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<br />- <br />~. <br /> <br /> <br /> <br /> <br />Page 2 . <br /> <br /> <br /> <br />connection permits were for any of the 200 unit expansion, the MWCC <br />would still not consider the units grandparented into the system. <br />The property was not yet developed meaning the pads could not have <br />been installed. The MWCC would contend that the issuance of <br />permits in 1972 without "connecting", and for the sake of avoiding <br />the SAC charge is not allowed. The MWCC would allow a reasonable <br />timing difference between permitting (in 1972) and connection (in <br />1973) if the pads were installed at that time. Because the permit <br />to develop the property was not issued until 1975, this does not <br />seem to be the case. <br /> <br />Restated, our conclusion is that the 200-unit expansion was not <br />grandparented into the system and SAC should have been paid on the <br />200 units in 1975. In 1975, the SAC unit rate was $325 and the <br />Commission charged 80% of the SAC unit rate per mobile home unit. <br />This amounts to $52,000. Since 1975, the MWCC policy regarding <br />mobile homes changed to charge the full SAC charge per mobile home. <br /> <br />The MWCC has historically collected any SAC amounts not paid when <br />misunderstandings such as this are discovered. However, during the <br />most recent SAC study, the study group was sympathetic to property <br />owners who were faced with an unexpected SAC liability. As a . <br />result, the policy was amended to provide some relief. <br /> <br />The current policy would not require the immediate collection of <br />all 200 SAC units. However, SAC credit would not be allowed for <br />each unit as tenants come and go. The connection permits of the <br />new tenants would trigger a redetermination which would indicate <br />that the 1 SAC unit coming in is not offset by 1 unit of SAC <br />credit. SAC would be collected as connection permits are issued <br />for new tenants at the rate in effect at the time the permit is <br />issued. <br /> <br />Mr. Kriesel, please contact me should you have any further <br />questions. <br /> <br />Sincerely, <br /> <br /> <br />~Ke~a~ <br /> <br />Fiscal/Treasury Manager <br /> <br />TJK:pap <br />L388 <br /> <br />cc: Sandra Selby, MWCC . <br />Don Bluhm, MWCC <br />Mark Thompson, MWCC <br />