SF 79

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:10am

A bill for an act
relating to local government; authorizing the Central Iron Range Sanitary Sewer
District; amending Laws 2006, chapter 258, section 21, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2006, chapter 258, section 21, subdivision 4, is amended to read:

Subd. 4. deleted text begin Central Iron Range Sanitary Sewer District deleted text end new text begin Hibbing Wastewater new text end Treatment Facilities

2,500,000

To the Public Facilities Authority for a
grant to the deleted text begin Central Iron Range Sanitary
Sewer District to design, construct,
and equip an expansion of wastewater
treatment at Hibbing's South Wastewater
Treatment Plant, deleted text end new text begin city of Hibbing for
new text end mercury treatment facilities at the new text begin south
wastewater treatment new text end plant, deleted text begin and sanitary
sewer lines to connect Hibbing, Chisholm,
and Buhl to use the upgrades at the plant deleted text end new text begin
and wastewater infrastructure improvements.
This appropriation is not available until the
authority determines that at least an equal
amount is committed to the project from
other sources new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin CENTRAL IRON RANGE SANITARY SEWER DISTRICT;
DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to this act.
new text end

new text begin Subd. 2. new text end

new text begin Central Iron Range Sanitary Sewer District and district. new text end

new text begin "Central Iron
Range Sanitary Sewer District" and "district" mean the area over which the Central Iron
Range Sanitary Sewer Board has jurisdiction. The board shall precisely describe the area
over which it has jurisdiction by a metes and bounds description in the comprehensive
plan adopted pursuant to section 6.
new text end

new text begin Subd. 3. new text end

new text begin Sanitary sewer board or board. new text end

new text begin "Sanitary sewer board" or "board" means
the Central Iron Range Sanitary Sewer Board established for the district as provided in
section 3.
new text end

new text begin Subd. 4. new text end

new text begin Person. new text end

new text begin "Person" means an individual, partnership, corporation, limited
liability company, cooperative, or other organization or entity, public or private.
new text end

new text begin Subd. 5. new text end

new text begin Governmental unit. new text end

new text begin "Governmental unit" means the Iron Range
Resources and Rehabilitation Board and any municipality that joins the district.
new text end

new text begin Subd. 6. new text end

new text begin Acquisition; betterment. new text end

new text begin "Acquisition" and "betterment" have the
meanings given in Minnesota Statutes, section 475.51.
new text end

new text begin Subd. 7. new text end

new text begin Agency. new text end

new text begin "Agency" means the Minnesota Pollution Control Agency created
in Minnesota Statutes, section 116.02.
new text end

new text begin Subd. 8. new text end

new text begin Sewage. new text end

new text begin "Sewage" means all liquid or water-carried waste products from
whatever sources derived, together with any groundwater infiltration and surface water
as may be present.
new text end

new text begin Subd. 9. new text end

new text begin Pollution of water; sewer system. new text end

new text begin "Pollution of water" and "sewer
system" have the meanings given in Minnesota Statutes, section 115.01.
new text end

new text begin Subd. 10. new text end

new text begin Treatment works; disposal system. new text end

new text begin "Treatment works" and "disposal
system" have the meanings given in Minnesota Statutes, section 115.01.
new text end

new text begin Subd. 11. new text end

new text begin Interceptor. new text end

new text begin "Interceptor" means a sewer and its necessary appurtenances
including, but not limited to, mains, pumping stations, and sewage flow-regulating and
flow-measuring stations, that is:
new text end

new text begin (1) designed for or used to conduct sewage originating in more than one
governmental unit;
new text end

new text begin (2) designed or used to conduct all or substantially all the sewage originating in
a single governmental unit from a point of collection in that unit to an interceptor or
treatment works outside that unit; or
new text end

new text begin (3) determined by the board to be a major collector of sewage used or designed
to serve a substantial area in the district.
new text end

new text begin Subd. 12. new text end

new text begin District disposal system. new text end

new text begin "District disposal system" means any and all
interceptors or treatment works owned, constructed, or operated by the board unless
designated by the board as local water and sanitary sewer facilities.
new text end

new text begin Subd. 13. new text end

new text begin Municipality. new text end

new text begin "Municipality" means any town or home rule charter or
statutory city.
new text end

new text begin Subd. 14. new text end

new text begin Total costs of acquisition and betterment and costs of acquisition and
betterment. new text end

new text begin "Total costs of acquisition and betterment" and "costs of acquisition and
betterment" mean all acquisition and betterment expenses permitted to be financed out
of bond proceeds issued in accordance with section 14, whether or not the expenses are
in fact financed out of the bond proceeds.
new text end

new text begin Subd. 15. new text end

new text begin Current costs of acquisition, betterment, and debt service. new text end

new text begin "Current
costs of acquisition, betterment, and debt service" means interest and principal estimated
to be due during the budget year on bonds issued to finance costs of acquisition and
betterment and all other costs of acquisition and betterment estimated to be paid during the
year from funds other than bond proceeds and federal or state grants.
new text end

new text begin Subd. 16. new text end

new text begin Resident. new text end

new text begin "Resident" means the owner of a dwelling located in the
district and receiving water or sewer service.
new text end

