8.2. SR 06-03-2013 - Laserfiche WebLink

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City of Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 8.2 AGENDA SECTION MEETING DATE PREPARED BY General Business June 3, 2013 Jeremy Barnhart,Deputy Director, COD ITEM DESCRIPTION REVIEWED By Service Availability Charge (SAC) Program Options Cal Portner,, City Administrator REVIEWED BY ACTION REQUESTED Motion to adopt ordinance amendment to Section 78, Utilities,pertaining to a `look back' option for calculating SAC units. BACKGROUND/DISCUSSION The Council directed staff to prepare an ordinance amendment that added a `look back' option to the calculation of Service Availability Charge units, similar to one employed by the City of Otsego. The Council also directed staff to review other cities to determine if other programs are used. Staff reviewed the ordinances of other communities, discussed the issue with colleagues, and used the City Clerk Listsery to further identify options. Most cities use the Met Council's system for calculating units. Where uniqueness occurs,it is most often in the rate applied to the number of units. Some cities have a sliding rate: a user with a higher number of units sees their per unit rate decrease. Buffalo and Rogers use this practice. Eden Prairie employs a different rate structure for Residential, Industrial (including public and office), and Commercial. In each case,the number of units is not altered,just the rate applied to each unit. Burnsville employs a system where the payment of SAC fees is paid through a special assessment,up to 5 years. However,in Burnsville, this only applies to those businesses that owe 10 or fewer SAC units. The draft ordinance follows the model established by the City of Otsego. There was also Council consideration to offer payment flexibility in paying SAC fees over time. In December of 2012, the Council adopted Ordinance 12-17 that allows the Council to accept costs associated with connection to city services, including applicable water and sewer connection cbarges,to be paid as a special assessment. This was originally done for private utility line costs, but could be applied in this situation,if desired by the Council. P O W E R E D BY N:\Public Bodies\Agenda Packets\06-03-2013\Final\Done\x8.2 sr SAC payment options 6-3-13.docx IN A f U RE]