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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 10.1 <br />Agenda Section Meeting Date Prepared by <br />Work Session September 8, 2020 Cal Portner, City Administrator <br />Item Description Reviewed by <br />Planet Fitness SAC/WAC Bob Ruprecht, Building Official <br />Reviewed by <br /> <br /> <br />Action Requested <br />Hear from Planet Fitness representatives, discuss and provide staff direction. <br /> <br />Background/Discussion <br />After being contacted by PF Baseline Fitness Director of Construction Derek Bristlin regarding our Sewer Access <br />Charge (SAC) calculations, Mayor Dietz asked to add a discussion to Work Session. Scott Bernstein, VP of <br />Development will also be in attendance. <br /> <br />SAC units for development are determined using Met Council’s formula. The Met Council adjusts their formula <br />periodically, however the city has not updated to reflect their adjustments. For fitness centers, the SAC is <br />determined as follows: Base Unit Fee x Number of Residential Equivalent Units (REUs) <br /> <br />In this case REUs are calculated as so: <br />Total Square Footage (23,437) divided by 700 = 33 Units <br />33 Units minus 8 Units (from previous tenant) = 25 Units. <br />25 Units x $5,385 = $134,625. <br /> <br />700 is the old Met Council square foot divisor to find units. The Met Council has changed their divisor to 1600, <br />reducing the number of REUs by more than half. Other cities do it differently, as an example, Blaine divides by <br />1700, which would put them at 14 Units. Bloomington divides by 3000, putting them at 7 Units. <br /> <br />Also, the fees in Elk River the fees are higher than the Met Council ($2,485 for 2020), but that is set due to the <br />costs of our wastewater system, which had to be upgraded due to MPCA permit changes and was expanded for <br />further growth. The fee is not in question, rather the unit calculation. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Elk River Vision, economic development goals <br /> <br />Attachments <br />None <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br />