Sec. 3. new text begin SANITARY SEWER DISTRICT; BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Any two or more of the following municipalities in
St. Louis County may establish, by resolution of their respective governing bodies, the
Central Iron Range Sanitary Sewer District: the cities of Buhl, Chisholm, and Kinney,
and the towns of Balkan and Great Scott. Instead of adopting a resolution, a municipality
may hold a referendum on the question of whether to join the district at a general or
special election. After a municipality has adopted a resolution or held a referendum in
which the voters approved joining the district, the municipality must provide notice to
the chief clerical officer of other municipalities listed. The district is established when
the first two municipalities have notified the other municipalities. Other municipalities
may join without the consent of the member municipalities within 60 days after the
district is established. If the district is established, it also includes the territory occupied
by Ironworld. The sewer district is under the control and management of the Central
Iron Range Sanitary Sewer Board. The district is established as a public corporation and
political subdivision of the state with perpetual succession and all the rights, powers,
privileges, immunities, and duties granted to or imposed upon a municipal corporation, as
provided in this act.
new text end

new text begin Subd. 2. new text end

new text begin Members and selection. new text end

new text begin The board is composed of members selected as
provided in this subdivision. The town board of each township that joins the district
shall appoint one resident to the sewer board. The city council of each city that joins the
district shall appoint members as follows: three members for the city of Chisholm, two
members for the city of Buhl, and one member for the city of Kinney. One member
must be selected by the Iron Range Resources and Rehabilitation Board on behalf of
Ironworld. Each member must be a resident of the municipality the member represents
and has one vote. The first terms are as follows: one-third of the members for one year,
one-third for two years, and the remainder for three years, fixed by lot at the district's first
meeting; thereafter, all terms are for three years.
new text end

new text begin Subd. 3. new text end

new text begin Time limits for selection. new text end

new text begin The initial board members must be appointed as
soon as practicable after the district is established. The successor to each board member
must be appointed at any time within 60 days before the expiration of the member's term
in the same manner as the predecessor was selected. A vacancy on the board must be
filled within 60 days after it occurs.
new text end

new text begin Subd. 4. new text end

new text begin Vacancies. new text end

new text begin If the office of a board member becomes vacant, the vacancy
must be filled for the unexpired term in the manner provided for selection of the member
who vacated the office. The office is considered vacant under the conditions specified in
Minnesota Statutes, section 351.02.
new text end

new text begin Subd. 5. new text end

new text begin Removal. new text end

new text begin A board member may be removed by the unanimous vote of
the governing body appointing the member, with or without cause, or for malfeasance
or nonfeasance in the performance of official duties as provided by Minnesota Statutes,
sections 351.14 to 351.23.
new text end

new text begin Subd. 6. new text end

new text begin Certificates of selection; oath of office. new text end

new text begin A certificate of appointment of
every board member selected under subdivision 2 stating the term for which appointed,
must be made by the chief clerical officer of the respective municipalities. The certificates,
with the approval appended by other authority, if required, must be filed with the secretary
of state. Counterparts of the certificates must be furnished to the board member and
the secretary of the board. Each member shall qualify by taking and subscribing the
oath of office prescribed by the Minnesota Constitution, article V, section 6. The oath,
duly certified by the official administering the same, must be filed with the secretary of
state and the secretary of the board.
new text end

new text begin Subd. 7. new text end

new text begin Board members' compensation. new text end

new text begin Each board member, except the chair,
may be paid a per diem compensation in accordance with the board's bylaws for meetings
and for other services as are specifically authorized by the board, not to exceed the per
diem amount under Minnesota Statutes, section 15.0575, subdivision 3, and not to exceed
$1,000 in any one year. The chair may be paid a per diem compensation in accordance with
the board's bylaws for meetings and for other services specifically authorized by the board,
not to exceed the per diem amount under Minnesota Statutes, section 15.0575, subdivision
3, and not to exceed $1,500 in any one year. All members of the board must be reimbursed
for all reasonable and necessary expenses actually incurred in the performance of duties.
new text end

Sec. 4. new text begin GENERAL PROVISIONS FOR ORGANIZATION AND OPERATION
OF BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Organization; officers; meetings; seal. new text end

new text begin After the selection and
qualification of all board members, the board must meet to organize the board at the call
of any two board members, upon seven days' notice by registered mail to the remaining
board members at a time and place within the district specified in the notice. A majority
of the members is a quorum at that meeting and all other meetings of the board, but a
lesser number may meet and adjourn from time to time and compel the attendance of
absent members. At the first meeting, the board shall select its officers and conduct other
organizational business as may be necessary; thereafter, the board shall meet regularly at
the time and place that the board designates by resolution. Special meetings may be held
at any time upon call of the chair or any two members, upon written notice sent by mail
to each member at least three days before the meeting, or upon other notice as the board
by resolution may provide, or without notice if each member is present or files with the
secretary a written consent to the meeting either before or after the meeting. Except as
otherwise provided in this act, any action within the authority of the board may be taken by
the affirmative vote of a majority of the board and may be taken by regular or adjourned
regular meetings or at a duly held special meeting, but in any case only if a quorum is
present. Meetings of the board must be open to the public. The board may adopt a seal,
which must be officially and judicially noticed, to authenticate instruments executed by its
authority, but omission of the seal does not affect the validity of any instrument.
new text end

