94-1548 O R�� I nI �� Council File # "1�t"�S� O
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RESOLUTIO Green Sheet # �� h��
Y OF AINT PAUL, INNESOTA
a�
Presented By
Referred To Committee: Date
1 WHEREAS, the City of Saint Paul c nstructed the Belt Line Interceptor between 1924 and 1970
2 for a cost of $2,173,103 and the rout Brook Interceptor between 1888 and 1967 for a cost
3 of $2,501,859, resulting in a com ined cost of $4,674,962, and
4
5 WHEREAS, in 1971 the Metropolitan Council/Wastewater Services, formerly known as the
6 Metropolitan Waste Control Commis ion (MWCC), and hereafter referred to as the (MCWS),
7 agreed to pay the City of Saint P ul a total of $8,118,659 for the two sewers (the Belt
8 Line for $4,024,416 plus outstand ng bonds of $23,893 and the Trout Brook for $3,684,383
9 plus outstanding bonds of $385,96 ). The purchase price was determined by formulas
10 prescribed in state law which acc unted for both the inflationary cost of construction and
11 the depreciated value of an asset based on its expected useful life. State laws allow the
12 MCWS to finance a purchased asset over 30 years at 4� interest, and
13
14 WHEREAS, upon construction of a n w Belt Line and Trout Brook sanitary sewer, the MCWS had
15 no need for the old Belt Line and Trout Brook facilities so they became available for
16 storm sewer use by the City of Sa nt Paul and other contributing communities, and
17
18 WHEREAS, on February 21, 1989, th MCWS passed a resolution authorizing the Chair and Chief
19 Administrator to execute an agree ent with the City of Saint Paul to reconvey ownership of
20 the Belt Line and Trout Brook int rceptors. The MCWS's reconveyance position for the two
21 sewers being declared surplus for sanitary sewage treatment needs was that only the City
22 of Saint Paul should pay the depr ciated reconveyance price of $3,478,535, even though the
23 interceptors carry large volumes f stormwater from cities north of Saint Paul. Because
24 significant issues of ownership, ost sharing, liability and storm flow management were not
25 appropriately addressed in the do uments drafted and the actions taken by the MCWS, the
26 City of Saint Paul has refused to accept the terms of the proposed agreement approved by
27 the MCwS, and
28
29 WHEREAS, the Saint Paul City Coun il's appointed "Task Force for Saint Paul Sewer Rate
30 Relief" studied the history and i sues associated with the reconveyance of these
31 interceptors and made eight reco endations to the Mayor and to the City Council regarding
32 the reconveyance of the Belt Line and Trout Brook interceptors, and
33
34 WHEREAS, both the Saint Paul Publ c Works Department and the Mayor concurred in the Task
35 Force's recommendations, as ident fied in their June 9, 1993 report, and
36
37 WHEREAS, on July 27, 1993 the Cit Council adopted by resolution, the recommendations of
38 the Task Force, and
39
40 WHEREAS, these recommendations an adopted resolution included that all adjustments to
41 Saint Paul's Current Value Credit made by the MCWS between 1989 and 1993 for their
42 proposed 1989 reconveyance plan b credited back to Saint Paul, as there was and is no
43 contractual agreement on which to base a payment plan. The MCWS should also pay the City of
44 Saint Paul interest on the adjust ents, at the rate of 4� per year, which is the normal
45 financing charge they apply to al cities. Finally, the MCWS shall continue to pay Saint
46 Paul through the year 1999 for al original current value credits for the 1971 purchase of
47 the two interceptors, and �
48
49 WHEREAS, this adjustment of credi did not occur in the MCWS'S 1994 budget, and
50
51 WHEREAS, the Metropolitan Council convened an "Ad Hoc Reconveyance Study Group"
52 involving all the cities in the w tershed that use these interceptors, to resolve issues of
a����$
53 cost sharing, ownership, reconvey nce costs, flow management, and for financing annual
54 routine maintenance and major cap tal repair, and
55
56 WHEREAS, the affected municipalit es and the MWCS staff are meeting, under the coordination
57 of the Metropolitan Council Plann ng Staff and with representatives of the watershed
58 organizations to develop an owner hip and cost sharing formula, which would be administerecl
59 through the watershed organizatio s, and
60
61 WHEREAS, significant progress is eing made and a consensus position for cost sharing is
62 anticipated by the end of 1994, n w therefore be it
63
64 RESOLVED, that the City of Saint aul will continue to participate in the process that the
65 Metropolitan Council has initiate to resolve the issue on the reconveyance of the Belt
