as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to sanitary sewer districts; establishing the 1.3 central iron range sanitary sewer district. 1.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.5 Section 1. [CENTRAL IRON RANGE SANITARY SEWER DISTRICT; 1.6 DEFINITIONS.] 1.7 Subdivision 1. [APPLICATION.] In sections 1 to 19, the 1.8 definitions in this section apply. 1.9 Subd. 2. [DISTRICT.] "Central iron range sanitary sewer 1.10 district" and "district" mean the area over which the central 1.11 iron range sanitary sewer board has jurisdiction, which includes 1.12 the area within the cities of Hibbing, Chisholm, Buhl, and 1.13 Kinney; the townships of Balkan and Great Scott; and the 1.14 territory occupied by Ironworld. The district shall precisely 1.15 describe the area over which it has jurisdiction by a metes and 1.16 bounds description in the comprehensive plan adopted pursuant to 1.17 section 5. 1.18 Subd. 3. [BOARD.] "Sanitary sewer board" or "board" means 1.19 the central iron range sanitary sewer board established for the 1.20 district as provided in subdivision 2. 1.21 Subd. 4. [PERSON.] "Person" means an individual, 1.22 partnership, corporation, limited liability company, 1.23 cooperative, or other organization or entity, public or private. 1.24 Subd. 5. [LOCAL GOVERNMENTAL UNITS.] "Local governmental 2.1 units" or "governmental units" means the iron range resources 2.2 and rehabilitation board, the cities of Hibbing, Chisholm, Buhl, 2.3 and Kinney, and the townships of Balkan and Great Scott. 2.4 Subd. 6. [ACQUISITION; BETTERMENT.] "Acquisition" and 2.5 "betterment" have the meanings given in Minnesota Statutes, 2.6 section 475.51. 2.7 Subd. 7. [AGENCY.] "Agency" means the Minnesota pollution 2.8 control agency created in Minnesota Statutes, section 116.02. 2.9 Subd. 8. [SEWAGE.] "Sewage" means all liquid or 2.10 water-carried waste products from whatever sources derived, 2.11 together with any groundwater infiltration and surface water as 2.12 may be present. 2.13 Subd. 9. [POLLUTION OF WATER; SEWER SYSTEM.] "Pollution of 2.14 water" and "sewer system" have the meanings given in Minnesota 2.15 Statutes, section 115.01. 2.16 Subd. 10. [TREATMENT WORKS; DISPOSAL SYSTEM.] "Treatment 2.17 works" and "disposal system" have the meanings given in 2.18 Minnesota Statutes, section 115.01. 2.19 Subd. 11. [INTERCEPTOR.] "Interceptor" means a sewer and 2.20 its necessary appurtenances, including but not limited to mains, 2.21 pumping stations, and sewage flow-regulating and flow-measuring 2.22 stations, that is: 2.23 (1) designed for or used to conduct sewage originating in 2.24 more than one local governmental unit; 2.25 (2) designed or used to conduct all or substantially all 2.26 the sewage originating in a single local governmental unit from 2.27 a point of collection in that unit to an interceptor or 2.28 treatment works outside that unit; or 2.29 (3) determined by the board to be a major collector of 2.30 sewage used or designed to serve a substantial area in the 2.31 district. 2.32 Subd. 12. [DISTRICT DISPOSAL SYSTEM.] "District disposal 2.33 system" means any and all interceptors or treatment works owned, 2.34 constructed, or operated by the board unless designated by the 2.35 board as local water and sanitary sewer facilities. 2.36 Subd. 13. [MUNICIPALITY.] "Municipality" means any town or 3.1 home rule charter or statutory city. 3.2 Subd. 14. [TOTAL COSTS.] "Total costs of acquisition and 3.3 betterment" and "costs of acquisition and betterment" mean all 3.4 acquisition and betterment expenses permitted to be financed out 3.5 of stopped bond proceeds issued in accordance with section 13, 3.6 whether or not the expenses are in fact financed out of the bond 3.7 proceeds. 3.8 Subd. 15. [CURRENT COSTS.] "Current costs of acquisition, 3.9 betterment, and debt service" means interest and principal 3.10 estimated to be due during the budget year on bonds issued to 3.11 finance costs of acquisition and betterment and all other costs 3.12 of acquisition and betterment estimated to be paid during the 3.13 year from funds other than bond proceeds and federal or state 3.14 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. [SANITARY SEWER BOARD.] 3.19 Subdivision 1. [ESTABLISHMENT.] A sanitary sewer district 3.20 is established in the cities of Hibbing, Chisholm, Buhl, and 3.21 Kinney; the townships of Balkan and Great Scott; and the 3.22 territory occupied by Ironworld, to be known as the central iron 3.23 range sanitary sewer district. The sewer district is under the 3.24 control and management of the central iron range sanitary sewer 3.25 board. The board is established as a public corporation and 3.26 political subdivision of the state with perpetual succession and 3.27 all the rights, powers, privileges, immunities, and duties 3.28 granted to or imposed upon a municipal corporation, as provided 3.29 in sections 1 to 19. 3.30 Subd. 2. [MEMBERS AND SELECTION.] The board is composed of 3.31 13 members selected as provided in this subdivision. Each of 3.32 the town boards of the townships shall meet to appoint one 3.33 resident to the sewer board. Four members must be selected by 3.34 the governing body of the city of Hibbing. Three members must 3.35 be selected by the governing body of the city of Chisholm. Two 3.36 members must be selected by the governing body of the city of 4.1 Buhl. One member must be selected by the governing body of the 4.2 city of Kinney. One member must be selected by the iron range 4.3 resources and rehabilitation board on behalf of Ironworld. Each 4.4 member has one vote. The first terms are as follows: four for 4.5 one year, four for two years, and five for three years, fixed by 4.6 lot at the district's first meeting. Thereafter, all terms are 4.7 for three years. 4.8 Subd. 3. [TIME LIMITS FOR SELECTION.] The board members 4.9 must be selected as provided in subdivision 2 within 60 days 4.10 after sections 1 to 19 are effective. The successor to each 4.11 board member must be selected at any time within 60 days before 4.12 the expiration of the member's term in the same manner as the 4.13 predecessor was selected. A vacancy on the board must be filled 4.14 within 60 days after it occurs. 