new text begin Subd. 2. new text end

new text begin Chair. new text end

new text begin The board shall elect a chair from its membership. The term of the
first chair of the board expires on January 1 of the year following election, and the terms
of successor chairs expire on January 1 of each succeeding year. The chair shall preside
at all meetings of the board, if present, and shall perform all other duties and functions
usually incumbent upon such an officer, and all administrative functions assigned to the
chair by the board. The board shall elect a vice-chair from its membership to act for the
chair during temporary absence or disability.
new text end

new text begin Subd. 3. new text end

new text begin Secretary and treasurer. new text end

new text begin The board shall select persons who may, but
need not be, members of the board, to act as its secretary and treasurer. The two offices
may be combined. The secretary and treasurer shall hold office at the pleasure of the
board, subject to the terms of any contract of employment that the board may enter into
with the secretary or treasurer. The secretary shall record the minutes of all meetings of
the board and be the custodian of all books and records of the board except those that the
board entrusts to the custody of a designated employee. The treasurer is the custodian of
all money received by the board except as the board otherwise entrusts to the custody of a
designated employee. The board may appoint a deputy to perform any and all functions of
either the secretary or the treasurer. A secretary or treasurer who is not a member of the
board or a deputy of either does not have the right to vote.
new text end

new text begin Subd. 4. new text end

new text begin Public employees. new text end

new text begin The executive director, if any, and other persons
employed by the district, if any, are public employees and have all the rights and duties
conferred on public employees under Minnesota Statutes, sections 179A.01 to 179A.25.
The board may elect to have employees become members of either the Public Employees
Retirement Association or the Minnesota State Retirement System. The compensation
and conditions of employment of the employees must be governed by rules applicable
to state employees in the classified service and to the provisions of Minnesota Statutes,
chapter 15A.
new text end

new text begin Subd. 5. new text end

new text begin Procedures. new text end

new text begin The board shall adopt resolutions or bylaws establishing
procedures for board action, personnel administration, keeping records, approving claims,
authorizing or making disbursements, safekeeping funds, and auditing all financial
operations of the board.
new text end

new text begin Subd. 6. new text end

new text begin Surety bonds and insurance. new text end

new text begin The board may procure surety bonds for its
officers and employees, in amounts deemed necessary to ensure proper performance of
their duties and proper accounting for funds in their custody. It may procure insurance
against risks to property and liability of the board and its officers, agents, and employees
for personal injuries or death and property damage and destruction, in amounts deemed
necessary or desirable, with the force and effect stated in Minnesota Statutes, chapter 466.
new text end

Sec. 5. new text begin GENERAL POWERS OF BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The board has all powers necessary or convenient to
discharge the duties imposed upon it by law. The powers include those specified in this
section, but the express grant or enumeration of powers does not limit the generality or
scope of the grant of powers contained in this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Suit. new text end

new text begin The board may sue or be sued.
new text end

new text begin Subd. 3. new text end

new text begin Contract. new text end

new text begin The board may enter into any contract necessary or proper for
the exercise of its powers or the accomplishment of its purposes.
new text end

new text begin Subd. 4. new text end

new text begin Gifts, grants, loans. new text end

new text begin The board may accept gifts; apply for and accept
grants or loans of money or other property from the United States, the state, or any person
for any of its purposes and enter into any agreement required in connection with them;
and hold, use, and dispose of the money or property in accordance with the terms of the
gift, grant, loan, or agreement relating to it. With respect to loans or grants of funds or
real or personal property or other assistance from any state or federal government or its
agency or instrumentality, the board may contract to do and perform all acts and things
required as a condition or consideration for the gift, grant, or loan pursuant to state or
federal law or regulations, whether or not included among the powers expressly granted
to the board in this act.
new text end

new text begin Subd. 5. new text end

new text begin Cooperative action. new text end

new text begin The board may act under Minnesota Statutes, section
471.59, or any other appropriate law, providing for joint or cooperative action between
governmental units.
new text end

new text begin Subd. 6. new text end

new text begin Studies and investigations. new text end

new text begin The board may conduct research studies and
programs, collect and analyze data, prepare reports, maps, charts, and tables, and conduct
all necessary hearings and investigations in connection with the need for, benefits of,
design, construction, and operation of the district disposal system.
new text end

new text begin Subd. 7. new text end

new text begin Employees, terms. new text end

new text begin The board may employ, on terms it deems advisable,
persons or firms performing engineering, legal, or other services of a professional nature;
require any employee to obtain and file with it an individual bond or fidelity insurance
policy; and procure insurance in amounts it deems necessary against liability of the board
or its officers or both, for personal injury or death and property damage or destruction, with
the force and effect stated in Minnesota Statutes, chapter 466, and against risks of damage
to or destruction of any of its facilities, equipment, or other property as it deems necessary.
new text end

