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5.5.6 MCES SAC-E Form—SAC Deferral Report The MCES SAC-E form is for those Communities that have executed the standard master SAC deferral agreement.This form is to include information on those businesses that the Community is requesting to participate in the SAC deferral program with MCES. 5.5.7 Quarterly Approval Form All Communities with a prior-year activity level of no more than 36 SAC units that have submitted the previous year's reports by the report deadline are eligible for quarterly reporting. Those that qualify will receive a"Quarterly Approval"form that must be signed and returned by the end of February to be eligible. This allows the Community the option of reporting monthly or quarterly. If the Community chooses to report quarterly,but during the year the Community exceeds 36 units, or if the quarterly report is submitted late,the quarterly reporting approval is revoked.The Community must then report on a monthly basis. 5.6 SAC Collection for Community Discharging to the MDS for the First Time A Community within the Metropolitan Area is required to collect SAC according to the rules in this SAC Procedure Manual beginning at the SAC trigger date described in three different circumstances below. The Council will make the sole Determination of the applicable date and notify the Community unless such notice is implicit in an acquisition or service agreement. Note that where the trigger date and the related liability occurs on a projected date one-year prior to service,a delay in completion of the project may not change the liability to pay SAC to MCES, at the discretion of MCES. 5.6.1 Treatment Plant(s) to be Acquired by MCES If the service area has an existing treatment plant that is to be acquired by MCES and the SAC liability start is not defined in the agreement,the SAC trigger date shall be the later of: i)the date of the acquisition agreement or ii)one year prior to the transfer of ownership to the Council. All properties being serviced by the local treatment plant prior to the SAC trigger date will be Grandparented into the MDS at their demand at the time of the SAC trigger date and the Community will not normally owe SAC for those properties. The only exception to this Grandparenting provision is where the Community debt to be assumed by the Council,pursuant to Minnesota Statutes section 473.511 subdivision 2, is disproportionate to the reserved capacity of the system being acquired. In such a case, at the sole discretion of MCES, SAC will be due to the Council to make up the disproportion. In order to grant the Grandparent Credits,the Community shall provide an inventory of all addresses being serviced by the local treatment plant(e.g. a current list of all customers currently paying for sewer service from the Community).This inventory should identify Commercial and Industrial users and their current wastewater demand at the SAC trigger date. If the inventory is not provided by the Community to MCES by the SAC trigger date,then the Grandparent Credits shall not be applied. After the SAC trigger date, SAC shall be collected in compliance with all of the rules in this manual. If a building permit was issued prior to the SAC trigger event so SAC was not collected,but the SAC trigger date occurs prior to actual physical sewer hook-up, SAC must be paid with the hook-up and at the SAC rate in effect at that time. 5.6.2 Treatment Plant(s) Not to be Acquired by MCES If the new service area has a treatment plant that is not being acquired by the Council,the Council will serve the area through an interceptor.Unless the SAC trigger date is identified in an agreement, PageI37