4.15 Subd. 4. [VACANCIES.] If the office of a board member 4.16 becomes vacant, the vacancy must be filled for the unexpired 4.17 term in the manner provided for selection of the member who 4.18 vacated the office. The office is considered vacant under the 4.19 conditions specified in Minnesota Statutes, section 351.02. 4.20 Subd. 5. [REMOVAL.] A board member may be removed by the 4.21 unanimous vote of the governing body appointing the member, with 4.22 or without cause, or for malfeasance or nonfeasance in the 4.23 performance of official duties as provided by Minnesota 4.24 Statutes, sections 351.14 to 351.23. 4.25 Subd. 6. [CERTIFICATES OF SELECTION; OATH OF OFFICE.] A 4.26 certificate of selection of every board member selected under 4.27 subdivision 2 stating the term for which selected, must be made 4.28 by the respective town clerks. The certificates, with the 4.29 approval appended by other authority, if required, must be filed 4.30 with the secretary of state. Counterparts of the certificates 4.31 must be furnished to the board member and the secretary of the 4.32 board. Each member shall qualify by taking and subscribing the 4.33 oath of office prescribed by the Minnesota Constitution, article 4.34 V, section 6. The oath, duly certified by the official 4.35 administering the same, must be filed with the secretary of 4.36 state and the secretary of the board. 5.1 Subd. 7. [BOARD MEMBERS' COMPENSATION.] Each board member, 5.2 except the chair, may be paid a per diem compensation in 5.3 accordance with the board's bylaws for meetings and for other 5.4 services as are specifically authorized by the board, not to 5.5 exceed the per diem amount under Minnesota Statutes, section 5.6 15.0575, subdivision 3, and not to exceed $1,000 in any one year. 5.7 The chair may be paid a per diem compensation in accordance with 5.8 the board's bylaws for meetings and for other services 5.9 specifically authorized by the board, not to exceed the per diem 5.10 amount under Minnesota Statutes, section 15.0575, subdivision 3, 5.11 and not to exceed $1,500 in any one year. All members of the 5.12 board must be reimbursed for all reasonable and necessary 5.13 expenses actually incurred in the performance of duties. 5.14 Sec. 3. [GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION 5.15 OF BOARD.] 5.16 Subdivision 1. [ORGANIZATION; OFFICERS; MEETINGS; 5.17 SEAL.] After the selection and qualification of all board 5.18 members, the board must meet to organize the board at the call 5.19 of any two board members, upon seven days' notice by registered 5.20 mail to the remaining board members at a time and place within 5.21 the district specified in the notice. A majority of the members 5.22 is a quorum at that meeting and all other meetings of the board, 5.23 but a lesser number may meet and adjourn from time to time and 5.24 compel the attendance of absent members. At the first meeting 5.25 the board shall select its officers and conduct other 5.26 organizational business as may be necessary. Thereafter the 5.27 board shall meet regularly at the time and place that the board 5.28 designates by resolution. Special meetings may be held at any 5.29 time upon call of the chair or any two members, upon written 5.30 notice sent by mail to each member at least three days before 5.31 the meeting, or upon other notice as the board by resolution may 5.32 provide, or without notice if each member is present or files 5.33 with the secretary a written consent to the meeting either 5.34 before or after the meeting. Except as otherwise provided in 5.35 sections 1 to 19, any action within the authority of the board 5.36 may be taken by the affirmative vote of a majority of the board 6.1 and may be taken by regular or adjourned regular meeting or at a 6.2 duly held special meeting, but in any case only if a quorum is 6.3 present. Meetings of the board must be open to the public. The 6.4 board may adopt a seal, which must be officially and judicially 6.5 noticed, to authenticate instruments executed by its authority, 6.6 but omission of the seal does not affect the validity of any 6.7 instrument. 6.8 Subd. 2. [CHAIR.] The board shall elect a chair from its 6.9 membership. The term of the first chair of the board expires on 6.10 January 1, 2004, and the terms of successor chairs expire on 6.11 January 1 of each succeeding year. The chair shall preside at 6.12 all meetings of the board, if present, and shall perform all 6.13 other duties and functions usually incumbent upon such an 6.14 officer, and all administrative functions assigned to the chair 6.15 by the board. The board shall elect a vice chair from its 6.16 membership to act for the chair during temporary absence or 6.17 disability. 6.18 Subd. 3. [SECRETARY AND TREASURER.] The board shall select 6.19 persons who may, but need not be, members of the board, to act 6.20 as its secretary and treasurer. The two offices may be combined. 6.21 The secretary and treasurer shall hold office at the pleasure of 6.22 the board, subject to the terms of any contract of employment 6.23 that the board may enter into with the secretary or treasurer. 6.24 The secretary shall record the minutes of all meetings of the 6.25 board, and be the custodian of all books and records of the 6.26 board except those that the board entrusts to the custody of a 6.27 designated employee. The treasurer is the custodian of all 6.28 money received by the board except as the board otherwise 6.29 entrusts to the custody of a designated employee. The board may 6.30 appoint a deputy to perform any and all functions of either the 6.31 secretary or the treasurer. A secretary or treasurer who is not 6.32 a member of the board or a deputy of either does not have the 6.33 right to vote. 6.34 Subd. 4. [PUBLIC EMPLOYEES.] The executive director, if 6.35 any, and other persons, if any, employed by the district are 6.36 public employees and have all the rights and duties conferred on 7.1 public employees under Minnesota Statutes, sections 179A.01 to 7.2 179A.25. The board may elect to have employees become members 7.3 of either the public employees retirement association or the 7.4 Minnesota state retirement system. The compensation and 7.5 conditions of employment of the employees must be governed by 7.6 rules applicable to state employees in the classified service 7.7 and to the provisions of Minnesota Statutes, chapter 15A. 7.8 Subd. 5. [PROCEDURES.] The board shall adopt resolutions 7.9 or bylaws establishing procedures for board action, personnel 7.10 administration, keeping records, approving claims, authorizing 7.11 or making disbursements, safekeeping funds, and auditing all 7.12 financial operations of the board. 