66 Line and Trout Brook sewers, and e it further
67
68 RESOLVED, that the "Ad Hoc Recove ance Study Group" consider all of the issues in the
69 July 27, 1993 resolution in arriv ng at a determination and settlement of the issues on the
70 reconveyance of the Belt Line and Trout Brook interceptor sewers, and be it further
71
72 RESOLVED, that all adjustments to Saint Paul's Current Value Credits made by the MC4dS
73 between 1989 and 1994 for their p oposed 1989 reconveyance plan be credited back to Saint
74 Paul as there was never a contrac ual agreement on which to base a payment plan. Those
75 credit adjustments made through 1 94 total $1,612,796. Furthermore, that the 1995
76 adjustment of $308,060 to Saint P ul's current value credit be deleted from the MCWS 1995
77 budget until a solution is reache by the "Ad Hoc Reconveyance Study Group" and accepted by
78 the Metropolitan Council. The MC S should also pay the City of Saint Paul interest on the
79 adjustments at the rate of 4� per year, which is the normal financing charge they apply to
80 all cities, and that the MCWS sha 1 continue to pay Saint Paul tl the year 1999 for
81 all original current value credit for the 1971 purchase of the two interceptors, and be it
82 finally
83
84 RESOLVED, that the Director of Pu lic Works, along with the President of the City Council
85 are requested to distribute a cop of this resolution to Helen Boyer, General Manager of
86 the MCWS and to the Metropolitan ouncil Executive Director, Dottie Rietow, and to all
87 Metropolitan Council Commissioner , and to Steve Wellington, Saint Paul's Metropolitan
88 Council Representative, to aid in their efforts to have the Metropolitan Council and the
89 MCWS develop solutions to theTrou Brook and Belt Line interceptor reconveyance consistant
90 with the policy concepts andreque ts identified in this resolution.
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Requested by Department of:
Y� Nays sent
Blake Pub1iC Works
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Form ved b C' Attorney
Adopted by Council: Date �� �-
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Adoption Certified by Council Secre ary
� Approved Mayor for Su mission to
By: � _ __ Council
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Approved by M o• Date 10 �!�_
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nptu'r�a �+�.: � �r A�r+a. wwt7 w�+. wFM: , � ; $.
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Ip 197'1, . � seweis fro�n Sau�t Paul to c�y lat� senitsry �ewage �d s�otm wat$r '``
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MC'VVS pmr.�d the H�kh L�ue �d T�nnt .`�
Saii� Pa�l and il� cities uotqt �' Sa�t FAUI. Iu 19� da�red the two sewcrs st�>ltts xa thefn' t�e� sy�te�n, and they ;.
' want.� on13t �aia� Pgul tQ P�Y �f�r tl�e�am, ev�► ilaqug,t► haif c�f t�e stoarm watex, go�+g throug#� the. �'S are $au4 sab�bu a;
cit�., �ainE Paul cQd �t a�OCe to t1� 2984 Iut�� , bqt �as � t►iilod anaust�y �r #he sewaa`s �ce '1�9. 1Le Met�ti j'
C.ou�cit`has initi�6b� a seody � to i�deatify a" �a► tLe r�vey� cat in�ce+c�ptor sewers tra t�+cc��uuifie� they:serve. t '`�
Pat�l will.�cil� i� t� ptnoeas. Sa�t Pa� t±e,d�nt of m�s � sincx T989. f
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A�d of 1995 paymot�ts would �3Q8.�64 t� a�ononnt f� a total ircfimd of 51,92(?,836. Ssint Pau� pot�at�l� w� t+�ei �
� matd�� � 1989'�+oug� t� �S an nt of �1,612,796. 3a�nt Pau� wlli �ovr�inuc t4 part�cip�oa. a� i�e `�
" ��t�s�G�:C�. `�� ia the- is�. A proCe�s of � s� citi�s �n c�r}t� st�'Ehe A�I
, Cd�� cen-�nrro�v±a� waoorsLod: 'ons a� �t�a ti�e�r s�e. 1�e likelihood c� havaig a fa� c:�t �ng �
and"�r mattage�t �fs t1t�g4 the stud3► v�l �ficxease sig�t�y. ' i
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Could �fe,�E:M�apalitan �ouncil prooes$ of ' a fu�ai sc�lution of tt� ownership and use of in�c�ap�rs. �/�' , '
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. � OCT 12 1994 SEP � 0 `` '�:
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Ol$A�yI�N'(A8E81F NOTAPPRONED: ti ^ •�
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MCWS v�N1 �ontint� to bi� �ly Sa�ft Paul f�x Ew0 d�ai �+e u58d by tn�t�t�s� cifies tD Carry sto� wat� W ti►e ;�.
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Mississip�i �ti+�dr. All futc�e �aiat,�am�ce aad:.m�ar �s may be onty Saint P�ul's obligatiu�n. . '
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70TAL MM0{JI�EI' OF TI�11N$AlXfRiN i COS�IFI�I�Fl�IJE B�Di�tED (�'CI.E �IiE) YES MO `
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