1.1                          A bill for an act 
  1.2             relating to local government; establishing the Cedar 
  1.3             lake area water and sanitary sewer district. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [DEFINITIONS.] 
  1.6      Subdivision 1.  [APPLY IN THIS ACT.] In this act, the 
  1.7   definitions in this section apply. 
  1.8      Subd. 2.  [DISTRICT.] "Cedar lake area water and sanitary 
  1.9   sewer district" and "district" mean the area over which the 
  1.10  Cedar lake area water and sanitary sewer board has jurisdiction, 
  1.11  which includes the area within the city of New Prague and Helena 
  1.12  and Cedar Lake townships in Scott county.  The district shall 
  1.13  precisely describe the area over which it has jurisdiction by a 
  1.14  metes and bounds description in the comprehensive plan adopted 
  1.15  pursuant to section 5.  The territory may not be larger than the 
  1.16  area encompassed by the Cedar Lake improvement district, but it 
  1.17  may be smaller and the area may include a route along public 
  1.18  rights-of-way from Cedar Lake to the city of New Prague along 
  1.19  which the sewer main is laid. 
  1.20     Subd. 3.  [BOARD.] "Water and sanitary sewer board" or 
  1.21  "board" means the Cedar lake area water and sanitary sewer board 
  1.22  established for the district as provided in subdivision 2. 
  1.23     Subd. 4.  [PERSON.] "Person" means an individual, 
  1.24  partnership, corporation, limited liability company, 
  2.1   cooperative, or other organization or entity, public or private. 
  2.2      Subd. 5.  [LOCAL GOVERNMENTAL UNITS.] "Local governmental 
  2.3   units" or "governmental units" means Scott county, the city of 
  2.4   New Prague, and Helena and Cedar Lake Townships in Scott county. 
  2.5      Subd. 6.  [ACQUISITION; BETTERMENT.] "Acquisition" and 
  2.6   "betterment" have the meanings given in Minnesota Statutes, 
  2.7   section 475.51. 
  2.8      Subd. 7.  [AGENCY.] "Agency" means the Minnesota pollution 
  2.9   control agency created in Minnesota Statutes, section 116.02. 
  2.10     Subd. 8.  [SEWAGE.] "Sewage" means all liquid or 
  2.11  water-carried waste products from whatever sources derived, 
  2.12  together with any groundwater infiltration and surface water as 
  2.13  may be present. 
  2.14     Subd. 9.  [POLLUTION OF WATER; SEWER SYSTEM.] "Pollution of 
  2.15  water" and "sewer system" have the meanings given in Minnesota 
  2.16  Statutes, section 115.01. 
  2.17     Subd. 10.  [TREATMENT WORKS; DISPOSAL SYSTEM.] "Treatment 
  2.18  works" and "disposal system" have the meanings given in 
  2.19  Minnesota Statutes, section 115.01. 
  2.20     Subd. 11.  [INTERCEPTOR.] "Interceptor" means a sewer and 
  2.21  its necessary appurtenances, including but not limited to mains, 
  2.22  pumping stations, and sewage flow-regulating and -measuring 
  2.23  stations, that is: 
  2.24     (1) designed for or used to conduct sewage originating in 
  2.25  more than one local governmental unit; 
  2.26     (2) designed or used to conduct all or substantially all 
  2.27  the sewage originating in a single local governmental unit from 
  2.28  a point of collection in that unit to an interceptor or 
  2.29  treatment works outside that unit; or 
  2.30     (3) determined by the board to be a major collector of 
  2.31  sewage used or designed to serve a substantial area in the 
  2.32  district. 
  2.33     Subd. 12.  [DISTRICT DISPOSAL SYSTEM.] "District disposal 
  2.34  system" means any and all interceptors or treatment works owned, 
  2.35  constructed, or operated by the board unless designated by the 
  2.36  board as local water and sanitary sewer facilities. 
  3.1      Subd. 13.  [MUNICIPALITY.] "Municipality" means any town or 
  3.2   home rule charter or statutory city. 
  3.3      Subd. 14.  [TOTAL COSTS.] "Total costs of acquisition and 
  3.4   betterment" and "costs of acquisition and betterment" mean all 
  3.5   acquisition and betterment expenses permitted to be financed out 
  3.6   of stopped bond proceeds issued in accordance with section 13, 
  3.7   whether or not the expenses are in fact financed out of the bond 
  3.8   proceeds. 
  3.9      Subd. 15.  [CURRENT COSTS.] "Current costs of acquisition, 
  3.10  betterment, and debt service" means interest and principal 
  3.11  estimated to be due during the budget year on bonds issued to 
  3.12  finance said acquisition and betterment and all other costs of 
  3.13  acquisition and betterment estimated to be paid during the year 
  3.14  from funds other than bond proceeds and federal or state grants. 
  3.15     Subd. 16.  [RESIDENT.] "Resident" means the owner of a 
  3.16  dwelling located in the district and receiving water or sewer 
  3.17  service. 
  3.18     Sec. 2.  [WATER AND SANITARY SEWER BOARD.] 
  3.19     Subdivision 1.  [ESTABLISHMENT.] A water and sanitary sewer 
  3.20  district is established in Helena and Cedar Lake townships and 
  3.21  the city of New Prague in Scott county, to be known as the Cedar 
  3.22  lake area water and sanitary sewer district.  The water and 
  3.23  sewer district is under the control and management of the Cedar 
  3.24  lake area water and sanitary sewer board.  The board is 
  3.25  established as a public corporation and political subdivision of 
  3.26  the state with perpetual succession and all the rights, powers, 
  3.27  privileges, immunities, and duties granted to or imposed upon a 
  3.28  municipal corporation, as provided in this act.  
  3.29     Subd. 2.  [MEMBERS AND SELECTION.] The board is composed of 
  3.30  seven members selected as provided in this subdivision.  Each of 
  3.31  the town boards of the townships shall meet to appoint two 
  3.32  residents to the water and sanitary sewer board.  The township 
  3.33  appointees must live on Cedar lake and must be served by the 
  3.34  system.  One member must be selected by the city of New Prague.  
  3.35  Two members must be selected by the Scott county board of 
  3.36  commissioners.  Each member has one vote.  The first terms are 
  4.1   as follows:  two for one year, two for two years, and three for 
  4.2   three years, fixed by lot at the district's first meeting.  