7.13 Subd. 6. [SURETY BONDS AND INSURANCE.] The board may 7.14 procure surety bonds for its officers and employees, in amounts 7.15 deemed necessary to ensure proper performance of their duties 7.16 and proper accounting for funds in their custody. It may 7.17 procure insurance against risks to property and liability of the 7.18 board and its officers, agents, and employees for personal 7.19 injuries or death and property damage and destruction, in 7.20 amounts deemed necessary or desirable, with the force and effect 7.21 stated in Minnesota Statutes, chapter 466. 7.22 Sec. 4. [GENERAL POWERS OF BOARD.] 7.23 Subdivision 1. [SCOPE.] The board has all powers necessary 7.24 or convenient to discharge the duties imposed upon it by law. 7.25 The powers include those specified in this section, but the 7.26 express grant or enumeration of powers does not limit the 7.27 generality or scope of the grant of powers contained in this 7.28 subdivision. 7.29 Subd. 2. [SUIT.] The board may sue or be sued. 7.30 Subd. 3. [CONTRACT.] The board may enter into any contract 7.31 necessary or proper for the exercise of its powers or the 7.32 accomplishment of its purposes. 7.33 Subd. 4. [GIFTS, GRANTS, LOANS.] The board may accept 7.34 gifts, apply for and accept grants or loans of money or other 7.35 property from the United States, the state, or any person for 7.36 any of its purposes, enter into any agreement required in 8.1 connection with them, and hold, use, and dispose of the money or 8.2 property in accordance with the terms of the gift, grant, loan, 8.3 or agreement relating to it. With respect to loans or grants of 8.4 funds or real or personal property or other assistance from any 8.5 state or federal government or its agency or instrumentality, 8.6 the board may contract to do and perform all acts and things 8.7 required as a condition or consideration for the gift, grant, or 8.8 loan pursuant to state or federal law or regulations, whether or 8.9 not included among the powers expressly granted to the board in 8.10 sections 1 to 19. 8.11 Subd. 5. [COOPERATIVE ACTION.] The board may act under 8.12 Minnesota Statutes, section 471.59, or any other appropriate law 8.13 providing for joint or cooperative action between governmental 8.14 units. 8.15 Subd. 6. [STUDIES AND INVESTIGATIONS.] The board may 8.16 conduct research studies and programs, collect and analyze data, 8.17 prepare reports, maps, charts, and tables, and conduct all 8.18 necessary hearings and investigations in connection with the 8.19 need for, benefits of, design, construction, and operation of 8.20 the district disposal system. 8.21 Subd. 7. [EMPLOYEES, TERMS.] The board may employ on terms 8.22 it deems advisable, persons or firms performing engineering, 8.23 legal, or other services of a professional nature; require any 8.24 employee to obtain and file with it an individual bond or 8.25 fidelity insurance policy; and procure insurance in amounts it 8.26 deems necessary against liability of the board or its officers 8.27 or both, for personal injury or death and property damage or 8.28 destruction, with the force and effect stated in Minnesota 8.29 Statutes, chapter 466, and against risks of damage to or 8.30 destruction of any of its facilities, equipment, or other 8.31 property as it deems necessary. 8.32 Subd. 8. [PROPERTY RIGHTS, POWERS.] By vote of at least 75 8.33 percent of the members of the board, the board may acquire by 8.34 purchase, lease, condemnation, gift, or grant, any real or 8.35 personal property including positive and negative easements and 8.36 water and air rights, and it may construct, enlarge, improve, 9.1 replace, repair, maintain, and operate any interceptor, 9.2 treatment works, or water facility determined to be necessary or 9.3 convenient for the collection and disposal of sewage in the 9.4 district. Any local governmental unit and the commissioners of 9.5 transportation and natural resources are authorized to convey to 9.6 or permit the use of any of the above-mentioned facilities owned 9.7 or controlled by it, subject to the rights of the holders of any 9.8 bonds issued with respect to those facilities, with or without 9.9 compensation, without an election or approval by any other 9.10 governmental unit or agency. All powers conferred by this 9.11 subdivision may be exercised both within or without the district 9.12 as may be necessary for the exercise by the board of its powers 9.13 or the accomplishment of its purposes. By vote of at least 75 9.14 percent of the members of the board, the board may hold, lease, 9.15 convey, or otherwise dispose of the above-mentioned property for 9.16 its purposes upon the terms and in the manner it deems advisable. 9.17 Unless otherwise provided, the right to acquire lands and 9.18 property rights by condemnation may be exercised only in 9.19 accordance with Minnesota Statutes, sections 117.011 to 117.232, 9.20 and applies to any property or interest in the property owned by 9.21 any local governmental unit. Property devoted to an actual 9.22 public use at the time, or held to be devoted to such a use 9.23 within a reasonable time, must not be so acquired unless a court 9.24 of competent jurisdiction determines that the use proposed by 9.25 the board is paramount to the existing use. Except in the case 9.26 of property in actual public use, the board may take possession 9.27 of any property on which condemnation proceedings have been 9.28 commenced at any time after the issuance of a court order 9.29 appointing commissioners for its condemnation. 