1997 Minnesota Statutes

CHAPTER 465. Rights, powers and duties; municipalities

     465.01 Right of eminent domain.  

    All cities may exercise the right of eminent domain for the 
 purpose of acquiring private property within or without the 
 corporate limits thereof for any purpose for which it is 
 authorized by law to take or hold the same by purchase or gift 
 and may exercise the right of eminent domain for the purpose of 
 acquiring a right of way for sewerage or drainage purposes and 
 an outlet for sewerage or drainage within or without the 
 corporate limits thereof.  The procedure in the event of 
 condemnation shall be that prescribed by chapter 117, or that 
 prescribed by the charter of such city.  

    HIST: (1829) RL s 766; 1917 c 424 s 1; 1973 c 123 art 5 s 7 

     465.013 Property or easements not acquired by 
  prescription.  

    No city of the first class or any board or department 
 thereof shall hereafter obtain or acquire title to real property 
 or any right or easement therein by prescription or adverse 
 possession.  This section shall not be construed to prevent the 
 adjudication hereafter of title in such city in cases where 
 lapse of time and adverse possession have already ripened into 
 title but no adjudication thereof has yet been had.  

    HIST: 1943 c 582 s 1,2 

     465.02 Lands deeded to state; modification of conditions.

    Any city in this state, that has heretofore deeded, or may 
 hereafter deed, to the state of Minnesota any lands to be used 
 by the state for a public purpose in such deed stated, 
 conditioned, among other things, that such lands shall be so 
 used by the state for a period of time, which time exceeds 20 
 years, and in case such use is not made thereof for the stated 
 time, then such land shall revert to such city, may at any time 
 after 15 years from the date of the deed by a majority vote of 
 the city council at any regular meeting thereof, or at a 
 properly called special meeting of such council, pass a 
 resolution or enact an ordinance modifying the terms and 
 conditions above specified and permit the noncompliance by the 
 state with such terms and conditions as originally made, either 
 wholly or in part, and such resolution so adopted shall operate 
 as a release of the state from such terms and conditions to the 
 extent provided in such resolution and the action by the state 
 in conformity with such resolution shall not in any way cause a 
 reversion to such city of the lands or any part thereof or 
 interest therein.  

    HIST: (1930) 1911 c 182 s 1; 1973 c 123 art 5 s 7 

     465.025 Gifts of land to state.  

    Any municipal corporation in the state of Minnesota, owning 
 lands in fee simple and not restricted by the grant, which are 
 no longer necessary for municipal purposes, may convey said 
 lands to the state of Minnesota without consideration when duly 
 authorized by the governing body of said municipal corporation 
 and the governor is authorized to accept such conveyances in 
 behalf of the state.  

    HIST: 1947 c 8 s 1 

  465.026 Repealed, 1987 c 291 s 244 

     465.03 Gifts to municipalities.  

    Any city, county, school district or town may accept a 
 grant or devise of real or personal property and maintain such 
 property for the benefit of its citizens in accordance with the 
 terms prescribed by the donor.  Nothing herein shall authorize 
 such acceptance or use for religious or sectarian purposes.  
 Every such acceptance shall be by resolution of the governing 
 body adopted by a two-thirds majority of its members, expressing 
 such terms in full.  

    HIST: (1830) RL s 767; 1913 c 319 s 1; 1949 c 294 s 1; 1973 c 
 123 art 5 s 7 

     465.035 Public corporation, conveyance or lease of land. 

    Any county, town, city or other public corporation may 
 lease or convey its lands for a nominal consideration, without 
 consideration or for such consideration as may be agreed upon to 
 the state or to any governmental subdivision, to the United 
 States or to any agency of the federal government, another 
 public corporation or to the Minnesota state armory building 
 commission for public use when authorized by its governing body. 

    HIST: 1947 c 34 s 1; 1951 c 73 s 1; 1955 c 142 s 1; 1957 c 152 
 s 1; 1973 c 123 art 5 s 7 

     465.036 Gifts, hospitals.  

    Counties or cities, however organized, may accept gifts to 
 aid in building, acquiring, equipping or maintaining public 
 hospitals whether such hospital is maintained by a county or a 
 city, or by any combination thereof.  

    HIST: 1949 c 152 s 1; 1973 c 123 art 5 s 7 

     465.037 Gifts to hospitals. 

    A home rule charter or statutory city or town may make 
 grants for the use of a private, nonprofit, or public hospital 
 that serves the city or town when authorized by the council in 
 the case of a city and the town board in the case of a town upon 
 the affirmative vote of the town electors at the annual or a 
 special town meeting. 

    HIST: 1989 c 92 s 2 

     465.039 Gifts to organizations distributing food. 

    The governing body of a home rule charter or statutory city 
 may appropriate each year out of the general fund of the city, 
 or other unrestricted money, an amount to be determined by the 
 governing body to provide grants to nonprofit organizations 
 operating community food shelves that provide food to the needy 
 without charge. 

    HIST: 1995 c 109 s 1 

     465.04 Acceptance of gifts. 

    Cities of the second, third, or fourth class, having at any 
 time a market value of not more than $41,000,000, exclusive of 
 money and credits, as officially equalized by the commissioner 
 of revenue, either under home rule charter or under the laws of 
 this state, in addition to all other powers possessed by them, 
 hereby are authorized and empowered to receive and accept gifts 
 and donations for the use and benefit of such cities and the 
 inhabitants thereof upon terms and conditions to be approved by 
 the governing bodies of such cities; and such cities are 
 authorized to comply with and perform such terms and conditions, 
 which may include payment to the donor or donors of interest on 
 the value of the gift at not exceeding five percent per annum 
 payable annually or semiannually, during the remainder of the 
 natural life or lives of such donor or donors. 

    HIST: (1663) 1923 c 395 s 1; 1973 c 582 s 3; 1988 c 719 art 5 
 s 84; 1989 c 329 art 13 s 20; 1990 c 480 art 9 s 19 

     465.05 Tax levy to pay interest.  

    When any such city shall so accept such gift or donation 
 the governing body thereof shall have the right to enter such a 
 written contract for the payment of such interest so determined 
 upon, it shall be the duty of the city council annually, at the 
 time other taxes are levied, to levy a tax sufficient to pay 
 such obligation so incurred.  

    HIST: (1664) 1923 c 395 s 2 

  465.06 Repealed, 1976 c 44 s 70 

  465.07 Repealed, 1976 c 44 s 70 

  465.08 Repealed, 1976 c 44 s 70 

  465.09 Repealed, 1963 c 798 s 16 

  465.091 Repealed, 1963 c 798 s 16 

  465.10 Repealed, 1963 c 798 s 16 

  465.11 Repealed, 1963 c 798 s 16 

  465.12 Repealed, 1963 c 798 s 16 

  465.121 Repealed, 1963 c 798 s 16 

     465.13 Judgment against municipality; payment.  

    No execution shall issue on a judgment for the recovery of 
 money against a city, except as hereinafter provided.  Upon 
 delivery of a certified copy of the judgment, the treasurer of 
 such municipality shall pay it out of any moneys in or coming in 
 not otherwise appropriated, unless collection thereof be stayed 
 on appeal, always retaining a sufficient sum to pay necessary 
 current expenses; and, if the treasurer fails so to do, the 
 treasurer and bonding agents shall be liable for the amount.  In 
 case there be no such treasurer, then, upon delivery of such 
 certified copy and an affidavit of the judgment creditor, the 
 judgment creditor's agent or attorney, showing the amount due, 
 and that the judgment has not been stayed on appeal, the county 
 treasurer shall pay such judgment out of the funds of the 
 municipality in or coming in, taking receipt therefor.  

    HIST: (1834) RL s 769; 1973 c 123 art 5 s 7; 1986 c 444 

     465.14 Tax levy; execution.  

    When a judgment against a city is unpaid at the time of the 
 annual tax levy, unless the proper officers thereof have 
 otherwise provided sufficient funds to pay the same before the 
 time for collection of such tax levy, they shall levy a tax to 
 pay such judgment and certify the same and the purpose thereof 
 to the county auditor.  If the judgment be not paid within 20 
 days after the time fixed by law for the county treasurer to pay 
 over to the treasurer of the municipality the moneys on hand 
 belonging to it on account of such annual tax levy, execution 
 may issue on such judgment, but only the property of such 
 municipality shall be liable thereon.  If there be no officers 
 of the municipality to levy such tax, the judgment creditor may 
 apply to the county auditor, who, upon being satisfied that the 
 judgment has not been paid or stayed, shall levy and extend the 
 tax.  

    HIST: (1836) RL s 770; 1973 c 123 art 5 s 7; 1986 c 444 

     465.15 Cities may acquire exempt property. 

    Each city of the first class now or hereafter having a 
 population of 50,000 inhabitants or more, including each such 
 city operating under a charter adopted pursuant to the 
 provisions of the Constitution of the state of Minnesota, 
 article IV, section 36, article XI, section 4, or article XII, 
 section 5, is hereby authorized and empowered to acquire by 
 purchase, condemnation, or otherwise any right or interest in 
 land either platted or unplatted within the limits of the city, 
 which interest in land consists of a right or privilege in the 
 owner of the land to offset certain amounts against special 
 assessments levied by the governing body, the city council, or 
 the board of park commissioners of such city for park or parkway 
 purposes, or both.  

    HIST: (1541-1) 1931 c 385 s 1; 1997 c 7 art 4 s 6 

     465.16 Right of eminent domain.  

    In the event that the chief governing body, city council or 
 board of park commissioners of such city shall exercise such 
 right by condemnation such body may do so under any laws 
 provided for the condemnation of real property or eminent domain 
 or under any provision of the charter of such city granting to 
 such body the right of condemnation or eminent domain; or, it 
 being for the best interests of such city, such chief governing 
 board, city council, or board of park commissioners shall have 
 the power and authority to acquire the rights by purchase, 
 taking into consideration the present worth of such right to 
 exemption and the probability or improbability that such 
 exemptions would ever be used as an offset to future assessments 
 for benefits.  

    HIST: (1541-2) 1931 c 385 s 2 

     465.17 May issue bonds.  

    In order to carry out the purpose of sections 465.15 to 
 465.17 each such city is hereby authorized to issue bonds or 
 certificates of indebtedness to secure funds for the amount 
 necessary to acquire the right and the city council or other 
 chief governing body shall levy annually a tax on all the 
 taxable property of the city sufficient to meet the interest and 
 the principal about to mature on the bond.  

    HIST: (1541-3) 1931 c 385 s 3 

  465.18 Repealed, 1990 c 391 art 10 s 4 

     465.19 Change of channel within and at cost of city; 
  city's ownership. 

    When any portion of the channel of any river navigable for 
 commercial purposes within the limits of any city in this state 
 is changed by or under the authority of the United States 
 government or any other authority for the improvement of 
 navigation and the cost of such change or any portion thereof is 
 borne by the city within which change is made the old bed of the 
 river or portion thereof abandoned by reason of any such change, 
 shall belong to and become the property in fee simple of the 
 city in which the same is situate without further act or 
 ceremony.  The filing and recording in the office of the county 
 recorder of the county in which such city is located, of a copy 
 of this bill together with a plat or map certified by the 
 secretary of defense of the United States or the United States 
 government engineer in charge of the changes of the channel 
 hereinbefore referred to, showing the respective locations of 
 the water line of the old or original bed of the river and such 
 changed location, shall constitute sufficient evidence of title 
 of such city to the old river bed and lands hereinbefore 
 referred to.  Upon the request of any such city the governor and 
 the commissioner of finance shall also execute and deliver to 
 such city a deed of conveyance transferring all of the right, 
 title, and interest of the state of Minnesota in and to such old 
 river bed and lands within the limits of such city, and the 
 lands so reclaimed or acquired may be held, used, or disposed of 
 by such city as the common council shall determine to be for the 
 best interests of such city. 

    HIST: (1350) 1911 c 291 s 2; 1973 c 492 s 14; 1976 c 2 s 135; 
 1976 c 181 s 2 

     465.20 Application. 

    Sections 465.19 and 465.20 shall apply to all cities 
 including those now or hereafter governed by a charter adopted 
 pursuant to the Constitution of the state of Minnesota, article 
 IV, section 36, article XI, section 4, or article XII, section 5.