new text begin Subd. 8. new text end

new text begin Property rights, powers. new text end

new text begin By vote of at least 75 percent of the members of
the board, the board may acquire by purchase, lease, condemnation, gift, or grant, any
real or personal property including positive and negative easements and water and air
rights, and it may construct, enlarge, improve, replace, repair, maintain, and operate any
interceptor, treatment works, or water facility determined to be necessary or convenient
for the collection and disposal of sewage in the district. Any governmental unit and the
commissioners of transportation and natural resources are authorized to convey to or
permit the use of any of the above-mentioned facilities owned or controlled by it, subject
to the rights of the holders of any bonds issued with respect to those facilities, with or
without compensation, without an election or approval by any other governmental unit
or agency. All powers conferred by this subdivision may be exercised both within or
without the district as may be necessary for the exercise by the board of its powers or the
accomplishment of its purposes. By vote of at least 75 percent of the members of the
board, the board may hold, lease, convey, or otherwise dispose of the above-mentioned
property for its purposes upon the terms and in the manner it deems advisable. Unless
otherwise provided, the right to acquire lands and property rights by condemnation may
be exercised only in accordance with Minnesota Statutes, sections 117.012 to 117.232,
and applies to any property or interest in the property owned by any governmental unit.
Property devoted to an actual public use at the time, or held to be devoted to such a use
within a reasonable time, must not be so acquired unless a court of competent jurisdiction
determines that the use proposed by the board is paramount to the existing use. Except in
the case of property in actual public use, the board may take possession of any property on
which condemnation proceedings have been commenced at any time after the issuance of
a court order appointing commissioners for its condemnation.
new text end

new text begin Subd. 9. new text end

new text begin Relationship to other properties. new text end

new text begin The board may construct or maintain its
systems or facilities in, along, on, under, over, or through public waters, streets, bridges,
viaducts, and other public rights-of-way without first obtaining a franchise from a county
or municipality having jurisdiction over them. However, the facilities must be constructed
and maintained in accordance with the ordinances and resolutions of the county or
municipality relating to constructing, installing, and maintaining similar facilities on
public properties and must not unnecessarily obstruct the public use of those rights-of-way.
new text end

new text begin Subd. 10. new text end

new text begin Disposal of property. new text end

new text begin By vote of at least 75 percent of the members of
the board, the board may sell, lease, or otherwise dispose of any real or personal property
acquired by it which is no longer required for accomplishment of its purposes. The
property may be sold in the manner provided by Minnesota Statutes, section 469.065, as
fas as is practical. The board may give notice of sale as it deems appropriate. When the
board determines that any property or any part of the district disposal system acquired
from a local governmental unit without compensation is no longer required but is required
as a local facility by the governmental unit from which it was acquired, the board may by
resolution transfer it to that governmental unit.
new text end

new text begin Subd. 11. new text end

new text begin Agreements with other governmental units. new text end

new text begin The board may contract
with the United States or any agency thereof, any state or agency thereof, or any regional
public planning body in the state with jurisdiction over any part of the district, or any
other municipal or public corporation, or governmental subdivision or agency or political
subdivision in any state, for the joint use of any facility owned by the board or such
entity, for the operation by that entity of any system or facility of the board, or for the
performance on the board's behalf of any service including, but not limited to, planning, on
terms as may be agreed upon by the contracting parties. Unless designated by the board as
a local water and sanitary sewer facility, any treatment works or interceptor jointly used or
operated on behalf of the board, as provided in this subdivision, is deemed to be operated
by the board for purposes of including those facilities in the district disposal system.
new text end

Sec. 6. new text begin COMPREHENSIVE PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Board plan and program. new text end

new text begin The board shall adopt a comprehensive
plan for the collection, treatment, and disposal of sewage in the district for a designated
period the board deems proper and reasonable. The board shall prepare and adopt
subsequent comprehensive plans for the collection, treatment, and disposal of sewage
in the district for each succeeding designated period as the board deems proper and
reasonable. All comprehensive plans of the district shall be subject to the planning and
zoning authority of St. Louis County and in conformance with all planning and zoning
ordinances of St. Louis County. The first plan, as modified by the board, and any
subsequent plan shall take into account the preservation and best and most economic use
of water and other natural resources in the area; the preservation, use, and potential for
use of lands adjoining waters of the state to be used for the disposal of sewage; and the
impact the disposal system will have on present and future land use in the area affected.
The plans shall include the general location of needed interceptors and treatment works, a
description of the area that is to be served by the various interceptors and treatment works,
a long-range capital improvements program, and any other details as the board deems
appropriate. In developing the plans, the board shall consult with persons designated for
the purpose by governing bodies of any governmental unit within the district to represent
the entities and shall consider the data, resources, and input offered to the board by the
entities and any planning agency acting on behalf of one or more of the entities. Each
plan, when adopted, must be followed in the district and may be revised as often as the
board deems necessary.
new text end

new text begin Subd. 2. new text end

new text begin Comprehensive plans; hearing. new text end

new text begin Before adopting any subsequent
comprehensive plan, the board shall hold a public hearing on the proposed plan at a time
and place in the district that it selects. The hearing may be continued from time to time.
Not less than 45 days before the hearing, the board shall publish notice of the hearing in a
newspaper having general circulation in the district, stating the date, time, and place of the
hearing, and the place where the proposed plan may be examined by any interested person.
At the hearing, all interested persons must be permitted to present their views on the plan.
new text end

new text begin Subd. 3. new text end

new text begin Removal of area. new text end

new text begin After adopting the first plan, any of the governmental
units can elect not to be included within the Central Iron Range Sanitary Sewer District
by delivering a written resolution of the governing body of the governmental unit to
the Central Iron Range Sanitary Sewer District within 180 days of adoption of the first
comprehensive plan. The area of the governmental unit shall then be removed from the
district.
new text end

