1.1 	A bill for an act
1.2 	relating to local government; appropriating money for a grant to the city of Hugo 
1.3 	to study the feasibility of a regional sewer and water system.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. HUGO; REGIONAL SEWER AND WATER SYSTEM FEASIBILITY 
1.6 	STUDY.
 1.7 	(a) $75,000 is appropriated from the general fund to the Public Facilities Authority 
1.8 	in fiscal year 2014, and available until June 30, 2015, for a grant to the city of Hugo to 
1.9 	study the feasibility of establishing a regional sewer, water, or sewer and water system. 
1.10 	The appropriation is not available until the authority determines that a joint powers 
1.11 	agreement between Hugo and at least four of the following five cities has been executed: 
1.12 	Centerville, Circle Pines, Columbus, Lino Lakes, and Lexington. The joint powers 
1.13 	agreement must include, at a minimum:
1.14 	(1) that each participating city has committed to contributing $7,500 toward the 
1.15 	cost of the feasibility study; and
1.16 	(2) how the study will be conducted and who will be responsible for oversight of 
1.17 	the study.
1.18 	(b) The feasibility study must evaluate:
1.19 	(1) the costs, benefits, sustainability, and potential for growth in the existing separate 
1.20 	water, sewer, or water and sewer systems, including environmental costs and benefits;
1.21 	(2) the costs, benefits, advantages, and disadvantages of operating a regional water 
1.22 	supply system, a regional sanitary sewer system, or both;
1.23 	(3) the infrastructure needed to be improved, added, or replaced to establish a 
1.24 	regional system, the estimated capital costs, and potential financing sources;
2.1 	(4) the estimated operating costs of a regional system and the fee structure needed to 
2.2 	pay for the regional system's operations, maintenance, and periodic capital improvements;
2.3 	(5) the benefits to aquifer management and the sustainability of water supply for 
2.4 	the cities; and
2.5 	(6) any other information determined by the joint powers entity to be necessary 
2.6 	or useful.
2.7 	The joint powers entity must consult with state and regional agencies with expertise in 
2.8 	water and wastewater infrastructure funding and construction for advice on what should 
2.9 	be included in the feasibility study. 
2.10 	(c) Hugo or the joint powers entity shall report to the chairs and ranking minority 
2.11 	members of the legislative committees with jurisdiction over water and wastewater 
2.12 	treatment infrastructure and funding on the results of the feasibility study and any 
2.13 	recommendations for evaluating and implementing a regional water and wastewater 
2.14 	system in other areas of the state. The report must be submitted by January 15 of the year 
2.15 	following completion of the feasibility study.