04-9504 � Council File # ���L Jl!
RESOLUTION
Presented By
Green Sheet n
CITY OF SAINT PAUL, MINNESOTA
Referred To � Committee: Date
1 WHEREAS, on August 1 �, 2004 the Metropofitan Councii adopted Council Resolution No. 2004-28, which codrfies the
2 repayment of the overcharges during the years 1999 through 2002 for the treatment of sanitary waste, and,
3
4 WHEREAS, the City of Saint Paul and the Metropolitan Council reached agreement regarding the flows to the treatment plant
5 during the years 1999 through 2002, and,
6
7 WHEREAS, new magnetic flow meters were installed by the end of 2002, and,
8
9 WHEREAS, the flows to the treatment plant were consistently less than the estimated flows of 1.125 billion gallons per month
10 and were subsequently established at 1,041,666,666 gallons per month in accordance with provisions of the Metropolitan
11 Council resolution No. 2001-1, paragraph 3(b), and,
12
13 WHEREAS, the total due the City of Saint Paul is $5,655,852 with a term of five years from January 2005 through December
14 2009 at 4°lo interest, with a monthly payment of $104,161, and,
15
� WNEREAS, the paymeni will be made in the form of a credit on the MCES monthfy invoice to the Sewer Utility, and,
17
� 8 WHEREAS, ,the credit applied to the Sewer Utility invoice will be applied to repayment of the 1970-1987 W PA bond debt
19 service and remitted to the General Fund, and,
20
21 WHEREAS, the City must adopt this resolution by December 31, 2004 to avoid the Metropolitan Cour,cil from declaring their
22 resolution null and void, and,
23
24 NOW, THEREFORE BE IT RESOLVED, that the City Council adopts this resolution.
Yeas
Benanav ✓
Bostrom �
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H�ger3 '�
rantr3r ✓
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Adopted by Council:
Adoption Ce:
By : —�I
Approved By
By: —�
Absent RequesCed by
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Public Works �
• I •
g Bruce Elder � � !%_„'
—�
_J� � I Approval Recommended by Office of
� p Financia Services Director:
Date l X'.7Ub kr ( �d0�-'' ' \
by Council Secretary
Form Approved by City Attorney:
By : 'fl1 / � ! j"'�'vt,c✓
by Mayor
206176
Page 1
PutaGc Works
Bruce Eider 266-6248
:ON CpUNCIL AGENDA BY (DA'(�
AUGUST 11, 2004
DATEINRIATED
8/4/2004
i�
NO
� DEPARfMENT qflECTOF� ' � � CITY COUNCII "—
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NUMBERPoR �CRYAl70FNEY �CRYCLEftK _
flOUi1NG �flNANC1ALSEHVICESDIR MS 9//7/�'�FlN.SERVICFS/ACCT
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� MAYOF (OR ASSISTANi) � A��m' MGR
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TOTAL # OF SIGNATURE PAGES t (CLIP ALL LOCATIONS FOR SIGNATURE)
Approve the resolution betore Councii accepting the terms of the MCES resolution detailing the reimbursement to the City of
overcharges for the treatment of sanitary waste amounting to $5,655,852.
RECOMMENDA710NS: Approve (A) or Reject (P)
PLANNING COMMISSION
CB COMMITTEE
CIVIL SERVICE COMMISSfON
PERSONAL SERVICE CONTRAC?S MUST ANSWER THE
FOLLOWING QUESTIONS:
1. Has this person/firm ever worked under a contract for this
departmert?
YES NO
2. Has this person/firm ever been a city employee?
YES NO
3. Does this person/firm possess a skil� not normally possessed by any
current city employee?
YES NO
Explain all yes answers on separate sheet and attach to green
sheet
INITIATING PFOBLEM, ISSUE, OPPORTUNITY (WHO, WHAT, WHEN, WHERE, WHV):
The MCES overcharged ihe Sewer Utility during the years 1999 through 2002 which resulted in $5,655,852 in overpayments.