Sec. 7. new text begin POWERS TO ISSUE OBLIGATIONS AND IMPOSE SPECIAL
ASSESSMENTS.
new text end

new text begin The Central Iron Range Sanitary Sewer Board, in order to implement the powers
granted under this act to establish, maintain, and administer the Central Iron Range
Sanitary Sewer District upon a vote of at least 75 percent of the members of the board,
may issue obligations and impose special assessments against benefited property within
the limits of the district benefited by facilities constructed under this act in the manner
provided for local governments by Minnesota Statutes, chapter 429.
new text end

Sec. 8. new text begin SYSTEM EXPANSION; APPLICATION TO CITIES.
new text end

new text begin The authority of the sanitary sewer board to establish a sewer system under this
section extends to areas within the Central Iron Range Sanitary Sewer District organized
into cities when requested by resolution of the governing body of the affected city or
when ordered by the Minnesota Pollution Control Agency after notice and hearing. For
the purpose of any petition filed or special assessment levied with respect to any system,
the entire area to be served within a city must be treated as if it were owned by a single
person, and the governing body shall exercise all the rights and be subject to all the duties
of an owner of the area, and shall have power to provide for the payment of all special
assessments and other charges imposed upon the area with respect to the system by the
appropriation of money, the collection of service charges, or the levy of taxes, which shall
be subject to no limitation of rate or amount.
new text end

Sec. 9. new text begin SEWAGE COLLECTION AND DISPOSAL; POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Powers. new text end

new text begin In addition to all other powers conferred upon the board in
this act, it has the powers specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Discharge of treated sewage. new text end

new text begin The board may discharge the effluent from
any treatment works operated by it into any waters of the state, subject to approval of the
agency, if required, and in accordance with any effluent or water quality standards lawfully
adopted by the agency, any interstate agency, or any federal agency having jurisdiction.
new text end

new text begin Subd. 3. new text end

new text begin Utilization of district system. new text end

new text begin By vote of at least 75 percent of the
members of the board, the board may: require any person or governmental unit to provide
for the discharge of any sewage, directly or indirectly, into the district disposal system, or
to connect any disposal system or a part of it with the district disposal system wherever
reasonable opportunity for connection is provided; regulate the manner in which the
connections are made; require any person or governmental unit discharging sewage into
the disposal system to provide preliminary treatment for it; prohibit the discharge into the
district disposal system of any substance that it determines will or may be harmful to the
system or any persons operating it; and require any governmental unit to discontinue the
acquisition, betterment, or operation of any facility for the unit's disposal system wherever
and so far as adequate service is or will be provided by the district disposal system.
new text end

new text begin Subd. 4. new text end

new text begin System of cost recovery to comply with applicable regulations.
new text end

new text begin Any charges, connection fees, or other cost-recovery techniques imposed on persons
discharging sewage directly or indirectly into the district disposal system must comply
with applicable state and federal law, including state and federal regulations governing
grant applications.
new text end

Sec. 10. new text begin BUDGET.
new text end

new text begin (a) The board shall prepare and adopt each year, by October 1, a budget showing for
the following calendar year or other fiscal year determined by the board, referred to in this
act as the budget year, estimated receipts of money from all sources including, but not
limited to, payments by each governmental unit, federal or state grants, taxes on property,
and funds on hand at the beginning of the year, and estimated expenditures for:
new text end

new text begin (1) costs of operation, administration, and maintenance of the district disposal
system;
new text end

new text begin (2) cost of acquisition and betterment of the district disposal system; and
new text end

new text begin (3) debt service, including principal and interest, on general obligation bonds and
certificates issued pursuant to section 14, and any money judgments entered by a court
of competent jurisdiction.
new text end

new text begin (b) Expenditures within these general categories, and any other categories as the
board may from time to time determine, must be itemized in detail as the board prescribes.
The board and its officers, agents, and employees must not spend money for any purpose
other than debt service, without having set forth the expense in the budget, nor in excess
of the amount set forth for it in the budget. No obligation to make an expenditure not set
forth in the budget or in excess of the amount set forth in the budget is enforceable except
as the obligation of the person or persons incurring it. The board may amend the budget at
any time by transferring from one purpose to another any sums, except money for debt
service and bond proceeds or by increasing expenditures in any amount by which actual
cash receipts during the budget year exceed the total amounts designated in the original
budget. The creation of any obligation under section 14, or the receipt of any federal or
state grant, is a sufficient budget designation of the proceeds for the purpose for which it is
authorized, and of the tax or other revenue pledged to pay the obligation and interest on it,
whether or not specifically included in any annual budget.
new text end