  4.3   Thereafter, all terms are for three years. 
  4.4      Subd. 3.  [TIME LIMITS FOR SELECTION.] The board members 
  4.5   must be selected as provided in subdivision 2 within 60 days 
  4.6   after this act is effective.  The successor to each board member 
  4.7   must be selected at any time within 60 days before the 
  4.8   expiration of the member's term in the same manner as the 
  4.9   predecessor was selected.  A vacancy on the board must be filled 
  4.10  within 60 days after it occurs. 
  4.11     Subd. 4.  [VACANCIES.] If the office of a board member 
  4.12  becomes vacant, the vacancy must be filled for the unexpired 
  4.13  term in the manner provided for selection of the member who 
  4.14  vacated the office.  The office is deemed vacant under the 
  4.15  conditions specified in Minnesota Statutes, section 351.02. 
  4.16     Subd. 5.  [REMOVAL.] A board member may be removed by the 
  4.17  unanimous vote of the governing body appointing the member, with 
  4.18  or without cause, or for malfeasance or nonfeasance in the 
  4.19  performance of official duties as provided by Minnesota 
  4.20  Statutes, sections 351.14 to 351.23. 
  4.21     Subd. 6.  [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 
  4.22  certificate of selection of every board member selected under 
  4.23  subdivision 2 stating the term for which selected, must be made 
  4.24  by the respective town clerks.  The certificates, with the 
  4.25  approval appended by other authority, if required, must be filed 
  4.26  with the secretary of state.  Counterparts thereof must be 
  4.27  furnished to the board member and the secretary of the board.  
  4.28  Each member shall qualify by taking and subscribing the oath of 
  4.29  office prescribed by the Minnesota Constitution, article 5, 
  4.30  section 8.  The oath, duly certified by the official 
  4.31  administering the same, must be filed with the secretary of 
  4.32  state and the secretary of the board. 
  4.33     Subd. 7.  [BOARD MEMBERS' COMPENSATION.] Each board member, 
  4.34  except the chair, must be paid a per diem compensation of $35 
  4.35  for meetings and for other services as are specifically 
  4.36  authorized by the board, not to exceed $1,000 in any one year.  
  5.1   The chair may be paid a per diem compensation of $45 for 
  5.2   meetings and for other services specifically authorized by the 
  5.3   board, not to exceed $1,500 in any one year.  All members of the 
  5.4   board must be reimbursed for all reasonable and necessary 
  5.5   expenses actually incurred in the performance of duties. 
  5.6      Sec. 3.  [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION 
  5.7   OF BOARD.] 
  5.8      Subdivision 1.  [ORGANIZATION; OFFICERS; MEETINGS; 
  5.9   SEAL.] After the selection and qualification of all board 
  5.10  members, the board must meet to organize the board at the call 
  5.11  of any two board members, upon seven days' notice by registered 
  5.12  mail to the remaining board members, at a time and place within 
  5.13  the district specified in the notice.  A majority of the members 
  5.14  is a quorum at that meeting and all other meetings of the board, 
  5.15  but a lesser number may meet and adjourn from time to time and 
  5.16  compel the attendance of absent members.  At the first meeting 
  5.17  the board shall select its officers and conduct other 
  5.18  organizational business as may be necessary.  Thereafter the 
  5.19  board shall meet regularly at the time and place that the board 
  5.20  designates by resolution.  Special meetings may be held at any 
  5.21  time upon call of the chair or any two members, upon written 
  5.22  notice sent by mail to each member at least three days before 
  5.23  the meeting, or upon other notice as the board by resolution may 
  5.24  provide, or without notice if each member is present or files 
  5.25  with the secretary a written consent to the meeting either 
  5.26  before or after the meeting.  Except as otherwise provided in 
  5.27  this act, any action within the authority of the board may be 
  5.28  taken by the affirmative vote of a majority of the board and may 
  5.29  be taken by regular or adjourned regular meeting or at a duly 
  5.30  held special meeting, but in any case only if a quorum is 
  5.31  present.  Meetings of the board must be open to the public.  The 
  5.32  board may adopt a seal, which must be officially and judicially 
  5.33  noticed, to authenticate instruments executed by its authority, 
  5.34  but omission of the seal does not affect the validity of any 
  5.35  instrument. 
  5.36     Subd. 2.  [CHAIR.] The board shall elect a chair from its 
  6.1   membership.  The term of the first chair of the board expires on 
  6.2   January 1, 2001, and the terms of successor chairs expire on 
  6.3   January 1 of each succeeding year.  The chair shall preside at 
  6.4   all meetings of the board, if present, and shall perform all 
  6.5   other duties and functions usually incumbent upon such an 
  6.6   officer, and all administrative functions assigned to the chair 
  6.7   by the board.  The board shall elect a vice-chair from its 
  6.8   membership to act for the chair during temporary absence or 
  6.9   disability. 
  6.10     Subd. 3.  [SECRETARY AND TREASURER.] The board shall select 
  6.11  persons who may, but need not be, members of the board, to act 
  6.12  as its secretary and treasurer.  The two offices may be combined.
  6.13  The secretary and treasurer shall hold office at the pleasure of 
  6.14  the board, subject to the terms of any contract of employment 
  6.15  that the board may enter into with the secretary or treasurer.  
  6.16  The secretary shall record the minutes of all meetings of the 
  6.17  board, and be the custodian of all books and records of the 
  6.18  board except those that the board entrusts to the custody of a 
  6.19  designated employee.  The treasurer is the custodian of all 
  6.20  money received by the board except as the board otherwise 
  6.21  entrusts to the custody of a designated employee.  The board may 
  6.22  appoint a deputy to perform any and all functions of either the 
  6.23  secretary or the treasurer.  A secretary or treasurer who is not 
  6.24  a member of the board or a deputy of either does not have the 
  6.25  right to vote. 
  6.26     Subd. 4.  [PUBLIC EMPLOYEES.] The executive director and 
  6.27  other persons employed by the district are public employees and 
  6.28  have all the rights and duties conferred on public employees 
  6.29  under Minnesota Statutes, sections 179A.01 to 179A.25.  The 
  6.30  board may elect to have employees become members of either the 
  6.31  public employees retirement association or the Minnesota state 
  6.32  retirement system.  The compensation and conditions of 
  6.33  employment of the employees must be governed by rules applicable 
  6.34  to state employees in the classified service and to the 
  6.35  provisions of Minnesota Statutes, chapter 15A. 
