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El REQUEST FOR ACTION <br />..~. <br />River <br />TO ITEM NUMBER <br />Ci Council 6.3. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Community Development May 16, 2011 Catherine Mehelich, Director of <br /> Economic Develo ment <br />ITEM DESCRIPTION REVIEWED B)/ <br />Consider Sewer Access Charge (SAC) and Water Access Charge Tim Simon, Finance Director <br />(WAC) Payment Program REVIEWED BY <br />ACTION REQUESTED <br />Consider approval of a payment program for City Sewer Access Charges (SAC) and Elk River Municipal <br />Utilities Water Access Charges (WAC). Authorize staff to commence accepting applications and work <br />with the city attorney on the appropriate legal documents. <br />BACKGROUND/DISCUSSION <br />City staff has recently been receiving concern from new restaurants regarding the financial impact of the <br />WAC and SAC fees due at the time of the building permit issuance. The 2011 rates are as such: <br />Sewer Access Charge $4,201 per unit Set by City of Elk River <br />Water Access Charge $3,000 per unit Set by Elk River Municipal Utilities <br />Per City Ordinance, the charges for full-service restaurants are calculated at a rate of 22 seats = 1 unit. <br />For a typical full service restaurant, this can be a hefty charge that would be due at the time the building <br />permit is issued. <br />The attached draft policies were developed by city staff as an economic development tool that could be <br />used as an incentive to encourage new or expanding full-service restaurants in the City of Elk River. The <br />program was modeled after the City of Brooklyn Park, which developed the program for the same <br />purpose. The program allows the restaurant to pay the Sewer Access Charge fee and Water Access <br />Charge fee monthly over time through their utility bill versus at the time the building permit is issued. <br />The Elk River Municipal Utilities Commission reviewed the draft WAC Payment Program policy at its <br />May 10 meeting and approved the policy contingent upon the City Council's final approval. <br />FINANCIAL IMPACT <br />The City Finance Department and Utilities Department would coordinate the applications and structuring <br />monthly repayments through the utility bills. City Attorney Peter Beck has reviewed the draft policies <br />and will prepare the necessary legal loan documents for each application in order to secure the City and <br />Elk River Municipal Utilities' interests. The loans would be secured by the ability to file a lien against the <br />property in the form of a special assessment for repayment. <br />N:\Public Bodies\City Council\Council RCA\Agenda Packet\05-1G-2011\5.16.11 CC Action Requested.doc <br />