Service Availability Charge (SAC) Program

What's New

Effective October 1, 2009--The Metropolitan Council approved a 75% discount for the Service Availability Charge (SAC) for certain outdoor spaces that will be exposed to wet weather conditions.

The discount will be available to local governments for applicable development permitted after Oct. 1, 2009. Metropolitan SAC charges and credits are to local government units and local government regulations and fees may be different. The 75% discount does not apply to existing outdoor space sites that should have paid SAC prior to October 1, 2009. (Read the meeting minutes.)

Local government staff can direct questions to Jessie Nye at 651-602-1378.
Property owners should contact their local government unit for permit questions and fee applicability.

SAC Program

The Service Availability Charge (SAC) is a one-time fee imposed by MCES to Local Government Units for each new connection or increase in volume discharged to the metropolitan disposal system.

The Local Government Units pass the SAC fee along with possible local fees to the building owners via local Ordinances. The SAC fee is usually assigned when a building permit is issued for either a new building or a remodeling permit or when a connection permit is issued for an existing building connecting to the sanitary sewer system for the first time. One SAC unit equals 274 gallons of maximum potential daily wastewater flow volume. A freestanding, single-family residence is charged one SAC unit, a base unit. Other types of buildings pay a prorated SAC fee based on the estimated potential volume of wastewater they will generate.

History

MCES, then the Metropolitan Sewer Board, was created in 1969 by Minnesota Statutes §473 with mandates to provide service for the rapidly growing population in the Twin Cities metropolitan area and to clean up the area’s rivers and lakes.

In 1971 and 1972, its first two years of operation, the Metropolitan Sewer Board allocated the cost of reserve capacity to individual Local Government Units based on each Local Government Unit’s projected demand. However, many Local Government Units, particularly those in the early stages of development, found it difficult, if not impossible, to pay annual lump-sum charges for reserve capacity. These smaller young Local Government Units often had neither the population nor the tax base to finance the cost of future capacity. It quickly became apparent that an alternative method of paying for reserve capacity had to be developed.

Following intensive study and discussion with Local Government Units, MCES developed the Sewer Availability Charge system (a pay as you grow system) for paying for reserved capacity. The SAC system was instituted in 1973. In a District court ruling, later upheld by the Minnesota Supreme Court, the SAC system was found consistent with state law authorizing SAC: Minnesota Statutes 473.517 subd (3). SAC has been paid throughout the urban area (where sewer is available) consistently since 1973.

SAC Credits

A SAC Credit is a MCES tally for capacity that has been freed up within the jurisdiction of the Local Government Unit. Credits are granted to Local Government Units when a change in use on a property results in a reduction in demand for wastewater services. The number of credits are equal to previously paid SAC or grandparent SAC fees.

Grandparent Credits apply to those buildings and operations that were using the central sanitary sewer system in 1973 when SAC was first established. The determination of the wastewater generated requires written documentation of the known facts of the structure(s) and operation as they existed in 1973. Records such as architectural floor plans are necessary to establish the 1973 use. If records are not available, minimal use shall be assumed (based on square footage). The obligation to provide proof for the 1973 use rests with the Local Government Unit requesting the credit.

Please note: In 2010 the MCES Credit Policy will change significantly.

Contact Information

Karon Cappaert--SAC Determination Review

(651) 602-1118

karon.cappaert@metc.state.mn.us

Kelly Barnebey--Submittal Information and Determination Status: (651) 602-1421; kelly.barnebey@metc.state.mn.us

Jessie Nye--SAC Activity Reports & all other SAC questions

(651) 602-1378

jessica.nye@metc.state.mn.us

Jason Willett--MCES Financial Management including SAC financials: (651) 602-1196; jason.willett@metc.state.mn.us