    HIST: (1351) 1911 c 291 s 3; 1990 c 391 art 8 s 48; 1997 c 7 
 art 4 s 7 

  465.21 Repealed, 1965 c 670 s 14 

  465.22 Repealed, 1965 c 670 s 14 

  465.23 Repealed, 1965 c 670 s 14 

  465.24 Repealed, 1965 c 670 s 14 

  465.25 Repealed, 1965 c 670 s 14 

     465.26 Diversion of unnavigable streams; raising waters 
  of lakes. 

    Any first class city may, if in the judgment of its city 
 council, the public health or welfare of its citizens will be 
 promoted thereby, divert any unnavigable stream, flowing wholly 
 or partly within the corporate limits, from its natural bed to 
 an artificial channel or to another watercourse.  The diversion 
 may take place at any feasible or desirable point within or 
 without the corporate limits, and the new channel may be created 
 within or without or partly within and partly without the 
 corporate limits.  For the purpose of controlling and regulating 
 the flow of such stream in its new channel, the city may, by the 
 erecting of dams or other suitable means, raise the waters of 
 any lake or lakes from which the stream may flow, or through 
 which the new channel may flow, and control and regulate the 
 discharge from such lake or lakes, and straighten, enlarge, and 
 make such changes and improvements in the channels as may be 
 necessary for such purposes.  Such new channels may, where 
 necessary, cross any highway or railway; in which case suitable 
 bridges shall be provided. 

    HIST: (1509) 1905 c 18 s 1; 1976 c 44 s 65 

     465.27 Ordinance; survey and map.  

    The city council shall by ordinance first adopt and file 
 with the city clerk a survey and map showing the point at which 
 it is proposed to divert the stream, the route of the new 
 channel, the sites of dams and other controlling works, the 
 lands proposed to be taken for right of way and for flowage 
 purposes, the levels to which it is proposed to raise and 
 between which it is proposed to maintain the waters of any lake, 
 a profile of the route and of the water surface, the 
 cross-section of the proposed new channel, the enlargement, if 
 any, of any existing channel, the bridges, tunnels, culverts to 
 be built, and in general, the entire extent and scope of the 
 improvement as nearly as may be.  

    HIST: (1510) 1905 c 18 s 2 

     465.28 Lands; how acquired.  

    The city council may acquire in the name of the city by 
 grant, dedication, purchase, or devise the lands and the rights 
 necessary to carry out such improvements.  

    HIST: (1511) 1905 c 18 s 3 

     465.29 Condemnation; special assessments.  

    The power of eminent domain and the power to levy special 
 assessments for benefits are hereby delegated to such cities for 
 the purposes of sections 465.26 to 465.48, to acquire the lands 
 and rights needed or any of them, to be exercised as follows.  

    HIST: (1512) 1905 c 18 s 4 

     465.30 Ordinance; appraisers.  

    The city council shall by ordinance determine and declare 
 as nearly as may be the cost of such improvements, exclusive of 
 damages to property, and appoint five appraisers, who shall be 
 disinterested freeholders and qualified voters of the county, 
 and none of whom shall be residents of the town or ward or wards 
 of the city in which the property so designated is situated, to 
 view the premises and appraise the damages which may be 
 occasioned by the taking of private property or otherwise in 
 making such improvement, and to assess special benefits 
 resulting therefrom.  These appraisers shall be notified as soon 
 as practicable by the city clerk to attend, at a time fixed by 
 the clerk, for the purpose of qualifying and entering upon their 
 duties.  When a vacancy may occur among these appraisers by 
 neglect or refusal of any of them to act or otherwise, such 
 vacancy shall be filled by the city council.  

    HIST: (1513) 1905 c 18 s 5; 1986 c 444 

     465.31 Oath.  

    The appraisers shall be sworn to discharge their duty as 
 appraisers in the matter with impartiality and fidelity; and to 
 make due return of their acts to the city council.  

    HIST: (1514) 1905 c 18 s 6 

     465.32 Notice of meeting. 

    The appraisers shall give notice of their meeting in a 
 manner appropriate to inform the public, which notice shall name 
 the stream to be diverted, the point of diversion, the general 
 course of the new channel and the height to which it is proposed 
 to raise or maintain any lake, the location of proposed bridges, 
 culverts, or tunnels, the estimated cost of construction, and 
 contain a description of the lands designated by the city 
 council to be taken for right of way and for flowage purposes, 
 and give notice that a plan of the improvement has been filed in 
 the office of the city clerk, and that the appraisers will meet 
 at a place and time designated in the notice, and thence proceed 
 to view the premises and appraise the damages for property to be 
 taken, or which may be damaged by the diversion of water or 
 otherwise by such improvement, and to assess benefits in the 
 manner hereinafter specified.  If any portion of such stream or 
 of the lands to be taken is outside of the county containing 
 such city, then the notice shall also be given in the outside 
 county.  

    HIST: (1515) 1905 c 18 s 7; 1984 c 543 s 61 

     465.33 Mailing notices.  

    A copy of all subsequent notices relating to the proceeding 
 which are required to be published, shall be mailed by the city 
 clerk immediately after the first publication thereof to such 
 persons as shall have appeared in the proceedings and requested 
 in writing that such notices be mailed to them.  

    HIST: (1516) 1905 c 18 s 8 

     465.34 Meeting of appraisers; damages and benefits.  

    At the time and place mentioned in the notice, the 
 appraisers shall meet and thence proceed to view the premises, 
 and hear any evidence or proof offered by the parties interested 
 and may adjourn from time to time for the purpose aforesaid.  
 When their view and hearing shall be concluded they shall 
 determine the amount of damages, if any, suffered by each piece 
 or parcel of land affected by the improvement.  They shall 
 determine the amount of special benefits, if any, occurring by 
 reason of diversion of water, drainage, or otherwise, to each 
 piece or parcel of land wherever situate and whether contiguous 
 to the improvement or not.  If the damages exceed the benefits 
 to any particular piece, the excess shall be awarded as 
 damages.  If the benefits exceed the damages to any particular 
 piece, the difference shall be assessed as benefits, but the 
 total assessment for benefits shall not be greater than the 
 aggregate net award of damages added to the estimated cost of 
 construction; and in every case the benefits assessed upon the 
 several parcels shall be in proportion to the actual benefits 
 received, and no assessment upon any particular piece shall 
 exceed the amount of actual special benefits after deducting the 
 damages, if any.  

    HIST: (1517) 1905 c 18 s 9 

     465.35 Buildings.  

    If there be any buildings standing, in whole or in part, 
 upon any parcel of the land to be taken, the appraisers shall, 
 in such case, determine the amount of damages which should be 
 paid to the owners thereof, in case such building, or so much as 
 may be necessary, should be taken, and shall appraise and 
 determine the amount of damages to be paid such owners in case 
 they shall elect to remove such buildings.  

    HIST: (1518) 1905 c 18 s 10 

     465.36 Different owners or interests.  

    If the land and buildings belong to different persons or if 
 the land be subject to lease, mortgage, or judgment, or if there 
 be any estate less than an estate in fee, the injury or damage 
 done to such person, or interests, respectively, may be awarded 
 to them separately by the appraisers.  Neither such award of the 
 appraisers, nor the confirmation thereof by the city council, 
 shall be deemed to require the payment of such damages to the 
 person or persons named in such award, in case it shall 
 transpire that such persons are not entitled to receive the same.

    HIST: (1519) 1905 c 18 s 11 

     465.37 Report.  

    The appraisers having ascertained and appraised the damages 
 and assessed the benefits, as aforesaid, shall make and file 
 with the city clerk a written report of their action in the 
 premises, embracing a schedule and appraisement of the damages 
 awarded and benefits assessed, with descriptions of the lands, 
 and the names of the owners, if known to them, and a statement 
 of the costs of the proceeding.  

    HIST: (1520) 1905 c 18 s 12 

     465.38 Notice of appraisement; confirmation or annulment.

    Upon such report being filed, the city clerk shall give 
 notice that such appraisement has been returned and that the 
 same will be considered by the city council at a meeting thereof 
 to be named in the notice, which notice shall contain the 
 schedule of damages awarded and benefits assessed and be given 
 in a manner appropriate to inform the public.  Any person 
 interested in any building standing in whole or in part upon any 
 land required to be taken by such improvement shall, on or 
 before the time specified for the meeting in such notice, notify 
 the city council in writing of the person's election to remove 
 such building, if the person so elect.  The city council, upon 
 the day fixed for the consideration of such report, or at any 
 subsequent meeting to which the same may stand over or be 
 referred, shall have power in their discretion to confirm, 
 revise, or annul the appraisement and assessment, giving due 
 consideration to any objections interposed by parties interested 
 in the manner hereinafter specified; provided that the city 
 council shall not have the power to reduce the amount of any 
 award nor increase any assessment.  In case the appraisement and 
 assessment is annulled, the city council may thereupon appoint 
 new appraisers, who shall proceed in like manner as in case of 
 the first appraisement, and upon the coming in of their report, 
 the city council shall proceed in a like manner and with the 
 same powers as in the case of the first appraisement.  

    HIST: (1521) 1905 c 18 s 13; 1984 c 543 s 62; 1986 c 444 

     465.39 Award; appeal.  

    If not annulled or set aside, such award shall be final and 
 a charge upon the city, for the payment of which the credit of 
 the city shall be pledged.  Such assessments shall be and remain 
 a lien and charge upon the respective lands until paid.  The 
 award shall be paid to the persons entitled thereto or deposited 
 and set apart in the treasury of the city for the use of the 
 persons entitled thereto within six months after the 
 confirmation of the appraisement and award.  In case any appeal 
 shall be taken from the order confirming the appraisement and 
 assessment, as hereinafter provided, the time for payment of the 
 awards shall be extended until and including 60 days after the 
 final determination of all appeals taken in the proceedings, and 
 in case of any change in the awards or assessment upon appeal, 
 the city council may, by resolution duly adopted, at any time 
 within 60 days after the determination of all appeals, set aside 
 the entire proceeding.  Any awards so set aside shall not be 
 paid, and the proceedings as to the tracts for which the awards 
 are so set aside shall be deemed abandoned.  Any awards not so 
 set aside shall be a charge upon the city, for the payment of 
 which the credit of the city shall be pledged.  All awards shall 
 bear interest at the rate of six percent per annum from the time 
 of the filing of the original appraisers' report, and all 
 subsequent awards and awards upon appeals shall be made as of 
 the day and date of filing of such original reports.  

    HIST: (1522) 1905 c 18 s 14 

     465.40 Vesture of title.  

    Upon the conclusion of the proceedings and the payment of 
 the awards, the several tracts of land shall be deemed to be 
 taken and appropriated for the purposes of sections 465.26 to 
 465.48, and the title thereto shall vest in the city.  In case 
 the city council shall in any case be unable to determine to 
 whom the damages should in any particular case be paid, or in 
 case of adverse claim in relation thereto, or in case of the 
 legal disability of any person interested, the city council 
 shall, and in any and every case the city council may in its 
 discretion deposit the amount of damages with the district court 
 of the county in which such city is situate, for the use of the 
 parties entitled thereto, and the court shall, upon the 
 application of any person interested, and upon such notice as 
 the court shall prescribe, determine who is entitled to the 
 award, and shall order the same paid accordingly.  Any such 
 deposit shall have the same effect as the payment to the proper 
 persons.  

    HIST: (1523) 1905 c 18 s 15 

     465.41 Removal of buildings.  

    In case any owner of buildings, as aforesaid, shall have 
 elected to remove the buildings they shall be removed within 30 
 days from the confirmation of the report or within such further 
 time as the city council may allow for the purpose and shall be 
 entitled to the payment of the amount of damages awarded in such 
 case in case of removal.  When such person shall not have 
 elected to remove such buildings, or shall have neglected (after 
 having elected) to remove the same within the time above 
 specified, such buildings, or so much thereof as may be 
 necessary, upon paying or depositing the damages awarded for 
 such taking in manner aforesaid, may be taken and appropriated, 
 sold, or disposed of as the city council shall elect.  