  6.36     Subd. 5.  [PROCEDURES.] The board shall adopt resolutions 
  7.1   or bylaws establishing procedures for board action, personnel 
  7.2   administration, keeping records, approving claims, authorizing 
  7.3   or making disbursements, safekeeping funds, and auditing all 
  7.4   financial operations of the board. 
  7.5      Subd. 6.  [SURETY BONDS AND INSURANCE.] The board may 
  7.6   procure surety bonds for its officers and employees, in amounts 
  7.7   deemed necessary to ensure proper performance of their duties 
  7.8   and proper accounting for funds in their custody.  It may 
  7.9   procure insurance against risks to property and liability of the 
  7.10  board and its officers, agents, and employees for personal 
  7.11  injuries or death and property damage and destruction, in 
  7.12  amounts deemed necessary or desirable, with the force and effect 
  7.13  stated in Minnesota Statutes, chapter 466. 
  7.14     Sec. 4.  [GENERAL POWERS OF BOARD.] 
  7.15     Subdivision 1.  [SCOPE.] The board has all powers necessary 
  7.16  or convenient to discharge the duties imposed upon it by law.  
  7.17  The powers include those specified in this section, but the 
  7.18  express grant or enumeration of powers does not limit the 
  7.19  generality or scope of the grant of powers contained in this 
  7.20  subdivision. 
  7.21     Subd. 2.  [SUIT.] The board may sue or be sued. 
  7.22     Subd. 3.  [CONTRACT.] The board may enter into any contract 
  7.23  necessary or proper for the exercise of its powers or the 
  7.24  accomplishment of its purposes. 
  7.25     Subd. 4.  [GIFTS, GRANTS, LOANS.] The board may accept 
  7.26  gifts, apply for and accept grants or loans of money or other 
  7.27  property from the United States, the state, or any person for 
  7.28  any of its purposes, enter into any agreement required in 
  7.29  connection with them, and hold, use, and dispose of the money or 
  7.30  property in accordance with the terms of the gift, grant, loan, 
  7.31  or agreement relating to it.  With respect to loans or grants of 
  7.32  funds or real or personal property or other assistance from any 
  7.33  state or federal government or its agency or instrumentality, 
  7.34  the board may contract to do and perform all acts and things 
  7.35  required as a condition or consideration for the gift, grant, or 
  7.36  loan pursuant to state or federal law or regulations, whether or 
  8.1   not included among the powers expressly granted to the board in 
  8.2   this act.  
  8.3      Subd. 5.  [COOPERATIVE ACTION.] The board may act under 
  8.4   Minnesota Statutes, section 471.59, or any other appropriate law 
  8.5   providing for joint or cooperative action between governmental 
  8.6   units. 
  8.7      Subd. 6.  [STUDIES AND INVESTIGATIONS.] The board may 
  8.8   conduct research studies and programs, collect and analyze data, 
  8.9   prepare reports, maps, charts, and tables, and conduct all 
  8.10  necessary hearings and investigations in connection with the 
  8.11  design, construction, and operation of the district disposal 
  8.12  system. 
  8.13     Subd. 7.  [EMPLOYEES, TERMS.] The board may employ on terms 
  8.14  it deems advisable, persons or firms performing engineering, 
  8.15  legal, or other services of a professional nature; require any 
  8.16  employee to obtain and file with it an individual bond or 
  8.17  fidelity insurance policy; and procure insurance in amounts it 
  8.18  deems necessary against liability of the board or its officers 
  8.19  or both, for personal injury or death and property damage or 
  8.20  destruction, with the force and effect stated in Minnesota 
  8.21  Statutes, chapter 466, and against risks of damage to or 
  8.22  destruction of any of its facilities, equipment, or other 
  8.23  property as it deems necessary. 
  8.24     Subd. 8.  [PROPERTY RIGHTS, POWERS.] The board may acquire 
  8.25  by purchase, lease, condemnation, gift, or grant, any real or 
  8.26  personal property including positive and negative easements and 
  8.27  water and air rights, and it may construct, enlarge, improve, 
  8.28  replace, repair, maintain, and operate any interceptor, 
  8.29  treatment works, or water facility determined to be necessary or 
  8.30  convenient for the collection and disposal of sewage in the 
  8.31  district.  Any local governmental unit and the commissioners of 
  8.32  transportation and natural resources are authorized to convey to 
  8.33  or permit the use of any of the above-mentioned facilities owned 
  8.34  or controlled by it, by the board, subject to the rights of the 
  8.35  holders of any bonds issued with respect to those facilities, 
  8.36  with or without compensation, without an election or approval by 
  9.1   any other governmental unit or agency.  All powers conferred by 
  9.2   this subdivision may be exercised both within or without the 
  9.3   district as may be necessary for the exercise by the board of 
  9.4   its powers or the accomplishment of its purposes.  The board may 
  9.5   hold, lease, convey, or otherwise dispose of the above-mentioned 
  9.6   property for its purposes upon the terms and in the manner it 
  9.7   deems advisable.  Unless otherwise provided, the right to 
  9.8   acquire lands and property rights by condemnation may be 
  9.9   exercised only in accordance with Minnesota Statutes, sections 
  9.10  117.011 to 117.232, and applies to any property or interest in 
  9.11  the property owned by any local governmental unit.  Property 
  9.12  devoted to an actual public use at the time, or held to be 
  9.13  devoted to such a use within a reasonable time, must not be so 
  9.14  acquired unless a court of competent jurisdiction determines 
  9.15  that the use proposed by the board is paramount to the existing 
  9.16  use.  Except in the case of property in actual public use, the 
  9.17  board may take possession of any property on which condemnation 
  9.18  proceedings have been commenced at any time after the issuance 
  9.19  of a court order appointing commissioners for its condemnation. 