Sec. 11. new text begin ALLOCATION OF COSTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition of current costs. new text end

new text begin The estimated cost of administration,
operation, maintenance, and debt service of the district disposal system to be paid by the
board in each budget year and the estimated costs of acquisition and betterment of the
system that are to be paid during the year from funds other than state or federal grants and
bond proceeds and all other previously unallocated payments made by the board pursuant
to this act to be allocated in the fiscal year are referred to as current costs and must be
allocated by the board as provided in subdivision 2 in the budget for that year.
new text end

new text begin Subd. 2. new text end

new text begin Method of allocation of current costs. new text end

new text begin Current costs must be allocated in
the district on an equitable basis as the board may determine by resolution to be in the best
interests of the district. The adoption or revision of any method of allocation used by the
board must be by the affirmative vote of at least 75 percent of the members of the board.
new text end

Sec. 12. new text begin TAX LEVIES.
new text end

new text begin To accomplish any duty imposed on it, the board may, upon a vote of at least 75
percent of the members of the board, in addition to the powers granted in this act and in
any other law or charter, exercise the powers granted any municipality by Minnesota
Statutes, chapters 117, 412, 429, and 475, and sections 115.46, 444.075, and 471.59, with
respect to the area in the district. By a vote of at least 75 percent of the members of the
board, the board may levy taxes upon all taxable property in the district for all or a part
of the amount payable to the board, pursuant to section 11, to be assessed and extended
as a tax upon that taxable property by the county auditor for the next calendar year, free
from any limit of rate or amount imposed by law or charter. The tax must be collected and
remitted in the same manner as other general property taxes.
new text end

Sec. 13. new text begin PUBLIC HEARING AND SPECIAL ASSESSMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Public hearing requirement on specific project. new text end

new text begin Before the board
orders any project involving the acquisition or betterment of any interceptor or treatment
works, all or a part of the cost of which will be allocated pursuant to section 11 as current
costs, the board must hold a public hearing on the proposed project. The hearing must be
held following two publications in a newspaper having general circulation in the district,
stating the time and place of the hearing, the general nature and location of the project, the
estimated total cost of acquisition and betterment, that portion of costs estimated to be
paid out of federal and state grants, and that portion of costs estimated to be allocated.
The estimates must be the best available at the time of the meeting and if costs exceed
the estimate, the project cannot proceed until an additional public hearing is held, with
notice as required at the initial meeting. The two publications must be one week apart
and the hearing at least three days after the last publication. Not less than 45 days before
the hearing, notice of the hearing must also be mailed to the clerk of each governmental
unit in the district, but failure to give mailed notice or any defects in the notice does not
invalidate the proceedings. The project may include all or part of one or more interceptors
or treatment works. A hearing must not be held on a project unless the project is within
the area covered by the comprehensive plan adopted by the board under section 6, except
that the hearing may be held simultaneously with a hearing on a comprehensive plan. A
hearing is not required with respect to a project, no part of the costs of which are to be
allocated as the current costs of acquisition, betterment, and debt service.
new text end

new text begin Subd. 2. new text end

new text begin Notice to benefited property owners. new text end

new text begin If the board proposes to assess
against benefited property within the district all or any part of the allocable costs of the
project as provided in subdivision 5, the board shall, not less than two weeks before the
hearing provided for in subdivision 1, cause mailed notice of the hearing to be given to the
owner of each parcel within the area proposed to be specially assessed and shall also give
two weeks' published notice of the hearing. The notice of hearing must contain the same
information provided in the notice published by the board pursuant to subdivision 1 and a
description of the area proposed to be assessed. For the purpose of giving mailed notice,
owners are those shown to be on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer;
however, other appropriate records may be used for this purpose. For properties that are
tax exempt or subject to taxation on a gross earnings basis and not listed on the records
of the county auditor or the county treasurer, the owners must be ascertained by any
practicable means and mailed notice given them as herein provided. Failure to give mailed
notice or any defects in the notice does not invalidate the proceedings of the board.
new text end

new text begin Subd. 3. new text end

new text begin Board proceedings pertaining to hearing. new text end

new text begin Before adoption of the
resolution calling for a hearing under this section, the board shall secure from the district
engineer or some other competent person of the board's selection a report advising it in a
preliminary way as to whether the proposed project is feasible and whether it should be
made as proposed or in connection with some other project and the estimated costs of the
project as recommended. No error or omission in the report invalidates the proceeding.
The board may also take other steps before the hearing that in its judgment provide helpful
information in determining the desirability and feasibility of the project, including, but not
limited to, preparation of plans and specifications and advertisement for bids on them. The
hearing may be adjourned from time to time and a resolution ordering the project may be
adopted at any time within six months after the date of hearing. In ordering the project,
the board may reduce but not increase the extent of the project as stated in the notice of
hearing and shall find that the project as ordered is in accordance with the comprehensive
plan and program adopted by the board pursuant to section 6.
new text end

new text begin Subd. 4. new text end

new text begin Emergency action. new text end

new text begin If the board, by resolution, adopted by the affirmative
vote of not less than two-thirds of its members, determines that an emergency exists
requiring the immediate purchase of materials or supplies or the making of emergency
repairs, it may order the purchase of those supplies and materials and the making of the
repairs before any hearing required under this section. The board must set as early a date
as practicable for the hearing at the time it declares the emergency. All other provisions of
this section must be followed in giving notice of and conducting the hearing. Nothing in
this subdivision prevents the board or its agents from purchasing maintenance supplies or
incurring maintenance costs without regard to the requirements of this section.
new text end

