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    Subdivision 1. Applicability. The definitions in this section apply to sections 471A.01 to
    Subd. 2.[Repealed, 1997 c 7 art 1 s 148]
    Subd. 3. Capital cost component. "Capital cost component" means that part of the service
fee that the municipality determines is intended to reimburse the private vendor for the capital
cost, including debt service expense, of the related facilities.
    Subd. 4. Capital cost component grant. "Capital cost component grant" means any grant
made to the municipality by the pollution control agency over a term of at least ten years to pay
or reimburse the municipality for the payment of all or part of the capital cost component of
the service fee.
    Subd. 5. Capital cost component loan. "Capital cost component loan" means any loan made
to the municipality by the Pollution Control Agency over a term of at least ten years to pay or
reimburse the municipality for the payment of all or part of the capital cost component of the
service fee.
    Subd. 6. Capital intensive public services. "Capital intensive public services" means the
prevention, control, and abatement of water pollution through wastewater treatment facilities as
defined by section 115.71, subdivision 6, and the furnishing of potable water. Capital intensive
public services may be limited (1) to the design and construction, or (2) to the operation and
maintenance, by the private vendor of related facilities. Capital intensive public services does not
include the furnishing of heating or cooling energy.
    Subd. 7. Controlling interest. "Controlling interest" means either (1) the power, by
ownership interest, contract, or otherwise, to direct the management of the private vendor or to
designate or elect at least a majority of the private vendor's governing body or board, or (2) having
more than a 50 percent ownership interest in the private vendor.
    Subd. 8. Municipality. "Municipality" means a home rule charter or statutory city,
county, sanitary district, or other governmental subdivision or public corporation, including
the Metropolitan Council.
    Subd. 9. Permitted obligation. "Permitted obligation" means the obligation of the
municipality under the service contract to pay a service fee or perform any other obligation under
the service contract except an obligation to pay, in a future fiscal year of the municipality from a
revenue source other than funds on hand, a stated amount of money for money borrowed or for
related facilities purchased by the municipality under the service contract.
    Subd. 10. Private vendor. "Private vendor" means one or more persons who are not a
municipality and in which no governmental entity or group of governmental entities has a
controlling interest.
    Subd. 11. Related facilities. "Related facilities" means all real and personal property used by
the private vendor in furnishing capital intensive public services, excluding any product of the
related facilities, such as drinking water, furnished under the service contract. Related facilities
may be owned by the municipality or the private vendor or jointly by both.
    Subd. 12. Service contract. "Service contract" means any agreement or agreements between
a municipality and a private vendor under which:
(1) the private vendor agrees to furnish to the municipality or any other user capital
intensive public services in accordance with performance standards set forth in the agreement
or agreements and the municipality agrees to pay or cause to be paid to the private vendor
a service fee for the services, and
(2) other covenants incident to clause (1) are made.
    Subd. 13. Service fee. "Service fee" means the payments the municipality is required under
the service contract to make, or cause to be made, to the private vendor, including payments made
by third parties to the private vendor for products or services and credited against payments the
municipality would otherwise have to make, or cause to be made, under the service contract. The
capital cost component of the service fee may be paid over the term of the service contract or in
one or more lump sum payments during the term.
    Subd. 14. Useful life of the related facilities. "Useful life of the related facilities" means the
economic useful life of the related facilities as determined by the municipality.
    Subd. 15.[Repealed, 1997 c 7 art 1 s 148]
    Subd. 16. User. "User" means the municipality and all other persons which use the capital
intensive public services furnished by the private vendor.
History: 1986 c 465 art 4 s 3; 1994 c 628 art 3 s 35; 1997 c 111 s 1-3

Official Publication of the State of Minnesota
Revisor of Statutes