  9.20     Subd. 9.  [RELATIONSHIP TO OTHER PROPERTIES.] The board may 
  9.21  construct or maintain its systems or facilities in, along, on, 
  9.22  under, over, or through public waters, streets, bridges, 
  9.23  viaducts, and other public rights-of-way without first obtaining 
  9.24  a franchise from a county or municipality having jurisdiction 
  9.25  over them.  However, the facilities must be constructed and 
  9.26  maintained in accordance with the ordinances and resolutions of 
  9.27  the county or municipality relating to constructing, installing, 
  9.28  and maintaining similar facilities on public properties and must 
  9.29  not unnecessarily obstruct the public use of those rights-of-way.
  9.30     Subd. 10.  [DISPOSAL OF PROPERTY.] The board may sell, 
  9.31  lease, or otherwise dispose of any real or personal property 
  9.32  acquired by it which is no longer required for accomplishment of 
  9.33  its purposes.  The property may be sold in the manner provided 
  9.34  by Minnesota Statutes, section 469.065, insofar as practical.  
  9.35  The board may give notice of sale as it deems appropriate.  When 
  9.36  the board determines that any property or any part of the 
 10.1   district disposal system acquired from a local governmental unit 
 10.2   without compensation is no longer required but is required as a 
 10.3   local facility by the governmental unit from which it was 
 10.4   acquired, the board may by resolution transfer it to that 
 10.5   governmental unit. 
 10.6      Subd. 11.  [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The 
 10.7   board may contract with the United States or any agency thereof, 
 10.8   any state or agency thereof, or any regional public planning 
 10.9   body in the state with jurisdiction over any part of the 
 10.10  district, or any other municipal or public corporation, or 
 10.11  governmental subdivision or agency or political subdivision in 
 10.12  any state, for the joint use of any facility owned by the board 
 10.13  or such entity, for the operation by that entity of any system 
 10.14  or facility of the board, or for the performance on the board's 
 10.15  behalf of any service, including but not limited to planning, on 
 10.16  terms as may be agreed upon by the contracting parties.  Unless 
 10.17  designated by the board as a local water and sanitary sewer 
 10.18  facility, any treatment works or interceptor jointly used, or 
 10.19  operated on behalf of the board, as provided in this 
 10.20  subdivision, is deemed to be operated by the board for purposes 
 10.21  of including those facilities in the district disposal system. 
 10.22     Sec. 5.  [COMPREHENSIVE PLAN.] 
 10.23     Subdivision 1.  [BOARD PLAN AND PROGRAM.] The board shall 
 10.24  adopt a comprehensive plan for the collection, treatment, and 
 10.25  disposal of sewage in the district for a designated period the 
 10.26  board deems proper and reasonable.  The board shall prepare and 
 10.27  adopt subsequent comprehensive plans for the collection, 
 10.28  treatment, and disposal of sewage in the district for each 
 10.29  succeeding designated period as the board deems proper and 
 10.30  reasonable.  All comprehensive plans of the district shall be 
 10.31  subject to the planning and zoning authority of Scott county and 
 10.32  in conformance with all planning and zoning ordinances of Scott 
 10.33  county.  The first plan, as modified by the board, and any 
 10.34  subsequent plan shall take into account the preservation and 
 10.35  best and most economic use of water and other natural resources 
 10.36  in the area; the preservation, use, and potential for use of 
 11.1   lands adjoining waters of the state to be used for the disposal 
 11.2   of sewage; and the impact the disposal system will have on 
 11.3   present and future land use in the area affected.  In no case 
 11.4   shall the comprehensive plan provide for more than 325 
 11.5   connections to the disposal system.  All connections must be 
 11.6   charged a full assessment.  Connections made after the initial 
 11.7   assessment period ends must be charged an amount equal to the 
 11.8   initial assessment plus an adjustment for inflation and plus any 
 11.9   other charges determined to be reasonable and necessary by the 
 11.10  board.  Deferred assessments may be permitted, as provided for 
 11.11  in Minnesota Statutes, chapter 429.  The plans shall include the 
 11.12  general location of needed interceptors and treatment works, a 
 11.13  description of the area that is to be served by the various 
 11.14  interceptors and treatment works, a long-range capital 
 11.15  improvements program, and any other details as the board deems 
 11.16  appropriate.  In developing the plans, the board shall consult 
 11.17  with persons designated for the purpose by governing bodies of 
 11.18  any governmental unit within the district to represent the 
 11.19  entities and shall consider the data, resources, and input 
 11.20  offered to the board by the entities and any planning agency 
 11.21  acting on behalf of one or more of the entities.  Each plan, 
 11.22  when adopted, must be followed in the district and may be 
 11.23  revised as often as the board deems necessary. 
 11.24     Subd. 2.  [COMPREHENSIVE PLANS; HEARING.] Before adopting 
 11.25  any subsequent comprehensive plan, the board shall hold a public 
 11.26  hearing on the proposed plan at a time and place in the district 
 11.27  that it selects.  The hearing may be continued from time to 
 11.28  time.  Not less than 45 days before the hearing, the board shall 
 11.29  publish notice of the hearing in a newspaper having general 
 11.30  circulation in the district, stating the date, time, and place 
 11.31  of the hearing, and the place where the proposed plan may be 
 11.32  examined by any interested person.  At the hearing, all 
 11.33  interested persons must be permitted to present their views on 
 11.34  the plan. 
 11.35     Subd. 3.  [GOVERNMENTAL UNIT PLANS AND PROGRAMS; 
 11.36  COORDINATION WITH BOARD'S RESPONSIBILITIES.] Once the board's 
 12.1   plan is adopted, no construction project involving the 
 12.2   construction of new sewers or other disposal facilities may be 
 12.3   undertaken by the local governmental unit unless its governing 
 12.4   body shall first find the project to be in accordance with the 
 12.5   governmental unit's comprehensive plan and program as approved 
 12.6   by the board.  Before approval by the board of the comprehensive 
 12.7   plan and program of any local governmental unit in the district, 
 12.8   no water and sanitary sewer construction project may be 
 12.9   undertaken by the governmental unit unless approval of the 
 12.10  project is first secured from the board as to those features of 
 12.11  the project affecting the board's responsibilities as determined 
 12.12  by the board. 
