1.1                          A bill for an act 
  1.2             relating to the metropolitan council; providing for 
  1.3             the external use of existing service capacity; 
  1.4             modifying the depreciation rate when assuming 
  1.5             ownership of existing facilities; repealing obsolete 
  1.6             rules; amending Minnesota Statutes 2000, sections 
  1.7             473.129, by adding a subdivision; 473.511, subdivision 
  1.8             4; repealing Minnesota Rules, parts 5900.0100; 
  1.9             5900.0200; 5900.0300; 5900.0400; 5900.0500; 5900.0600; 
  1.10            5900.0700; 5900.0800; 5900.0900; 5900.1000; 5900.1100; 
  1.11            5900.1200; 5900.1300; 5900.1400; 5900.1500; 5900.1600; 
  1.12            5900.1700; 5900.1800; 5900.1900; 5900.2000; 5900.2100; 
  1.13            5900.2200; 5900.2300; 5900.2400; 5900.2500; 5900.2600; 
  1.14            5900.2700; 5900.2800; 5900.2900; 5900.3000; 5900.3100; 
  1.15            5900.3200; 5900.3300; 5900.3400; 5900.3500; 5900.3600; 
  1.16            5900.3700; 5900.3800; 5900.3900; 5900.4000; 5900.4100; 
  1.17            5900.4200; 5900.4300; 5900.4400; 5900.4500; 5900.4600; 
  1.18            5900.4700; 5900.4800; 5900.4900; 5900.5000; 5900.5100; 
  1.19            5900.5200; 5900.5300; 5900.5400; 5900.5500; 5900.5600; 
  1.20            5900.5700; 5900.5800; 5900.5900; 5900.6000; 5900.6100; 
  1.21            5900.6200; 5900.6300; 5900.6400; 5900.6500; 5900.6800; 
  1.22            5900.6900; 5900.7000; 5900.7100; 5900.7200; 5900.7300; 
  1.23            5900.7400; 5900.7500. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  Minnesota Statutes 2000, section 473.129, is 
  1.26  amended by adding a subdivision to read: 
  1.27     Subd. 11.  [EXTERNAL USE OF EXISTING SERVICE CAPACITY.] For 
  1.28  purposes of this subdivision, "service capacity" means an 
  1.29  existing service or operation carried out by the council as 
  1.30  authorized by law, or existing council real or personal 
  1.31  property, for which the council on a temporary basis has 
  1.32  capacity available for use outside the council.  Notwithstanding 
  1.33  other law, the council may enter into arrangements to provide 
  1.34  service capacity to other governmental entities or the private 
  2.1   sector on the terms and conditions it considers appropriate.  In 
  2.2   providing service capacity, the council:  (1) may not commit to 
  2.3   providing the service capacity for a period in excess of five 
  2.4   years; and (2) must receive compensation for providing the 
  2.5   service capacity in at least an amount sufficient to recover the 
  2.6   actual costs of providing the service capacity including, but 
  2.7   not limited to, the costs of materials and supplies, employee 
  2.8   salaries and benefits, and administrative overhead. 
  2.9      Sec. 2.  Minnesota Statutes 2000, section 473.511, 
  2.10  subdivision 4, is amended to read: 
  2.11     Subd. 4.  [CURRENT VALUE OF EXISTING FACILITIES.] When the 
  2.12  council assumes the ownership of any existing interceptors or 
  2.13  treatment works as provided in subdivision 2 or 3, the local 
  2.14  government unit or units which paid part or all of the cost of 
  2.15  such facility, directly or pursuant to contracts for 
  2.16  reimbursement of costs, shall be entitled to receive a credit 
  2.17  against amounts to be allocated to them under section 473.517, 
  2.18  which may be spread over such period not exceeding 30 years as 
  2.19  the council shall determine, and an additional credit equal to 
  2.20  interest on the unused credit balance from time to time at the 
  2.21  rate of four percent per annum.  The amount of such credit shall 
  2.22  equal the current value of the facility computed by the council 
  2.23  in the manner provided in this subdivision at the time the 
  2.24  council acquires it.  The original cost of a facility shall be 
  2.25  computed as the total actual costs of constructing it, including 
  2.26  engineering, legal, and administrative costs, less any part of 
  2.27  it paid from federal or state funds and less the principal 
  2.28  amount of any then outstanding bonds which were issued to 
