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HomeMy WebLinkAbout2018-085 CCRMember MR -q -t:a at]-er introduced the following resolution and moved its adoption: RESOLUTION NO. 2018-85 RESOLUTION APPROVING THE PAYMENT DEFERRAL AGREEMENT BETWEEN THE CITY OF BROOKLYN CENTER AND THE METROPOLITAN COUNCIL WHEREAS, The Metropolitan Council (Council) owns and operates the metropolitan disposal system. Under Minnesota Statutes section 473.517, subdivision 3, the costs of acquisition, betterment and debt service associated with the "reserve capacity" of the system must be allocated among and paid by the respective local government units in the metropolitan area through a sewer availability charge ("SAC") for each new connection or increase in capacity demand to the metropolitan disposal system within each local government unit; and WHEREAS, Individual property or business owners whose properties are either newly connected or increase capacity demand to the metropolitan disposal system do not pay SAC to the Council. However, local government units that pay SAC to the Council for new connections or increased capacity demands typically pass on those costs to property and business owners by assessing property and business owners a "Local SAC" which sometimes includes local add-on charges; and WHEREAS, Minnesota Statutes section 473.517, subdivision 6 authorizes the Council to provide for the deferment of payment of all or part of the allocated costs which are allocated by the Council to a local government unit in any year pursuant to section 473.517, subdivision 3. The deferments are repayable at such time or times as the Council shall specify, with interest; and WHEREAS, At its November 28, 2012 meeting, the Council adopted changes to its SAC program including a small business SAC deferral program. The changes became effective January 1, 2013. At its January 22, 2014 meeting, the Council adopted changes to the SAC deferral program that became effective immediately upon adoption; and WHEREAS, The Council wants to encourage and help communities promote business development by deferring community SAC payment obligations pursuant to Minnesota Statutes section 473.517, subdivision 6, so participating communities may pass through to businesses the benefits of deferred SAC payments by the communities. The Council's Sewer Availability Charge Procedure Manual (January 2014) states that communities that want to participate in a SAC deferral program must execute a standard master SAC deferral agreement with the Council; and WHEREAS, To obtain a deferment of a SAC payment obligation and provide assistance to businesses, communities will submit to the Council a signed master SAC deferral agreement. For the term of the master agreement, communities will have the option to note on their monthly SAC reporting, on forms as provided by the Council, the eligible SAC liabilities for RESOLUTION NO. 2018-85 which the communities are requesting a SAC payment deferment from the Council. For each such subject SAC liability the deferment will be effective as of the first day of the subsequent month (e.g., for an April building permit that is reported for SAC in May, the deferment will be effective as of June 1); and WHEREAS, The City of Brooklyn Center wishes to enter into a Master SAC Deferral Agreement with the Council and pass on the deferment of SAC fee obligations to assist businesses NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: The City Council hereby approves the Master SAC Deferral Agreement in order to define the rights and obligations of the Community and the Metropolitan Council and the relevant SAC deferral arrangements, and hereby authorizes the City Manager to negotiate any additional details as may be necessary and appropriate and approved by legal counsel to the City Council. Adopted by the City Council of Brooklyn Center on April 9, 2018. April 9, 2018 Date ATTEST: 44ZZ� City Clerk f � Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Lan Ryan and upon vote being taken thereon, the following voted in favor thereof: Tim m1hx r, mn-gnta Butler, X71-1 a-WRS, Lin Ryan and the following voted against the same: whereupon said resolution was declared duly passed and adopted.