 12.13     Sec. 6.  [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL 
 12.14  ASSESSMENTS.] 
 12.15     The Cedar lake area water and sanitary sewer board, in 
 12.16  order to implement the powers granted under this act to 
 12.17  establish, maintain, and administer the Cedar lake area water 
 12.18  and sanitary sewer district, may issue obligations and impose 
 12.19  special assessments against benefited property within the limits 
 12.20  of the district benefited by facilities constructed under this 
 12.21  act in the manner provided for local governments by Minnesota 
 12.22  Statutes, chapter 429. 
 12.23     Sec. 7.  [SYSTEM EXPANSION; APPLICATION TO CITIES.] 
 12.24     The authority of the water and sanitary sewer board to 
 12.25  establish water or sewer or combined water and sewer systems 
 12.26  under this section extends to areas within the Cedar lake area 
 12.27  water and sanitary sewer district organized into cities when 
 12.28  requested by resolution of the governing body of the affected 
 12.29  city or when ordered by the Minnesota pollution control agency 
 12.30  after notice and hearing.  For the purpose of any petition filed 
 12.31  or special assessment levied with respect to any system, the 
 12.32  entire area to be served within a city must be treated as if it 
 12.33  were owned by a single person, and the governing body shall 
 12.34  exercise all the rights and be subject to all the duties of an 
 12.35  owner of the area, and shall have power to provide for the 
 12.36  payment of all special assessments and other charges imposed 
 13.1   upon the area with respect to the system by the appropriation of 
 13.2   money, the collection of service charges, or the levy of taxes, 
 13.3   which shall be subject to no limitation of rate or amount. 
 13.4      Sec. 8.  [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 
 13.5      Subdivision 1.  [POWERS.] In addition to all other powers 
 13.6   conferred upon the board in this act, it has the powers 
 13.7   specified in this section. 
 13.8      Subd. 2.  [DISCHARGE OF TREATED SEWAGE.] The board may 
 13.9   discharge the effluent from any treatment works operated by it 
 13.10  into any waters of the state, subject to approval of the agency 
 13.11  if required and in accordance with any effluent or water quality 
 13.12  standards lawfully adopted by the agency, any interstate agency, 
 13.13  or any federal agency having jurisdiction. 
 13.14     Subd. 3.  [UTILIZATION OF DISTRICT SYSTEM.] The board may 
 13.15  require any person or local governmental unit to provide for the 
 13.16  discharge of any sewage, directly or indirectly, into the 
 13.17  district disposal system, or to connect any disposal system or a 
 13.18  part of it with the district disposal system wherever reasonable 
 13.19  opportunity for connection is provided; may regulate the manner 
 13.20  in which the connections are made; may require any person or 
 13.21  local governmental unit discharging sewage into the disposal 
 13.22  system to provide preliminary treatment for it; may prohibit the 
 13.23  discharge into the district disposal system of any substance 
 13.24  that it determines will or may be harmful to the system or any 
 13.25  persons operating it; and may require any local governmental 
 13.26  unit to discontinue the acquisition, betterment, or operation of 
 13.27  any facility for the unit's disposal system wherever and so far 
 13.28  as adequate service is or will be provided by the district 
 13.29  disposal system. 
 13.30     Subd. 4.  [SYSTEM OF COST RECOVERY TO COMPLY WITH 
 13.31  APPLICABLE REGULATIONS.] Any charges, connection fees, or other 
 13.32  cost-recovery techniques imposed on persons discharging sewage 
 13.33  directly or indirectly into the district disposal system must 
 13.34  comply with applicable state and federal law, including state 
 13.35  and federal regulations governing grant applications. 
 13.36     Sec. 9.  [BUDGET.] 
 14.1      (a) The board shall prepare and adopt, on or before October 
 14.2   1 in 2000 and each year thereafter, a budget showing for the 
 14.3   following calendar year or other fiscal year determined by the 
 14.4   board, sometimes referred to in this act as the budget year, 
 14.5   estimated receipts of money from all sources, including but not 
 14.6   limited to payments by each local governmental unit, federal or 
 14.7   state grants, taxes on property, and funds on hand at the 
 14.8   beginning of the year, and estimated expenditures for: 
 14.9      (1) costs of operation, administration, and maintenance of 
 14.10  the district disposal system; 
 14.11     (2) cost of acquisition and betterment of the district 
 14.12  disposal system; and 
 14.13     (3) debt service, including principal and interest, on 
 14.14  general obligation bonds and certificates issued pursuant to 
 14.15  section 13, and any money judgments entered by a court of 
 14.16  competent jurisdiction.  
 14.17     (b) Expenditures within these general categories, and any 
 14.18  other categories as the board may from time to time determine, 
 14.19  must be itemized in detail as the board prescribes.  The board 
 14.20  and its officers, agents, and employees must not spend money for 
 14.21  any purpose other than debt service without having set forth the 
 14.22  expense in the budget nor in excess of the amount set forth in 
 14.23  the budget for it.  No obligation to make an expenditure of the 
 14.24  above-mentioned type is enforceable except as the obligation of 
 14.25  the person or persons incurring it.  The board may amend the 
 14.26  budget at any time by transferring from one purpose to another 
 14.27  any sums except money for debt service and bond proceeds or by 
 14.28  increasing expenditures in any amount by which actual cash 
 14.29  receipts during the budget year exceed the total amounts 
 14.30  designated in the original budget.  The creation of any 
 14.31  obligation under section 13, or the receipt of any federal or 
 14.32  state grant is a sufficient budget designation of the proceeds 
 14.33  for the purpose for which it is authorized, and of the tax or 
 14.34  other revenue pledged to pay the obligation and interest on it, 
 14.35  whether or not specifically included in any annual budget. 
 14.36     Sec. 10.  [ALLOCATION OF COSTS.] 
 15.1      Subdivision 1.  [DEFINITION OF CURRENT COSTS.] The 
 15.2   estimated cost of administration, operation, maintenance, and 
 15.3   debt service of the district disposal system to be paid by the 
 15.4   board in each fiscal year and the estimated costs of acquisition 
 15.5   and betterment of the system that are to be paid during the year 
 15.6   from funds other than state or federal grants and bond proceeds 
 15.7   and all other previously unallocated payments made by the board 
 15.8   pursuant to this act to be allocated in the fiscal year are 
 15.9   referred to as current costs and must be allocated by the board 
 15.10  as provided in subdivision 2 in the budget for that year. 