9.30 Subd. 9. [RELATIONSHIP TO OTHER PROPERTIES.] The board may 9.31 construct or maintain its systems or facilities in, along, on, 9.32 under, over, or through public waters, streets, bridges, 9.33 viaducts, and other public rights-of-way without first obtaining 9.34 a franchise from a county or municipality having jurisdiction 9.35 over them. However, the facilities must be constructed and 9.36 maintained in accordance with the ordinances and resolutions of 10.1 the county or municipality relating to constructing, installing, 10.2 and maintaining similar facilities on public properties and must 10.3 not unnecessarily obstruct the public use of those rights-of-way. 10.4 Subd. 10. [DISPOSAL OF PROPERTY.] By vote of at least 75 10.5 percent of the members of the board, the board may sell, lease, 10.6 or otherwise dispose of any real or personal property acquired 10.7 by it which is no longer required for accomplishment of its 10.8 purposes. The property may be sold in the manner provided by 10.9 Minnesota Statutes, section 469.065, insofar as practical. The 10.10 board may give notice of sale as it deems appropriate. When the 10.11 board determines that any property or any part of the district 10.12 disposal system acquired from a local governmental unit without 10.13 compensation is no longer required but is required as a local 10.14 facility by the governmental unit from which it was acquired, 10.15 the board may by resolution transfer it to that governmental 10.16 unit. 10.17 Subd. 11. [AGREEMENTS WITH OTHER GOVERNMENTAL UNITS.] The 10.18 board may contract with the United States or any agency thereof, 10.19 any state or agency thereof, or any regional public planning 10.20 body in the state with jurisdiction over any part of the 10.21 district, or any other municipal or public corporation, or 10.22 governmental subdivision or agency or political subdivision in 10.23 any state, for the joint use of any facility owned by the board 10.24 or such entity, for the operation by that entity of any system 10.25 or facility of the board, or for the performance on the board's 10.26 behalf of any service, including but not limited to planning, on 10.27 terms as may be agreed upon by the contracting parties. Unless 10.28 designated by the board as a local water and sanitary sewer 10.29 facility, any treatment works or interceptor jointly used, or 10.30 operated on behalf of the board, as provided in this 10.31 subdivision, is deemed to be operated by the board for purposes 10.32 of including those facilities in the district disposal system. 10.33 Sec. 5. [COMPREHENSIVE PLAN.] 10.34 Subdivision 1. [BOARD PLAN AND PROGRAM.] The board shall 10.35 adopt a comprehensive plan for the collection, treatment, and 10.36 disposal of sewage in the district for a designated period the 11.1 board deems proper and reasonable. The board shall prepare and 11.2 adopt subsequent comprehensive plans for the collection, 11.3 treatment, and disposal of sewage in the district for each 11.4 succeeding designated period as the board deems proper and 11.5 reasonable. All comprehensive plans of the district shall be 11.6 subject to the planning and zoning authority of St. Louis county 11.7 and in conformance with all planning and zoning ordinances of 11.8 St. Louis county. The first plan, as modified by the board, and 11.9 any subsequent plan shall take into account the preservation and 11.10 best and most economic use of water and other natural resources 11.11 in the area; the preservation, use, and potential for use of 11.12 lands adjoining waters of the state to be used for the disposal 11.13 of sewage; and the impact the disposal system will have on 11.14 present and future land use in the area affected. The plans 11.15 shall include the general location of needed interceptors and 11.16 treatment works, a description of the area that is to be served 11.17 by the various interceptors and treatment works, a long-range 11.18 capital improvements program, and any other details as the board 11.19 deems appropriate. In developing the plans, the board shall 11.20 consult with persons designated for the purpose by governing 11.21 bodies of any governmental unit within the district to represent 11.22 the entities and shall consider the data, resources, and input 11.23 offered to the board by the entities and any planning agency 11.24 acting on behalf of one or more of the entities. Each plan, 11.25 when adopted, must be followed in the district and may be 11.26 revised as often as the board deems necessary. 11.27 Subd. 2. [COMPREHENSIVE PLANS; HEARING.] Before adopting 11.28 any subsequent comprehensive plan, the board shall hold a public 11.29 hearing on the proposed plan at a time and place in the district 11.30 that it selects. The hearing may be continued from time to 11.31 time. Not less than 45 days before the hearing, the board shall 11.32 publish notice of the hearing in a newspaper having general 11.33 circulation in the district, stating the date, time, and place 11.34 of the hearing, and the place where the proposed plan may be 11.35 examined by any interested person. At the hearing, all 11.36 interested persons must be permitted to present their views on 12.1 the plan. 12.2 Subd. 3. [OPT OUT.] After adopting the first plan, any of 12.3 the local governmental units can elect not to be included within 12.4 the central iron range sanitary sewer district by delivering a 12.5 written resolution of the governing body of the governmental 12.6 unit to the central iron range sanitary sewer district within 60 12.7 days of adoption of the first comprehensive plan. The area of 12.8 said local governmental unit shall then be removed from the 12.9 district. 12.10 Sec. 6. [POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL 12.11 ASSESSMENTS.] 12.12 The central iron range sanitary sewer board, in order to 12.13 implement the powers granted under sections 1 to 19 to 12.14 establish, maintain, and administer the central iron range 12.15 sanitary sewer district upon a vote of at least 75 percent of 12.16 the members of the board, may issue obligations and impose 12.17 special assessments against benefited property within the limits 12.18 of the district benefited by facilities constructed under 12.19 sections 1 to 19 in the manner provided for local governments by 12.20 Minnesota Statutes, chapter 429. 12.21 Sec. 7. [SYSTEM EXPANSION; APPLICATION TO CITIES.] 12.22 The authority of the sanitary sewer board to establish a 12.23 sewer system under this section extends to areas within the 12.24 central iron range sanitary sewer district organized into cities 12.25 when requested by resolution of the governing body of the 12.26 affected city or when ordered by the Minnesota pollution control 12.27 agency after notice and hearing. For the purpose of any 12.28 petition filed or special assessment levied with respect to any 12.29 system, the entire area to be served within a city must be 12.30 treated as if it were owned by a single person, and the 12.31 governing body shall exercise all the rights and be subject to 12.32 all the duties of an owner of the area, and shall have power to 12.33 provide for the payment of all special assessments and other 12.34 charges imposed upon the area with respect to the system by the 12.35 appropriation of money, the collection of service charges, or 12.36 the levy of taxes, which shall be subject to no limitation of 13.1 rate or amount. 