new text begin Subd. 5. new text end

new text begin Power of the board to specially assess. new text end

new text begin The board may, upon a vote of at
least 75 percent of the members of the board, specially assess all or any part of the costs
of acquisition and betterment as provided in this subdivision, of any project ordered
under this section. The special assessments must be levied in accordance with Minnesota
Statutes, sections 429.051 to 429.081, except as otherwise provided in this subdivision.
No other provisions of Minnesota Statutes, chapter 429, apply. For purposes of levying
the special assessments, the hearing on the project required in subdivision 1 serves as the
hearing on the making of the original improvement provided for by Minnesota Statutes,
section 429.051. The area assessed may be less than but may not exceed the area proposed
to be assessed as stated in the notice of hearing on the project provided for in subdivision 2.
new text end

Sec. 14. new text begin BONDS, CERTIFICATES, AND OTHER OBLIGATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Budget anticipation certificates of indebtedness. new text end

new text begin At any time after
adoption of its annual budget and in anticipation of the collection of tax and other revenues
estimated and set forth by the board in the budget, except in the case of deficiency taxes
levied under this subdivision and taxes levied for the payment of certificates issued under
subdivision 2, the board may, by resolution, authorize the issuance, negotiation, and sale, in
accordance with subdivision 4, in the form and manner and upon terms it determines, of its
negotiable general obligation certificates of indebtedness in aggregate principal amounts
not exceeding 50 percent of the total amount of tax collections and other revenues, and
maturing not later than three months after the close of the budget year in which issued.
The proceeds of the sale of the certificates must be used solely for the purposes for which
the tax collections and other revenues are to be expended under the budget.
new text end

new text begin All the tax collections and other revenues included in the budget for the budget
year, after the expenditure of the tax collections and other revenues in accordance with
the budget, must be irrevocably pledged and appropriated to a special fund to pay the
principal and interest on the certificates when due. If for any reason the tax collections and
other revenues are insufficient to pay the certificates and interest when due, the board shall
levy a tax in the amount of the deficiency on all taxable property in the district and shall
appropriate this amount when received to the special fund.
new text end

new text begin Subd. 2. new text end

new text begin Emergency certificates of indebtedness. new text end

new text begin If in any budget year the receipts
of tax and other revenues should for some unforeseen cause become insufficient to pay the
board's current expenses, or if any public emergency should subject it to the necessity of
making extraordinary expenditures, the board may, by resolution, authorize the issuance,
negotiation, and sale, in accordance with subdivision 4, in the form and manner and upon
the terms and conditions it determines, of its negotiable general obligation certificates of
indebtedness in an amount sufficient to meet the deficiency. The board shall levy on all
taxable property in the district a tax sufficient to pay the certificates and interest on the
certificates and shall appropriate all collections of the tax to a special fund created for
the payment of the certificates and the interest on them. Certificates issued under this
subdivision mature not later than April 1 in the year following the year in which the tax
is collectible.
new text end

new text begin Subd. 3. new text end

new text begin General obligation bonds. new text end

new text begin The board may, upon a vote of at least 75
percent of the members of the board, by resolution, authorize the issuance of general
obligation bonds for the acquisition or betterment of any part of the district disposal
system including, but without limitation, the payment of interest during construction and
for a reasonable period thereafter, or for the refunding of outstanding bonds, certificates
of indebtedness, or judgments. The board shall pledge its full faith and credit and taxing
power for the payment of the bonds and shall provide for the issuance and sale and for
the security of the bonds in the manner provided in Minnesota Statutes, chapter 475.
The board has the same powers and duties as a municipality issuing bonds under that
law, except that no election is required and the debt limitations of Minnesota Statutes,
chapter 475, do not apply to the bonds. The board may also pledge for the payment of the
bonds and deduct from the amount of any tax levy required under Minnesota Statutes,
section 475.61, subdivision 1, and any revenues receivable under any state and federal
grants anticipated by the board and may covenant to refund the bonds if and when and
to the extent that for any reason the revenues, together with other funds available and
appropriated for that purpose, are not sufficient to pay all principal and interest due or
about to become due, provided that the revenues have not been anticipated by the issuance
of certificates under subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Manner of sale and issuance of certificates. new text end

new text begin Certificates issued under
subdivisions 1 and 2 may be issued and sold by negotiation, without public sale, and
may be sold at a price equal to the percentage of the par value of the certificates, plus
accrued interest, and bearing interest at the rate determined by the board. An election is
not required to authorize the issuance of the certificates. The certificates must bear the
same rate of interest after maturity as before and the full faith and credit and taxing power
of the board must be pledged to the payment of the certificates.
new text end

Sec. 15. new text begin DEPOSITORIES.
new text end

new text begin The board shall designate one or more national or state banks, or trust companies
authorized to do a banking business, as official depositories for money of the board, and
shall require the treasurer to deposit all or a part of the money in those institutions. The
designation must be in writing and set forth all the terms and conditions upon which the
deposits are made, and must be signed by the chair and treasurer and made a part of
the minutes of the board.
new text end