 15.11     Subd. 2.  [METHOD OF ALLOCATION OF CURRENT COSTS.] Current 
 15.12  costs must be allocated in the district on an equitable basis as 
 15.13  the board may determine by resolution to be in the best 
 15.14  interests of the district.  The adoption or revision of any 
 15.15  method of allocation used by the board must be by the 
 15.16  affirmative vote of at least two-thirds of the members of the 
 15.17  board. 
 15.18     Sec. 11.  [TAX LEVIES.] 
 15.19     To accomplish any duty imposed on it the board may, in 
 15.20  addition to the powers granted in this act and in any other law 
 15.21  or charter, exercise the powers granted any municipality by 
 15.22  Minnesota Statutes, chapters 117, 412, 429, 475, sections 
 15.23  115.46, 444.075, and 471.59, with respect to the area in the 
 15.24  district.  The board may levy taxes upon all taxable property in 
 15.25  the district for all or a part of the amount payable to the 
 15.26  board, pursuant to section 10, to be assessed and extended as a 
 15.27  tax upon that taxable property by the county auditor for the 
 15.28  next calendar year, free from any limit of rate or amount 
 15.29  imposed by law or charter.  The tax must be collected and 
 15.30  remitted in the same manner as other general taxes. 
 15.31     Sec. 12.  [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 
 15.32     Subdivision 1.  [PUBLIC HEARING REQUIREMENT ON SPECIFIC 
 15.33  PROJECT.] Before the board orders any project involving the 
 15.34  acquisition or betterment of any interceptor or treatment works, 
 15.35  all or a part of the cost of which will be allocated pursuant to 
 15.36  section 10 as current costs, the board must hold a public 
 16.1   hearing on the proposed project.  The hearing must be held 
 16.2   following two publications in a newspaper having general 
 16.3   circulation in the district, stating the time and place of the 
 16.4   hearing, the general nature and location of the project, the 
 16.5   estimated total cost of acquisition and betterment, that portion 
 16.6   of costs estimated to be paid out of federal and state grants, 
 16.7   and that portion of costs estimated to be allocated.  The 
 16.8   estimates must be best available at the time of the meeting and 
 16.9   if costs exceed the estimate, the project cannot proceed until 
 16.10  an additional public hearing is held, with notice as required at 
 16.11  the initial meeting.  The two publications must be a week apart 
 16.12  and the hearing at least three days after the last publication.  
 16.13  Not less than 45 days before the hearing, notice of the hearing 
 16.14  must also be mailed to each clerk of all local governmental 
 16.15  units in the district, but failure to give mailed notice or any 
 16.16  defects in the notice does not invalidate the proceedings.  The 
 16.17  project may include all or part of one or more interceptors or 
 16.18  treatment works.  A hearing must not be held on a project unless 
 16.19  the project is within the area covered by the comprehensive plan 
 16.20  adopted by the board under section 5, except that the hearing 
 16.21  may be held simultaneously with a hearing on a comprehensive 
 16.22  plan.  A hearing is not required with respect to a project, no 
 16.23  part of the costs of which are to be allocated as the current 
 16.24  costs of acquisition, betterment, and debt service. 
 16.25     Subd. 2.  [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 
 16.26  board proposes to assess against benefited property within the 
 16.27  district all or any part of the allocable costs of the project 
 16.28  as provided in subdivision 5, the board shall, not less than two 
 16.29  weeks before the hearing provided for in subdivision 1, cause 
 16.30  mailed notice of the hearing to be given to the owner of each 
 16.31  parcel within the area proposed to be specially assessed and 
 16.32  shall also give two weeks' published notice of the hearing.  The 
 16.33  notice of hearing must contain the same information provided in 
 16.34  the notice published by the board pursuant to subdivision 1, and 
 16.35  a description of the area proposed to be assessed.  For the 
 16.36  purpose of giving mailed notice, owners are those shown to be on 
 17.1   the records of the county auditor or, in any county where tax 
 17.2   statements are mailed by the county treasurer, on the records of 
 17.3   the county treasurer; but other appropriate records may be used 
 17.4   for this purpose.  For properties that are tax exempt or subject 
 17.5   to taxation on a gross earnings basis and not listed on the 
 17.6   records of the county auditor or the county treasurer, the 
 17.7   owners must be ascertained by any practicable means and mailed 
 17.8   notice given them as herein provided.  Failure to give mailed 
 17.9   notice or any defects in the notice does not invalidate the 
 17.10  proceedings of the board. 
 17.11     Subd. 3.  [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 
 17.12  adoption of the resolution calling for a hearing under this 
 17.13  section, the board shall secure from the district engineer or 
 17.14  some other competent person of the board's selection a report 
 17.15  advising it in a preliminary way as to whether the proposed 
 17.16  project is feasible and whether it should be made as proposed or 
 17.17  in connection with some other project and the estimated costs of 
 17.18  the project as recommended.  No error or omission in the report 
 17.19  invalidates the proceeding.  The board may also take other steps 
 17.20  before the hearing, as will in its judgment provide helpful 
 17.21  information in determining the desirability and feasibility of 
 17.22  the project, including but not limited to preparation of plans 
 17.23  and specifications and advertisement for bids on them.  The 
 17.24  hearing may be adjourned from time to time and a resolution 
 17.25  ordering the project may be adopted at any time within six 
 17.26  months after the date of hearing.  In ordering the project the 
 17.27  board may reduce but not increase the extent of the project as 
 17.28  stated in the notice of hearing and shall find that the project 
 17.29  as ordered is in accordance with the comprehensive plan and 
 17.30  program adopted by the board pursuant to section 5. 
 17.31     Subd. 4.  [EMERGENCY ACTION.] If the board by resolution 
 17.32  adopted by the affirmative vote of not less than two-thirds of 
 17.33  its members determines that an emergency exists requiring the 
 17.34  immediate purchase of materials or supplies or the making of 
 17.35  emergency repairs, it may order the purchase of those supplies 
 17.36  and materials and the making of the repairs before any hearing 
 18.1   required under this section.  The board must set as early a date 
 18.2   as practicable for the hearing at the time it declares the 
 18.3   emergency.  All other provisions of this section must be 
 18.4   followed in giving notice of and conducting the hearing.  
 18.5   Nothing in this subdivision prevents the board or its agents 
 18.6   from purchasing maintenance supplies or incurring maintenance 
 18.7   costs without regard to the requirements of this section. 