13.2 Sec. 8. [SEWAGE COLLECTION AND DISPOSAL; POWERS.] 13.3 Subdivision 1. [POWERS.] In addition to all other powers 13.4 conferred upon the board in sections 1 to 19, it has the powers 13.5 specified in this section. 13.6 Subd. 2. [DISCHARGE OF TREATED SEWAGE.] The board may 13.7 discharge the effluent from any treatment works operated by it 13.8 into any waters of the state, subject to approval of the agency 13.9 if required and in accordance with any effluent or water quality 13.10 standards lawfully adopted by the agency, any interstate agency, 13.11 or any federal agency having jurisdiction. 13.12 Subd. 3. [UTILIZATION OF DISTRICT SYSTEM.] By vote of at 13.13 least 75 percent of the members of the board, the board may 13.14 require any person or local governmental unit to provide for the 13.15 discharge of any sewage, directly or indirectly, into the 13.16 district disposal system, or to connect any disposal system or a 13.17 part of it with the district disposal system wherever reasonable 13.18 opportunity for connection is provided; may regulate the manner 13.19 in which the connections are made; may require any person or 13.20 local governmental unit discharging sewage into the disposal 13.21 system to provide preliminary treatment for it; may prohibit the 13.22 discharge into the district disposal system of any substance 13.23 that it determines will or may be harmful to the system or any 13.24 persons operating it; and may require any local governmental 13.25 unit to discontinue the acquisition, betterment, or operation of 13.26 any facility for the unit's disposal system wherever and so far 13.27 as adequate service is or will be provided by the district 13.28 disposal system. 13.29 Subd. 4. [SYSTEM OF COST RECOVERY TO COMPLY WITH 13.30 APPLICABLE REGULATIONS.] Any charges, connection fees, or other 13.31 cost-recovery techniques imposed on persons discharging sewage 13.32 directly or indirectly into the district disposal system must 13.33 comply with applicable state and federal law, including state 13.34 and federal regulations governing grant applications. 13.35 Sec. 9. [BUDGET.] 13.36 (a) The board shall prepare and adopt, on or before October 14.1 1, 2003, and each year thereafter, a budget showing for the 14.2 following calendar year or other fiscal year determined by the 14.3 board, sometimes referred to in sections 1 to 19 as the budget 14.4 year, estimated receipts of money from all sources, including 14.5 but not limited to payments by each local governmental unit, 14.6 federal or state grants, taxes on property, and funds on hand at 14.7 the beginning of the year, and estimated expenditures for: 14.8 (1) costs of operation, administration, and maintenance of 14.9 the district disposal system; 14.10 (2) cost of acquisition and betterment of the district 14.11 disposal system; and 14.12 (3) debt service, including principal and interest, on 14.13 general obligation bonds and certificates issued pursuant to 14.14 section 13, and any money judgments entered by a court of 14.15 competent jurisdiction. 14.16 (b) Expenditures within these general categories, and any 14.17 other categories as the board may from time to time determine, 14.18 must be itemized in detail as the board prescribes. The board 14.19 and its officers, agents, and employees must not spend money for 14.20 any purpose other than debt service without having set forth the 14.21 expense in the budget nor in excess of the amount set forth in 14.22 the budget for it. No obligation to make an expenditure of the 14.23 above-mentioned type is enforceable except as the obligation of 14.24 the person or persons incurring it. The board may amend the 14.25 budget at any time by transferring from one purpose to another 14.26 any sums except money for debt service and bond proceeds or by 14.27 increasing expenditures in any amount by which actual cash 14.28 receipts during the budget year exceed the total amounts 14.29 designated in the original budget. The creation of any 14.30 obligation under section 13, or the receipt of any federal or 14.31 state grant is a sufficient budget designation of the proceeds 14.32 for the purpose for which it is authorized, and of the tax or 14.33 other revenue pledged to pay the obligation and interest on it, 14.34 whether or not specifically included in any annual budget. 14.35 Sec. 10. [ALLOCATION OF COSTS.] 14.36 Subdivision 1. [DEFINITION OF CURRENT COSTS.] The 15.1 estimated cost of administration, operation, maintenance, and 15.2 debt service of the district disposal system to be paid by the 15.3 board in each fiscal year and the estimated costs of acquisition 15.4 and betterment of the system that are to be paid during the year 15.5 from funds other than state or federal grants and bond proceeds 15.6 and all other previously unallocated payments made by the board 15.7 pursuant to sections 1 to 19 to be allocated in the fiscal year 15.8 are referred to as current costs and must be allocated by the 15.9 board as provided in subdivision 2 in the budget for that year. 15.10 Subd. 2. [METHOD OF ALLOCATION OF CURRENT COSTS.] Current 15.11 costs must be allocated in the district on an equitable basis as 15.12 the board may determine by resolution to be in the best 15.13 interests of the district. The adoption or revision of any 15.14 method of allocation used by the board must be by the 15.15 affirmative vote of at least 75 percent of the members of the 15.16 board. 15.17 Sec. 11. [TAX LEVIES.] 15.18 To accomplish any duty imposed on it the board may, upon a 15.19 vote of at least 75 percent of the members of the board, in 15.20 addition to the powers granted in sections 1 to 19 and in any 15.21 other law or charter, exercise the powers granted any 15.22 municipality by Minnesota Statutes, chapters 117, 412, 429, 475, 15.23 sections 115.46, 444.075, and 471.59, with respect to the area 15.24 in the district. By vote of at least 75 percent of the members 15.25 of the board, the board may levy taxes upon all taxable property 15.26 in the district for all or a part of the amount payable to the 15.27 board, pursuant to section 10, to be assessed and extended as a 15.28 tax upon that taxable property by the county auditor for the 15.29 next calendar year, free from any limit of rate or amount 15.30 imposed by law or charter. The tax must be collected and 15.31 remitted in the same manner as other general taxes. 