Sec. 16. new text begin MONEY, ACCOUNTS, AND INVESTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Receipt and application. new text end

new text begin Money received by the board must
be deposited or invested by the treasurer and disposed of as the board may direct in
accordance with its budget; provided that any money that has been pledged or dedicated
by the board to the payment of obligations or interest on the obligations or expenses
incident thereto, or for any other specific purpose authorized by law, must be paid by the
treasurer into the fund to which it has been pledged.
new text end

new text begin Subd. 2. new text end

new text begin Funds and accounts. new text end

new text begin (a) The board's treasurer shall establish funds and
accounts as may be necessary or convenient to handle the receipts and disbursements of
the board in an orderly fashion.
new text end

new text begin (b) The funds and accounts must be audited annually by a certified public accountant
at the expense of the district.
new text end

new text begin Subd. 3. new text end

new text begin Deposit and investment. new text end

new text begin The money on hand in those funds and accounts
may be deposited in the official depositories of the board or invested as provided in this
subdivision. Any amount not currently needed or required by law to be kept in cash on
deposit may be invested in obligations authorized for the investment of municipal sinking
funds by Minnesota Statutes, chapter 118A. The money may also be held under certificates
of deposit issued by any official depository of the board.
new text end

new text begin Subd. 4. new text end

new text begin Bond proceeds. new text end

new text begin The use of proceeds of all bonds issued by the board for
the acquisition and betterment of the district disposal system, and the use, other than
investment, of all money on hand in any sinking fund or funds of the board, is governed
by the provisions of Minnesota Statutes, chapter 475, this act, and resolutions authorizing
the issuance of the bonds. When received, the bond proceeds must be transferred to the
treasurer of the board for safekeeping, investment, and payment of the costs for which
they were issued.
new text end

new text begin Subd. 5. new text end

new text begin Audit. new text end

new text begin The board shall provide for and pay the cost of an independent
annual audit of its official books and records by the state auditor or a public accountant
authorized to perform that function under Minnesota Statutes, chapter 6.
new text end

Sec. 17. new text begin SERVICE CONTRACTS WITH GOVERNMENTAL ENTITIES
OUTSIDE THE JURISDICTION OF THE BOARD.
new text end

new text begin (a) The board may, upon a vote of at least 75 percent of the members of the board,
contract with the United States or any agency of the federal government, any state or its
agency, or any municipal or public corporation, governmental subdivision or agency, or
political subdivision in any state, outside the jurisdiction of the board, for furnishing
services to those entities including, but not limited to, planning for and the acquisition,
betterment, operation, administration, and maintenance of any or all interceptors,
treatment works, and local water and sanitary sewer facilities. The board may include as
one of the terms of the contract that the entity must pay to the board an amount agreed
upon as a reasonable estimate of the proportionate share properly allocable to the entity
of costs of acquisition, betterment, and debt service previously allocated in the district.
When payments are made by entities to the board, they must be applied in reduction of
the total amount of costs thereafter allocated in the district, on an equitable basis as the
board deems to be in the best interests of the district, applying so far as practicable and
appropriate the criteria set forth in section 11, subdivision 2. A municipality in the state of
Minnesota may enter into a contract and perform all acts and things required as a condition
or consideration therefor consistent with the purposes of this act, whether or not included
among the powers otherwise granted to the municipality by law or charter.
new text end

new text begin (b) The board shall contract with a qualified entity to make necessary inspections
of the district facilities, and to otherwise process or assist in processing any of the work
of the district.
new text end

Sec. 18. new text begin CONTRACTS FOR CONSTRUCTION, MATERIALS, SUPPLIES,
AND EQUIPMENT.
new text end

new text begin When the board orders a project involving the acquisition or betterment of a part
of the district disposal system, it shall cause plans and specifications of the project to be
made, or if previously made, to be modified, if necessary, and to be approved by the
agency if required, and after any required approval by the agency, one or more contracts
for work and materials called for by the plans and specifications may be awarded as
provided in Minnesota Statutes, section 471.345.
new text end

Sec. 19. new text begin PROPERTY EXEMPT FROM TAXATION.
new text end

new text begin Any properties, real or personal, owned, leased, controlled, used, or occupied by the
sanitary sewer board for any purpose under this act are declared to be acquired, owned,
leased, controlled, used, and occupied for public, governmental, and municipal purposes,
and are exempt from taxation by the state or any political subdivision of the state. The
properties are subject to special assessments levied by a political subdivision for a local
improvement in amounts proportionate to and not exceeding the special benefit received
by the properties from the improvement.
new text end

Sec. 20. new text begin RELATION TO EXISTING LAWS.
new text end

new text begin This act must be given full effect notwithstanding the provisions of any law or
charter inconsistent with it. The powers conferred on the board under this act do not in
any way diminish or supersede the powers conferred on the agency by Minnesota Statutes,
chapters 115 to 116.
new text end

Sec. 21. new text begin RETROACTIVE EFFECTIVE DATE, NO LOCAL APPROVAL
REQUIRED.
new text end

new text begin Pursuant to Minnesota Statutes, section 645.023, subdivision 1, clause (a), sections 2
to 20 are effective without local approval, retroactively from December 27, 2003.
new text end