The Metropolitan Council has agreed to refund the overpayments through a monthlycredit on the monthly invoice period
ADVANTAGES IF APPROVED:
The credit received from the MCES will be applied to repayment of the 1970-1987 W PA bond debt service.
CQt�1 R�saarch Cpntor '
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n (Q
DISADVANTAGESIFAPPROVED: . T yi i v
None. S�P �, �
�1�'� ��' � �����
DISADVANTAGES If NOTAPPPOVED:
If by December 31, 2004; the Citys resolution is not passed, the MCES wiil declare their resolution null and void.
FINANC�AL INFORMAl10N: (EXPl4lN)
TOTAL AMOUNT OF TRANSACTION 5 5 ,655 ,8�J2
COST/REVENUE BUDGE7ED (CIRCLE ONE)
YES NO
ACINITYNUMBER p60-22200-0544
FUNDING SOURCE
0�-g5�
METROPOLITAN COUNCIL
Meazs Park Centre, 230 East Fifth Street, Saint Paul, MN 55101
651l602-1000 TDD 651/291-0904
RESOLi3TION NO. 200428
RESOLUTION FINALIZING THE CITY OF ST. PAUL
WASTEWATER SERVICES COST ALLOCATION
FOR CALENDAK YEARS 1999 THROUGH 2O03
BASED UPON EARLIER COUNCIL i2ESOLUTION 2000-1
.I:1_ :
1. In 1999 the City of Saint Paul (City) raised concerns about the accuracy of both the flow meters
measuring the City's flaw into the metropolitan disposal system and the analytical model used by the
Metropolitan Council (Council) to esiimate the flow. Detemunation of the City's flow is unique
because of the size of its wastewater flow and the technical challenges in accurately measuring the
flows.
2. In January 2000, the Council was in the process of replacing the existing meters measuring City flow
with new magnetic flow meters and the new meters were projected to be in place and operational not
later than the end of 2002,
3. The Council in January 2000 adopted Council Resolution No. 2000-1, which (a) established a method
to address the City's concems during the period from 1999 until the new meters were to be in place
and operational, (b) established a reasonable transition to measurements by the new meters, and (c)
provided for proper allocarion of costs during cale�dar years 1999 through 2002. The resolution
provided for a retrospective adjustment of the City's billing for sewer service in the calendar years
1999 through 2002 based on the actual flow measurements using the new meters, but subject to a
maximum flow adjustment amount.
4. 'The City by formal City Council resolution concurred in the methodology established in Council
Resolurion No. 2000-1.
5. New meters measuring City flow were completed and operational in 2002. City flow as measured by
the new meters has been consistently less than that measured and determined by the previous meters
and methodology.
6. City flow for 2003, the Transition Year pursuant to Council Resolution No. 2000-1, was initially
billed by the Council to the City at 1.125 biliion gallons/month pursuant to paragraph 2(b)(ii) of said
resolurion. However, near the end of 2003 the Council refunded some funds paid by the City for that
year and canceled the last two months of the Ciry's sewer bills such that the net billed and paid by the
City for 2003 flow reflected the Final Billing Flow Value as measured by.the new meters and in
accordance with the Council's cost allocation methodology.
7. Council staff has carried out discussions with City staff and both staffs believe it is desirable to
delineate the final Billing Flow Value and details of the repayment arrangements based on the
provisions of Council Resolution No. 2000-1 and in light of actual experience during the period in
question.
o�-��
8. Minnesota Statutes, section 473.517, provides that the Council shall determine the method of
allocating the costs of wastewater services to local units of govemment dischazging sewage to the
metropolitan disposal system.
NOW, THEREFORE, BE IT RESOLVED by the Metropolitau Council as follows:
1. b`inal Monthly Billing Flow Value. 'The final Billing Flow Value for each month in 1999 through
2002 is established as 1,041,666,666 gallons per month in accordance with the provisions of
paragraph 3(b) of Council Resolution No. 2000-1.
