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differently, including assessment, developer installation, and through fees not recognized by external staff. The attached Rate /Ratio Comparison sheet shows the SAC rate for Elk River and 8 neighboring cities, based on their reported SAC rates and unit calculations. These rates range from $2,435 to $5,950. The average for the Met Council cities is $2,447.80 and non -Met Council cities are $4,769.29. Elk River is currently at $4,370. When applying each city's unit calculation to their rate, total SAC charges range from $50,331.45 to $118,085 (see attached worksheet). Elk River is at $98,762. For ease of discussion, we did not apply the credit for previously paid SAC units. SAC rates for communities within Met Council's jurisdiction are generally lower, as the expenses to improve the plants infrastructure are shared over a larger population of users and many of the participating communities are fully built out. SAC Unit Calculation The number of SAC units applied to new development is calculated to consider the maximum capacity constructed. The formula is set by ordinance and like many other cities, including Monticello, Rogers, Ramsey, Otsego, and Big Lake, all use the Met Council model. The Rate /Ratio attachment highlights the similarities and differences in rate calculation between 8 neighboring communities. The number of units range from 20.67 to 31.68. The only other known Elk River coin laundry paid for 23.572 units of sewer capacity in 1985. Alternatives The Coin Laundry Association recently published an article that stated nationally, the average number of cycles range from 3 to 8 turns per day. The Met Council, like Elk River, assumes 8 turns per day. Although this report is unverified, if this assumption were to drop, the impact is drastic: SAC Units SAC fees @8 turns 21.0219 $91,865.70 @5 turns 13.138 $57,413.06 @3 turns 7.88 $34,435.60 The City of Otsego has an escrow option for paying SAC charges when volume is questioned. The full fee is collected and escrowed at the time of building permit. After three years, the water volumes are calculated. In instances where the water usage falls below the escrowed funds, the balance is returned without interest. Utility Easement The utility easement is an issue between ERMU and the property owner and was referred to ERMU. ATTACHMENTS ■ 2012 Water and Sewer Combined Access and Trunk Charges (via Ehlers and Associates) ■ Rate and Ratio Comparison Spreadsheet ■ SAC Calculations Worksheet ■ 2007 Sanitary Sewer Rate Study Presentation (Ehlers and Associates) ■ Estimated Monthly Sanitary Sewer Invoice (Staff is preparing this information and it will be available in Dropbox and on the website by Monday) N:APublic Bodies \Agenda Packets \05 -13- 2013 \Final \6.2 sr SAC.docx