HomeMy WebLinkAboutMet Council SAC Review (Jazz Cafe) 2/4/2011 "� Metropolitan Council -
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Environmental Services �
February 4, 2011
, ., . . �
Jerilyn Erickson .
Finance Director
City of Prior Lake
4646 Dakota Street SE
Prior take, MIV 55372
Dear Ms. Erickson:
1 received your emai! on lanuary 25, 2Q11 requesting an appeal of the SAC Community Review letter sent
September 18, 2U:lU for the site oi i��e .iazz C� Caf�: ;:,::���� ::t r5'!F r�:�rar!r: ctrPer SF �/:�irhE!� th? City.
As you know this issue has quite a history. As we see the sal(ent facts: �
• A 2008 community SAC review included a SAC charge of $6,700 for the site of the Jazz Co Cafe based on
an onsite review that showed that at the site there was a full-service restaurant — not a fast-food
restaurant as indicated during the SAC determination application process in December 2007.
• In December 2008/January 2009 informa,tion was submitted by the City and restaurant indicating the
outdoor• sHating, had been remoyed as well, as the vua'shable items which'changed •the SAC classifiQation .
y ,..
for the restaurant back to fast food. This'reduced the SAC`du�'�fro�rrti�Ctte"Cit �back'down �to $0, �it was at
that:t�me�aqd with this understanding, that a Metro Council member communicated the sifie would be
�•treated�asfastfood:.::4::_ •.,.,,:s�.:r. '� :: • t : . . , • �:�t,_ �,�•:.� •�
• In early 2010;. new was discover�d�that �shovued'�he'}'�StaUwan't'wa�s�rem'odeled�and the levei
of restaurant service,changed back to fuli service and outdoor seating was available, and no additional
SAC had been collected.
• On July 26, 2010 MCES staff met with the City and stated the findings for Jazz Co Caf� from the 2008
community review are due.
• A copy of the community review letter was sent to the City on August 4, 2010 by the request of the City.
With that being said, I am approving the appeal for relief to the City for the SAC charges for the wastewater
demand at this address based on:
• 1) The City certification that the business closed in August 2010 (and evidence of a business auction
being held there August 15, 2010);, . .
2) The distinction between fast food and full service SAC cr+teria has been problematic, and may have
contributed to perhaps unclear communication from the Council during this history;
3) � As of January 1, 2011 we have changed our ru{es about restaurants and no longer distinguish between
fast,food and, full service; and .�
4) The City.has nv me�ns to collect your local SAC fram�the busin'ess arid had=nut anticipated this.: �,
po �,sibility. � . , . , . � � � . � �
This appeal grants against the SAC determination for'Jazz Co Cafe only such that the City will.nbt be •
obligated to pay for the wastewater demand of the closed business. However, when a new business moves in, a
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new determination will be required and additional SAC may be due at the current criteria and rate at that time.
This appeal will not generate SAC credits should the building use (and SAC capacity demand) be changed in any
way. We would appreciate if you made a note in City inspection records so this doesn't become a contentious
issue sometime in the future.
The Council's SAC charges are separate and distinct (by statute) from the cities' charges to the property owners
or other responsible parties. Our charges are due regardless of the cities' ability to collect from property
owners. I frequently recommend to cities to consider an account or fund to provide some cushion should your
fees become uncollectable (and in addition perhaps to cover the administration of the SAC program and your
own reserve capacity costs of City wastewater infrastructure),
As you may know, we are required by state statute to fund part of the wastewater system with SAC. This helps
keep regular sewer fees among the lowest for metropolitan areas in the country and provides for the costs
� (including deinandj to be born by th�se that cause ±he costs to be incurred. The SAC fee system was
implemented metro-wide in 1973 and eliminates the development risk for the cities in our building of reserve �
capacity into the metropolitan sewer system. The collected metropolitan SAC fees, by law, are used only to fund
part of the capacity in the metropolitan wastewater system. This is an award winning system worth billions of
dollars, We appreciate the City's partnership with us in SAC matters.
Please feel free to call me if you have further questions.
Sincerely,
G✓���""L
lason Willett
MCES Finance Director
cc: Frank Boyles, City Manager, City of Prior Lake
Jane Kansier, Building and Transportation Services Director, City of Prior Lake
Craig Peterson, Metropolitan Council
Jessie Nye, SAC Program Administrator