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2 411 6- g'414 Cele:LW/64 515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor & City Council FROM: Dave Harris, Public Works Superintendent DATE: January 8, 1992 RE: MWCC Interceptor MAYOR Raymond G. Hanson COUNCIL. Beverly Scalze Bill Blesener Rick Collova Jim L.aValle ADMINISTRATOR Joel R. Hanson On November, 19, 1991, the City Administrator and myself met with members of the Metropolitan Waste Control Commission in regards to reconveying a portion of the MWCC interceptor back to the City of Little Canada. Some Background Information: In 1970, the entire facility was acquired from the City. At that time, the value was $34,875. The Commission assumed the payment of $1,180,530 in outstanding bonds issued by the City. The original cost of the interceptor system to the Commission was then a total of $1,215,405. Since the interceptor was acquired in 1970, they depreciated it for 22 more years using a 80 year life as established by the Waste Control Commission Act or by 27.5% of its original value for a current value of $881,169. A portion of the original project to be reconveyed based on footage of the interceptor is 11.7 %. Thus, the determined value for the reconveyed portion of the interceptor would be $103,097. Since the interceptor was sized to provide sanitary sewer service to a much larger area as well as Little Canada, the Commission determined that the City of Little Canada needed only 1.7% of the available capacity within the interceptor. Therefore, the value to Little Canada was further reduced to 1.7% or $1,753. The Commission's policy allows the City to either make a cash payment or be financed through the Commission at a 4% interest rate (see attached exhibit). Also, attached is their Resolution 91 -293 authorizing the Chair and Chief Administrator to execute an agreement with the City to reconvey ownership of the interceptor. Page 28