Agenda - Council - 12/11/2012 - Laserfiche WebLink

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Program Background The Sewer Availability Charge (SAC) is a one-time fee imposed by the Metropolitan Council Environmental Services (MCES) Division to local governments for each new connection or increase in capacity demanded of the Metropolitan Disposal System. Ramsey passes this fee to the user that creates the increased demand at time of Building Permit or at change of use (increase in demand). The SAC Transfer and Loan Policy has been developed in order to outline the circumstances in which the City will allow Net Credits and previous payments to be transferred from one site to another (transferred city- wide). The program also provides a deferred payment mechanism for small business (10 SAC or less). The purpose of the program is to allow flexibility is SAC transfers, promote economic development, and assist small business owners with the costs of initial construction by allowing SAC to be paid over a period of time as opposed to a one-time, up -front cost. The program applies to all commercial and industrial development within the City limits. 1. Net Credits Net Credits are created when a permanent reduction to the Metropolitan Disposal System is created. A permanent reduction in demand is created when a structure is physically removed or a space physically altered to create a permanent reduction in demand as indicated by a revised SAC Determination. Approved Net Credits will be placed in an account and available for use city-wide as available. Eligible Applicants will be able to apply for use of Net Credits if available. Eligible applicants must demonstrate creation of jobs not already located within the City limits. Net Credits are available on a first -come, first -serve basis and only available if Net Credits exist in the City's account. In the event of a tie in initial scoring, the corresponding applications will be scored using the supplemental scoring sheet. Net Credit Mandatory Criteria All projects must comply with the following criteria: 1. But For Test. There is a substantial likelihood that the project would not go forward without the use of Net Credits. 2. Wage Policy. If the project results in the creation of any jobs, the wage for each part-time and full-time job created must be, within two years of the date assistance is received, at least equal to 70% of the most recent median wage figure for the Twin City 7 County Metro Area as published by the Minnesota Department of Employment and Economic Development or such greater amount as the City may require for a specific project.