Service Availability Charge (SAC) Program

SAC Program

The Service Availability Charge (SAC) is a one-time fee imposed by MCES to communities for each new connection or increase in volume discharged to the metropolitan wastewater system. The communities pass the SAC fee along with possible local fees to the building owners via local Ordinances. The SAC fee is 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 called 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 then-Metropolitan Sewer Board allocated the cost of reserve capacity to individual communities based on each community’s projected demand. However, many communities, particularly those in the early stages of development, found it difficult, if not impossible, to pay annual lump-sum charges for reserve capacity. These young communities 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 customer communities, 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 community. Credits are granted to local communities 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, and/or water records 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 community requesting the credit.
PLEASE NOTE: In 2010 the MCES Credit Policy will change significantly.

Contact Information

SAC Review

Karon Cappaert

(651) 602-1118

karon.cappaert@metc.state.mn.us

SAC Monthly Reports

Jessie Nye

(651) 602-1378

jessica.nye@metc.state.mn.us

Submittal Information and Determination Status

Kelly Barnebey: (651) 602-1421; kelly.barnebey@metc.state.mn.us

MCES Financial Management & all other questions

Jason Willett: (651) 602-1196; jason.willett@metc.state.mn.us

Metropolitan Council