    HIST: (1524) 1905 c 18 s 16; 1986 c 444 

     465.42 Appeal; objections; notice; record.  

    Any person whose property is proposed to be taken or 
 interfered with or assessed under any provisions of sections 
 465.26 to 465.48, or who claims to be damaged by the 
 improvement, and who deems that there is any irregularity in the 
 proceedings of the city council, or action of the appraisers, by 
 reason of which the award of the appraisers ought not to be 
 confirmed, or who is dissatisfied with the amount of damages 
 awarded for the taking of, or interference with the person's 
 property, or the assessment thereon, may, at any time before the 
 time specified for the consideration of the award and assessment 
 by the city council, file with the city clerk in writing 
 objections to such confirmation, setting forth therein 
 specifically the particular irregularities complained of, and 
 the particular objection to the award or assessment, and 
 containing a description of the property, affected by such 
 proceedings and the person's interest therein, and if, 
 notwithstanding such objections, the city council shall confirm 
 the award or assessment, such persons so objecting shall have 
 the right to appeal from such order of confirmation of the city 
 council to the district court of the county in which the city is 
 situate within 20 days after such order.  Such appeal shall be 
 made by serving a written notice of appeal upon the city clerk, 
 which shall specify the property of the appellant affected by 
 such award or improvement, and refer to the objection filed, as 
 aforesaid, thereupon the city clerk, at the expense of the 
 appellant, shall make out and transmit to the court 
 administrator of the district court a copy of the record of the 
 entire proceedings and of the award of the appraisers as 
 confirmed by the city council, and of the order of the city 
 council confirming the same, and of the objections filed by the 
 appellant, as aforesaid, and of the notice of appeal, all 
 certified by the city clerk to be true copies, within ten days 
 after the taking of such appeal.  If more than one appeal be 
 taken in the same proceeding, it shall not be necessary that the 
 city clerk in appeals subsequent to the first shall send up 
 anything but a certified copy of the appellant's objections.  
 There shall be no pleading on any appeal, but the court shall 
 determine in the first instance whether there was in the 
 proceedings any such irregularity or omission of duty 
 prejudicial to the appellant and specified in the written 
 objection that as to that appellant the award or assessment of 
 the appraisers ought not to stand, and whether the appraisers 
 had jurisdiction to take action in the premises.  

    HIST: (1525) 1905 c 18 s 17; 1986 c 444; 1Sp1986 c 3 art 1 s 
 82 

     465.43 Hearing; appraisers; award; appeal. 

    The case may be brought on for hearing on eight days' 
 notice, at any general or special term of the court, and the 
 judgment of the court shall be to confirm or annul the 
 proceedings, only so far as the proceedings affect the property 
 of the appellant proposed to be taken or damaged or assessed, 
 and described in the written objection.  In case the amount of 
 damages or benefits assessed is complained of by the appellant, 
 the court shall, if the proceedings be confirmed in other 
 respects, appoint three disinterested freeholders, residents of 
 the county, appraisers, to reappraise the damages, and reassess 
 benefits as to the property of appellant.  The parties to the 
 appeal shall be heard by the court upon the appointment of the 
 appraisers.  The court shall fix the time and place of meeting 
 of the appraisers.  They shall be sworn to the faithful 
 discharge of their duties as appraisers, and shall proceed to 
 view the premises and to hear the parties interested, with their 
 allegations and proofs pertinent to the question of the amount 
 of damages or benefits, and proceed in all other material 
 respects as are provided in sections 465.26 to 465.48 for the 
 government of appraisers appointed by the city council.  They 
 shall, after the hearing and view of the premises, report to the 
 court their award of damages and assessments of benefits in 
 respect to the property of the appellant.  The appellant shall, 
 within five days of notice of filing the award, file a written 
 election to remove the buildings if the appellant so elect.  The 
 election shall not affect the appellant's right to a review.  
 The award shall be final unless set aside by the court.  The 
 motion to set aside shall be made within 15 days.  If the report 
 is set aside, the court may, in its discretion, recommit it to 
 the same appraisers, or appoint new appraisers, as it deems 
 best.  The court shall allow to the appraisers a reasonable 
 compensation for their services, and make such awards of costs 
 on the appeal, including the compensation of appraisers, as it 
 deems just in the premises, and enforce them by execution.  If 
 the court is of the opinion that the appeal was frivolous or 
 vexatious, it may adjudge double costs against the appellant.  
 An appeal may be taken to the court of appeals from any final 
 order of the district court in the proceedings.  

    HIST: (1526) 1905 c 18 s 18; 1983 c 247 s 159; 1986 c 444 

     465.44 Time of payment.  

    In case of any appeal the time for making payment of awards 
 shall be extended as to all tracts embraced in the proceeding to 
 60 days after final determination of all appeals.  

    HIST: (1527) 1905 c 18 s 19 

     465.45 Notice of pendency; persons affected.  

    The notice prescribed in section 465.32 shall be sufficient 
 to charge all persons whose rights or interests may be affected 
 by the diversion of such waters, but whose lands are not 
 otherwise taken, with notice of the pendency of the proceeding, 
 and all such persons may present to the appraisers evidence of 
 the damages which they will suffer, and the appraisers shall 
 determine and award such damages as they may find, particularly 
 specifying in their award the location and the nature of such 
 damages, and all persons failing to present their claims for 
 damages arising from the diversion of waters, shall be concluded 
 by the proceeding hereunder, whether any award of damages is 
 made to them or not, and shall be barred from claiming damages 
 afterwards in any other form of action or proceeding.  

    HIST: (1528) 1905 c 18 s 20 

     465.46 Award and assessment, how certified; assessment, 
  how enforced.  

    Upon the final determination of all appeals in such 
 proceeding, the city clerk shall transmit to the auditor of the 
 county or counties in which the respective lands lie a copy duly 
 certified by the clerk of the awards and assessment of the 
 appraisers as confirmed by the city council; and the court 
 administrator of the district court shall, in like manner, 
 certify the award and assessment as finally made upon all 
 appeals; and the county auditors shall include such assessments 
 of benefits against each tract of land assessed, with and as a 
 part of the taxes upon such respective tracts of land in the 
 next annual list of taxes for general, state, county and other 
 purposes, and the same proceedings shall be had for the 
 collection and enforcement thereof, as for such general taxes, 
 including like penalties in case of nonpayment, and including 
 also proceedings for the collection and enforcement of 
 delinquent taxes.  When any of such assessments are collected, 
 they shall be credited to the city conducting such proceedings, 
 and paid over and accounted for in like manner as other taxes.  

    HIST: (1529) 1905 c 18 s 21; 1986 c 444; 1Sp1986 c 3 art 1 s 
 82 

     465.47 Duty of city.  

    It shall be the duty of such city to proceed with all 
 reasonable dispatch to complete such improvements, unless the 
 proceedings are set aside by the city council as provided in 
 sections 465.26 to 465.46.  

    HIST: (1530) 1905 c 18 s 22 

     465.48 Powers and duties of council; penalties.  

    The city council shall have power and it shall be its duty 
 after the construction of such works to maintain the same and to 
 prevent injury or obstruction to the channel or works and 
 contamination of the waters.  For such purposes the city council 
 may enact suitable ordinances and prescribe penalties for their 
 violation, not exceeding a fine of $100 for each offense or 
 confinement in the city workhouse not exceeding 90 days.  The 
 municipal court of the city shall have jurisdiction of such 
 offenses.  

    HIST: (1531) 1905 c 18 s 23 

     465.49 Parking lake shores; donations; contracts for 
  water and ice.  

    All cities of the fourth class and the city councils of the 
 same, in addition to all powers now possessed by such cities, 
 shall have the power to dredge lakes wholly or partly within the 
 corporate limits of such cities, to park the shores thereof, 
 maintain a water level in such lakes, and expend money therefor. 

    Such cities are given the right to accept donations from 
 any person, firm, or corporation to aid in defraying such 
 expenses and such cities and the city councils thereof shall 
 have the power to make contracts with any person, firm, or 
 corporation for the taking of water and ice from such lake upon 
 such terms and conditions as may be agreed upon between such 
 city council and the person, firm, or corporation acquiring the 
 right to the use of the water and ice.  

    HIST: (1746) 1913 c 331 s 1 

     465.50 Observance of Memorial Day.  

    The council of each and every city in the state, in 
 addition to all other powers now possessed by it, is hereby 
 empowered and authorized to set apart, appropriate, and expend, 
 or cause to be expended, in such manner as it may deem best, 
 from any funds in the city treasury available therefor, an 
 amount not to exceed the sum of $300 annually for each 75,000 of 
 population of such city for the purpose of aiding in the 
 appropriate observance of Memorial Day on the last Monday in May 
 of each year and in the annual commemoration of the noble and 
 valiant deeds of the nation's soldier dead.  

    HIST: (1318) 1909 c 365 s 1; 1923 c 375; 1971 c 25 s 81 

  465.51 Repealed, 1976 c 44 s 70 

  465.52 Repealed, 1976 c 44 s 70 

  465.53 Repealed, 1987 c 291 s 244 

     465.54 May pay expenses from general fund of statutory 
  city. 

    The council of any statutory city may pay from the general 
 fund of the municipality, for the purposes of section 469.186, 
 expenses incurred by the governing officers in the performance 
 of their official duties.  Trips for lobbying purposes or trips 
 to meetings or conventions not in connection with specific 
 municipal projects pending before the officer making the trip 
 are not authorized for payment under this section. 

    HIST: (1192-4, 1192-5) 1933 c 60 s 4,5; 1973 c 123 art 5 s 7; 
 1977 c 50 s 2; 1987 c 291 s 223; 1994 c 505 art 4 s 4 

  465.55 Repealed, 1987 c 291 s 244 

   465.56 Repealed, 1987 c 291 s 244 

*   NOTE:  The 1987 amendment to subdivision 1 by Laws 1987, 
*chapter 216, section 2, is now incorporated into section 
*469.189, pursuant to Laws 1987, chapter 291, section 243.

  465.57 Repealed, 1976 c 44 s 70 

     465.58 Members of the league of cities. 

    Subdivision 1.    Dues, annual meeting expense.  Any 
 city of this state, whether organized under the general laws or 
 a special or home rule charter, or any town having the powers of 
 a statutory city under section 368.01, may appropriate through 
 its council or town board, out of its general fund, money to pay 
 the annual dues in the League of Minnesota Cities and the actual 
 and necessary expenses of such delegates as such council or town 
 board may designate to attend meetings of the league. 

    Subd. 2.  Repealed, 1957 c 935 s 27 

    HIST: (1933-4) 1923 c 211 s 1; 1951 c 259 s 1; 1961 c 49 s 1; 
 1973 c 123 art 5 s 7; 1977 c 347 s 54 

  465.59 Repealed, 1976 c 44 s 76 

  465.60 Renumbered 413.135 

  465.61 Repealed, 1976 c 44 s 70 

  465.62 Repealed, 1963 c 798 s 16 

  465.63 Repealed, 1976 c 44 s 70 

  465.64 MS 1967 Repealed, 1976 c 44 s 70 

  465.65 MS 1967 Repealed, 1976 c 44 s 70 

  465.66 MS 1967 Repealed, 1976 c 44 s 70 

  465.67 MS 1967 Repealed, 1976 c 44 s 70 

  465.68 MS 1967 Repealed, 1976 c 44 s 70 

  465.681 Repealed, 1996 c 310 s 1 

     465.69 Training of school safety patrol members.  

    Any statutory city of this state may provide for the 
 training of members of the school safety patrol at any 
 authorized school patrol camp located in this state and may pay 
 the expense necessarily incurred in providing such training, out 
 of any funds available for said purpose.  

    HIST: 1955 c 316 s 1; 1973 c 123 art 4 s 11 

     465.70 Television signal distribution systems; home rule 
  charter third and fourth class cities and statutory cities. 

    Any statutory city or any home rule charter city of the 
 third or fourth class more than 50 miles from the boundaries of 
 a city of the first class, or any two or more of such cities 
 acting under an agreement accepted by the governing body of each 
 such participating municipality, may own, construct, acquire, 
 purchase, maintain and operate within its corporate limits a 
 television signal distribution system for the purpose of 
 receiving, transmitting, and distributing television impulses 
 and television energy, including audio signals and transient 
 visual images, to the inhabitants of the city.  This system 
 shall be considered a public utility.  The city may erect, 
 construct, operate, repair, and maintain in, upon, along, over, 
 across, through and under its streets, alleys, highways and 
 public grounds, poles, cross-arms, cables, wires, guy-wires, 
 stubs, anchors, towers, antennas, pipes, connections, and other 
 appliances, fixtures, and equipment necessary, expedient, or 
 useful in connection therewith.  It may prescribe reasonable 
 rates and charges for the use of these facilities and the 
 services furnished.  It may prescribe, make and maintain rules 
 for the operation thereof and do all things necessary and 
 incidental to accomplish such purpose.  Subject to and in 
 accordance with chapter 475, the city may issue obligations in a 
 maximum amount of $100,000 for acquisition and betterment of the 
 system. 