15.32 Sec. 12. [PUBLIC HEARING AND SPECIAL ASSESSMENTS.] 15.33 Subdivision 1. [PUBLIC HEARING REQUIREMENT ON SPECIFIC 15.34 PROJECT.] Before the board orders any project involving the 15.35 acquisition or betterment of any interceptor or treatment works, 15.36 all or a part of the cost of which will be allocated pursuant to 16.1 section 10 as current costs, the board must hold a public 16.2 hearing on the proposed project. The hearing must be held 16.3 following two publications in a newspaper having general 16.4 circulation in the district, stating the time and place of the 16.5 hearing, the general nature and location of the project, the 16.6 estimated total cost of acquisition and betterment, that portion 16.7 of costs estimated to be paid out of federal and state grants, 16.8 and that portion of costs estimated to be allocated. The 16.9 estimates must be the best available at the time of the meeting 16.10 and if costs exceed the estimate, the project cannot proceed 16.11 until an additional public hearing is held, with notice as 16.12 required at the initial meeting. The two publications must be a 16.13 week apart and the hearing at least three days after the last 16.14 publication. Not less than 45 days before the hearing, notice 16.15 of the hearing must also be mailed to each clerk of all local 16.16 governmental units in the district, but failure to give mailed 16.17 notice or any defects in the notice does not invalidate the 16.18 proceedings. The project may include all or part of one or more 16.19 interceptors or treatment works. A hearing must not be held on 16.20 a project unless the project is within the area covered by the 16.21 comprehensive plan adopted by the board under section 5, except 16.22 that the hearing may be held simultaneously with a hearing on a 16.23 comprehensive plan. A hearing is not required with respect to a 16.24 project, no part of the costs of which are to be allocated as 16.25 the current costs of acquisition, betterment, and debt service. 16.26 Subd. 2. [NOTICE TO BENEFITED PROPERTY OWNERS.] If the 16.27 board proposes to assess against benefited property within the 16.28 district all or any part of the allocable costs of the project 16.29 as provided in subdivision 5, the board shall, not less than two 16.30 weeks before the hearing provided for in subdivision 1, cause 16.31 mailed notice of the hearing to be given to the owner of each 16.32 parcel within the area proposed to be specially assessed and 16.33 shall also give two weeks' published notice of the hearing. The 16.34 notice of hearing must contain the same information provided in 16.35 the notice published by the board pursuant to subdivision 1, and 16.36 a description of the area proposed to be assessed. For the 17.1 purpose of giving mailed notice, owners are those shown to be on 17.2 the records of the county auditor or, in any county where tax 17.3 statements are mailed by the county treasurer, on the records of 17.4 the county treasurer; but other appropriate records may be used 17.5 for this purpose. For properties that are tax exempt or subject 17.6 to taxation on a gross earnings basis and not listed on the 17.7 records of the county auditor or the county treasurer, the 17.8 owners must be ascertained by any practicable means and mailed 17.9 notice given them as herein provided. Failure to give mailed 17.10 notice or any defects in the notice does not invalidate the 17.11 proceedings of the board. 17.12 Subd. 3. [BOARD PROCEEDINGS PERTAINING TO HEARING.] Before 17.13 adoption of the resolution calling for a hearing under this 17.14 section, the board shall secure from the district engineer or 17.15 some other competent person of the board's selection a report 17.16 advising it in a preliminary way as to whether the proposed 17.17 project is feasible and whether it should be made as proposed or 17.18 in connection with some other project and the estimated costs of 17.19 the project as recommended. No error or omission in the report 17.20 invalidates the proceeding. The board may also take other steps 17.21 before the hearing, as will in its judgment provide helpful 17.22 information in determining the desirability and feasibility of 17.23 the project, including but not limited to preparation of plans 17.24 and specifications and advertisement for bids on them. The 17.25 hearing may be adjourned from time to time and a resolution 17.26 ordering the project may be adopted at any time within six 17.27 months after the date of hearing. In ordering the project the 17.28 board may reduce but not increase the extent of the project as 17.29 stated in the notice of hearing and shall find that the project 17.30 as ordered is in accordance with the comprehensive plan and 17.31 program adopted by the board pursuant to section 5. 17.32 Subd. 4. [EMERGENCY ACTION.] If the board by resolution 17.33 adopted by the affirmative vote of not less than two-thirds of 17.34 its members determines that an emergency exists requiring the 17.35 immediate purchase of materials or supplies or the making of 17.36 emergency repairs, it may order the purchase of those supplies 18.1 and materials and the making of the repairs before any hearing 18.2 required under this section. The board must set as early a date 18.3 as practicable for the hearing at the time it declares the 18.4 emergency. All other provisions of this section must be 18.5 followed in giving notice of and conducting the hearing. 18.6 Nothing in this subdivision prevents the board or its agents 18.7 from purchasing maintenance supplies or incurring maintenance 18.8 costs without regard to the requirements of this section. 