 18.8      Subd. 5.  [POWER OF THE BOARD TO SPECIALLY ASSESS.] The 
 18.9   board may specially assess all or any part of the costs of 
 18.10  acquisition and betterment as provided in this subdivision, of 
 18.11  any project ordered under this section.  The special assessments 
 18.12  must be levied in accordance with Minnesota Statutes, sections 
 18.13  429.051 to 429.081, except as otherwise provided in this 
 18.14  subdivision.  No other provisions of Minnesota Statutes, chapter 
 18.15  429, apply.  For purposes of levying the special assessments, 
 18.16  the hearing on the project required in subdivision 1 serves as 
 18.17  the hearing on the making of the original improvement provided 
 18.18  for by Minnesota Statutes, section 429.051.  The area assessed 
 18.19  may be less than but may not exceed the area proposed to be 
 18.20  assessed as stated in the notice of hearing on the project 
 18.21  provided for in subdivision 2. 
 18.22     Sec. 13.  [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 
 18.23     Subdivision 1.  [BUDGET ANTICIPATION CERTIFICATES OF 
 18.24  INDEBTEDNESS.] At any time after adoption of its annual budget 
 18.25  and in anticipation of the collection of tax and other revenues 
 18.26  estimated and set forth by the board in the budget, except in 
 18.27  the case of deficiency taxes levied under this subdivision and 
 18.28  taxes levied for the payment of certificates issued under 
 18.29  subdivision 2, the board may, by resolution, authorize the 
 18.30  issuance, negotiation, and sale, in accordance with subdivision 
 18.31  4 in the form and manner and upon terms it determines, of its 
 18.32  negotiable general obligation certificates of indebtedness in 
 18.33  aggregate principal amounts not exceeding 50 percent of the 
 18.34  total amount of tax collections and other revenues, and maturing 
 18.35  not later than three months after the close of the budget year 
 18.36  in which issued.  The proceeds of the sale of the certificates 
 19.1   must be used solely for the purposes for which the tax 
 19.2   collections and other revenues are to be expended under the 
 19.3   budget. 
 19.4      All the tax collections and other revenues included in the 
 19.5   budget for the budget year, after the expenditure of the tax 
 19.6   collections and other revenues in accordance with the budget, 
 19.7   must be irrevocably pledged and appropriated to a special fund 
 19.8   to pay the principal and interest on the certificates when due.  
 19.9   If for any reason the tax collections and other revenues are 
 19.10  insufficient to pay the certificates and interest when due, the 
 19.11  board shall levy a tax in the amount of the deficiency on all 
 19.12  taxable property in the district and shall appropriate this 
 19.13  amount when received to the special fund. 
 19.14     Subd. 2.  [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 
 19.15  any budget year the receipts of tax and other revenues should 
 19.16  for some unforeseen cause become insufficient to pay the board's 
 19.17  current expenses, or if any public emergency should subject it 
 19.18  to the necessity of making extraordinary expenditures, the board 
 19.19  may by resolution authorize the issuance, negotiation, and sale, 
 19.20  in accordance with subdivision 4 in the form and manner and upon 
 19.21  the terms and conditions it determines, of its negotiable 
 19.22  general obligation certificates of indebtedness in an amount 
 19.23  sufficient to meet the deficiency.  The board shall levy on all 
 19.24  taxable property in the district a tax sufficient to pay the 
 19.25  certificates and interest on the certificates and shall 
 19.26  appropriate all collections of the tax to a special fund created 
 19.27  for the payment of the certificates and the interest on them.  
 19.28  Certificates issued under this subdivision mature not later than 
 19.29  April 1 in the year following the year in which the tax is 
 19.30  collectible. 
 19.31     Subd. 3.  [GENERAL OBLIGATION BONDS.] The board may by 
 19.32  resolution authorize the issuance of general obligation bonds 
 19.33  for the acquisition or betterment of any part of the district 
 19.34  disposal system, including but without limitation the payment of 
 19.35  interest during construction and for a reasonable period 
 19.36  thereafter, or for the refunding of outstanding bonds, 
 20.1   certificates of indebtedness, or judgments.  The board shall 
 20.2   pledge its full faith and credit and taxing power for the 
 20.3   payment of the bonds and shall provide for the issuance and sale 
 20.4   and for the security of the bonds in the manner provided in 
 20.5   Minnesota Statutes, chapter 475.  The board has the same powers 
 20.6   and duties as a municipality issuing bonds under that law, 
 20.7   except that no election is required and the debt limitations of 
 20.8   Minnesota Statutes, chapter 475, do not apply to the bonds.  The 
 20.9   board may also pledge for the payment of the bonds and deduct 
 20.10  from the amount of any tax levy required under Minnesota 
 20.11  Statutes, section 475.61, subdivision 1, and any revenues 
 20.12  receivable under any state and federal grants anticipated by the 
 20.13  board and may covenant to refund the bonds if and when and to 
 20.14  the extent that for any reason the revenues, together with other 
 20.15  funds available and appropriated for that purpose, are not 
 20.16  sufficient to pay all principal and interest due or about to 
 20.17  become due, provided that the revenues have not been anticipated 
 20.18  by the issuance of certificates under subdivision 1. 
 20.19     Subd. 4.  [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.] 
 20.20  Certificates issued under subdivisions 1 and 2 may be issued and 
 20.21  sold by negotiation, without public sale, and may be sold at a 
 20.22  price equal to the percentage of the par value of the 
 20.23  certificates, plus accrued interest, and bearing interest at the 
 20.24  rate determined by the board.  An election is not required to 
 20.25  authorize the issuance of the certificates.  The certificates 
 20.26  must bear the same rate of interest after maturity as before and 
 20.27  the full faith and credit and taxing power of the board must be 
 20.28  pledged to the payment of the certificates. 
 20.29     Sec. 14.  [DEPOSITORIES.] 
 20.30     The board shall designate one or more national or state 
 20.31  banks, or trust companies authorized to do a banking business, 
 20.32  as official depositories for money of the board, and shall 
 20.33  require the treasurer to deposit all or a part of the money in 
 20.34  those institutions.  The designation must be in writing and set 
 20.35  forth all the terms and conditions upon which the deposits are 
 20.36  made, and must be signed by the chair and treasurer and made a 
 21.1   part of the minutes of the board. 