    HIST: 1957 c 100 s 1; 1959 c 257 s 1; 1973 c 123 art 5 s 7; 
 1976 c 44 s 66 

     465.71 Installment and lease purchases; cities; 
  counties; school districts. 

    A home rule charter city, statutory city, county, town, or 
 school district may purchase personal property under an 
 installment contract, or lease real or personal property with an 
 option to purchase under a lease-purchase agreement, by which 
 contract or agreement title is retained by the seller or vendor 
 or assigned to a third party as security for the purchase price, 
 including interest, if any, but such purchases are subject to 
 statutory and charter provisions applicable to the purchase of 
 real or personal property.  For purposes of the bid requirements 
 contained in section 471.345, "the amount of the contract" shall 
 include the total of all lease payments for the entire term of 
 the lease under a lease-purchase agreement.  The obligation 
 created by a lease-purchase agreement for personal property or a 
 lease-purchase agreement for real property if the amount of the 
 contract for purchase of the real property is less than 
 $1,000,000 shall not be included in the calculation of net debt 
 for purposes of section 475.53, and shall not constitute debt 
 under any other statutory provision.  No election shall be 
 required in connection with the execution of a lease-purchase 
 agreement authorized by this section.  The city, county, town, 
 or school district must have the right to terminate a 
 lease-purchase agreement at the end of any fiscal year during 
 its term. 

    HIST: 1965 c 266 s 1; 1976 c 44 s 67; 1979 c 3 s 1; 1982 c 523 
 art 15 s 4; 1988 c 639 s 6; 1989 c 329 art 5 s 16; 1990 c 562 
 art 5 s 12; 1997 c 231 art 2 s 33 

     465.715 Political subdivisions; lease purchase 
  agreements; corporations. 

    Subdivision 1.    Statutory authorization required.  A 
 county, home rule charter city, statutory city, town, school 
 district, or other political subdivision may not create a 
 corporation, whether for profit or not for profit, unless 
 explicitly authorized to do so by law.  

    Subd. 2.    Pre-December 1, 1996, lease purchase 
 agreements.  The validity of any lease purchase agreement 
 entered into prior to December 1, 1996, and subsequent 
 refinancings are not affected by either the amount of 
 consideration paid by a lessor for an interest in real property 
 or, in the case of lessors organized by or on behalf of the 
 city, county, town, or school district, any defect in or lack of 
 authority to organize such entity.  A nonprofit corporation 
 organized by or on behalf of a city, county, town, or school 
 district, for the purpose of a lease purchase agreement, may 
 continue in existence until the end of any lease agreement in 
 effect on December 1, 1996, but thereafter is dissolved.  During 
 its existence, the nonprofit corporation shall conduct only 
 business that is necessary and directly related to the lease 
 agreement.  The nonprofit corporation is a public corporation 
 for purposes of section 465.035 and is subject to all laws as if 
 it were a part of the city, county, town, or school district. 

    HIST: 1997 c 219 s 7; 1997 c 231 art 16 s 19 

     465.72 Severance pay. 

    Subdivision 1.    Payment; limits.  Except as may 
 otherwise be provided in Laws 1959, chapter 690, as amended, a 
 county, city, township, school district or other governmental 
 subdivision may pay severance pay to its employees and adopt 
 rules for the payment of severance pay to an employee who leaves 
 employment.  Severance pay does not include compensation for 
 accumulated sick leave or other payments in the form of periodic 
 contributions by an employer toward premiums for group insurance 
 policies for a former employee.  The severance pay must be 
 excluded from retirement deductions and from any calculations in 
 retirement benefits.  Severance pay must be paid in a manner 
 mutually agreeable to the employee and employer over a period 
 not to exceed five years from retirement or termination of 
 employment.  If a retired or terminated employee dies before all 
 or a portion of the severance pay has been disbursed, that 
 balance due must be paid to a named beneficiary or, lacking one, 
 to the deceased's estate.  Severance pay provided for an 
 employee leaving employment may not exceed an amount equivalent 
 to one year of pay. 

    Subd. 2. Repealed, 1988 c 605 s 14 

    HIST: 1973 c 123 art 5 s 7; 1973 c 298 s 1; 1979 c 334 art 6 s 
 24; 1980 c 614 s 151; 1Sp1981 c 4 art 2 s 37; 1986 c 455 s 91; 
 1988 c 605 s 10 

     465.721 Funding. 

    No county, city, township, or other governmental 
 subdivision shall implement a plan for payment of severance pay 
 pursuant to section 465.72 until a plan providing for full 
 funding has been developed and approved by the governing body.  
 This section does not apply to school districts. 

    HIST: 1980 c 600 s 9; 1984 c 463 art 7 s 21 

     465.722 Severance pay for highly compensated employees. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the terms defined in this subdivision have the meanings 
 given them. 

    (a) "Local unit of government" means a statutory or home 
 rule charter city, county, town, school district, metropolitan 
 or regional agency, or other political subdivision. 

    (b) "Wages" has the meaning provided by section 3401(a) of 
 the Internal Revenue Code of 1986, as amended through December 
 31, 1992.  

    (c) "Highly compensated employee" means an employee of a 
 local unit of government with estimated annual wages that: 

    (1) are greater than 60 percent of the governor's annual 
 salary; and 

    (2) are equal to, or greater than, 80 percent of the 
 estimated annual wages of the second highest paid employee of 
 the local unit of government. 

    Subd. 2.    Limits on severance pay.  Notwithstanding 
 any contrary provision of section 465.72, subdivision 1, 
 severance pay for a highly compensated employee includes 
 benefits or compensation with a quantifiable monetary value, 
 that are provided for an employee upon termination of employment 
 and are not part of the employee's annual wages and benefits and 
 are not specifically excluded by this subdivision.  Severance 
 pay shall not include payments for accumulated vacation, 
 accumulated sick leave, and accumulated sick leave liquidated to 
 cover the cost of group term insurance provided under section 
 471.61 to retiring employees.  Severance pay for a highly 
 compensated employee does not include payments of periodic 
 contributions by an employer toward premiums for group insurance 
 policies.  The severance pay for a highly compensated employee 
 must be excluded from retirement deductions and from any 
 calculations of retirement benefits.  Severance pay for a highly 
 compensated employee must be paid in a manner mutually agreeable 
 to the employee and the governing body of the local unit of 
 government over a period not to exceed five years from 
 retirement or termination of employment.  If a retired or 
 terminated employee dies before all or a portion of the 
 severance pay has been disbursed, the balance due must be paid 
 to a named beneficiary or, lacking one, to the deceased's 
 estate.  Except as provided in subdivision 3, severance pay 
 provided for a highly compensated employee leaving employment 
 may not exceed an amount equivalent to six months of wages. 

    Subd. 3.    Exceptions to maximum allowable severance pay 
 for a highly compensated employee.  Severance pay for a highly 
 compensated employee may exceed an amount equivalent to six 
 months of wages if: 

    (1) the severance pay benefit is included in an employment 
 contract between the employee and the local unit of government 
 that is in effect on August 1, 1993, and the termination of 
 employment occurs before the expiration date of said contract; 

    (2) the severance pay is part of an early retirement 
 incentive offer approved by the governing body of the local unit 
 of government and the same early retirement incentive offer is 
 also made available to all other employees of the local unit of 
 government who meet generally defined criteria relative to age 
 or length of service; 

    (3) the governing body of a local unit of government adopts 
 a resolution certifying that: 

    (i) the highly-compensated employee was a full-time 
 employee of the local unit of government for the entire period 
 between January 1, 1983, and December 31, 1992; 

    (ii) the highly-compensated employee was covered by one or 
 more employment contracts or agreements which entitled the 
 employee to specified severance pay benefits throughout the 
 entire ten-year period specified in clause (i); 

    (iii) the employment contract or agreement in effect on 
 December 31, 1992, will, at the time of the employee's 
 separation from employment with the local unit of government, 
 result in a severance payment that exceeds the limits specified 
 in subdivision 2; and 

    (iv) the amount of severance pay that exceeds the limits 
 specified in subdivision 2 was based on a commitment to provide 
 the employee with a specified severance guarantee in lieu of a 
 higher level of some other form of compensation; or 

    (4) the commissioner of employee relations has determined a 
 position within a specific local unit of government requires 
 special expertise necessitating a larger severance pay guarantee 
 to attract or retain a qualified person.  The commissioner shall 
 develop a process for the governing body of a local unit of 
 government to use when applying for an exemption under this 
 clause.  The commissioner shall review each proposed exemption 
 giving due consideration to severance pay guarantees that are 
 made to other persons with similar responsibilities in the state 
 and nation. 

    Nothing in this subdivision shall be deemed to allow total 
 severance payments for a highly compensated employee that exceed 
 the limits established in section 465.72. 

    Subd. 4.    Governing body must approve certain payments; 
 time for rescission.  Notwithstanding section 13.43, 
 subdivision 2, any payment to a highly compensated employee for 
 settling disputed claims, whether or not the claims have been 
 filed, or any payment to a highly compensated employee for 
 terminating a written employment contract, must be approved by 
 the governing body of the local unit of government during a 
 public meeting.  The financial terms of a payment made pursuant 
 to this subdivision must be made public at the meeting.  The 
 effective date of the governing body's approval of a payment 
 made pursuant to this subdivision shall be 15 days after the 
 date of the public meeting.  The governing body of a local unit 
 of government approving a payment pursuant to this subdivision, 
 or the employee to whom the payment is to be made, may rescind 
 or reject the payment, prior to the effective date of the 
 governing body's approval. 

    HIST: 1993 c 315 s 15 

     465.73 Town halls; fire halls or rescue equipment; loans 
  to political subdivisions. 

    For purposes of constructing, repairing, or acquiring town 
 halls, fire halls or fire or rescue equipment any city, county, 
 or town may borrow up to $250,000 from funds granted to a rural 
 electric cooperative organized under chapter 308A by, directly 
 from or guaranteed by the Farmers Home Administration or other 
 agency of the United States Department of Agriculture on a note 
 secured by a mortgage on the property purchased with the 
 borrowed funds.  The city, county, or town may assign or pledge 
 revenues from the town halls, fire or rescue department, or fire 
 hall or any other available funds, including taxes levied 
 pursuant to section 475.61 to the Farmers Home Administration or 
 other agency of the United States Department of Agriculture or 
 its guaranteed lender or a rural electric cooperative organized 
 under chapter 308A as its grantee to repay the loan.  The amount 
 of the obligation shall not be included when computing the net 
 debt of the city, county, or town.  An election shall not be 
 required to authorize the note and mortgage or assignment of 
 revenues. 

    HIST: 1976 c 140 s 1; 1977 c 210 s 1; 1978 c 476 s 1; 1Sp1989 
 c 1 art 5 s 34; 1991 c 120 s 1; 1995 c 256 s 6 

     465.74 Authorization to operate district heating systems.

    Subdivision 1.    Cities of the first class.  Any city 
 operating or authorized to operate a public utility pursuant to 
 chapter 452 or its charter is authorized to acquire, construct, 
 own, and operate a municipal district heating system pursuant to 
 the provisions of that chapter or its charter.  Acquisition or 
 construction of a municipal district heating system shall not be 
 subject to the election requirement of sections 452.11 and 
 452.12, or city charter provision, but must be approved by a 
 three-fifths vote of the city's council or other governing 
 body.  Loans obtained by a municipality pursuant to Minnesota 
 Statutes 1992, section 216C.36, are not subject to the 
 limitations on the amount of money which may be borrowed upon a 
 pledge of the city's full faith and credit or the election 
 requirements for general obligation borrowing, contained in 
 section 452.08.  

    Subd. 1a.    Cities with over 50,000 inhabitants.  A 
 city with over 50,000 inhabitants that is not a city of the 
 first class is authorized to acquire, construct, improve, and 
 operate a district heating system under the same terms and 
 conditions as a city of the first class except as provided 
 herein.  Acquisition or construction and financing of a 
 municipal district heating system is not subject to the election 
 requirements of sections 452.11 and 452.12, however, a 
 resolution for the acquisition or construction and financing 
 must be approved by a two-thirds vote of the governing body of 
 the city.  

    Subd. 2.    Cities of the second, third, and fourth class. 
  A home rule or statutory city of the second, third, or fourth 
 class may, pursuant to sections 412.331 to 412.391, or chapter 
 455 or its charter acquire, construct, own, and operate a 
 municipal district heating system.  