2. No Major Water Customer Adjustment. The City did not gain or lose any Ma}or Water Customers
(as defined in Council Resolution No. 2000-1) during the applicable period and accordingly there aze
no adjustments to be made to the final monthly Billing Flow Value established in pazagraph 1 of this
resolution pursuant to the adjustment provisions ofparagraph 3 oFCouncii Resolurion No. 2000-1.
3. Payment Ama�nt including Interest Pursuant to the provisions of Council Resolurion No. 2000-1,
for the period 1999 through 2002 the Council will make a refund payment to the City for each month
during such period equal to the difference between:
(a) the amount actually billed and paid by the City each month during that period, and
(b) the amount determined by applying the final monthly Billing Flow V alue specified in paragraph 1
of this resolution to the per gallon billing rate in effect during the applicable month.
The Council will also pay the City interest on each svch amount &om and after the date that month's payment was made
by the CiTy at the rate of four percent per annum simple intezest. Interest for each month shall accrue until the date at
wluch the Council commences repayment of the amounts provided for in this paragaph 3 in accordance with the
provisions of pazagraph 4 of this resolurioa.
4. Payment Commencement, Amortization and Interest. Payment by the Council of amounts due to
the City pursuant to paragraph 3 of this resolution shall commence in Tanuary 2005.The total principal
amount due to the City from the Council at the time payment commences shall consist of the sum of
the amourits caiculated under paragraph 3 of this resolution including all interest accnzed on such
amounts at the time of commencement of repayment. This total principal amount, along with interest
on such total principal amount at the rate of four percent per annum simple interest, shall be amortized
and paid by the Council to the City in 60 equal monthly payments from and after the month in wluch
payment commences. The Council, at its option, may at any time prepay without penalty the balance
of the total principal amount remaining at the time of prepayment.
5. Payment Schedule. Upon commencement of payment under paragraph 4 of this resolution, the
Council shall provide the City with a payment schedule showing the total principal amount due and
owing as of the date payment commences and the amortized schedule of repayment in accordance
with the provisions of said paragraph
6. Payment in the Form of a Credit. All payments made by the Council pursuant to pazagraph 4 of this
resolution shall be in the form of a wastewater credit on the City's normal monthly sewer billing due
to the Council from the City.
7. N�il and Final Payment. Complete payment by the Council in accordance with paragraph 4 of this
resolution, and the refunds and cancellations for 2003 as described in the sixth "whereas" paragraph,
shall constitute full and final payment by the Council for any monies due and owing the City for
adjustments to the cost of wastewater services provided by the Council to the City through calendaz
year 2003.
v�.
8. Precedence of Resolutions. The provisions of this resolurion shall take precedence over the
provisions of Council Resolution No. 2000-i to the extent of any inconsistency between such
provisions.
9. Effectiveness of Resolutian. Impiementation of this resolution is effective and contingent upon the
City of Saint Paul passing a resolution by its City Council, in a form acceptable to the Council, which:
a. references this resolution and the above repayment method; and
b. agrees to abide by the provisions of this resolution; and
c. agrees that payment by the Council in accordance with this resolurion, and the refunds and
cancellations for 2003 described in this resolution, shall constitute full and final payment by
the Council for any monies due and owing the City for adjustments to the cost of wastewater
services pmvided by the Council to the City through calendaz yeaz 2003.
In the event the City fails to adopt such a resolution on or before December 31, 2004, then this resolution shall be null and
void and Council staff will determine the amounts owed to the City and the method of payment of those amounts pursuant
to the stafP s reasonable interpretation of the intentions of Council Resolution No. 2000-1.
10. Reservarion ot' Statutory Aathority, Nothing in this resolution shall be deemed to modify or limit
the statutory responsibility or authority of the Council to detemune the allocation of costs of
wastewater services to local units of government discharging sewage to the metropolitan disposal
system.
August i l, 2004
, - .��� C����.��
Bell, Chair Pat Curtiss, Recording Secretary