 21.2      Sec. 15.  [MONEY, ACCOUNTS, AND INVESTMENTS.] 
 21.3      Subdivision 1.  [RECEIPT AND APPLICATION.] Money received 
 21.4   by the board must be deposited or invested by the treasurer and 
 21.5   disposed of as the board may direct in accordance with its 
 21.6   budget; provided that any money that has been pledged or 
 21.7   dedicated by the board to the payment of obligations or interest 
 21.8   on the obligations or expenses incident thereto, or for any 
 21.9   other specific purpose authorized by law, must be paid by the 
 21.10  treasurer into the fund to which it has been pledged. 
 21.11     Subd. 2.  [FUNDS AND ACCOUNTS.] (a) The board's treasurer 
 21.12  shall establish funds and accounts as may be necessary or 
 21.13  convenient to handle the receipts and disbursements of the board 
 21.14  in an orderly fashion. 
 21.15     (b) The funds and accounts must be audited annually by a 
 21.16  certified public accountant at the expense of the district. 
 21.17     Subd. 3.  [DEPOSIT AND INVESTMENT.] The money on hand in 
 21.18  those funds and accounts may be deposited in the official 
 21.19  depositories of the board or invested as provided in this 
 21.20  subdivision.  Any amount not currently needed or required by law 
 21.21  to be kept in cash on deposit may be invested in obligations 
 21.22  authorized for the investment of municipal sinking funds by 
 21.23  Minnesota Statutes, section 475.66.  The money may also be held 
 21.24  under certificates of deposit issued by any official depository 
 21.25  of the board. 
 21.26     Subd. 4.  [BOND PROCEEDS.] The use of proceeds of all bonds 
 21.27  issued by the board for the acquisition and betterment of the 
 21.28  district disposal system, and the use, other than investment, of 
 21.29  all money on hand in any sinking fund or funds of the board, is 
 21.30  governed by the provisions of Minnesota Statutes, chapter 475, 
 21.31  the provisions of this act, and the provisions of resolutions 
 21.32  authorizing the issuance of the bonds.  When received, the bond 
 21.33  proceeds must be transferred to the treasurer of the board for 
 21.34  safekeeping, investment, and payment of the costs for which they 
 21.35  were issued. 
 21.36     Subd. 5.  [AUDIT.] The board shall provide for and pay the 
 22.1   cost of an independent annual audit of its official books and 
 22.2   records by the state auditor or a public accountant authorized 
 22.3   to perform that function under Minnesota Statutes, chapter 6. 
 22.4      Sec. 16.  [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES 
 22.5   OUTSIDE THE JURISDICTION OF THE BOARD.] 
 22.6      (a) The board may contract with the United States or any 
 22.7   agency of the federal government, any state or its agency, or 
 22.8   any municipal or public corporation, governmental subdivision or 
 22.9   agency or political subdivision in any state, outside the 
 22.10  jurisdiction of the board, for furnishing services to those 
 22.11  entities, including but not limited to planning for and the 
 22.12  acquisition, betterment, operation, administration, and 
 22.13  maintenance of any or all interceptors, treatment works, and 
 22.14  local water and sanitary sewer facilities.  The board may 
 22.15  include as one of the terms of the contract that the entity must 
 22.16  pay to the board an amount agreed upon as a reasonable estimate 
 22.17  of the proportionate share properly allocable to the entity of 
 22.18  costs of acquisition, betterment, and debt service previously 
 22.19  allocated in the district.  When payments are made by entities 
 22.20  to the board, they must be applied in reduction of the total 
 22.21  amount of costs thereafter allocated in the district, on an 
 22.22  equitable basis as the board deems to be in the best interests 
 22.23  of the district, applying so far as practicable and appropriate 
 22.24  the criteria set forth in section 10, subdivision 2.  A 
 22.25  municipality in the state of Minnesota may enter into a contract 
 22.26  and perform all acts and things required as a condition or 
 22.27  consideration therefor consistent with the purposes of this act, 
 22.28  whether or not included among the powers otherwise granted to 
 22.29  the municipality by law or charter. 
 22.30     (b) The board shall contract with a qualified entity to 
 22.31  make necessary inspections of the district facilities, and to 
 22.32  otherwise process or assist in processing any of the work of the 
 22.33  district. 
 22.34     Sec. 17.  [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES, 
 22.35  AND EQUIPMENT.] 
 22.36     When the board orders a project involving the acquisition 
 23.1   or betterment of a part of the district disposal system, it 
 23.2   shall cause plans and specifications of the project to be made, 
 23.3   or if previously made, to be modified, if necessary, and to be 
 23.4   approved by the agency if required, and after any required 
 23.5   approval by the agency, one or more contracts for work and 
 23.6   materials called for by the plans and specification may be 
 23.7   awarded as provided in Minnesota Statutes, section 471.345. 
 23.8      Sec. 18.  [PROPERTY EXEMPT FROM TAXATION.] 
 23.9      Any properties, real or personal, owned, leased, 
 23.10  controlled, used, or occupied by the water and sanitary sewer 
 23.11  board for any purpose under this act are declared to be 
 23.12  acquired, owned, leased, controlled, used, and occupied for 
 23.13  public, governmental, and municipal purposes, and are exempt 
 23.14  from taxation by the state or any political subdivision of the 
 23.15  state.  The properties are subject to special assessments levied 
 23.16  by a political subdivision for a local improvement in amounts 
 23.17  proportionate to and not exceeding the special benefit received 
 23.18  by the properties from the improvement. 
 23.19     Sec. 19.  [RELATION TO EXISTING LAWS.] 
 23.20     This act must be given full effect notwithstanding the 
 23.21  provisions of any law or charter inconsistent with this act.  
 23.22  The powers conferred on the board under this act do not in any 
 23.23  way diminish or supersede the powers conferred on the agency by 
 23.24  Minnesota Statutes, chapters 115 to 116. 
 23.25     Sec. 20.  [EFFECTIVE DATE.] 
 23.26     This act is effective the day after a certificate of 
 23.27  approval under Minnesota Statutes, section 645.021, subdivision 
 23.28  3, is filed by the last of the four local governmental units 
 23.29  subject to the act.