18.9 Subd. 5. [POWER OF THE BOARD TO SPECIALLY ASSESS.] The 18.10 board may, upon a vote of at least 75 percent of the members of 18.11 the board, specially assess all or any part of the costs of 18.12 acquisition and betterment as provided in this subdivision, of 18.13 any project ordered under this section. The special assessments 18.14 must be levied in accordance with Minnesota Statutes, sections 18.15 429.051 to 429.081, except as otherwise provided in this 18.16 subdivision. No other provisions of Minnesota Statutes, chapter 18.17 429, apply. For purposes of levying the special assessments, 18.18 the hearing on the project required in subdivision 1 serves as 18.19 the hearing on the making of the original improvement provided 18.20 for by Minnesota Statutes, section 429.051. The area assessed 18.21 may be less than but may not exceed the area proposed to be 18.22 assessed as stated in the notice of hearing on the project 18.23 provided for in subdivision 2. 18.24 Sec. 13. [BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.] 18.25 Subdivision 1. [BUDGET ANTICIPATION CERTIFICATES OF 18.26 INDEBTEDNESS.] At any time after adoption of its annual budget 18.27 and in anticipation of the collection of tax and other revenues 18.28 estimated and set forth by the board in the budget, except in 18.29 the case of deficiency taxes levied under this subdivision and 18.30 taxes levied for the payment of certificates issued under 18.31 subdivision 2, the board may, by resolution, authorize the 18.32 issuance, negotiation, and sale, in accordance with subdivision 18.33 4 in the form and manner and upon terms it determines, of its 18.34 negotiable general obligation certificates of indebtedness in 18.35 aggregate principal amounts not exceeding 50 percent of the 18.36 total amount of tax collections and other revenues, and maturing 19.1 not later than three months after the close of the budget year 19.2 in which issued. The proceeds of the sale of the certificates 19.3 must be used solely for the purposes for which the tax 19.4 collections and other revenues are to be expended under the 19.5 budget. 19.6 All the tax collections and other revenues included in the 19.7 budget for the budget year, after the expenditure of the tax 19.8 collections and other revenues in accordance with the budget, 19.9 must be irrevocably pledged and appropriated to a special fund 19.10 to pay the principal and interest on the certificates when due. 19.11 If for any reason the tax collections and other revenues are 19.12 insufficient to pay the certificates and interest when due, the 19.13 board shall levy a tax in the amount of the deficiency on all 19.14 taxable property in the district and shall appropriate this 19.15 amount when received to the special fund. 19.16 Subd. 2. [EMERGENCY CERTIFICATES OF INDEBTEDNESS.] If in 19.17 any budget year the receipts of tax and other revenues should 19.18 for some unforeseen cause become insufficient to pay the board's 19.19 current expenses, or if any public emergency should subject it 19.20 to the necessity of making extraordinary expenditures, the board 19.21 may by resolution authorize the issuance, negotiation, and sale, 19.22 in accordance with subdivision 4 in the form and manner and upon 19.23 the terms and conditions it determines, of its negotiable 19.24 general obligation certificates of indebtedness in an amount 19.25 sufficient to meet the deficiency. The board shall levy on all 19.26 taxable property in the district a tax sufficient to pay the 19.27 certificates and interest on the certificates and shall 19.28 appropriate all collections of the tax to a special fund created 19.29 for the payment of the certificates and the interest on them. 19.30 Certificates issued under this subdivision mature not later than 19.31 April 1 in the year following the year in which the tax is 19.32 collectible. 19.33 Subd. 3. [GENERAL OBLIGATION BONDS.] The board may, upon a 19.34 vote of at least 75 percent of the members of the board, by 19.35 resolution authorize the issuance of general obligation bonds 19.36 for the acquisition or betterment of any part of the district 20.1 disposal system, including but without limitation the payment of 20.2 interest during construction and for a reasonable period 20.3 thereafter, or for the refunding of outstanding bonds, 20.4 certificates of indebtedness, or judgments. The board shall 20.5 pledge its full faith and credit and taxing power for the 20.6 payment of the bonds and shall provide for the issuance and sale 20.7 and for the security of the bonds in the manner provided in 20.8 Minnesota Statutes, chapter 475. The board has the same powers 20.9 and duties as a municipality issuing bonds under that law, 20.10 except that no election is required and the debt limitations of 20.11 Minnesota Statutes, chapter 475, do not apply to the bonds. The 20.12 board may also pledge for the payment of the bonds and deduct 20.13 from the amount of any tax levy required under Minnesota 20.14 Statutes, section 475.61, subdivision 1, and any revenues 20.15 receivable under any state and federal grants anticipated by the 20.16 board and may covenant to refund the bonds if and when and to 20.17 the extent that for any reason the revenues, together with other 20.18 funds available and appropriated for that purpose, are not 20.19 sufficient to pay all principal and interest due or about to 20.20 become due, provided that the revenues have not been anticipated 20.21 by the issuance of certificates under subdivision 1. 20.22 Subd. 4. [MANNER OF SALE AND ISSUANCE OF CERTIFICATES.] 20.23 Certificates issued under subdivisions 1 and 2 may be issued and 20.24 sold by negotiation, without public sale, and may be sold at a 20.25 price equal to the percentage of the par value of the 20.26 certificates, plus accrued interest, and bearing interest at the 20.27 rate determined by the board. An election is not required to 20.28 authorize the issuance of the certificates. The certificates 20.29 must bear the same rate of interest after maturity as before and 20.30 the full faith and credit and taxing power of the board must be 20.31 pledged to the payment of the certificates. 20.32 Sec. 14. [DEPOSITORIES.] 20.33 The board shall designate one or more national or state 20.34 banks, or trust companies authorized to do a banking business, 20.35 as official depositories for money of the board, and shall 20.36 require the treasurer to deposit all or a part of the money in 21.1 those institutions. The designation must be in writing and set 21.2 forth all the terms and conditions upon which the deposits are 21.3 made, and must be signed by the chair and treasurer and made a 21.4 part of the minutes of the board. 