    Subd. 3.    Extension of service outside city.  A 
 municipal district heating system, operating pursuant to this 
 section, may sell energy to customers located outside of the 
 municipality.  

    Subd. 4.    Net debt limits.  The loan obligations or 
 debt incurred by a political subdivision pursuant to section 
 475.525, or Minnesota Statutes 1992, section 216C.36, shall not 
 be considered as a part of its indebtedness under the provisions 
 of its governing charter or of any law of this state fixing a 
 limit of indebtedness.  

    Subd. 5.    District heating facilities.  
 Notwithstanding any other law, general or special, or the 
 provisions of any home rule charter city to the contrary, the 
 governing body of a municipality may by ordinance grant a 
 district heating franchise for a term not to exceed 31 years and 
 by resolution or ordinance secure any obligations issued by the 
 municipality for a district heating system with a mortgage or 
 indenture of trust coextensive with the term of the obligations. 

    Subd. 6.    Definition.  For the purposes of this 
 section, and chapters 474 and 475, "district heating system" 
 means any existing or proposed facility for (1) the production, 
 through cogeneration or otherwise, of hot water or steam to be 
 used for district heating, or (2) the transmission and 
 distribution of hot water or steam for district heating either 
 directly to heating consumers or to another facility or 
 facilities for transmission and distribution, or (3) any part or 
 combination of the foregoing facilities.  

    In keeping with the public purpose to encourage state and 
 local leadership and aid in providing available and economical 
 district heating service, the definition of "district heating 
 system" under this section should be broadly construed to allow 
 municipal government sufficient flexibility and authority to 
 evaluate and undertake such policies and projects as will most 
 efficiently and economically encourage local expansion of 
 district heating service. 

    Subd. 7.    Port authorities, ownership and operation of 
 district heating systems.  A port authority organized pursuant 
 to sections 469.048 to 469.068 or a special law may acquire, 
 own, construct, and operate a district heating system or systems 
 to provide heating and cooling services and other energy 
 services within the statutory or home rule charter city within 
 which it is created.  The authority may, in conjunction with a 
 district heating system, acquire, own, construct, and operate an 
 energy management and control system to monitor and control 
 users' energy demand within the city as a related ancillary 
 function of the district heating system.  The authority may, in 
 conjunction with a district heating system, acquire, own, 
 construct, and operate ancillary services related to an energy 
 management and control system including, but not limited to, 
 sensing and monitoring services for supervision of fire and life 
 safety systems and building security systems within the city.  

    This section shall be effective for a port authority only 
 after adoption of an ordinance or resolution by the board of the 
 port authority and by the governing body of the city stating 
 their intention to exercise the authority allowed by this 
 section.  

    A port authority may, with approval of the city, lease part 
 or all of the district heating system or contract with respect 
 to part or all of the district heating system, with any person, 
 corporation, association, or public utility company for the 
 purpose of constructing, improving, operating, or maintaining 
 the district heating system.  

    Subd. 8.    Management of a district heating system by a 
 port authority.  A statutory or home rule charter city within 
 which a port authority has been created may delegate to the port 
 authority some or all powers and responsibilities for the 
 management and operation of a district heating system.  

    Subd. 9.    Operation by a county.  A statutory or home 
 rule charter city may contract with a county to operate a 
 district heating system for the provision of district heating 
 services within some or all of the city. 

    HIST: 1981 c 334 s 6; 1981 c 356 s 248; 1982 c 561 s 12; 1984 
 c 449 s 1-4; 1987 c 291 s 224; 1987 c 312 art 1 s 10 subd 1; 
 1993 c 327 s 19-21 

     465.75 Regulation of vehicle towers limited. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the following terms have the meanings given them:  

    (a) "Vehicle tower" means a person engaged in the business 
 of towing or recovering vehicles by means of a crane, hoist, tow 
 bar, tow line, or dolly for the purpose of moving or 
 transporting wrecked, damaged, disabled, replacement, or 
 abandoned vehicles; and 

    (b) "Municipality" means a statutory or home rule charter 
 city or a town.  

    Subd. 2.    Request by owner.  No municipality may 
 prohibit the operation within its boundaries of a vehicle tower 
 who is not licensed by that municipality and who is responding 
 to a service request from a person who is the owner or operator 
 or the agent of the owner or operator of the motor vehicle for 
 which vehicle towing service is requested.  

    Subd. 3.    Private property.  No vehicle tower may 
 remove a motor vehicle by towing, carrying, hauling or pushing 
 from private property except at the request of a person who is 
 the owner or operator or the agent of the owner or operator of 
 the vehicle, or the owner or agent of the owner of the private 
 property. 

    HIST: 1983 c 115 s 1 

     465.76 Legal counsel; reimbursement. 

    If reimbursement is requested by the officer or employee, 
 the governing body of a home rule charter or statutory city or 
 county may, after consultation with its legal counsel, reimburse 
 a city or county officer or employee for any costs and 
 reasonable attorney's fees incurred by the person to defend 
 charges of a criminal nature brought against the person that 
 arose out of the reasonable and lawful performance of duties for 
 the city or county, provided if less than a quorum of the 
 governing body is disinterested, that such reimbursement shall 
 be approved by a judge of the district court.  

    HIST: 1984 c 650 s 1 

     465.77 Regulation of drilling to protect mined 
  underground space development. 

    A home rule charter city or statutory city may regulate 
 drilling for the purposes and in the manner provided in section 
 469.141. 

    HIST: 1985 c 194 s 25; 1987 c 291 s 225 

     465.78 Participation in economic development secondary 
  markets. 

    (a) A municipality may sell at private or public sale, at 
 the price or prices determined by the municipality, any note, 
 mortgage, lease, sublease, lease purchase, or other instrument 
 or obligation evidencing or securing a loan made for the purpose 
 of economic development, job creation, redevelopment, or 
 community revitalization to a business, for-profit or nonprofit 
 organization, or an individual.  

    (b) Sales under this section must be made through 
 arrangements whereby the ultimate sale of the instrument is to 
 be made as part of a pool of instruments on behalf of one or 
 more other municipalities, port authorities, housing and 
 redevelopment authorities, or rural development finance 
 authorities (other than a port authority or housing and 
 redevelopment authority located wholly or partly within the 
 municipality).  The restrictions of the previous sentence do not 
 apply if the sale is a public sale or if the proposed sale is 
 submitted to and approved by the commissioner of commerce.  The 
 commissioner shall review the proposed sale to determine if the 
 agreed upon price adequately compensates the municipality, given 
 the maturity, risk, and yield of the instrument.  If a proposed 
 sale is submitted to the commissioner of commerce and the sale 
 is not disapproved in writing by the commissioner within 30 
 days, the sale is deemed approved.  The restrictions contained 
 in this paragraph apply to sales made under sections 469.059, 
 subdivision 17; 469.101, subdivision 22; and 469.146, 
 subdivision 3. 

    (c) This section does not apply to an obligation to make 
 payments to the municipality, if the underlying obligation arose 
 out of a transaction in which the proceeds of the loan were 
 financed by revenues derived from tax increments from a tax 
 increment financing district that includes property owned by the 
 borrower.  For the purpose of this section, a "municipality" is 
 any home rule charter city, statutory city, county, or town. 

    HIST: 1989 c 317 s 1 

     465.79 Establishment of boundary commission. 

    Subdivision 1.    City council, town or county board.  
 By resolution, the city council of a statutory or home rule 
 charter city, town board, or county board may create a boundary 
 commission.  Members of the commission shall be residents of the 
 county or counties in which the city or town is located who are 
 familiar with real property. 

    Subd. 2.    Duties of boundary commission.  Upon 
 initiation by resolution of the governing body or upon petition 
 of an adjoining or affected property owner, the boundary 
 commission shall review property descriptions of the disputed 
 areas in the respective jurisdiction.  Upon mailed notice to all 
 known parties in interest, the commission shall attempt to 
 establish agreements between adjoining landowners as to the 
 location of common boundaries as delineated by a certified land 
 survey.  If agreement cannot be reached, the commission shall 
 make a recommendation as to the location of the common 
 boundaries within the disputed area.  The commission shall 
 prepare a plan designating all agreed and recommended boundary 
 lines and report to the city council, town board, or county 
 board. 

    Subd. 3.    Hearing.  Upon receipt of the plan and a 
 report from the commission, the city council, town board, or 
 county board shall hold a public hearing.  The council, town 
 board, or county board shall give mailed notice to all known 
 parties in interest and published notice 20 days prior to the 
 hearing.  The council, town board, or county board shall hear 
 all interested parties and may make adjustments to the proposed 
 plan that it deems just and necessary. 

    Subd. 4.    Judicial review.  Following the public 
 hearing, the council or board may petition the district court 
 for judicial approval of the proposed plan.  If any affected 
 parcel is land registered under chapter 508, the petition must 
 be referred to the examiner of titles for a report.  The council 
 or board shall provide sufficient information to identify all 
 parties in interest and shall give notice to parties in interest 
 as the court may order.  The court shall determine the location 
 of any contested, disputed, or unagreed boundary and shall 
 determine adverse claims to each parcel as provided in chapter 
 559.  After hearing and determining all disputes, the court 
 shall issue its judgment in the form of a plat complying with 
 chapter 505 and an order designating the owners and 
 encumbrancers of each lot.  Real property taxes need not be paid 
 or current as a condition of filing the plat, notwithstanding 
 the requirements of section 505.04. 

    Subd. 5.    Special assessments.  The city or board may 
 assess part or all of the cost incurred by it against the 
 benefited properties on a per parcel basis as provided in 
 chapter 429. 

    HIST: 1990 c 386 s 1; 1992 c 493 s 9,10; 1997 c 78 s 1 

     465.795 Definitions. 

    Subdivision 1.    Agency.  "Agency" means a department, 
 agency, board, or other instrumentality of state government that 
 has jurisdiction over an administrative rule or law from which a 
 waiver is sought under section 465.797.  If no specific agency 
 has jurisdiction over such a law, "agency" refers to the 
 attorney general. 

    Subd. 2.    Board.  "Board" means the board of 
 government innovation and cooperation established by section 
 465.796. 

    Subd. 3.    Council or metropolitan council.  "Council" 
 or "metropolitan council" means the metropolitan council 
 established by section 473.123. 

    Subd. 4.    Local government unit.  "Local government 
 unit" means a county, home rule charter or statutory city, 
 school district, town, or special taxing district, except for 
 purposes of sections 465.81 to 465.87. 

    Subd. 5.    Metropolitan agency.  "Metropolitan agency" 
 has the meaning given in section 473.121, subdivision 5a. 

    Subd. 6.    Metropolitan area.  "Metropolitan area" has 
 the meaning given in section 473.121, subdivision 2. 

    Subd. 7.    Scope.  As used in sections 465.795 to 
 465.799 and sections 465.801 to 465.88, the terms defined in 
 this section have the meanings given them. 

    HIST: 1993 c 375 art 15 s 1; 1994 c 587 art 8 s 1; 1995 c 264 
 art 8 s 1 

     465.796 Board of government innovation and cooperation. 

    Subdivision 1.    Membership.  The board of government 
 innovation and cooperation consists of three members of the 
 senate appointed by the subcommittee on committees of the senate 
 committee on rules and administration, three members of the 
 house of representatives appointed by the speaker of the house, 
 two administrative law judges appointed by the chief 
 administrative law judge, the commissioner of finance, the 
 commissioner of administration, and the state auditor.  The 
 commissioners of finance and administration and the state 
 auditor may each designate one staff member to serve in the 
 commissioner's or auditor's place.  The members of the senate 
 and house of representatives serve as nonvoting members.  

