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Approving the Establishment of the Como-Eustis Special Sanitary Sewer Availability Connection Charge District. Determining the Como-Eustis Special Sanitary Sewer Availability Connection Charge for Phase 1 and 2 Sewer Capacity Improvements (Ward 4, District 12).
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WHEREAS, the City of Saint Paul (the “City”) is a home rule charter city organized and existing under the laws of the State of Minnesota; and
WHEREAS, under the provisions of Chapter 76 of the City’s Legislative Code, the City’s sewer utility manager has submitted to the City Council a report with a recommendation (“Report”) that an area of the City known as the Como-Eustis Sanitary District Service Area and described and shown in the attached Exhibits A and B (“Como-Eustis Area”) lacks sufficient sanitary sewer capacity or requires sanitary sewer infrastructure improvements to meet sewer demand caused by development/redevelopment or uses on the parcels of land located within the Como-Eustis Area; and
WHEREAS, to meet the expected demand on the sanitary sewer capacity in the Como-Eustis Area caused by new development or uses, the City intends to improve the sewer capacity or infrastructure (“Improvements”) of the Como-Eustis Area in two phases; Phase 1 Capacity Improvements (“Phase 1 Improvements”) to support imminent and likely development/redevelopment of properties generally located north of Como Ave. east of Eustis St. and west of Grantham St., and Phase 2 Capacity Improvements (“Phase 2 Improvements”) to support unknown future development/redevelopment of properties generally located south of Como Ave. east of Hunting Valley Rd St. and west of Fulham St. as shown in Exhibit A.
WHEREAS, Phase 1 Improvements has been included and approved in the Sewer Utility budget for fiscal year 2026, by corresponding reductions in sewer capital maintenance expenses; and
WHEREAS, the City intends to fund the engineering design, construction, and construction inspection for Phase 1 Improvements, using 2026 Sewer Utility sewer capital account codes 64031950-76805-C3164026001-76115 and 64031950-76805-C3164026003-76115; and
WHEREAS, the total estimated cost for Phase 1 Improvements is to encumbered in 2026 by the City and is estimated at $4,100,000 (“TPC-1”), and that but for these Improvements development/redevelopment or uses in the Como-Eustis Area would not occur; and
WHEREAS, the total estimated cost for Phase 2 Improvements is to be incurred by the City at some future point in time, and is estimated at $1,500,000 (“TPC-2”), and that but for these Improvements development/redevelopment or uses in the Como-Eustis Area would not occur; and
WHEREAS, Minn Stat Section 444.075, Subd.3 permits the City to charge new users connecting to the enhanced sanitary sewer system for the costs of such Phase 1 and Phase 2 Improvements provided that the charge is just and equitable to all potential new uses, and
WHEREAS, the City Council by Ordinance 19-37 enacted amendments to Legislative Code Chapter 76 to provide for the establishment of a special sanitary sewer availability connection charge district by resolution and to authorize the establishment of a special sanitary sewer availability connection charge and Section 76.03 of the City’s Legislative Code requires payment of such charges on new uses; and
WHEREAS, after a public hearing and considering any testimony received at such hearing, the City Council finds and determines there is a public purpose for the actions taken in this resolution.
NOW, THEREFORE, BE IT RESOLVED, by the Saint Paul City Council as follows:
Section 1. Approving the Establishment of the Como-Eustis Special Sanitary Sewer Availability Connection Charge District for Phase 1 and 2 Improvements
1.01 Based on the Report and its own investigation, the City hereby finds and determines that the Como-Eustis Area is lacking sufficient sanitary sewer capacity or requires improvements to sanitary sewer infrastructure to meet sewer demand caused by new development/redevelopment or uses within such Como-Eustis Area and it is in the public interest of the residents of the City that new development/redevelopment and uses within the Como-Eustis Area be undertaken in order to increase the supply of rental and ownership housing facilities in the City and retail and commercial uses.
1.02 The Council hereby approves the establishment of the Como-Eustis Special Sanitary Sewer Availability Connection Charge District for Phase 1 and 2 Improvements (the “District”) with the same boundaries as the Como-Eustis Area. The Mayor, Director of Public Works Department and Director, Office of Financial Services are hereby authorized and directed to execute, on behalf of the City, any documents as the Saint Paul City Attorney considers appropriate in connection with this approval and resolution.
Section 2. Determining the Como-Eustis Special Sanitary Sewer Availability Connection Charge for Phase 1 and 2 Improvements
2.01 The Council hereby approves and requires the payment for new users connecting to the enhanced sanitary sewer system within the Como-Eustis Area of a sewer availability charge (“Phase 1 and 2 Como-Eustis SSSACC”) based on multiplying the number of sewer availability charge units of the new use (“SAC Unit”) by $2,490 (“Initial SAC Unit Charge”). The number of SAC Units for a new use shall be determined by the Metropolitan Council. The Initial SAC Unit Charge was calculated by dividing estimated TPC-1 and TPC-2 ($5,600,00) by 2,249 (total projected SAC Unit capacity to be created by the Phase 1 and 2 Improvements). Following completion of construction of the Phase 1 and 2 Improvements, the Initial SAC Unit Charge shall increase annually by the rate of inflation published by the U.S. Labor Department (“LD”) or similar agency if the LD is no longer publishing such rate of inflation (“SAC Unit Charge”). If after completion of the Phase 1 Improvements the actual construction costs are (a) less than $5,600,000 then the Initial SAC Unit Charge shall be proportionally reduced, or (b) the same or greater than $5,600,000, then the Initial SAC Unit Charge shall remain at $2,490. The Director of the Department of Public Works is authorized and directed to make any necessary adjustments to the Initial SAC Unit Charge following completion of construction of the Phase 1 and 2 Improvements.
1.2.02 All Phase 1 and 2 Como-Eustis SSSACC shall be collected by the City’s Department of Safety and Inspections under Chapter 76 of the City’s Legislative Code prior to issuance of a building permit and shall be deposited into the Como Eustis Sanitary CAP IMPRV Sewer Revenue fund 64031995 (“Account”). Once deposited into the Account, the monies shall be used to reimburse the original funding source(s) for the Phase 1 and 2 Improvements in accordance with the repayment terms under the Record. In accordance with the Record, the Phase 1 and 2 Como-Eustis SSSACC generated from the inflationary increase in the Initial SAC Unit Charge shall not reduce the principal amount funded by the Sewer Utility.
Section 3. Approving Execution of Record
3.01 The Council hereby approves the execution and delivery of the Record. The Director of Public Works Department and Director, Office of Financial Services are hereby authorized and directed to execute, on behalf of the City, the Record and any non-material changes to the Record as the Saint Paul City Attorney considers appropriate in connection with this approval and resolution.