  2.29  finance its construction.  The original cost shall be multiplied 
  2.30  by a factor equal to a current cost index divided by the same 
  2.31  cost index at the time of construction, to determine replacement 
  2.32  cost.  The cost indices used shall be the Engineering News 
  2.33  Record Construction Cost Indices for facilities or parts thereof 
  2.34  completed before 1930, and the United States Public Health 
  2.35  Service Federal Water Pollution Control Values for Sewer and 
  2.36  Treatment Plant Construction, as applied to facilities or parts 
  3.1   thereof completed in or after 1930.  The current value of the 
  3.2   facility shall be the replacement cost depreciated by 2.50 4.00 
  3.3   percent per annum from the date of construction of treatment 
  3.4   works, 2.50 percent per annum from the date of construction of 
  3.5   interceptors which operate under pressure, and 1.25 percent per 
  3.6   annum from the date of construction of interceptors which do not 
  3.7   operate under pressure; and decreased further by a reasonable 
  3.8   allowance for obsolescence if the council determines that the 
  3.9   facility or any part thereof will not be useful for council 
  3.10  purposes for at least the remaining period required to 
  3.11  depreciate it fully, assuming no salvage value.  The current 
  3.12  value of each such facility shall be credited to each local 
  3.13  government unit in proportion to the amount of the construction 
  3.14  cost paid by that unit, as determined by the council, taking 
  3.15  into account reimbursements previously made under contracts 
  3.16  between any of the local government units.  The council shall 
  3.17  prepare an itemized statement of the amount of credit each local 
  3.18  government unit is entitled to receive under this subdivision, 
  3.19  and the years and amounts of installments of principal and 
  3.20  interest thereon, and shall cause it to be mailed or delivered 
  3.21  to the governing body of each local government unit concerned.  
  3.22  All credits allowed under this subdivision shall be used to 
  3.23  finance current costs allocated to the local government unit by 
  3.24  the council or for other sewer costs, and the credits shall not 
  3.25  be considered as proceeds from the sale of municipal property so 
  3.26  as to permit their use for other purposes.  At its option, the 
  3.27  council may make a periodic payment to each local government 
  3.28  unit in the amount of the credits provided pursuant to this 
  3.29  subdivision, in lieu of a credit against amounts to be allocated 
  3.30  to such local government units under section 473.517. 
  3.31     Sec. 3.  [REPEALER.] 
  3.32     Minnesota Rules, parts 5900.0100; 5900.0200; 5900.0300; 
  3.33  5900.0400; 5900.0500; 5900.0600; 5900.0700; 5900.0800; 
  3.34  5900.0900; 5900.1000; 5900.1100; 5900.1200; 5900.1300; 
  3.35  5900.1400; 5900.1500; 5900.1600; 5900.1700; 5900.1800; 
  3.36  5900.1900; 5900.2000; 5900.2100; 5900.2200; 5900.2300; 
  4.1   5900.2400; 5900.2500; 5900.2600; 5900.2700; 5900.2800; 
  4.2   5900.2900; 5900.3000; 5900.3100; 5900.3200; 5900.3300; 
  4.3   5900.3400; 5900.3500; 5900.3600; 5900.3700; 5900.3800; 
  4.4   5900.3900; 5900.4000; 5900.4100; 5900.4200; 5900.4300; 
  4.5   5900.4400; 5900.4500; 5900.4600; 5900.4700; 5900.4800; 
  4.6   5900.4900; 5900.5000; 5900.5100; 5900.5200; 5900.5300; 
  4.7   5900.5400; 5900.5500; 5900.5600; 5900.5700; 5900.5800; 
  4.8   5900.5900; 5900.6000; 5900.6100; 5900.6200; 5900.6300; 
  4.9   5900.6400; 5900.6500; 5900.6800; 5900.6900; 5900.7000; 
  4.10  5900.7100; 5900.7200; 5900.7300; 5900.7400; and 5900.7500, are 
  4.11  repealed.  
  4.12     Sec. 4.  [APPLICATION.] 
  4.13     Sections 1 and 2 apply in the counties of Anoka, Carver, 
  4.14  Dakota, Hennepin, Ramsey, Scott, and Washington.  
  4.15     Sec. 5.  [EFFECTIVE DATE.] 
  4.16     Section 1 is effective July 1, 2002.  Section 2 is 
  4.17  effective on the day following final enactment and applies to 
  4.18  facilities of which the council assumes ownership on or after 
  4.19  the effective date.  Section 3 is effective on the day following 
  4.20  final enactment.