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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 320-S.F.No. 3322 
                  An act relating to the metropolitan council; providing 
                  for the external use of existing service capacity; 
                  modifying the depreciation rate when assuming 
                  ownership of existing facilities; repealing obsolete 
                  rules; amending Minnesota Statutes 2000, sections 
                  473.129, by adding a subdivision; 473.511, subdivision 
                  4; repealing Minnesota Rules, parts 5900.0100; 
                  5900.0200; 5900.0300; 5900.0400; 5900.0500; 5900.0600; 
                  5900.0700; 5900.0800; 5900.0900; 5900.1000; 5900.1100; 
                  5900.1200; 5900.1300; 5900.1400; 5900.1500; 5900.1600; 
                  5900.1700; 5900.1800; 5900.1900; 5900.2000; 5900.2100; 
                  5900.2200; 5900.2300; 5900.2400; 5900.2500; 5900.2600; 
                  5900.2700; 5900.2800; 5900.2900; 5900.3000; 5900.3100; 
                  5900.3200; 5900.3300; 5900.3400; 5900.3500; 5900.3600; 
                  5900.3700; 5900.3800; 5900.3900; 5900.4000; 5900.4100; 
                  5900.4200; 5900.4300; 5900.4400; 5900.4500; 5900.4600; 
                  5900.4700; 5900.4800; 5900.4900; 5900.5000; 5900.5100; 
                  5900.5200; 5900.5300; 5900.5400; 5900.5500; 5900.5600; 
                  5900.5700; 5900.5800; 5900.5900; 5900.6000; 5900.6100; 
                  5900.6200; 5900.6300; 5900.6400; 5900.6500; 5900.6800; 
                  5900.6900; 5900.7000; 5900.7100; 5900.7200; 5900.7300; 
                  5900.7400; 5900.7500. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 473.129, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [EXTERNAL USE OF EXISTING SERVICE CAPACITY.] For 
        purposes of this subdivision, "service capacity" means an 
        existing service or operation carried out by the council as 
        authorized by law, or existing council real or personal 
        property, for which the council on a temporary basis has 
        capacity available for use outside the council.  Notwithstanding 
        other law, the council may enter into arrangements to provide 
        service capacity to other governmental entities or the private 
        sector on the terms and conditions it considers appropriate.  In 
        providing service capacity, the council:  (1) may not commit to 
        providing the service capacity for a period in excess of five 
        years; and (2) must receive compensation for providing the 
        service capacity in at least an amount sufficient to recover the 
        actual costs of providing the service capacity including, but 
        not limited to, the costs of materials and supplies, employee 
        salaries and benefits, and administrative overhead. 
           Sec. 2.  Minnesota Statutes 2000, section 473.511, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CURRENT VALUE OF EXISTING FACILITIES.] When the 
        council assumes the ownership of any existing interceptors or 
        treatment works as provided in subdivision 2 or 3, the local 
        government unit or units which paid part or all of the cost of 
        such facility, directly or pursuant to contracts for 
        reimbursement of costs, shall be entitled to receive a credit 
        against amounts to be allocated to them under section 473.517, 
        which may be spread over such period not exceeding 30 years as 
        the council shall determine, and an additional credit equal to 
        interest on the unused credit balance from time to time at the 
        rate of four percent per annum.  The amount of such credit shall 
        equal the current value of the facility computed by the council 
        in the manner provided in this subdivision at the time the 
        council acquires it.  The original cost of a facility shall be 
        computed as the total actual costs of constructing it, including 
        engineering, legal, and administrative costs, less any part of 
        it paid from federal or state funds and less the principal 
        amount of any then outstanding bonds which were issued to 
        finance its construction.  The original cost shall be multiplied 
        by a factor equal to a current cost index divided by the same 
        cost index at the time of construction, to determine replacement 
        cost.  The cost indices used shall be the Engineering News 
        Record Construction Cost Indices for facilities or parts thereof 
        completed before 1930, and the United States Public Health 
        Service Federal Water Pollution Control Values for Sewer and 
        Treatment Plant Construction, as applied to facilities or parts 
        thereof completed in or after 1930.  The current value of the 
        facility shall be the replacement cost depreciated by 2.50 4.00 
        percent per annum from the date of construction of treatment 
        works, 2.50 percent per annum from the date of construction of 
        interceptors which operate under pressure, and 1.25 percent per 
        annum from the date of construction of interceptors which do not 
        operate under pressure; and decreased further by a reasonable 
        allowance for obsolescence if the council determines that the 
        facility or any part thereof will not be useful for council 
        purposes for at least the remaining period required to 
        depreciate it fully, assuming no salvage value.  The current 
        value of each such facility shall be credited to each local 
        government unit in proportion to the amount of the construction 
        cost paid by that unit, as determined by the council, taking 
        into account reimbursements previously made under contracts 
        between any of the local government units.  The council shall 
        prepare an itemized statement of the amount of credit each local 
        government unit is entitled to receive under this subdivision, 
        and the years and amounts of installments of principal and 
        interest thereon, and shall cause it to be mailed or delivered 
        to the governing body of each local government unit concerned.  
        All credits allowed under this subdivision shall be used to 
        finance current costs allocated to the local government unit by 
        the council or for other sewer costs, and the credits shall not 
        be considered as proceeds from the sale of municipal property so 
        as to permit their use for other purposes.  At its option, the 
        council may make a periodic payment to each local government 
        unit in the amount of the credits provided pursuant to this 
        subdivision, in lieu of a credit against amounts to be allocated 
        to such local government units under section 473.517. 
           Sec. 3.  [REPEALER.] 
           Minnesota Rules, parts 5900.0100; 5900.0200; 5900.0300; 
        5900.0400; 5900.0500; 5900.0600; 5900.0700; 5900.0800; 
        5900.0900; 5900.1000; 5900.1100; 5900.1200; 5900.1300; 
        5900.1400; 5900.1500; 5900.1600; 5900.1700; 5900.1800; 
        5900.1900; 5900.2000; 5900.2100; 5900.2200; 5900.2300; 
        5900.2400; 5900.2500; 5900.2600; 5900.2700; 5900.2800; 
        5900.2900; 5900.3000; 5900.3100; 5900.3200; 5900.3300; 
        5900.3400; 5900.3500; 5900.3600; 5900.3700; 5900.3800; 
        5900.3900; 5900.4000; 5900.4100; 5900.4200; 5900.4300; 
        5900.4400; 5900.4500; 5900.4600; 5900.4700; 5900.4800; 
        5900.4900; 5900.5000; 5900.5100; 5900.5200; 5900.5300; 
        5900.5400; 5900.5500; 5900.5600; 5900.5700; 5900.5800; 
        5900.5900; 5900.6000; 5900.6100; 5900.6200; 5900.6300; 
        5900.6400; 5900.6500; 5900.6800; 5900.6900; 5900.7000; 
        5900.7100; 5900.7200; 5900.7300; 5900.7400; and 5900.7500, are 
        repealed.  
           Sec. 4.  [APPLICATION.] 
           Sections 1 and 2 apply in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington.  
           Sec. 5.  [EFFECTIVE DATE.] 
           Section 1 is effective July 1, 2002.  Section 2 is 
        effective on the day following final enactment and applies to 
        facilities of which the council assumes ownership on or after 
        the effective date.  Section 3 is effective on the day following 
        final enactment. 
           Presented to the governor April 4, 2002 
           Signed by the governor April 8, 2002, 2:31 p.m.