specific period of time if the property owner demonstrates to the satisfaction of the Board that the property owner’s proposal will result in an overall increase in future EDUs through new development or expansion.  Any request to reduce an EDU assignment shall be subject to the variance procedures in Article 13 of Ordinance No. 1.  If a reduction is granted and the new development or expansion is not completed within the time specified, the property owner must pay a penalty equal to the fees that would have been due had the EDUs not been reduced.  The EDU assignment will revert to the assignment in effect immediately prior to the temporary reduction.
3. Removal of Equipment. When a property owner or User requests to disconnect from the system due to cessation of use, the Board, in its discretion will determine whether to permit disconnection and will determine what equipment will be removed or remain on the property, including whether the grinder station will remain on the property.  The Board will adjust the EDU assignment and User Charge appropriately.

10.04   Modification Not Exceeding Current Grinder Capacity.  A User shall be charged as follows in the event of a New Use which results in an overall EDU value that does not exceed the existing capacity of the installed grinder pump serving such New Use:

9. Residential Users. A Residential User shall be charged an additional Base Charge for each additional EDU.  Payment of a Sewer Access Charge shall not be required.  The User shall pay the actual cost of any service connection, equipment, installation and administrative costs and all other costs related to modifying the Public Sewer to accommodate the New Use including those described above in Section 9.01 [1] and [2] or $7,500, whichever is lower.  The Public Sewer terminates at the grinder pump station and the User is responsible for all costs from the grinder pump station to the Building Drain.
10. Commercial Users. A Commercial User shall be charged an additional Base Charge for each additional EDU.  Payment of a Sewer Access Charge shall not be required.  The User shall pay the actual cost of any service connection, equipment, installation and administrative costs and all other costs related to modifying the Public Sewer to accommodate the New Use including those described above in Section 9.01 [1] and [2] or $7,500, whichever is lower.  The Public Sewer terminates at the grinder pump station and the User is responsible for all costs from the grinder pump station to the Building Drain.

10.05   Modification Exceeding Existing Grinder Capacity.  A User shall be charged as follows in the event of a New Use which results in an overall EDU value that exceeds the capacity of the existing grinder pump(s):

9. Residential Users. A Residential User shall be charged an additional Base Charge for each additional EDU.  The User shall pay the actual cost of any service connection, equipment, installation and administrative costs and all other costs related to modifying the Public Sewer to accommodate the New Use including those described above in Section 9.01 [1] and [2] or $7,500, whichever is lower.  The Public Sewer terminates at the grinder pump station and the User is responsible for all costs from the grinder pump station to the Building Drain.
10. Commercial User. A Commercial User shall be charged an additional Base Charge for each additional EDU.  The User shall pay the actual cost of any service connection, equipment, installation and administrative costs and all other costs related to modifying the Public Sewer to accommodate the New Use including those described above in Section 9.01 [1] and [2] or $7,500, whichever is lower.  The Public Sewer terminates at the grinder pump station and the User is responsible for all costs from the grinder pump station to the Building Drain.

Section 11.  On-Site Wastewater Disposal System or ISTS Septage Service Charges.  The following fees shall be paid by any property owner within the District that enters into a contract with the Board to design, construct, operate or maintain an ISTS on a property within the District.

11.01   Application Fee.  The application fee is a one time, non-refundable fee of $350 that shall be paid upon submission by property owner(s) of an Application for ISTS Managed System.

11.02   Operation, Maintenance & Repair Fee.  A monthly charge of $80 shall be paid by each property owner that enters into a contract with the Board to maintain and operate an ISTS on a property within the District.

11.03   ISTS Sewer Access Charge.  A property owner who has entered into a contract with the Board for the design, construction, installation and maintenance of an ISTS (“ISTS Construction and Managed System Agreement”) shall pay a Sewer Access Charge of $7,500 to address the capital cost to design, construct, and install the ISTS on the property; provided that if the actual cost to the Board to design, construct and install the ISTS exceeds $30,000, the property owner shall pay all costs in excess of $30,000 for the design, construction and installation of the ISTS.  The ISTS Sewer Access Charge shall be paid in cash upon execution of the ISTS Construction and Managed System Agreement or pursuant to a sewer service agreement with the Board.

11.04   Reconnection Fee.  A reconnection fee of $100 shall be charged to a property owner with an ISTS that was disconnected due to the property owner’s violation of an ISTS Construction and Managed System Agreement or District Ordinance and which is being reconnected for operation and management by the District.

Section 12.      Other Fees.

12.01   License Fee.  The license fee is a one time fee payable upon application by a qualified contractor to install grinder pump stations, service connections, service laterals, or other components of the Wastewater Treatment Facilities.  Such fee is $150.00.

12.02   Permit Fee.  The permit fee is a fee payable upon application for connection to the Wastewater Treatment Facilities.  Such fee is $350.00.

12.03   Reconnection Fee.  The reconnection fee is a fee payable upon application to connect to the Wastewater Treatment Facilities where the parcel applying to connect was previously connected to the Wastewater Treatment Facilities or had components thereof located on the parcel.  Such fee is $100.00.

12.04   Late Payment Fee.  Any payment required by this ordinance or Ordinance No. 1 which is made more than 30 days after the date due may, at the discretion of the Board, be subject to a late payment fee of not to exceed 6.00% per annum.

Adopted by the Board of Managers of the Crane Lake Water and Sanitary District, Saint Louis County, Minnesota, on the 1st day of December, 2004, and amended on June 21, 2006, January 2, 2008, August 17, 2009, February 5, 2014 and March 2, 2016.

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Chair

ATTEST:

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Secretary