    Subd. 2.    Duties of board.  The board shall: 

    (1) accept applications from local government units for 
 waivers of administrative rules and temporary, limited 
 exemptions from enforcement of procedural requirements in state 
 law as provided in section 465.797, and determine whether to 
 approve, modify, or reject the application; 

    (2) accept applications for grants to local government 
 units and related organizations proposing to design models or 
 plans for innovative service delivery and management as provided 
 in section 465.798 and determine whether to approve, modify, or 
 reject the application; 

    (3) accept applications from local government units for 
 financial assistance to enable them to plan for cooperative 
 efforts as provided in section 465.799, and determine whether to 
 approve, modify, or reject the application; 

    (4) accept applications from eligible local government 
 units for service-sharing grants as provided in section 465.801, 
 and determine whether to approve, modify, or reject the 
 application; 

    (5) accept applications from counties, cities, and towns 
 proposing to combine under sections 465.81 to 465.88, and 
 determine whether to approve or disapprove the application; 

    (6) make recommendations to the legislature for the 
 authorization of pilot projects for the implementation of 
 innovative service delivery activities that require statutory 
 authorization; 

    (7) make recommendations to the legislature regarding the 
 elimination of state mandates that inhibit local government 
 efficiency, innovation, and cooperation by prescribing specific 
 processes for achieving a desired outcome; 

    (8) investigate and review the role of unfunded state 
 mandates in intergovernmental relations and assess their impact 
 on state and local government objectives and responsibilities; 

    (9) make recommendations to the governor and the 
 legislature regarding: 

    (i) allowing flexibility for local units of government in 
 complying with specific unfunded state mandates for which terms 
 of compliance are unnecessarily rigid or complex; 

    (ii) reconciling any two or more unfunded state mandates 
 that impose contradictory or inconsistent requirements; 

    (iii) terminating unfunded state mandates that are 
 duplicative, obsolete, or lacking in practical utility; 

    (iv) suspending, on a temporary basis, unfunded state 
 mandates that are not vital to public health and safety and that 
 compound the fiscal difficulties of local units of government, 
 including recommendations for initiating the suspensions; 

    (v) consolidating or simplifying unfunded state mandates or 
 the planning or reporting requirements of the mandates, in order 
 to reduce duplication and facilitate compliance by local units 
 of government with those mandates; and 

    (vi) establishing common state definitions or standards to 
 be used by local units of government in complying with unfunded 
 state mandates that use different definitions or standards for 
 the same terms or principles; and 

    (10) identify relevant unfunded state mandates. 

    The duties imposed under clauses (8) to (10) shall be 
 performed to the extent possible given existing resources.  Each 
 recommendation under clause (9) shall, to the extent 
 practicable, identify the specific unfunded state mandates to 
 which the recommendation applies.  The commissioners or 
 directors of state agencies responsible for the promulgation or 
 enforcement of the unfunded mandates addressed in clauses (7) to 
 (10) shall assign staff to assist the board in carrying out the 
 board's duties under this section. 

    Subd. 3.    Staff.  The board may hire staff or 
 consultants as necessary to perform its duties. 

    HIST: 1993 c 375 art 15 s 2; 1994 c 587 art 8 s 2; 1995 c 264 
 art 8 s 2 

     465.797 Rule and law waiver requests. 

    Subdivision 1.    Generally.  (a) Except as provided in 
 paragraph (b), a local government unit may request the board of 
 government innovation and cooperation to grant a waiver from one 
 or more administrative rules or a temporary, limited exemption 
 from enforcement of state procedural laws governing delivery of 
 services by the local government unit.  Two or more local 
 government units may submit a joint application for a waiver or 
 exemption under this section if they propose to cooperate in 
 providing a service or program that is subject to the rule or 
 law.  Before submitting an application to the board, the 
 governing body of the local government unit must approve, in 
 concept, the proposed waiver or exemption at a meeting required 
 to be public under section 471.705.  A local government unit or 
 two or more units acting jointly may apply for a waiver or 
 exemption on behalf of a nonprofit organization providing 
 services to clients whose costs are paid by the unit or units.  
 A waiver or exemption granted to a nonprofit organization under 
 this section applies to services provided to all the 
 organization's clients. 

    (b) A school district that is granted a variance from rules 
 of the state board of education under section 121.11, 
 subdivision 12, need not apply to the board for a waiver of 
 those rules under this section.  A school district may not seek 
 a waiver of rules under this section if the state board of 
 education has authority to grant a variance to the rules under 
 section 121.11, subdivision 12.  This paragraph does not 
 preclude a school district from being included in a cooperative 
 effort with another local government unit under this section.  

    Subd. 2.    Application.  A local government unit 
 requesting a waiver of a rule or exemption from enforcement of a 
 law under this section shall present a written application to 
 the board.  The application must include: 

    (1) identification of the service or program at issue; 

    (2) identification of the administrative rule or the law 
 imposing a procedural requirement with respect to which the 
 waiver or exemption is sought; and 

    (3) a description of the improved service outcome sought, 
 including an explanation of the effect of the waiver or 
 exemption in accomplishing that outcome. 

    A copy of the application must be provided by the 
 requesting local government unit to the exclusive representative 
 certified under section 179A.12 to represent employees who 
 provide the service or program affected by the requested waiver 
 or exemption. 

    Subd. 3.    Review process.  (a) Upon receipt of an 
 application from a local government unit, the board shall review 
 the application.  The board shall dismiss an application if it 
 finds that the application proposes a waiver of rules or 
 exemption from enforcement of laws that would result in due 
 process violations, violations of federal law or the state or 
 federal constitution, or the loss of services to people who are 
 entitled to them.  

    (b) The board shall determine whether a law from which an 
 exemption for enforcement is sought is a procedural law, 
 specifying how a local government unit is to achieve an outcome, 
 rather than a substantive law prescribing the outcome or 
 otherwise establishing policy.  In making its determination, the 
 board shall consider whether the law specifies such requirements 
 as: 

    (1) who must deliver a service; 

    (2) where the service must be delivered; 

    (3) to whom and in what form reports regarding the service 
 must be made; and 

    (4) how long or how often the service must be made 
 available to a given recipient. 

    (c) If the commissioner of finance, the commissioner of 
 administration, or the state auditor has jurisdiction over a 
 rule or law affected by an application, the chief administrative 
 law judge, as soon as practicable after receipt of the 
 application, shall designate a third administrative law judge to 
 serve as a member of the board in place of that official while 
 the board is deciding whether to grant the waiver or exemption. 

    (d) If the application is submitted by a local government 
 unit in the metropolitan area or the unit requests a waiver of a 
 rule or temporary, limited exemptions from enforcement of a 
 procedural law over which the metropolitan council or a 
 metropolitan agency has jurisdiction, the board shall also 
 transmit a copy of the application to the council for review and 
 comment.  The council shall report its comments to the board 
 within 60 days of the date the application was transmitted to 
 the council.  The council may point out any resources or 
 technical assistance it may be able to provide a local 
 government submitting a request under this section.  

    (e) Within 15 days after receipt of the application, the 
 board shall transmit a copy of it to the commissioner of each 
 agency having jurisdiction over a rule or law from which a 
 waiver or exemption is sought.  The agency may mail a notice 
 that it has received an application for a waiver or exemption to 
 all persons who have registered with the agency under section 
 14.14, subdivision 1a, identifying the rule or law from which a 
 waiver or exemption is requested.  If no agency has jurisdiction 
 over the rule or law, the board shall transmit a copy of the 
 application to the attorney general.  The agency shall inform 
 the board of its agreement with or objection to and grounds for 
 objection to the waiver or exemption request within 60 days of 
 the date when the application was transmitted to it.  An 
 agency's failure to do so is considered agreement to the waiver 
 or exemption.  The board shall decide whether to grant a waiver 
 or exemption at its next regularly scheduled meeting following 
 its receipt of an agency's response or the end of the 60-day 
 response period.  If consideration of an application is not 
 concluded at that meeting, the matter may be carried over to the 
 next meeting of the board.  Interested persons may submit 
 written comments to the board on the waiver or exemption request 
 up to the time of its vote on the application.  

    (f) If the exclusive representative of the affected 
 employees of the requesting local government unit objects to the 
 waiver or exemption request it may inform the board of the 
 objection to and the grounds for the objection to the waiver or 
 exemption request within 60 days of the receipt of the 
 application. 

    Subd. 4.    Hearing.  If the agency or the exclusive 
 representative does not agree with the waiver or exemption 
 request, the board shall set a date for a hearing on the 
 application.  The hearing must be conducted informally at a 
 meeting of the board.  Persons representing the local government 
 unit shall present their case for the waiver or exemption, and 
 persons representing the agency shall explain the agency's 
 objection to it.  Members of the board may request additional 
 information from either party.  The board may also request, 
 either before or at the hearing, information or comments from 
 representatives of business, labor, local governments, state 
 agencies, consultants, and members of the public.  If necessary, 
 the hearing may be continued at a subsequent board meeting.  A 
 waiver or exemption must be granted by a vote of a majority of 
 the board members.  The board may modify the terms of the waiver 
 or exemption request in arriving at the agreement required under 
 subdivision 5. 

    Subd. 5.    Conditions of agreements.  (a) If the board 
 grants a request for a waiver or exemption, the board and the 
 local government unit shall enter into an agreement providing 
 for the delivery of the service or program that is the subject 
 of the application.  The agreement must specify desired outcomes 
 and the means of measurement by which the board will determine 
 whether the outcomes specified in the agreement have been met.  
 The agreement must specify the duration of the waiver or 
 exemption.  The duration of a waiver from an administrative rule 
 may be for no less than two years and no more than four years, 
 subject to renewal if both parties agree.  An exemption from 
 enforcement of a law terminates ten days after adjournment of 
 the regular legislative session held during the calendar year 
 following the year when the exemption is granted, unless the 
 legislature has acted to extend or make permanent the exemption. 

    (b) If the board grants a waiver or exemption, it must 
 report the waiver or exemption to the legislature, including the 
 chairs of the governmental operations and appropriate policy 
 committees in the house and senate, and the governor within 30 
 days. 

    (c) The board may reconsider or renegotiate the agreement 
 if the rule or law affected by the waiver or exemption is 
 amended or repealed during the term of the original agreement.  
 A waiver of a rule under this section has the effect of a 
 variance granted by an agency under section 14.05, subdivision 
 4.  A local unit of government that is granted an exemption from 
 enforcement of a procedural requirement in state law under this 
 section is exempt from that law for the duration of the 
 exemption.  The board may require periodic reports from the 
 local government unit, or conduct investigations of the service 
 or program. 

    Subd. 5a.    Exemptions granted.  Notwithstanding 
 subdivision 5, exemptions from enforcement of law granted by the 
 board during calendar year 1995 remain in effect until June 30, 
 1999.  An exemption granted by the board for Itasca county 
 during calendar year 1996 allowing the county to implement a 
 demonstration project to determine the feasibility of using a 
 managed care model for financing chemical dependency treatment 
 services remains in effect until June 30, 1999.  This 
 subdivision expires June 30, 1999. 

    Subd. 6.    Enforcement.  If the board finds that the 
 local government unit is failing to comply with the terms of the 
 agreement under subdivision 5, it may rescind the agreement.  
 Upon the rescission, the local unit of government becomes 
 subject to the rules and laws covered by the agreement. 

    Subd. 7.    Access to data.  If a local government unit, 
 through a cooperative program under this section, gains access 
 to data collected, created, received, or maintained by another 
 local government that is classified as not public, the unit 
 gaining access is governed by the same restrictions on access to 
 and use of the data as the unit that collected, created, 
 received, or maintained the data. 

    HIST: 1993 c 375 art 15 s 3; 1994 c 587 art 8 s 3-7; 1995 c 
 264 art 8 s 3; 1996 c 394 s 5; 1997 c 42 s 1 

     465.7971 Waivers of state rules; policies. 

    Subdivision 1.    Application.  A state agency may apply 
 to the board for a waiver from:  (1) an administrative rule or 
 policy adopted by the department of employee relations that 
 deals with the state personnel system; (2) an administrative 
 rule or policy of the department of administration that deals 
 with the state procurement system; or (3) a policy of the 
 department of finance that deals with the state accounting 
 system.  Two or more state agencies may submit a joint 
 application.  A waiver application must identify the rule or 
 policy at issue, and must describe the improved outcome sought 
 through the waiver. 

    Subd. 2.    Review process.  (a) The board shall review 
 all applications submitted under this section.  The board shall 
 dismiss an application if it finds that the application proposes 
 a waiver that would result in due process violations, violations 
 of federal law or the state or federal constitution, or the loss 
 of services to people who are entitled to them.  If a proposed 
 waiver would violate the terms of a collective bargaining 
 agreement effective under chapter 179A, the waiver is not 
 effective without the consent of the exclusive representative 
 that is a party to the agreement.  The board may approve a 
 waiver only if the board determines that if the waiver is 
 granted:  (1) services can be provided in a more efficient or 
 effective manner; and (2) services related to human resources 
 must be provided in a manner consistent with the policies 
 expressed in Laws 1995, chapter 248, article 13, section 2, and 
 in section 43A.01 and services related to procurement must be 
 provided in a manner consistent with the policies expressed in 
 Laws 1995, chapter 248, article 13, section 4. In the case of a 
 waiver from a policy of the department of finance, the board may 
 approve the waiver only if it determines that services will be 
 provided in a more efficient or effective manner and that state 
 funds will be adequately accounted for and safeguarded in a 
 manner that complies with generally accepted government 
 accounting principles. 

