CR 88-219 Suburban Rate Authority
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November 9t '988
Council Report: 88-219
SUBURBAN RATE AUTHORITY
Conceroa Over Funding of Co~b1ned Sewer Separation
St. Paul & Minneapolis
Propoeed Aotion.
Staft recolllmends the following motion: "~ve that Reaolu tion
Resolution opposinK spreading or replacement fund1n~ tor
separation in st. Paul and Minneapolis.
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Thi8 action will align the Ci ty of Hopkins wi tb the SRI. and otber
supporting cities.
Oyer-viev.
Tbe IPA bad threatened the metropolitan area that all sanitary 8ev~r
connections liould have to stop until all storm and sanitary severs
were separated. This would have greatly affected the SRi meabers
whioh represented the groving population of the area.
The SRA worked with the MPCA and others to develop a method o~ fttDdins
the separation projeots in the two core c1 ties. No interest State
loans were a part of that plan. These loans to the core cities were
ror&iven in tbe garbage billa ot the last legislature. Tbe SRA thinks
tbat this is placing a burden OD the rest of the state. The 81A 1s
alao concerned that the oore cities will also request State tUDCUDg
tor anticipated 10sB of Federal funds tor the projects.
Prlaary I.aues to Consider.
o Should the City of Hopkins move a reaolutioD supporting
SRA?
As mentionad above, there is concern that State funding will
be reques ted iJ y the core 01 ties. The SRA stand 1s that all
the other cities put their separate systema in and the core
cities should do the same.
Supporting Information.
o
SRA letter to member cities from Chairman William D.
Schaell.
Resolution 88-94
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G rdon P. A:derson
Director of Engineering
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO: 88-94
WHEREAS, the Suburban Rate Authority has assisted
the Metropolitan Council, the Minnesota Pollution Control
Agency and the Minnesota Legislature in formulating a
program fQr funding combined sewer separation In the cities
of Minneapolis and St. Paul; and
WHEREAS, such sewer separation is required by law
and by contract, and is otherwise desirable; and
WHEREAS, expected federal funding for the program
has been cancelled and replacement funding must be
identified; and
WHEREAS, most cities in the seven
metropolitan area have built separate sanitary and
sewer systems, principally through local funding; and
county
storm
WHEREAS, the ci ties of St. Paul and Minneapolis
have obtained leglelation forzl ving approximately $32
million in separation loans fro~ the state;
NOW, THEREFORE, the council of the City oC
Hopkins, does by this resolution state that it is opposed to
the spreading or t.he replacement runding upon the State
Treasu~y, and that it believes the most equitable resolution
is for the arrected cities to themselves provide that
Cunding.
Adopted at a regular meeting of the Council of tbe
City of Hopkins, November 15, 1988.
Donald J. Hilbert
Mayor
In 1983 and. after the Suburban Rate Authority was very
active in working with the MPCA and others to dev~lop a
method of funding Combined Sewer Separation .projects .in
the two core cities. The purpose of SRA participation
',' was, of course, to safeguard insofar as possible the
resources of its members, who. had ipstalled their own
separated se.."er.5. }l.t that ti!!ll? EPA was threatening to
shut off all hookuPd in the Metropolitan area until the
problem was resolved. Such action would have landed
particularly hard Upon SRA members who are experiencing
growth.. After many meetings over a period' of approxi-
mately two years, and appearances in .the legiSlature, it
,'. passed a bill providing for a loan and grant program
,. which would enable St. Paul and Minneapol is to complete
::",,,,-,;,,""'~" ,:,~~,>thei,r_ sewe:( separations by 1996. ,The scheme settled upon
by all of the parties included a combination of federal
grants, no interest state loans to be repaid beginning in
"..,---.... 1~96, state grants and self-help. In the waning hours of
the last legiSlature, two provisions were inserted in the
appropriations bill which repealed the provisions re-
quiring repayrn2'11: of the loaf's. "'<12""; -,,~o...1,.:o.','~ WP," n:;t"
heard by any cl.1Jrimittee of the lesislatu.ce, exc-2pt a
conference comrnit~ee on the appropriations bill~ In
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SUBURBAN
RATE
AUTHORITY
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MEMORANDUM
TO:
SRA Member City Managers and Clerks
FROM:
William D. Schoell
ChaIrman
DATE:
October 27, 1988
RE:
Funding of Combined Sewer Separation Programs
in St. Paul and Minneapolis
~,~'At,its.~uarterly meeting on October 19 the Suburban Rate
Authority Board of Directors unanimously passed a reso-
lution urging member cities to contact their State
elected representatives regarding the funding of the
Combined Sewer Separat ion Program in the Ci ties of St.
Paul and Minneapolis. The Board recommends that cities
adopt a resolution along the lines of the enclosed model.
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2000 FIRST BANK PLACE WEST. MINNEAPOLIS, MINNESOTA 55402 . (612\ 333-0543
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SRA Member Cities
October 27, 1988
Page 2
effect, the repealer forgives approximately $32 million
in loans to the two cities.
Another more important matter, at least in terms of
dollars, is the abolition of the federal grant program.
It now appears that the federal share will be reduced by
approximately $49 million from that expected when the
funding plan was developed.
The legislature will have to face the problem this
session. The Board anticipates that the two cities will
ask the legislature to make up the $49 million in federal
monp.y which will not be forthcoming. The Board feels it
'is patently unfair for the residents of the state to
pay for the replacement and separation of sewers in St.
Paul and Minneapolis. The SRA Board feels that it is
imperative that we speak Upe In addition to passing the
resolution or something similar, elected officials should
ma~e sure that their state legislative delegation under-
stands the problem.
I would appreciate it if you will provide a copy of the
resolution, should your council decide to adopt it, to me
or to SRA counsel. A brief report on what other steps
have been taken would assist the SRA Board at its January
meeting in determining what more to do on this subject.
Enclosure
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cc: Directors
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