21.5 Sec. 15. [MONEY, ACCOUNTS, AND INVESTMENTS.] 21.6 Subdivision 1. [RECEIPT AND APPLICATION.] Money received 21.7 by the board must be deposited or invested by the treasurer and 21.8 disposed of as the board may direct in accordance with its 21.9 budget; provided that any money that has been pledged or 21.10 dedicated by the board to the payment of obligations or interest 21.11 on the obligations or expenses incident thereto, or for any 21.12 other specific purpose authorized by law, must be paid by the 21.13 treasurer into the fund to which it has been pledged. 21.14 Subd. 2. [FUNDS AND ACCOUNTS.] (a) The board's treasurer 21.15 shall establish funds and accounts as may be necessary or 21.16 convenient to handle the receipts and disbursements of the board 21.17 in an orderly fashion. 21.18 (b) The funds and accounts must be audited annually by a 21.19 certified public accountant at the expense of the district. 21.20 Subd. 3. [DEPOSIT AND INVESTMENT.] The money on hand in 21.21 those funds and accounts may be deposited in the official 21.22 depositories of the board or invested as provided in this 21.23 subdivision. Any amount not currently needed or required by law 21.24 to be kept in cash on deposit may be invested in obligations 21.25 authorized for the investment of municipal sinking funds by 21.26 Minnesota Statutes, chapter 118A. The money may also be held 21.27 under certificates of deposit issued by any official depository 21.28 of the board. 21.29 Subd. 4. [BOND PROCEEDS.] The use of proceeds of all bonds 21.30 issued by the board for the acquisition and betterment of the 21.31 district disposal system, and the use, other than investment, of 21.32 all money on hand in any sinking fund or funds of the board, is 21.33 governed by the provisions of Minnesota Statutes, chapter 475, 21.34 the provisions of sections 1 to 19, and the provisions of 21.35 resolutions authorizing the issuance of the bonds. When 21.36 received, the bond proceeds must be transferred to the treasurer 22.1 of the board for safekeeping, investment, and payment of the 22.2 costs for which they were issued. 22.3 Subd. 5. [AUDIT.] The board shall provide for and pay the 22.4 cost of an independent annual audit of its official books and 22.5 records by the state auditor or a public accountant authorized 22.6 to perform that function under Minnesota Statutes, chapter 6. 22.7 Sec. 16. [SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES 22.8 OUTSIDE THE JURISDICTION OF THE BOARD.] 22.9 (a) The board may, upon a vote of at least 75 percent of 22.10 the members of the board, contract with the United States or any 22.11 agency of the federal government, any state or its agency, or 22.12 any municipal or public corporation, governmental subdivision or 22.13 agency or political subdivision in any state, outside the 22.14 jurisdiction of the board, for furnishing services to those 22.15 entities, including but not limited to planning for and the 22.16 acquisition, betterment, operation, administration, and 22.17 maintenance of any or all interceptors, treatment works, and 22.18 local water and sanitary sewer facilities. The board may 22.19 include as one of the terms of the contract that the entity must 22.20 pay to the board an amount agreed upon as a reasonable estimate 22.21 of the proportionate share properly allocable to the entity of 22.22 costs of acquisition, betterment, and debt service previously 22.23 allocated in the district. When payments are made by entities 22.24 to the board, they must be applied in reduction of the total 22.25 amount of costs thereafter allocated in the district, on an 22.26 equitable basis as the board deems to be in the best interests 22.27 of the district, applying so far as practicable and appropriate 22.28 the criteria set forth in section 10, subdivision 2. A 22.29 municipality in the state of Minnesota may enter into a contract 22.30 and perform all acts and things required as a condition or 22.31 consideration therefor consistent with the purposes of sections 22.32 1 to 19, whether or not included among the powers otherwise 22.33 granted to the municipality by law or charter. 22.34 (b) The board shall contract with a qualified entity to 22.35 make necessary inspections of the district facilities, and to 22.36 otherwise process or assist in processing any of the work of the 23.1 district. 23.2 Sec. 17. [CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES, 23.3 AND EQUIPMENT.] 23.4 When the board orders a project involving the acquisition 23.5 or betterment of a part of the district disposal system, it 23.6 shall cause plans and specifications of the project to be made, 23.7 or if previously made, to be modified, if necessary, and to be 23.8 approved by the agency if required, and after any required 23.9 approval by the agency, one or more contracts for work and 23.10 materials called for by the plans and specifications may be 23.11 awarded as provided in Minnesota Statutes, section 471.345. 23.12 Sec. 18. [PROPERTY EXEMPT FROM TAXATION.] 23.13 Any properties, real or personal, owned, leased, 23.14 controlled, used, or occupied by the sanitary sewer board for 23.15 any purpose under sections 1 to 19 are declared to be acquired, 23.16 owned, leased, controlled, used, and occupied for public, 23.17 governmental, and municipal purposes, and are exempt from 23.18 taxation by the state or any political subdivision of the 23.19 state. The properties are subject to special assessments levied 23.20 by a political subdivision for a local improvement in amounts 23.21 proportionate to and not exceeding the special benefit received 23.22 by the properties from the improvement. 23.23 Sec. 19. [RELATION TO EXISTING LAWS.] 23.24 Sections 1 to 19 must be given full effect notwithstanding 23.25 the provisions of any law or charter inconsistent with sections 23.26 1 to 19. The powers conferred on the board under sections 1 to 23.27 19 do not in any way diminish or supersede the powers conferred 23.28 on the agency by Minnesota Statutes, chapters 115 to 116. 23.29 Sec. 20. [EFFECTIVE DATE; LOCAL APPROVAL.] 23.30 This act takes effect the day after the last of all of the 23.31 governing bodies of each of the local governmental units and its 23.32 chief clerical officer timely complete their compliance with 23.33 Minnesota Statutes, section 645.021, subdivisions 2 and 3.