    (b) Within 15 days of receipt of the application, the board 
 shall send a copy of the application to:  (1) the agency whose 
 rule or policy is involved; and (2) all exclusive 
 representatives who represent employees of the agency requesting 
 the waiver.  The agency whose rule or policy is involved may 
 mail a copy of the application to all persons who have 
 registered with the agency under section 14.14, subdivision 1a. 

    (c) The agency whose rule or policy is involved or an 
 exclusive representative shall notify the board of its agreement 
 with or objection to and grounds for objection to the waiver 
 within 60 days of the date when the application was transmitted 
 to the agency or the exclusive representative.  An agency's or 
 exclusive representative's failure to do so is considered 
 agreement to the waiver. 

    (d) If the agency or the exclusive representative objects 
 to the waiver, the board shall schedule a meeting at which the 
 agency requesting the waiver may present its case for the waiver 
 and the objecting party may respond.  The board shall decide 
 whether to grant a waiver at its next regularly scheduled 
 meeting following its receipt of an agency's response, or the 
 end of the 60-day response period, whichever occurs first.  If 
 consideration of an application is not concluded at the meeting, 
 the matter may be carried over to the next meeting of the 
 board.  Interested persons may submit written comments to the 
 board on the waiver request. 

    (e) If the board grants a request for a waiver, the board 
 and the agency requesting the waiver shall enter into an 
 agreement relating to the outcomes desired as a result of the 
 waiver and the means of measurement to determine whether those 
 outcomes have been achieved with the waiver.  The agreement must 
 specify the duration of the waiver, which must be for at least 
 two years and not more than four years.  If the board determines 
 that an agency to which a waiver is granted is failing to comply 
 with the terms of the agreement, the board may rescind the 
 agreement. 

    Subd. 3.    Board.  For purposes of evaluating waiver 
 requests involving rules or policies of the department of 
 administration, the chief administrative law judge shall appoint 
 a third administrative law judge to replace the commissioner of 
 administration on the board. 

    HIST: 1995 c 248 art 16 s 1 

     465.798 Service budget management model grants. 

    One or more local units of governments, an association of 
 local governments, the metropolitan council, a local unit of 
 government acting in conjunction with an organization or a state 
 agency, or an organization established by two or more local 
 units of government under a joint powers agreement may apply to 
 the board of government innovation and management for a grant to 
 be used to develop models for innovative service budget 
 management.  The application to the board must state what other 
 sources of funding have been considered by the local units of 
 government to implement the project and explain why it is not 
 possible to complete the project without assistance from the 
 board.  The board may not award a grant if it determines that 
 the local units of government could complete the project without 
 board assistance.  A copy of the application must be provided by 
 the units to the exclusive representatives certified under 
 section 179A.12 to represent employees who provide the service 
 or program affected by the application.  

    Proposed models may provide options to local governments, 
 neighborhood or community organizations, or individuals for 
 managing budgets for service delivery.  A copy of the work 
 product for which the grant was provided must be furnished to 
 the board upon completion, and the board may disseminate it to 
 other local units of government or interested groups.  If the 
 board finds that the model was not completed or implemented 
 according to the terms of the grant agreement, it may require 
 the grantee to repay all or a portion of the grant.  The board 
 shall award grants on the basis of each qualified applicant's 
 score under the scoring system in section 465.802.  The amount 
 of a grant under this section may not exceed $50,000. 

    HIST: 1993 c 375 art 15 s 4; 1994 c 587 art 8 s 8; 1995 c 264 
 art 8 s 4 

     465.799 Cooperation planning grants. 

    Two or more local government units; an association of local 
 governments; a local unit of government acting in conjunction 
 with the metropolitan council, an organization, or a state 
 agency; or an organization formed by two or more local units of 
 government under a joint powers agreement may apply to the board 
 of government innovation and cooperation for a grant to be used 
 to develop a plan for intergovernmental cooperation in providing 
 services.  The application to the board must state what other 
 sources of funding have been considered by the local units of 
 government to implement the project and explain why it is not 
 possible to complete the project without assistance from the 
 board.  The board may not award a grant if it determines that 
 the local units of government could complete the project without 
 board assistance.  A copy of the application must be submitted 
 by the applicants to the exclusive representatives certified 
 under section 179A.12 to represent employees who provide the 
 service or program affected by the application.  

    The plan may include model contracts or agreements to be 
 used to implement the plan.  A copy of the work product for 
 which the grant was provided must be furnished to the board upon 
 completion, and the board may disseminate it to other local 
 units of government or interested groups.  If the board finds 
 that the grantee has failed to implement the plan according to 
 the terms of the agreement, it may require the grantee to repay 
 all or a portion of the grant.  The board shall award grants on 
 the basis of each qualified applicant's score under the scoring 
 system in section 465.802.  The amount of a grant under this 
 section may not exceed $50,000. 

    HIST: 1993 c 375 art 15 s 5; 1994 c 587 art 8 s 9; 1995 c 264 
 art 8 s 5 

  465.80 Repealed, 1994 c 587 art 8 s 13 

     465.801 Service sharing grants. 

    Two or more local units of government; an association of 
 local governments; a local unit of government acting in 
 conjunction with the metropolitan council, an organization, or a 
 state agency; or an organization established by two or more 
 local units of government under a joint powers agreement may 
 apply to the board of government innovation and cooperation for 
 a grant to be used to meet the start-up costs of providing 
 shared services or functions.  Agreements solely to make joint 
 purchases are not sufficient to qualify under this section.  The 
 application to the board must state what other sources of 
 funding have been considered by the local units of government to 
 implement the project and explain why it is not possible to 
 complete the project without assistance from the board.  The 
 board may not award a grant if it determines that the local 
 units of government could complete the project without board 
 assistance.  A copy of the application must be provided by the 
 applicants to the exclusive representatives certified under 
 section 179A.12 to represent employees who provide the service 
 or program affected by the application. 

    The proposal must include plans fully to integrate a 
 service or function provided by two or more local government 
 units.  A copy of the work product for which the grant was 
 provided must be furnished to the board upon completion, and the 
 board may disseminate it to other local units of government or 
 interested groups.  If the board finds that the grantee has 
 failed to implement the plan according to the terms of the 
 agreement, it may require the grantee to repay all or a portion 
 of the grant.  The board shall award grants on the basis of each 
 qualified applicant's score under the scoring system in section 
 465.802.  The amount of a grant under this section may not 
 exceed $100,000. 

    HIST: 1994 c 587 art 8 s 10; 1995 c 264 art 8 s 6 

     465.802 Scoring system. 

    In deciding whether to award a grant under section 465.798, 
 465.799, or 465.801, the board shall use the following scoring 
 system: 

    (1) Up to 15 points shall be awarded to reflect the extent 
 to which the application demonstrates creative thinking, careful 
 planning, cooperation, involvement of the clients of the 
 affected service, and commitment to assume risk. 

    (2) Up to 20 points shall be awarded to reflect the extent 
 to which the proposed project is likely to improve the quality 
 of the service and to have benefits for other local governments. 

    (3) Up to 15 points shall be awarded to reflect the extent 
 to which the application's budget provides sufficient detail, 
 maximizes the use of state funds, documents the need for 
 financial assistance, commits to local financial support, and 
 limits expenditures to essential activities. 

    (4) Up to 20 points shall be awarded to reflect the extent 
 to which the application reflects the statutory goal of the 
 grant program. 

    (5) Up to 15 points shall be awarded to reflect the merit 
 of the proposed project and the extent to which it warrants the 
 state's financial participation. 

    (6) Up to five points shall be awarded to reflect the 
 cost/benefit ratio projected for the proposed project. 

    (7) Up to five points shall be awarded to reflect the 
 number of government units participating in the proposal. 

    (8) Up to five points shall be awarded to reflect the 
 minimum length of time the application commits to implementation.

    HIST: 1994 c 587 art 8 s 11 

     465.803 Repayment of grants. 

    Subdivision 1.    Repayment procedures.  Without regard 
 to whether a grant recipient offered to repay the grant in its 
 original application, as part of a grant awarded under section 
 465.798, 465.799, or 465.801, the board may require the grant 
 recipient to repay all or part of the grant if the board 
 determines the project funded by the grant resulted in an actual 
 savings for the participating local units of government.  The 
 grant agreement must specify how the savings are to be 
 determined and the period of time over which the savings will be 
 used to calculate a repayment requirement.  The repayment of 
 grant money under this section may not exceed an amount equal to 
 the total savings achieved through the implementation of the 
 project multiplied by the total amount of the grant divided by 
 the total budget for the project and may not exceed the total 
 amount of the original grant. 

    Subd. 2.    Bonus points.  In addition to the points 
 awarded to competitive grant applications under section 465.802, 
 the board shall award additional points to any applicant that 
 projects a potential cost savings through the implementation of 
 its project and offers to repay the grant money under the 
 formula in subdivision 1. 

    Subd. 3.    Use of repayment revenue.  All grant money 
 repaid to the board under this section is appropriated to the 
 board for additional grants authorized by sections 465.798, 
 465.799, and 465.801. 

    HIST: 1997 c 202 art 2 s 49 

     465.81 Cooperation and combination. 

    Subdivision 1.    Scope.  Sections 465.81 to 465.87 
 establish procedures to be used by counties, cities, or towns 
 that adopt by resolution an agreement providing a plan to 
 provide combined services during an initial cooperation period 
 that may not exceed two years and then: 

    (1) to merge into a single unit of government over the 
 succeeding two-year period; or 

    (2) to agree to apportion the entire area of at least one 
 local government unit between or among two or more local 
 government units contiguous to the unit to be apportioned, 
 resulting in the elimination of at least one local government 
 unit over the succeeding two years.  

    Subd. 2.    Definitions.  As used in sections 465.81 to 
 465.87, the words defined in this subdivision have the meanings 
 given them in this subdivision. 

    "Board" means the board of government innovation and 
 cooperation. 

    "City" means home rule charter or statutory cities. 

    "Governing body" means, in the case of a county, the county 
 board; in the case of a city, the city council; and, in the case 
 of a town, the town board. 

    "Local government unit" or "unit" includes counties, 
 cities, and towns. 

    Subd. 3.    Combination requirements.  Counties may 
 combine with one or more other counties.  Cities may combine 
 with one or more other cities or with one or more towns.  Towns 
 may combine with one or more other towns or with one or more 
 cities.  Units that combine must be contiguous.  A county, 
 through the adoption of a resolution by all county boards that 
 are affected by the combination, may apportion its territory 
 between or among two or more counties contiguous to the county 
 that is to be apportioned.  A city, through the adoption of a 
 resolution by all city councils that are affected by the 
 combination, may apportion its territory between or among two or 
 more cities contiguous to the city that is to be apportioned.  A 
 township, through the adoption of a resolution by all town 
 boards or city councils that are affected by the combination, 
 may apportion its territory between or among two or more 
 townships or cities contiguous to the township that is to be 
 apportioned. 

    HIST: 1991 c 291 art 14 s 2; 1993 c 375 art 15 s 10; 1995 c 
 264 art 8 s 7; 1997 c 231 art 2 s 34,35 

     465.82 Cooperation and combination plan. 

    Subdivision 1.    Adoption and state agency review.  
 Each governing body that proposes to take part in a combination 
 under sections 465.81 to 465.87 must by resolution adopt a plan 
 for cooperation and combination.  The plan must address each 
 item in this section.  The plan must be specific for any item 
 that will occur within three years and may be general or set 
 forth alternative proposals for an item that will occur more 
 than three years in the future.  The plan must be submitted to 
 the board of government innovation and cooperation for review 
 and comment.  For a metropolitan area local government unit, the 
 plan must also be submitted to the metropolitan council for 
 review and comment.  The council may point out any resources or 
 technical assistance it may be able to provide a governing body 
 submitting a plan under this subdivision.  Significant 
 modifications and specific resolutions of items must be 
 submitted to the board and council, if appropriate, for review 
 and comment.  In the official newspaper of each local government 
 unit proposing to take part in the combination, the governing 
 body shall publish at least a summary of the adopted plans, each 
 significant modification and resolution of items, and, if 
 appropriate, the results of each board and council review and 
 comment.  If a territory of a unit is to be apportioned between 
 or among two or more units contiguous to the unit that is to be 
 apportioned, the plan must specify the area that will become a 
 part of each remaining unit. 

    Subd. 2.    Contents of plan.  The plan must state:  

    (1) the specific cooperative activities the units will 
 engage in during the first two years of the venture; 

    (2) the steps to be taken to effect the merger of the 
 governmental units, with completion no later than four years 
 after the process begins; 

    (3) the steps by which a single governing body will be 
 created or, when the entire territory of a unit will be 
 apportioned between or among two or more units contiguous to the 
 unit that is to be apportioned, the steps to be taken by the 
 governing bodies of the remaining units to provide for 
 representation of the residents of the apportioned unit; 

    (4) changes in services provided, facilities used, and 
 administrative operations and staffing required to effect the 
 preliminary cooperative activities and the final merger, and a 
 two-, five-, and ten-year projection of expenditures for each 
 unit if it combined and if it remained separate; 

    (5) treatment of employees of the merging governmental 
 units, specifically including provisions for reassigning 
 employees, dealing with exclusive representatives, and providing 
 financial incentives to encourage early retirements; 

    (6) financial arrangements for the merger, specifically 
 including responsibility for debt service on outstanding 
 obligations of the merging units; 

    (7) one- and two-year impact analyses, prepared by the 
 granting state agency at the request of the local government 
 unit, of major state aid revenues received for each unit if it 
 combined and if it remained separate, including an impact 
 analysis, prepared by the department of revenue, of any property 
 tax revenue implications associated with tax increment financing 
 districts and fiscal disparities under chapter 276A or 473F 
 resulting from the merger; 

    (8) procedures for a referendum to be held before the 
 proposed combination to approve combining the local government 
 units, specifically stating whether a majority of those voting 
 in each district proposed for combination or a majority of those 
 voting on the question in the entire area proposed for 
 combination is needed to pass the referendum; and 

    (9) a time schedule for implementation. 

    Notwithstanding clause (3) or any other law to the 
 contrary, all current members of the governing bodies of the 
 local government units that propose to combine under sections 
 465.81 to 465.88 may serve on the initial governing body of the 
 combined unit until a gradual reduction in membership is 
 achieved by foregoing election of new members when terms expire 
 until the number permitted by other law is reached. 

    Subd. 3.    Interim governing body.  The plan for 
 cooperation and combination adopted in accordance with 
 subdivision 1 may establish an interim governing body to act on 
 behalf of the new local government unit before the effective 
 date of the combination.  If established, the interim governing 
 body must consist of at least a majority of the elected 
 officials from each local government unit taking part in the 
 combination.  If the plan establishes an interim governing body, 
 the governing body of each unit taking part in the combination 
 shall appoint its representatives to serve on the interim 
 governing body.  An interim governing body may not take any 
 official action on behalf of the new local government unit 
 before approval of the combination through the referendum 
 required by section 465.84.  After approval of the combination 
 through the referendum, and before the effective date of the 
 combination, an interim governing body may exercise all 
 statutory authority of the governing body of the new local 
 government unit, including the authority to enter into contracts 
 and adopt policies and local ordinances. 

    HIST: 1991 c 291 art 14 s 3; 1993 c 375 art 15 s 11; 1995 c 
 264 art 8 s 8; 1996 c 471 art 11 s 13; 1997 c 231 art 2 s 36-38 

*   NOTE:  The amendment to subdivision 2 by Laws 1996, chapter 
*471, article 11, section 13, is effective July 1, 1997, for 
*taxes levied in 1997, payable in 1998 and subsequent years, 
*except as provided in section 276A.03.  Laws 1996, chapter 471, 
*article 11, section 20.

     465.83 State agency approval. 

    Before scheduling a referendum on the question of combining 
 local government units under section 465.84, the units shall 
 submit the plan adopted under section 465.82 to the board.  
 Metropolitan area units shall also submit the plan to the 
 metropolitan council for review and comment.  The board may 
 require any information it deems necessary to evaluate the 
 plan.  The board shall disapprove the proposed combination if it 
 finds that the plan is not reasonably likely to enable the 
 combined unit to provide services in a more efficient or less 
 costly manner than the separate units would provide them, or if 
 the plans or plan modification are incomplete.  If the 
 combination of local government units is approved by the board 
 under this section, the local units are not required to proceed 
 under chapter 414 to accomplish the combination. 

    HIST: 1991 c 291 art 14 s 4; 1993 c 375 art 15 s 12 

     465.84 Referendum. 

    During the first or second year of cooperation, and after 
 approval of the plan by the board under section 465.83, a 
 referendum on the question of combination must be conducted.  
 The referendum must be on a date called by the governing bodies 
 of the units that propose to combine.  The referendum must be 
 conducted according to the Minnesota election law, as defined in 
 section 200.01.  If the referendum fails, the same question or a 
 modified question may be submitted the following year.  If the 
 referendum fails again, the same question may not be submitted.  
 Referendums shall be conducted on the same date in all local 
 government units. 

    HIST: 1991 c 291 art 14 s 5; 1995 c 264 art 8 s 9 

     465.85 County auditor to prepare plat. 

    Upon the request of two or more local government units that 
 have adopted a resolution to cooperate and combine, the county 
 auditor shall prepare a plat.  If the proposed combined local 
 government unit is located in more than one county, the request 
 must be submitted to the county auditor of the county that has 
 the greatest land area in the proposed district.  The plat must 
 show:  

    (1) the boundaries of each of the present units; 

    (2) the boundaries of the proposed unit; 

    (3) the boundaries of proposed election districts, if 
 requested; and 

    (4) other information deemed pertinent by the governing 
 bodies or the county auditor. 

    HIST: 1991 c 291 art 14 s 6; 1995 c 264 art 8 s 10 

     465.86 Bonded debt at the time of combination. 

    Debt service for bonds outstanding at the time of the 
 combination may be levied by the combined governing body 
 consistent with the plan adopted according to section 465.82, 
 and any subsequent modifications, subject to section 475.61.  
 The primary obligation to pay the bonded indebtedness 
 outstanding on the effective date of combination remains with 
 the local government unit that issued the bonds, but a combined 
 unit may make debt service payments on behalf of a preexisting 
 unit. 

    HIST: 1991 c 291 art 14 s 7 

     465.87 Aids to cooperating and combining units. 

    Subdivision 1.    Eligibility.  A local government unit 
 is eligible to apply for aid under this section if the board has 
 approved its plan to cooperate and combine under section 465.83. 

    Subd. 1a.    Additional eligibility.  A local government 
 unit is eligible to apply for aid under this section if it has 
 combined with another unit of government in accordance with any 
 process within chapter 414 that results in the elimination of at 
 least one local government unit and a copy of the municipal 
 board's order or orders combining the units of government is 
 forwarded to the board.  If the municipal board issues two or 
 more orders within 30 days for the annexation of the area of an 
 entire township by two or more cities contiguous to the 
 township, the cities subject to the board's order are eligible 
 to receive pro rata shares, on the basis of their populations, 
 of the total amount of cooperation and combination aid all 
 participating units of government would be eligible to receive 
 under subdivision 2.  If two units of government cooperate in 
 the orderly annexation of the entire area of a third unit of 
 government which has a population of at least 8,000 people, the 
 two units of government are each eligible for the amount of aid 
 specified in subdivision 2.  

    Subd. 1b.    Application procedures.  A local government 
 unit covered by subdivision 1 may submit an application to the 
 board along with the final plan for cooperation and combination 
 required by section 465.83.  A local government unit covered by 
 subdivision 1a may submit an application to the board after the 
 issuance of the municipal board's order combining the two units 
 of government.  The application must be on a form prescribed by 
 the board and must specify the total amount of aid requested up 
 to the maximum authorized by subdivision 2.  The application 
 must also include a detailed explanation of the need for the aid 
 and provide a budget indicating how the requested aid would be 
 used. 

    Subd. 1c.    Aid award.  The board may grant or deny an 
 application for aid made by a local government unit under 
 subdivision 1b.  The board may also grant aid to an applicant in 
 an amount that is less than the amount requested by the 
 applicant.  The board shall base its decision on the following 
 criteria: 

    (1) whether the local government unit has adequately 
 demonstrated that the requested aid is essential to 
 accomplishing the proposed combination; 

    (2) whether the activities to be funded by the requested 
 aid are directly related to the combination; 

    (3) whether other sources of funding for the activities 
 identified in the application, including short-term cost 
 savings, are available to the applicant as a direct result of 
 the combination; and 

    (4) whether there are competing needs for the funding 
 available to the board that would provide a greater public 
 benefit than would be realized by the combination or activities 
 described in the application.  

    The board may award money to an applicant for a period not 
 to exceed four years.  Any funding awarded for a period beyond 
 the biennium in which an award is made, however, is contingent 
 on future appropriations to the board. 

    Subd. 2.    Amount of aid.  The annual amount of aid to 
 be paid to each eligible local government unit may not exceed 
 the following per capita amounts, based on the combined 
 population of the units, as estimated by the state demographer, 
 or $100,000, whichever is less. 

       Combined Population                   Aid

        after Combination                 Per Capita

              0 -  2,500                     $25 

          2,500 -  5,000                      20 

          5,000 - 20,000                      15

             over 20,000                      10

 If two or more units are eligible for a single award under this 
 subdivision, the award must be divided among the units in pro 
 rata shares based on each unit's population.  Payments must be 
 made on the dates provided for payments of local government aid 
 under section 477A.013, beginning in the year during which 
 substantial cooperative activities under the plan initially 
 occur, unless those activities begin after July 1, in which case 
 the initial aid payment must be made in the following calendar 
 year.  Payments to a local government unit that qualifies for 
 aid under subdivision 1a must be made on the dates provided for 
 payments of local government aids under section 477A.013, 
 beginning in the calendar year during which a combination in any 
 form is expected to be ordered by the Minnesota municipal board 
 as evidenced in a resolution adopted by July 1 by the affected 
 local government units declaring their intent to combine.  The 
 resolutions must certify that the combination agreement 
 addressing all issues relative to the combination is 
 substantially complete.  The total amount of aid paid may not 
 exceed the amount appropriated to the board for purposes of this 
 section. 

    Subd. 3.    Termination of aid; recapture.  If a second 
 referendum under section 465.84 fails, or if an initial 
 referendum fails and the governing body does not schedule a 
 second referendum within one year after the first has failed, or 
 if one or more of the local government units that proposed to 
 combine terminates its participation in the cooperation or 
 combination, no additional aid may be paid under this section.  
 The amount previously paid under this section to a unit must be 
 repaid if the governing body of the unit acts to terminate its 
 current level of participation in the plan.  The amount 
 previously paid to the unit must be repaid in annual 
 installments equal to the total amount paid to the unit for all 
 years under subdivisions 1c and 2, divided by the number of 
 years when payments were made. 

    HIST: 1991 c 291 art 14 s 8; 1993 c 375 art 15 s 13,14; 1995 c 
 264 art 8 s 11; 1997 c 231 art 2 s 39,40 

     465.88 Planning aid for consolidation studies. 

    Two or more local units of government with a combined 
 population of 30,000 or less based on the most recent decennial 
 census may apply to the board for aid to assist in the study of 
 a possible consolidation or combination.  To be eligible for 
 receipt of aid under this section, the local units of government 
 must be subject to a municipal board proceeding to form a 
 consolidation commission under section 414.041, subdivision 2, 
 or the governing bodies of the local units of government must 
 have approved a resolution expressing their intent to develop 
 and submit a combination plan for consideration by the board.  
 The application must be on a form prescribed by the board and 
 must provide a proposed budget detailing how the requested aid 
 is to be used.  The governing bodies of the local units of 
 government shall also approve resolutions certifying that the 
 requested aid is essential for paying a portion of the costs 
 associated with the consolidation or combination study.  The 
 board may grant up to $10,000 in aid for each application 
 received.  Two or more local government units with a combined 
 population of at least 2,500 but not greater than 30,000, based 
 on the most recent decennial census, must agree to provide at 
 least $1 for the study of a possible consolidation or 
 combination for each dollar of aid granted by the board under 
 this section. 

    HIST: 1995 c 264 art 8 s 12; 1997 c 231 art 2 s 41